Fresh Direct Case Study Essay

575 Words3 Pages
1. What do you see as the issues the company is facing? While adopting innovative strategies, FreshDirect, the internet grocer, faces many challenges and has to address issues such as customers' perception, environmental concerns, labor questions, and the need to expand its business to other communities. Online shopping changes customers' perception of the traditional supermarket experience and is a major concern for customers who value identifying the freshness of the food when making the purchase. Therefore, FreshDirect should continue to find ways to earn customers' trust and meet customers' demand. Another important factor that affects their business is customers' complaints about FreshDirect adding onto their current environmental…show more content…
Different senior managers would seek to attain different operating strategies that positively affect the relationships with key suppliers as well as create loyal customer relationships. 2. What alternative course of action do you recommend the company pursue to respond to these concerns? 3. What do you see as the consequences of the possible responses by the company to these concerns? Currently, FreshDirect provides amounts of products that geographically satisfy its customers' needs, but for further growth, the company should enter a franchise and expand nationwide. In its new role, FreshDirect will organize, lead, and train personnel of its franchise operations while reducing its involvement in dealing with labor questions. Since FreshDirect’s reputation is unknown to new markets, the convenience of using a social media profile would reinforce customers’ buying habits. Although exploring new markets has its benefits, FreshDirect should address environmental concerns by implementing recycling programs or selling its unused materials to other businesses who would use them in their manufacturing processes as raw materials. Also, FreshDirect should use hybrid trucks for its delivery operations in order to reduce pollution and environmental damage. FreshDirect’s unique business model within the grocery industry will motivate a different pattern of
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