Analysis Report - Case Study Example

The total sales of the company in terms of delivering food as well as meal services through online sources accounted for US$ 2, 670, 686 in 2012 (Good Jobs First, 2013). FreshDirect offers 5000 perishable goods that accounted for 75% of sales and 3000 packaged products amounting to 25% of the entire sales. The organization has been encountering a lower margin of net profits which has accounted for only 1to 2% of revenues. FreshDirect with flexibility in information control, automated order fulfillment and reduction in costs in real estate could receive operational margins of 10% as compared to 3 to 4% in traditional markets.

In relation to events, FreshDirect has integrated various components in its system along with making an incorporation of state of the art production centre with expert personnel. Other events include quality management achieved through SAP software which controls the operations of the facility and is used for clean and healthy packaged food products to customers (Good Jobs First, 2013). SWOT Analysis The strengths of Fresh Direct can be underlined as: FreshDirect ascertains extreme high standard with regard to health, safety and cleanliness.

The approach of the organization is quite innovative. It is a reputed brand of online grocery that offers high quality products at lower prices. One of the strengths of FreshDirect is its warehouses which comprise 12 separate zones of temperature ensuring that each food product is kept at optimal temperature. FreshDirect uses SAP software system that controls every aspect of operations (Scribd Inc., 2013). The key weaknesses of FreshDirect entail: FreshDirect sells only perishable products, which is its specialty and it has not put emphasis on non-perishable products.

The organization has only focused on selected zip areas of New York, which can be accounted as their weakness. Another recognized weakness is constant alteration in senior management which is hampering the work efficiency and progress of the organization (Scribd Inc., 2013). The opportunities prevalent to FreshDirect include: There would be an opportunity for FreshDirect to expand its business in national as well as in international level. In the near future, it would be possible for FreshDirect to sell non-perishable goods along with perishable products.

FreshDirect possesses opportunities in terms of ascertaining competitiveness differentiation regarding offering of food products (DemandTec, n.d.). The threats to FreshDirect entail: Whole Foods, Fairway and Trader Joe in Manhattan area are extensively competitive and are creating considerable extent of threats for FreshDirect. Rivalry regarding online grocery segment can be considered as one of the biggest treats for FreshDirect. A significant extent of threat can emerge from competitors of FreshDirect adopting new food technology software that could be detrimental for the organization in executing its operations (Middletonss, 2012).

SWOT Matrix Porter’s Five Forces Model Threat of New Entrants Threat of New Entrants is moderate as such kind of online grocery retail segments are coming up in the industry significantly, however long-term sustainability and success of them are quite uncertain (Dess, Lumpkin, & Eisner, 2012). Bargaining Power of Buyers With reference to buyer power, it can be stated that with online facility, it would be poss