9 Questions
What strategy did FreshDirect use to establish and strengthen supplier brands?
Cobranding products with suppliers
How did FreshDirect manage to offer its selection at prices that could undercut the competition by up to 35 percent?
By eliminating slotting fees and co-branding products
What is a key advantage FreshDirect has over traditional grocers in terms of profit margins?
Higher profit margins
What caused profitability issues for FreshDirect in 2010?
Problems related to a new facility in the Bronx
In terms of geographical reach, how does FreshDirect's customer base compare to traditional grocers?
Larger customer base
What has been a consistent characteristic of FreshDirect's profitability since 2010?
Consistent profitability
What strategy did FreshDirect avoid that was common in traditional retail?
"Slotting fees" for prime shelf space
"FreshDirect's big, fresh selection is offered at prices that can undercut the competition by as much as 35 percent" - This statement primarily highlights FreshDirect's focus on:
"Competitive pricing"
"FreshDirect does it all with margins in the range of 20 percent, easily dwarfing the razor-thin 1 percent margins earned by traditional grocers" - What does this statement reveal about FreshDirect's financial performance?
"High profitability compared to traditional grocers"
Explore the unique market conditions that made FreshDirect successful in the New York area. Learn how the company adapted to meet the needs of time-strapped urban customers lacking cars and living in walk-up apartments.
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