Podcast
Questions and Answers
What strategy did FreshDirect use to establish and strengthen supplier brands?
What strategy did FreshDirect use to establish and strengthen supplier brands?
- Paying partners in months rather than days
- Cobranding products with suppliers (correct)
- Offering slotting fees to suppliers
- Sharing data only with competitors
How did FreshDirect manage to offer its selection at prices that could undercut the competition by up to 35 percent?
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 (correct)
- By keeping margins low
- By charging exorbitant slotting fees to suppliers
- By having physical stores for customer convenience
What is a key advantage FreshDirect has over traditional grocers in terms of profit margins?
What is a key advantage FreshDirect has over traditional grocers in terms of profit margins?
- More physical store locations
- Faster capital raises
- Lower prices for customers
- Higher profit margins (correct)
What caused profitability issues for FreshDirect in 2010?
What caused profitability issues for FreshDirect in 2010?
In terms of geographical reach, how does FreshDirect's customer base compare to traditional grocers?
In terms of geographical reach, how does FreshDirect's customer base compare to traditional grocers?
What has been a consistent characteristic of FreshDirect's profitability since 2010?
What has been a consistent characteristic of FreshDirect's profitability since 2010?
What strategy did FreshDirect avoid that was common in traditional retail?
What strategy did FreshDirect avoid that was common in traditional retail?
"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:
"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:
"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?
"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?
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