FreshDirect Market Analysis
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FreshDirect Market Analysis

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Questions and Answers

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?

  • 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?

  • More physical store locations
  • Faster capital raises
  • Lower prices for customers
  • Higher profit margins (correct)

    • What caused profitability issues for FreshDirect in 2010?

    <p>Problems related to a new facility in the Bronx</p> Signup and view all the answers

    In terms of geographical reach, how does FreshDirect's customer base compare to traditional grocers?

    <p>Larger customer base</p> Signup and view all the answers

    What has been a consistent characteristic of FreshDirect's profitability since 2010?

    <p>Consistent profitability</p> Signup and view all the answers

    What strategy did FreshDirect avoid that was common in traditional retail?

    <p>&quot;Slotting fees&quot; for prime shelf space</p> Signup and view all the answers

    "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:

    <p>&quot;Competitive pricing&quot;</p> Signup and view all the answers

    "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?

    <p>&quot;High profitability compared to traditional grocers&quot;</p> Signup and view all the answers

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