ABOUT THE COMPANY Blue Apron is a New York based online food and cooking company offering meal kit delivery service. It offers boxed meal services, by which they offer users a "meal kit," which includes all needed ingredients for a meal, as well as detailed instructions on how to cook it, delivered straight to their door. Blue Apron was founded in 2012 by Matthew Wadiak along with Matt Salzberg, a Harvard M.B.A. with venture capital experience, and Ilia Papas, an engineer and former consultant, with their packaging and distribution facility based out of Richmond, California. Blue Apron curates meal kits, boxes of ingredients and instructions for cooking exactly three dinners a week. They are sold on a subscription basis for two or four Americans spend $1 trillion each year on food, about $400 billion of that on dinner, but they’re not spending as much time as they used to cooking the food themselves. Less than 60% of dinners eaten at home are cooked there, according to a recent study by market research firm NPD Group, down from 71% in 1985 Gain Creators They provide people with a really easy, at home, experience so they can learn how to cook, learn about different ingredients and ultimately get dinner on the table. The Blue Apron supply chain model is better than ones that have existed before – it’s more convenient, you get fresher food at better prices compared to a grocery store [Blue Apron is on average 60 per cent cheaper]. You save time and it’s more fun Their mission is to make home cooking accessible and to help people be successful in the kitchen however they can. So there’s another element to the ingredients and recipes they send out: do you have the best tools, the right sized pots, the best chef’s knives et cetera? They want to help the customers create the best foods from their recipes. So it’s all part of the overall experience VALUE CAPTURE : PORTER’S FIVE FORCE So the buyers just have to pay what Blue Apron demands as they offer the best in their industry, offer quality ingredients at affordable rates. Bargaining Power of Supplier The bargaining power of suppliers is low as though the local farms offering the fresh produce are limited for each ingredient in each area but the demand for their produce is not that high as there are still only limited players in the industry. Also as the menu is different every week so there is not steady demand for any one ingredient. Further, they already know the quantity they need for the coming weeks so the orders for each individual ingredient though larger than an individual persons order are not of a very grand scale. Threat of Substitute Products and Services There is a high threat from substitutes as there are restaurants offering global cosines around every corner in every city now. More and more home delivery sites like GrubHub, JustEat and Delivery Hero give people the option to have food delivered form their favorite local restaurants, at a certain charge, to their
Keith adds value is by providing break bulk and re-packaging services. If this service was not provided, many customers would not be able to buy their products direct from the manufacturers due to the minimum order quantities required for delivery. Most restaurants also must order weekly due to limited storage space, and because most foods are perishable and have a short shelf life. Ben E. Keith has 492,000 square feet of warehouse and freezer space and turns inventory quickly, so they can assume the responsibility of having what the customer needs at short notice. This eliminates the customer having to order in large quantities and deal with the concern of food expiring before it can be
Such factors may include threat of new entrants, power of suppliers, power of buyers, product substitution, and the intensity of rivalry among competitors (Hitt, Ireland, & Hoskisson, 2013). Since Chipotle was opened in 1990, they have already become a well-established company within the industry. In order for Chipotle to continue having a competitive edge in the market, they must heavily compete with companies or restaurants such as Qdoba that offer a wider variety of menu options for lower prices. Chipotle directly works with suppliers, usually in local areas, to permit more competitive prices to buy their products. Since Chipotle focuses so greatly on product quality, the supplier’s power plays an enormous role in Chipotle’s ability to obtain their raw
132). With the production of food at such a large scale, the issue of uniformity is called into question. The industry revolves around making food so it is easier to produce. The uniformly and scale of farming can enable a person with the intent to do harm to affect a large percent of food in a small attack (Pehanich 2006). With this attack and having uniformly in food making at one place it can put a person out of business since all they produce is affect from the attack. With farms owned by a corporation, like Tyson, food can easily follow this since the company makes money by having a simple and uniform practice. This problem is only going to increase as the years go
As discussed earlier, Baldwin products are priced with the competition in mind. Management is not concerned with setting high prices to signal unattainable cutting edge products, nor is it pursuing to achieve the goals of matching low prices by selling higher quantities of products. In lieu, value pricing is practiced so that our customers feel comfortable purchasing our products and so they feel comfortable coming back.
The menu really gets the attention of its target market since the ingredients of the food are included in the menu. The name of each dish is very interesting. Aside from that the menu also offers a variety of food they can choose from which is an advantage to the customers. Furthermore, the menu also includes the actual photo of the food, which gives the buyer a view of what they about to
Availability of online ordering facility presents the franchise with a competitive edge over its rivals.
Also, since the Trader Joe’s buyer purchase a large of quantity in each of SKU’s at a very low price because the buyer can directly purchase from the manufacturers instead of work
wonderful quick meal right in front of you. They show you hands on how to prepare and cook
In General, demand, supply and price are the major components of the economy in both competitive and non-competitive markets. Exchanging goods is occurring everyday and everywhere in the world so in order to maximise profit and the use of resources, companies have to know approximately the quantity of goods that customers require. This short essay will discuss the market mechanism in general and particular in food market in the United Kingdom.
Eating out is not always a convenient option, or even the best option. Cooking at home
Blue Apron is an American company that delivers meal kits to its customers. It is one of the most successful meal kits delivering company in the food industry. The company targets people who are busy and have no time to shop groceries. The company provides meal kits that has all the fresh ingredients including salt and oil to cook from the scratch. The meal also includes clear instructions to cook the meal. The company offers subscription-based service. The delivery is on a weekly basis. Customers can choose the meal kit from the list displayed for that week on the website. The customers can opt for either individual or a family plan. Customers can also cancel the subscription anytime.
People think that the price of fast food is cheaper than a home-cooked meal. Although many people like to eat fast food because of it is inexpensive and tasty, the actual price of the fast food is not exactly same like the menu. The price of fast food sounds affordable, but actually it is quite expensive. This is because people are influenced by the fast food restaurant’s advertisement. It illustrates the price of a set of fast food is affordable compared to cooking at home. When people go to the fast food outlet, they realize the price at the bill is not as same as the advertisement stated. The price is even higher than the price stated at the advertisement. Although the fast food advertisement provides the information that the price of fast food is low, the price in the advertisement does not include the tax and tips. On the other hand, cooking at home is much cheaper than eating fast food. It is always affordable, healthier and more emotional fulfillment when eating at home and cooking ingredients compare to eating out (Warner, 2015). The people only need to buy the ingredients and cook it by our own.It is always affordable because people only need to pay ingredients and cook it at home. There are no tax and extra tips! If people prepare their food in large quantities at home, it is more economical than buy several sets of fast food. According to Yeager (2010), “A family that commits to eating at home can save $3000 in one year and eat just as well,” (p. 52). Save and
When families eat at home they know everything that has been added in their meal and know the cleanliness of their own kitchen. Moreover, they know if the food was washed and cooked well. At home they know that the cook has washed his/her hands. Also at home they know their hygiene.
Lack of seasonal variation – McDonalds offers the same menu 365 days a year. During the hot summers, consumers may want something that fits to the climate. While they do have ice cream and frozen drinks, there is a lack of variation. An introduction to items that are only available for different seasons could force a change.