Fresh Direct Competitive Strategy

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FreshDirect is an online grocery store who delivers groceries to customers who reside in New York, New Jersey, Pennsylvania, and parts of Connecticut. FreshDirect was launched in July 2001 with a promise to deliver the freshest foods to consumers for the best price. FreshDirect claims that, “their food is fresh and their customers are spoiled.” FreshDirect has been able to charge their customers the best prices by cutting out the middleman and acquiring their goods from local suppliers. The State of New York welcomes FreshDirect with open arms, along with them tax breaks and abatements because of the 300+ permanent full time jobs it has accounted for since their launch. FreshDirect’s CEO Jason Ackerman and partner Joseph Fedele envisioned the entrepreneurial opportunities for an online grocery store and set their sights high with a steady growth plan, the use of off-the-shelf software, automated delivery …show more content…

FreshDirect used many different strategies while penetrating the online grocery industry, more specifically the overall cost leadership and differentiation strategy. According to Dess, McNamara and Eisner (2016), “By holding down costs or making more efficient use of resources than larger competitors, new ventures are often able to offer lower process and still be profitable.” By utilizing the combination of the differentiation and overall cost leadership strategy, FreshDirect was able to successfully infiltrate the market and gain a competitive advantage over its competitors. In order to achieve overall cost leadership, FreshDirect’s goal was to reduce cost as much as possible through eradicating the go-between suppliers

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