Final answer:
The difficulty in implementing Fresh Direct's business model lies in managing complex supply chain logistics for fresh food delivery, which includes precise timing, preservation of perishable goods, and coordination of a delivery fleet, in a competitive market where pricing and customer satisfaction are critical.
Step-by-step explanation:
The implementation of Fresh Direct's business model is considered difficult primarily due to complex supply chain logistics. Unlike traditional retailers or services like L.L. Bean which has a clear model based on mail, telephone, or online orders, Fresh Direct operates in a highly competitive and intricate environment where managing the flow of goods from production to the consumer's door is a monumental task. Companies such as Amazon have paved the way with efficient production models and cost structures that allow them to offer lower prices, even when including shipping costs. However, Fresh Direct's challenges are more focused on the fresh food delivery segment, which involves precise timing, preserving the quality of perishable goods, and coordinating a fleet of delivery vehicles which is more complex than non-perishable goods distribution.
This is further complicated by factors outlined in section D.3, page 397, which reference the difficulties in electric drive transportation, a growing consideration for modern supply chains. Additionally, to compete with giants like Amazon, small firms must make strategic decisions about what to sell, at what output, and price, balancing a limited product range with market demands. Therefore, Fresh Direct has to navigate these complexities while ensuring customer satisfaction and maintaining competitive pricing.