SWIGGY : Food Order and Delivery
Submitted By: Group 4
Aishwarya 19PGDM010
Aman Agarwal 19PGDM013
Arushi Chaturvedi 19PGDM019
Kanishk 19PGDM036
Ruchira 19PGDM053
Shubhika 19PGDM060
BUSINESS STRATEGY
CREATING A COMPETITVE ADVANTAGE
Strong logistics- Innovative technology for Incentives for delivery Innovative
Fast Delivery executives, restaurant partners
Own Fleet of stronger logistics Marketing
Delivery boys and customers($18-20 million) Campaigns
Large sales force to get Launch of POP, Swiggy Daily, Swiggy
No minimum Order Great customer service and
popular restaurants on Super
experience
board
Corporate Strategy – Which businesses to invest and expand?
Strategies Employed Venturing into different businesses
• Mission statement- To offer unparalleled • 500+ cities, 1.4 lakh restaurants, 2.1 Lakh delivery Partners
convenience.
• Running 10 pilots in different locations across the country
• Portfolio-Every initiative/offering is customer
focussed. • Swiggy Go- instant pick up and drop off service
• Proposed expansion into European markets, and the • Swiggy Access- Cloud kitchens business, $24.5 million
middle east. invested
• Acquisition of other start-ups for expansion- acquired • Corporate catering vertical in Bengaluru on experimental
Scootsy for Rs. 50 Cr.
basis.
• Organisational setup- top down approach to
reinforce values • Swiggy Café - Allows corporate employees to pick orders
• Allocation of resources- right balance between • Swiggy Stores- Hyper local stores, on-demand delivery
maintaining productivity while keeping the cost low service to deliver everyday needs. E.g. Groceries,medicine
• Strategic tradeoffs – Focussed on few chosen
• Private brands - The Bowl Co and Homely
important projects and made them successful rather
than venturing into multiple projects. A Big bet • Swiggy Express- Food delivered in 15-20 minutes
initiative. E.g. Swiggy POP
Industry Analysis : Indian Food
Delivery Industry
• The current big four of the food delivery industry- FoodPanda, Zomato, UberEats, Swiggy
• High cost of customer acquisition combined with low switching cost makes this an industry with high cash burn rate
• Product Segmentation and innovation in terms of backward integration (i.e setting up kitchens to cater to their customers tastes and
preferences) – Key Differentiator
• Cab Aggregators’ horizontal integration vs Food Aggregators
• FoodPanda
• Supply Chain Advantage
• Acquired by Ola
• Vast network of driver partners
• Doesn’t have the same brand recall and restaurant and serviceable area coverage as Swiggy and Zomato
• UberEats
• has massive brand recall due to it being an offshoot of Uber
Monthly Orders in Food • doesn’t have the same restaurant coverage that Swiggy and Zomato have
Delivery Industry • Zomato
• distinct advantage of being the “Google of food”
• lacks in scale and last mile delivery.
• Swiggy also faces the same issues as Zomato
• They don’t own the entire fleet and have some part of it contracted to third party logistics
Porters Five Forces
Suppliers : Medium
The Restaurants have to trust the aggregator with regular commmsions. Their demands have too be met b the aggregator
Customers: High
Customers is the most important of all forces
SWIGGY (Avg Order Price Rs.380)
Customer satisfaction is difficult as there is lot of options available in the market, coming up with better solutions everyday
ZOMATO (Avg Order Price Rs.416) Threat of New Entrants :High
Since this a new industry and there is very lo switching cost – ideal for Start ups
FOODPANDA Threat of Substitutes : Low
UBEREATS Competitive Rivalry : High
STRENGHTS WEAKNESS
• Operates in 100 cities in India • Delivery charge for all orders below Rs
• It is associated with 250 unlike competitors like Zomato
which offer free delivery on all orders
quick delivery
a wide range of restaurants
well-trained delivery executives
THREATS
• The irregularities and constant change in
SWOT Analysis
Indian laws and government regulations
present a threat to startup companies
like Swiggy
• India is becoming increasingly Health
conscious . The top priority of food is
shifting from price to cleanliness and
OPPORTUNITIES freshness
• The food delivery market is a relatively new • This is a potential threat to all food
market in India which lacks a leader delivery and serving companies if they
• It is a fast-growing market fail to meet or maintain improved health
standards
Key Activities
• For fast Delivery and strong logistics- Swiggy has a fleet of trained delivery
boys.
• Using New technologies- Online interface allows restaurants to add or
remove from menu.
• Once Order is placed- Delivery boy in the vicinity of the restaurant and the
customer.
• Convenience to customer- Allows customer to see the exact location of the
food.
• 24/7 customer service facilities available for customer to resolve queries.
• There is no minimum order policy.
• Swiggy charges a commission from the restaurants and a delivery fee from
customers.
• Swiggy follows a transaction fee revenue model- 20-22% revenue comes
from outlets.
Key Resources
Restaurants Delivery Boys Technology
Collaboration with Own fleet of trained delivery Customers and
several restaurants boys Restaurants friendly
interfaced app
Hi-tech delivery boys (competitive advantage)
• Own fleet of delivery boys who are equipped with smartphones and
the Swiggy app
• It does not have a minimum order policy
• Swiggy average delivery time is close to 37 minutes and this is what
makes it stand apart
• Swiggy Express, a new initiative, is in the pilot stage currently aims to
deliver food within 15-20 minutes
• Expansion in many more new cities
Recommendations
• Swiggy can start their own cloud kitchen
• This will help the company to integrate their operations
• Increased bottom line, since they will deliver their own food items.
• Videos to increase engagement on the app
• After the order is been placed the customers will have the option to watch
videos and earn discount coupons.
Key Takeaways
1. In a highly competitive market such as Food Delivery, formulation of
a sound, long-term business and corporate strategy is necessary.
• Has to be highly innovative eg. Swiggy SUPER and Zomato Gold
• Dynamic and adaptable
• Cater to several stakeholders
• Trade-off between price & quality
2. Despite market volatility, Swiggy has sustained:
• Sharp focus on logistics and technology (competitive advantage)
• Catching trends
• Resilient team (despite the fall of Bundl – their first venture)