Unit II

Planning
What is Planning?

▪ Planning is deciding in advance what to do and how to

do. Its the primary function of management and it is
continuous.

▪ ‘Planning seeks to bridge the gap between where we

are and where we want to go. Planning is a trap to
capture the future’.
– Koontz.
Features of Planning

▪ Planning focusses on achieving objectives

▪ Planning is the primary function of management
▪ Planning involves choice and decision making
▪ Planning is continuous
▪ Planning is a mental exercise
▪ Planning is pervasive or inescapable.
Importance of Planning

▪ Planning provides directions

▪ Planning reduces the risk of uncertainty
▪ Planning facilitates decision making
▪ Planning reduces overlapping and wasteful activities
▪ Planning promotes innovative ideas
▪ Planning establishes standards for controlling
Limitations of Planning

▪ Planning does not works in dynamic environment

▪ Planning is a time consuming process
▪ Planning involves huge cost
▪ Planning creates rigidity
▪ Planning does not guarantee success
▪ Planning reduces creativity
 Steps involved in Planning process
▪ Setting organizational objectives
▪ Developing planning premises
▪ Identifying alternative courses of
action
▪ Evaluating alternative courses
▪ Selecting the best possible
alternative
▪ Implementing the plan
▪ Follow-up action
Types of Plans
Subtitle
Types of Plans

▪ To provide guidelines to the managers for taking

decisions and solving problems, there are various kinds
of plans. These plans are helpful in managing day-to-
day affairs and in regulating the work behaviour of the
subordinates.
▪ These various types of plans are grouped into two
categories that are standing plans and single-use
plans.
Standing Plans

▪ Standing plans are those plan which is used again and

again whenever a particular situation arises.
▪ It is designed to make sure that the internal operations of
an enterprise run smoothly.
▪ These plans are developed once but are designed to be
used over the years. It is generally developed in such a
manner that it can be modified when needed.
▪ These plans are also known as multiple-use plans or
repeated-use plans.
▪ These plans are generally prepared by top-level managers.
Types of Standing Plans

Objectives and Goals

Strategy

Policy

Procedure

Rules

Methods
Objectives and Goals

▪ Goals are the desired set of affairs that an organization

wants to accomplish. Whereas objectives are specific
targets within the general goal to achieve a certain
task.
▪ The process of planning beings with the setting up of
objectives.
▪ The planning stage includes courses of action and
identifies the results that the company desires.
▪ These are usually set up by the top level. All
organizations large or small can identify problems and
establish overall goals for their business, but they need
specific objectives to progress.
Strategy

▪ It refers to a comprehensive (i.e., determining long-

term objectives, adopting a course of action, and
allocation of resources) and an integrated plan, which
indicates the desired future of the organization.
▪ A proper strategy is the blueprint of an organization's
desired destination. It is an elaborate, systematic and
special type of plan, which is formulated to meet the
challenges forwarded by the competitors or other
external factors, such as changes in the economic,
political, social, legal, and technological environment. It
involves preparing itself for meeting unforeseen factors.
 Policy

▪ The policy is a general statement that guides thinking or

channelizing energy towards a particular direction.
▪ It also defines boundaries within which the decision can
be made. It is a parameter within which managers use
their discretion to apply the policy.
▪ There are policies for all levels and departments in the
organization.
 Procedures

▪ A procedure refers to a particular course of action in

order to achieve the desired result. Basically, it is a
series of chronological steps to be taken to perform an
activity.
▪ It simplifies the work by eliminating unnecessary steps
and brings uniformity of action.
▪ Procedures may bring rigidity in the working of all
organizations by specifying the best way of doing it. It
tends to become outdated unless reviewed and revised
at periodic intervals. It provides no room for creative
thinking and at times discourages initiatives.
Rules

▪ Rules are a set of directives or statements to do or not

to do certain things, to behave or not to behave in a
particular way.
▪ Every organization aims to operate in an orderly manner
to regulate and control the working behaviour of
employees.
▪ Rules are formed by the organization and these are
enforced to maintain. They are rigid and do not allow
derivations.
▪ The breach of rules usually carries a penalty. It aims to
maintain discipline and thereby helps to improve
efficiency.
Method

▪ Methods are formalized techniques and standard ways of

doing repetitive and routine jobs.
▪ It prescribes the manner of doing the task. They also provide
detailed guidance for day-to-day activities and are helpful in
the use of procedures with minimum expenditure of time,
effort, and money.
▪ The method specifies the manner in which a work can be
performed effectively and efficiently.
▪ It should be stated clearly and in precise terms to improve
organizational efficiency and bring a sense of order to the
workplace. It is a prescribed way in which one step of the
procedure is to be performed. Specified techniques are to be
used in a particular operation.
Single-use Plans

▪ Single-use plans are made to serve a specific objective.

▪ They cease to exist once such an objective is achieved.
They are nonrecurring and the duration of this plan
generally depends upon the type of project.
▪ These plans are short-lived and they have to be
reformulated after every use.
▪ These plans include programme and budget.
 Programme

▪ Programmes are comprehensive plans designed to

implement the policies and accomplish the objective by
combining goals, task assignments, policies, resources,
etc.
▪ They are usually single-use plans indicating the steps
to be taken, resources to be used, and the period for
completion of the task.
▪ It gives a step-by-step approach to guide the action
necessary to reach a pre-determined goal.
Budget

▪ A budget is a statement of expected results that are

expressed in numerical terms for a definite period.
▪ It is a single-use plan expressed in quantitative terms. It
is a projection of anticipated cost results and the
allocation of resources.
▪ On one hand, it is an instrument of planning, as it helps
to make the plans clear, on the other hand, it is an
instrument of control, as it serves as a standard for
evaluating performance.
▪ It is prepared for one year.
Qualities of a Good Plan

▪ Firstly, it should have a defined objective, i.e., the ultimate goal that the
organization wants to achieve.
▪ A plan should be simple, which can be understood by each and every member,
and does not create problems in understanding for anyone in the team.
▪ A plan should be comprehensive in nature. It should contain all the necessary
elements to attain the organizational goal.
▪ A plan should be flexible enough so that it can be adjusted according to the
changes without any delay. It should meet the various future challenges.
▪ A plan should be economical. This means when a plan is made, it should be kept
in mind that it should require the least operating costs.
▪ A good plan should set the standards to be achieved. As it is required in the
planning process to compare the actual performance with the standards that had
been set.
▪ A plan should maintain a balance between all the departments of the
organization.
Strategic Management
What is Strategy?

Using your
Knowing where Choosing the strengths wisely
you want to go best path to get while dealing
(the goal). there (the plan). with challenges
(the method).
Strategic Management: Concept
▪ Strategic Management is like making a long-term game plan
for an organization.
Imagine you are the captain of a ship:
▪ First, you decide where you want to go (the goal or vision).
▪ Then, you check the map and weather (analyze the
environment and competition).
▪ Next, you choose the best route (formulate strategies).
▪ While sailing, you adjust the sails if the wind changes
(implement and adapt strategies).
▪ Finally, you see if you are on track and make corrections if
needed (evaluate results).
 Making
adjustments
Choosing the
Setting long-term along the way so
best way to
goals the organization
achieve them
can succeed in a
changing world.
Apple: Strategic Management in
Action
1. Setting Goals (Vision & Mission)
▪ Apple’s vision is to “make great products that enrich
people’s lives.”
👉 Their goal is not just to sell gadgets but to create a
strong user experience.
2. Analyzing Environment
▪ Apple looks at trends:
▪ People want sleek, easy-to-use devices.
▪ Competitors like Samsung and Google are also innovating.
▪ Customers are willing to pay more for quality and design.
3. Formulating Strategy
▪ Apple’s strategy is differentiation:
▪ Focus on premium design, innovative technology, and brand
loyalty.
▪ Build an ecosystem (iPhone + Mac + iPad + Apple Watch +
AirPods + iCloud).
4. Implementing Strategy
▪ Launching new iPhones every year with better features.
▪ Creating Apple Stores for a unique customer experience.
▪ Using marketing campaigns like “Think Different.”
5. Evaluating & Adapting
▪ They track sales, customer satisfaction, and competitor
moves.
▪ For example, when people wanted bigger phones, Apple
launched the iPhone Plus and Max models.
▪ When privacy became a concern, Apple made data
protection a selling point.
Point of Difference Management Strategic Management

Managing day-to-day operations to ensure Making long-term plans and decisions to

Meaning
things run smoothly. achieve future goals.

Short-term efficiency (e.g., completing tasks Long-term direction (e.g., deciding where
Focus
on time). the company should go in 5–10 years).

Time Frame Immediate or short-term (weeks, months). Long-term (years, decades).

Deals with routine functions like planning,

Deals with vision, mission, strategies, and
Scope organizing, staffing, directing, and
adapting to changes in the environment.
controlling.

Proactive – anticipates changes and

Approach Reactive – solves problems as they come.
prepares in advance.

Apple’s leaders deciding to invest in

A store manager ensuring enough employees
Example wearable tech (Apple Watch) as the next
are scheduled for the week.
big product line.
Features/Nature of Strategic
Management

▪ Long-term perspective: Strategic management is concerned

with accomplishing long-term goals that are consistent with the
mission and vision of an organization. Making decisions that will
affect the organization's future for several years or more is a part
of the process of strategic management.
▪ Unified approach: An organization's internal strengths and
weaknesses, external opportunities and dangers, and the
competitive environment are all taken into account by a strategic
management method, which is an integrated approach.
▪ Continuous process: Strategic management requires
continuous monitoring and evaluation. It includes periodic
strategy evaluation and revision in response to developments in
the internal and external environment.
▪ Holistic perspective: A holistic approach to strategic
management acknowledges that an organization is a
complex system of interconnected sections. It refers to
taking into account how several functional areas,
including marketing, finance, and operations, are
interdependent and formulating plans that represent
these areas.
▪ Risk management: To implement strategies, risks, and
uncertainties must be managed strategically. It involves
finding possible threats, determining their probability
and impact, and creating backup strategies that reduce
them.
Types of Strategies
Corporate Strategy

Business Strategy

Functional Strategy

Pricing Strategy

Operational Strategy
Corporate Strategy

▪ Corporate Strategy is a high-level plan formulated by a

company's top management to direct and guide the
organization's overall direction.
▪ It encompasses decisions related to the overall scope
and direction of the company, including which markets
to enter or exit, resource allocation, and the pursuit of
growth through various means such as mergers,
acquisitions, or partnerships.
▪ The goal of corporate strategy is to achieve sustainable
competitive advantage and long-term profitability.
Features

▪ Broad Scope: Corporate Strategy encompasses the entire

organization, including all its business units and functions.
It addresses high-level decisions that impact the overall
direction and long-term success of the company.
▪ Resource Allocation: It involves strategic decisions about
how to distribute resources (such as capital, personnel, and
technology) across various parts of the organization to
maximize efficiency and effectiveness.
▪ Synergy Creation: Corporate Strategy aims to create
synergies by leveraging the strengths and capabilities of
different business units, leading to greater overall value
than if the units operated independently.
Advantages

▪ Clear Direction: A well-defined corporate strategy

provides a clear direction for the entire organization,
aligning all business units and employees with the same
long-term goals and objectives.
▪ Competitive Advantage: By carefully analyzing the
competitive environment and making strategic
decisions, an organization can achieve and sustain a
competitive advantage in its markets.
▪ Optimal Resource Use: Effective corporate strategy
ensures that resources are allocated efficiently,
reducing waste and improving the overall performance
and profitability of the organization.
Disadvantages

▪ Complexity: Developing and implementing a corporate

strategy can be highly complex, requiring extensive
analysis and coordination across multiple business units
and functions.
▪ Risk of Misalignment: If not communicated and
executed properly, there is a risk that the corporate
strategy may not be aligned with the day-to-day
operations and goals of individual business units,
leading to inefficiencies and conflicts.
▪ Inflexibility: A rigid corporate strategy may limit an
organization's ability to respond quickly to changes in
the market or competitive landscape, potentially leading
to missed opportunities or threats.
Business Strategy

▪ Business Strategy refers to a company's plan for

achieving its long-term goals and sustaining competitive
advantage.
▪ It encompasses the decisions and actions that guide the
overall direction of the business, including how it will
compete in the market, satisfy customer needs, and
achieve financial and operational objectives.
Features

▪ Long-Term Focus: Business Strategy is oriented

towards achieving goals over an extended period,
typically spanning several years, rather than focusing
solely on short-term gains.
▪ Alignment with Goals: It involves aligning every
aspect of the business, including operations, marketing,
and finance, with the overarching goals and objectives
of the company.
▪ Adaptability: A good business strategy is flexible and
adaptable, allowing for adjustments in response to
changes in the market, technology, or other external
factors.
Advantages

▪ Competitive Advantage: A well-defined business

strategy can help a company gain a competitive edge
by leveraging its strengths and exploiting opportunities
in the market.
▪ Resource Optimization: By prioritizing initiatives and
allocating resources effectively, a business strategy
enables companies to maximize their return on
investment and minimize waste.
▪ Risk Management: Business Strategy involves careful
analysis of risks and uncertainties, allowing companies
to anticipate potential challenges and develop
contingency plans to mitigate them.
Disadvantages

▪ Complexity: Developing and implementing a

comprehensive business strategy can be complex and
time-consuming, requiring input from various
stakeholders and extensive planning.
▪ Uncertainty: Despite careful planning, business
strategies are subject to uncertainties in the market,
technology, and regulatory environment, which can
impact their effectiveness.
▪ Resistance to Change: Employees and stakeholders
may resist changes associated with a new business
strategy, leading to implementation challenges and
delays.
Functional Strategy

▪ A functional strategy refers to the detailed, action-

oriented plans developed by various functional areas
within an organization, such as marketing, finance,
human resources, and operations.
▪ These strategies are designed to support and achieve
the overall business strategy and corporate objectives.
Features

▪ Alignment with Business Goals: Functional

Strategies are designed to support and contribute to the
achievement of the organization's broader objectives.
▪ Specialization: Each functional area develops its own
strategies tailored to its unique requirements and
challenges.
▪ Coordination: Functional Strategies must be
coordinated across different departments to ensure
coherence and synergy in overall organizational
performance.
Advantages

▪ Efficiency: By focusing on specific areas, functional

strategies enable organizations to allocate resources
effectively and streamline operations for better
efficiency.
▪ Expertise Utilization: Functional Strategies allow
organizations to leverage the specialized knowledge
and skills of employees within each department, leading
to optimized performance.
▪ Flexibility: With separate strategies for different
functions, organizations can adapt more easily to
changes in the business environment or market
conditions.
Disadvantages

▪ Silos and Tunnel Vision: Functional Strategies may

lead to siloed thinking, where departments prioritize
their own goals over the organization's broader
objectives, hindering collaboration and innovation.
▪ Coordination Challenges: Ensuring alignment and
coordination among different functional strategies can
be complex and may result in conflicts or inefficiencies.
▪ Lack of Holistic View: Functional Strategies may
overlook the interconnectedness of different business
functions, potentially leading to suboptimal decision-
making and missed opportunities.
Pricing Strategy

▪ A pricing strategy is a method used by a company to set

the prices for its products or services.
▪ It aims to maximize profits, attract customers, and
maintain a competitive edge in the market.
▪ Pricing Strategies take into account various factors such
as production costs, market demand, competitor
pricing, and perceived value.
Features

▪ Market-Based Pricing: This feature involves setting

prices based on the prevailing market conditions and
competitor prices. It ensures the company remains
competitive while appealing to the target market.
▪ Value Perception: This involves setting prices based on
the perceived value of the product or service to the
customer rather than just the cost of production. It aims
to align the price with the customer's willingness to pay.
▪ Dynamic Pricing: This feature allows for flexible pricing
that can change in response to market demand, inventory
levels, and other factors. It helps maximize revenue by
adjusting prices in real-time or periodically.
Advantages

▪ Maximizes Profits: An effective pricing strategy can

help a company maximize its profits by setting optimal
prices that attract customers while covering costs and
generating a healthy margin.
▪ Competitive Advantage: By carefully setting prices, a
company can gain a competitive edge over its rivals,
attracting more customers and increasing market share.
▪ Customer Satisfaction: A well-designed pricing
strategy can enhance customer satisfaction by offering
perceived value for money, which can lead to increased
loyalty and repeat business.
Disadvantages

▪ Complexity: Developing and maintaining an effective

pricing strategy can be complex and time-consuming,
requiring constant analysis and adjustments based on
market changes.
▪ Risk of Price Wars: Aggressive pricing strategies may
lead to price wars with competitors, which can erode
profit margins and harm the overall market.
▪ Customer Perception: Incorrect pricing can negatively
impact customer perception, with prices that are too
high deterring potential buyers and prices that are too
low suggesting inferior quality.
Operational Strategy

▪ Operational Strategy refers to the plan and actions a

company uses to achieve its business goals and
objectives through the efficient use of resources and
processes.
▪ It involves designing, controlling, and improving the
production and delivery of the company's products or
services.
Features

▪ Resource Allocation: Operational Strategy involves

allocating resources such as labor, technology, and
capital to different departments or projects to maximize
efficiency and productivity.
▪ Process Optimization: It focuses on optimizing
processes to reduce waste, improve quality, and speed
up production. This can include adopting new
technologies or refining existing workflows.
▪ Performance Measurement: It includes setting Key
Performance Indicators (KPIs) and regularly measuring
performance against these metrics to ensure the
company is on track to meet its operational goals.
Advantages

▪ Increased Efficiency: An effective operational strategy

can streamline processes, reduce waste, and lower
costs, leading to higher productivity and profitability.
▪ Improved Quality: By focusing on process
optimization and performance measurement,
companies can enhance the quality of their products or
services, leading to greater customer satisfaction.
▪ Better Resource Utilization: Efficient resource
allocation ensures that all resources are used optimally,
which can reduce unnecessary expenses and improve
overall operational effectiveness.
Disadvantages

▪ High Implementation Costs: Developing and

implementing a comprehensive operational strategy can
require significant investment in technology, training,
and process changes.
▪ Resistance to Change: Employees may resist changes
in processes or technology, leading to potential
disruptions and a decline in morale.
▪ Complexity: Managing and coordinating various
aspects of operational strategy can be complex and
time-consuming, potentially diverting attention from
other important business activities.
Business Environment
Concept

▪ Business environment represents an aggregate of all

conditions, events, and factors that surround and
influence the decision-making capabilities of the
business. Every organization performed under the
influence of external and internal forces.

▪ Internal Environment
▪ External Environment
Features of Business Environment

▪ Business environment is an inherent part of

business. Business requires a good framework of economic,
legal, political, social-cultural factors to perform its work smoothly.
▪ Ø Complexity: Business environment has become extremely
complex as it is governed by internal and external forces. The
external changes are rapid one that is highly unpredictable.
Businesses operating under such complexity required to adapt
changes for seizing opportunities.
▪ Ø Dynamic: Business environment is actively changing and
proactive attention to changes allows business to flourish.
Changing customer preferences, competitor strategies,
technological improvements and operating business in many
countries are the major challenges in today’s business
environment.
▪ Ø Business environment is multi-
dimensional: Environmental changes may not affect
all the business in a similar manner. For some business
change is welcomed as an opportunity while other may
take it as a threat or unfavorable. These changes can
have short-term as well as long-term impact on
productivity and profitability of business.
Importance of Business Environment
Internal Environment

▪ The internal factors are controllable factors, a business can

exercise control over internal factors like company’s objectives
and strategy, financial, physical and human resources etc.
▪ Organization culture
▪ Vision, mission, and objectives
▪ Top management structure
▪ Human resources
▪ Company’s image
Refer to:
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External Environment

▪ External factors include that forces which are beyond the

control of the business and significantly affect every
aspect of a business enterprise like socio-cultural,
demographic, political, economic and global environment.
▪ Customers
▪ Suppliers
▪ Competitors
▪ Market intermediaries
▪ Public
▪ PESTLE
Environmental Appraisal

▪ Every business exists within an environment.

▪ This environment is not just about nature (air, water,
trees), but the surroundings in which a business
operates – customers, competitors, laws, technology,
economy, etc.
▪ To succeed, businesses must study and understand their
environment. This process is called Environmental
Appraisal.
▪ Environmental appraisal is the process of studying and
evaluating both internal and external factors that
influence a business.
▪ It is not a one-time activity but a continuous process, since
the environment keeps changing.
▪ It focuses on:
– Opportunities → favorable situations in the environment that can help
the business (e.g., rise in demand, new markets).
– Threats → unfavorable situations that may harm the business (e.g., new
competitors, changing government policies).

▪ Environmental appraisal is also called Environmental

Scanning or Environmental Analysis in some books.
▪ 👉 Example: A mobile phone company regularly studies trends
in technology, customer preferences, and government import
rules to plan its future products.
Importance of Environmental
Appraisal

▪ Helps in planning
– Plans become more realistic when managers know the
external opportunities and risks.
– For example, if a new law bans single-use plastics, a
packaging company can plan to switch to eco-friendly
alternatives.
▪ Provides early warning
– Changes in environment can affect business suddenly.
– Appraisal works like a radar that alerts managers
about threats in advance (e.g., a new competitor
entering the market).
▪ Identifies opportunities
– Appraisal helps spot areas of growth.
– Example: Rising health awareness → opportunity for organic
food companies.
▪ Helps adaptation
– Businesses can adjust to social, economic, or technological
changes.
– Example: Banks adopting digital banking to match customer
expectations.
▪ Improves decision-making
– Managers can take better decisions when they have clear
information about environment trends.
Process of Environmental Appraisal

Monit Analyz Foreca Asses

Scan
or e st s.
1. Scanning the environment
– Collect broad information about internal and external
factors.
– Example: Study reports, newspapers, government
policies, competitor websites.
2. Monitoring signals
– Keep a close watch on changes that are most relevant
to the business.
– Example: A smartphone company monitoring 5G
technology developments.
3. Analyzing impact
– Study how the changes affect the organization.
– Example: If fuel prices rise, how will it impact a
transport company’s costs?
4. Forecasting trends
– Predict possible future developments using past and
present data.
– Example: Forecast increase in demand for electric
vehicles due to rising fuel costs.
5. Assessing and prioritizing
– Not all factors are equally important. Identify which ones are
critical for the business.
– Example: For a food delivery app, internet penetration is more
important than fuel price fluctuations.
Industry Analysis

▪ Every business works within a particular industry (e.g.,

automobile industry, IT industry, banking industry).
▪ To succeed, managers must study how the industry
functions, who the players are, and what opportunities
and threats exist.
▪ This study is called Industry Analysis.
▪ 👉 In simple words: Industry analysis means examining
the industry to understand competition, demand,
customers, and profitability.
▪ Industry analysis means carefully studying the overall
environment of a particular industry (for example, telecom,
automobile, banking, IT, or FMCG).
▪ The purpose is to understand:
– Market size & growth → How big is the industry? Is it growing or declining?
– Structure of the industry → Who are the major players, and how
concentrated or fragmented is the industry?
– Trends and changes → Are there new technologies, changing customer
preferences, or new regulations?
– Key success factors → What is most important for success in that industry
(e.g., low cost, brand value, innovation, service quality)?

▪ Industry analysis provides a big picture view to managers

before making decisions like launching new products, entering
new markets, or investing in capacity.
▪ 👉 In short: It is like a “health check-up” of the industry to know
whether it is attractive for business or risky.
Importance of Industry Analysis

▪ Understanding Competition
– It helps businesses know who their direct competitors are and
how strong they are.
– Example: In India’s telecom sector, Airtel, Jio, and Vodafone
compete strongly, making survival tough for smaller players.

▪ Identifying Opportunities
– Industry analysis helps find gaps or underserved customer
needs.
– Example: The rising trend of healthy lifestyles created
opportunities for organic food brands and fitness apps.
▪ Risk Awareness and Management
– Every industry has risks—new government policies, substitutes,
or price wars.
– Analysis gives an early warning so businesses can prepare.
– Example: Taxi companies faced risks when app-based cabs (Uber,
Ola) entered the industry.

▪ Better Decision-Making
– Helps in pricing, marketing, investment, and expansion decisions.
– Example: If analysis shows high buyer power, companies may
focus on better quality and service rather than raising prices.
▪ Guides Strategy Formation
– Knowing the industry environment helps managers decide
whether to compete on cost (low price), differentiation
(unique features), or focus (serving a niche market).
– Example: Indigo Airlines in India uses a low-cost strategy, while
Vistara focuses on premium service.

▪ In short: Industry analysis is like a “roadmap” that helps

companies see both the dangers and opportunities
ahead, so they can make smart moves.
Swiggy and Industry Analysis

▪ Swiggy is one of India’s leading food delivery platforms.

Before expanding aggressively, it had to study the food
delivery industry.
▪ Market Size & Growth
– Rapid growth due to rising internet penetration, smartphone
usage, and changing urban lifestyles.
– Increasing demand for convenience food among young
professionals and students.

▪ Competition
– Strong rivalry from Zomato, Uber Eats (before merger), and local
food delivery players.
– High pressure to offer discounts and faster delivery.
▪ Suppliers (Restaurants)
– Restaurants act as suppliers. Initially, they had many options, but
Swiggy built strong partnerships by offering logistics support.

▪ Buyers (Customers)
– Customers have high bargaining power since they can switch
apps easily.
– To retain them, Swiggy introduced features like Swiggy Pop
(single meal option) and heavy discounts.

▪ Threat of Substitutes
– Substitutes include cooking at home, dining out, or even meal
subscription services.
– Swiggy responded by expanding into Swiggy Instamart (grocery
delivery) to diversify.
▪ Key Success Factors
– Fast delivery network, wide restaurant choice, reliable app
interface, and customer service.