Food Delivery Service: Swot Analysis of Foodpanda Brand

Successful businesses are fundamentally built upon a sequence of pivotal decisions, underlining the significance of astute situational analysis and strategic responses (Fallon, 2018). Amid the quest to evaluate the landscape, one tool emerges as indispensable - the SWOT analysis (Fallon, 2018). SWOT, an acronym for Strengths, Weaknesses, Opportunities, and Threats, furnishes organizations with a structured approach to charting their path forward (Contributor, 2015). It forms the bedrock of strategic planning, enabling businesses to surmount challenges and chart new trajectories (Fallon, 2018). A cornerstone of this analysis is the establishment of organizational stability (Contributor, 2015), rendering it an invaluable asset for enterprises in comprehending their objectives, goals, and aspirations (Contributor, 2015). In a competitive landscape, a SWOT analysis also becomes a powerful tool for assessing rivals, as exemplified in the case of Foodpanda's exploration of their competitive environment (Rajan, 2016). The comprehensive analysis in this essay encompasses both internal (strengths and weaknesses within the company) and external (opportunities and threats within the company) facets faced by this food delivery service.

SWOT Analysis

Strengths

Foodpanda commands a global brand presence, casting a wide-reaching shadow in the international food delivery arena (Faridi, 2017). Distinguished by its user-friendly interface and an extensive menu selection, Foodpanda offers an appealing and easy-to-navigate platform, with a visually attractive design (Faridi, 2017). By bridging the gap between consumers and diverse food vendors, Foodpanda has emerged as a pivotal player in enhancing accessibility and convenience (Faridi, 2017). The platform's commitment to facilitating user-friendly experiences extends to features such as 24-hour mobile applications and websites, allowing customers to effortlessly place orders, make bookings, and complete transactions online (Faridi, 2017). Moreover, Foodpanda's commitment to customer engagement shines through its provision for reviews and comments, further strengthening its appeal (Foodpanda, n.d.). The company additionally offers categorized ordering options by cuisine type and course selection, delivering a tailored experience to its users (Foodpanda, n.d.). Supported by its impressive global market success, the Foodpanda brand resonates strongly (Foodpanda, n.d.).

Foodpanda's workforce boasts proficient delivery personnel, a strategic move that ensures orders reach customers efficiently without compromise (Rajan, 2016). Their extensive knowledge of localities ensures that food remains hot upon delivery, contributing to a consistently satisfying customer experience (Rajan, 2016). Prioritizing driving proficiency and professionalism in their delivery drivers, Foodpanda sets a high standard (Rajan, 2016). Furthermore, a meticulous performance tracking system through a dedicated application incentivizes delivery drivers to excel by rewarding positive feedback with increased orders (Pang, 2017). Complementing this is a dedicated accounting team adept at managing large-scale customer orders, a testament to Foodpanda's commitment to delivering even in the face of complexity (Pang, 2017). Handling, on average, a staggering 100 orders per customer, their ability to cater to diverse and intricate customer needs sets them apart (Pang, 2017).

In terms of restaurant coverage, Foodpanda's reach extends to 23 countries and over 500 cities worldwide, positioning them as an unrivaled global food delivery service (Reuters, 2015). Leveraging this extensive network, Foodpanda offers a diverse array of culinary choices, transcending the confines of individual restaurants (Foodpanda, 2018). This strategic approach allows them to capitalize on a wide spectrum of food preferences while also accommodating traditional restaurant offerings (Foodpanda, 2018). In doing so, Foodpanda secures a sizable market share and reinforces its dominant competitive position in the industry.

Weaknesses

Foodpanda faces competition from similar applications, constraining its growth opportunities (Davison, 2013). Its service is restricted to specific regions within Malaysia (Davison, 2013). The platform incurs costly and slow deliveries, especially when customers choose "cash on delivery" as their payment method, requiring precise and often time-consuming transactions (Davison, 2013). The estimated delivery time of 46-60 minutes may not always be met due to the need for order confirmation between restaurants and customers, occasionally resulting in deliveries taking up to 1.5 hours (Davison, 2013). Additionally, Foodpanda's menu selections can be unclear, with instances where customers struggle to find simple items like plain white rice at certain restaurants (Davison, 2013). This lack of menu clarity occasionally necessitates direct communication with the restaurant to clarify discrepancies between menu offerings and actual dishes (Davison, 2013).

Another vulnerability of Foodpanda is its limited service availability, restricted to restaurants within specified delivery areas (Anon, 2016). This limited coverage extends to a total of 500 cities worldwide (Anon, 2016). Customers residing in areas not serviced by Foodpanda may encounter difficulties in placing orders (Anon, 2016). Furthermore, the threshold for free delivery occasionally requires higher spending, potentially deterring single diners (Anon, 2016). Despite its global presence, Foodpanda has yet to achieve full city-wide coverage in some areas (Anon, 2016).

Opportunities

Foodpanda possesses ample opportunities for expansion, both within Malaysia and globally (Anon, 2016). The company can enhance its delivery service by optimizing delivery times (Anon, 2016). To ensure the quality and freshness of deliveries, Foodpanda should establish robust food distribution networks equipped to minimize logistical errors and prevent undue delays (Anon, 2016). In instances where deliveries face delays, proactive communication with customers regarding the reasons behind the delay becomes paramount (Anon, 2016).

Implementing novel methods to expedite order processing and maintain user accessibility presents another avenue for growth (EQ Taxi, 2017). This involves streamlining the delivery process, enabling restaurants to focus on their core operations, thus saving time and resources (EQ Taxi, 2017). Reduced delivery times translate to cost savings, improved customer satisfaction, and heightened customer loyalty (EQ Taxi, 2017). In fact, over 70 percent of a restaurant's business is generated from repeat customers, and a well-functioning delivery network enhances the likelihood of reorders (EQ Taxi, 2017). Foodpanda's comprehensive app capabilities for tracking food delivery expenses offer restaurants an added advantage (EQ Taxi, 2017).

Furthermore, Foodpanda can explore emerging markets worldwide to capitalize on growth opportunities (Wheeler, 2016). Initiatives such as the acquisition of Delivery Club in Russia marked a strategic move, although the company later decided to exit the Russian market to bolster operations in 20 core markets across eastern Europe, Asia, and the Middle East (Wheeler, 2016). Notwithstanding its success, Foodpanda faces mounting competition from industry rivals like Deliveroo, Uber Eats, and Amazon Restaurants, with Uber Eats leveraging its existing transportation network for a competitive edge (Wheeler, 2016).

The proliferation of mobile app usage for online food ordering, driven by discounts and loyalty programs, presents a significant opportunity for Foodpanda (International Advertising Bureau data). Approximately 69% of individuals utilize mobile apps to order food online, with pizza and Chinese food ranking as the top choices among consumers (International Advertising Bureau data). Discounts and loyalty points are proven motivators for customers, enhancing their willingness to place orders (International Advertising Bureau data).

Threats

In recent years, Foodpanda has faced an escalating level of competition, posing a gradual threat to its market position. It contends with various existing and similar rivals, including industry giants like Domino's Pizza, McDonald's, and Pizza Hut, as well as emerging players like Deliveroo and UberEats (Anon, 2018). Deliveroo, established in 2013 and headquartered in London, is dedicated to delivering high-end cuisine and has intentionally refrained from collaborating with lower-tier restaurants, committing to deliver orders within an impressive 32-minute timeframe (Anon, 2018). Deliveroo's service currently spans more than 50 cities across 12 countries and boasts partnerships with over $5,000 restaurants (Anon, 2018). UberEats, introduced as a pilot by Uber in 2014, capitalizes on its vast global network of millions of Uber drivers. In cities where UberEats operates, these drivers are not only responsible for transporting passengers but also facilitating food deliveries, posing a significant competitive challenge to Foodpanda (Anon, 2018).

Additionally, Foodpanda faces the overarching threat of an expanding global obesity epidemic, which can impact customer behavior and preferences in the food delivery industry. Neglected potential competitors could also emerge as formidable challengers over time (Anon, 2018).

Conclusion

In conclusion, the SWOT analysis provides valuable insights into Foodpanda's strengths, weaknesses, opportunities, and threats. Key to the SWOT analysis is the establishment of a resilient and adaptable organizational structure (Fallon, 2018). This analytical framework holds significance for businesses of all kinds, aiding in clarifying their objectives and aspirations (Fallon, 2018). By scrutinizing Foodpanda's strengths, we recognize it as an international brand that efficiently caters to people's dining needs, particularly during busy periods, saving them considerable time in restaurant and food selection. Moreover, it enables customers to multitask while awaiting their deliveries, making it especially convenient for professionals, such as office workers. As for weaknesses, Foodpanda should continually address the root causes of vulnerabilities and transform them into strengths through ongoing enhancements. For instance, it could explore strategies to manage order surges during adverse weather conditions, avoiding excessive delivery times during rainy days. In terms of opportunities and threats, Foodpanda must remain innovative and adaptable to evolving market dynamics to stay competitive. Failure to do so could expose it to competition from agile startups. By studying competitors' successes and setbacks, Foodpanda can extract valuable lessons and insights to guide its progress and growth in the ever-changing food delivery landscape.

References

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2. Contributor. (2015). SWOT Analysis: Discover New Opportunities, Manage and Eliminate Threats. Harvard Business Review Press.
3. Faridi, U. (2017). Foodpanda: A Leading Global Food Delivery Marketplace. International Journal of Research in Humanities and Social Studies, 4(2), 9-15.
4. Rajan, R. (2016). Foodpanda—A Case Study of a Successful Online Food Delivery Service in Malaysia. International Journal of Humanities, Arts, and Social Sciences, 2(4), 29-39.
5. Reuters. (2015). Foodpanda raises $100 million to fight rivals in food delivery. Reuters. https://www.reuters.com/article/us-foodpanda-fundraising-idUSKCN0SF1WE20151022
6. Davison, E. (2013). What's Wrong With Foodpanda? TechCrunch. https://techcrunch.com/2013/03/13/whats-wrong-with-foodpanda/
7. Anon. (2018). The Swot Analysis of Foodpanda. EduRev. https://edurev.in/studytube/The-Swot-Analysis-of-Foodpanda/e2e9c54d-6186-47ab-a22b-7cb94b9b8da3