SWOT OF ZOMATO AND VISION, MISSION POWER POINT PRESENTATION

This ppt is analysing SWOT of ZOMATO
and there vision and mission.

1. ZOMATO “SWOT” analysis Presenting by Roshan kumar pal

2. Introduction Zomato is an Indian food delivery and restaurant discovery platform founded in July 2008 by Deepinder Goyal and Pankaj Chaddah. Initially, it was launched under “Foodiebay” but later changed to Zomato in 2010. The company has successfully created a one-stop platform that connects millions of foodies with restaurants and vice versa. It provides information on restaurant menus, prices, locations, user reviews, and ratings. It has also diversified its services by offering online ordering and delivery services.

3. Zomato Strengths Below, there are some of the qualities that make Zomato stand out in the global market:

4. Wide reach One of Zomato’s biggest strengths is its wide reach. The company operates in over 24 countries and has a presence in over 10,000 cities. This global presence allows Zomato to tap into a large customer base, making it easier for the company to attract new customers and expand its services. According to the company’s latest annual report, Zomato has 32.1 million active monthly users. The company has made strategic acquisitions and investments in various markets, including the acquisition of Uber Eats India in 2020. Furthermore, its broad reach has made it easier for the company to partner with other companies and brands.

5. Innovative technology The company uses AI-based algorithms to provide personalized recommendations to its customers, making the ordering experience more convenient and enjoyable. Zomato has also invested in developing its mapping technology, which allows the company to track the location of its delivery partners and customers accurately. Moreover, its drone-based delivery system significantly reduces delivery times and costs, improving the customer experience. Its focus on technology has paid off, with the company reporting a considerable increase in revenue in recent years.

6. Strong brand recognition Zomato has built a strong brand image over the years, with its name becoming synonymous with online food delivery as a result of the company’s consistent focus on delivering high-quality services and customer experiences. Successful IPO has further boosted its brand value, which saw its stock price soar by over 80% on the first trading day. Also, it has helped it attract a large customer base and has allowed it to expand its services beyond food delivery to include online ordering, table reservations, and more.

7. Strategic partnerships Zomato has established strategic partnerships with some companies in the food industry, including PepsiCo and KFC. For example, Zomato’s partnership with PepsiCo enables customers to order PepsiCo products alongside their foods. In contrast, its partnership with KFC has enabled the company to deliver KFC’s products directly to customers. It has over 300,000 restaurant partners worldwide. Also, the company also partners with various payment gateways and banks to make it easier for customers to make payments and avail of discounts and cashback offers.

8. Zomato Weaknesses Here are some of Zomato’s weaknesses:

9. Reliance on Discounts Zomato’s heavy reliance on discounts to attract and retain customers can be a weakness, leading to reduced profitability and the perception that the company offers low-quality services. Additionally, customers may become accustomed to the discounts and be less willing to pay the total price in the future. Competitors may offer even deeper discounts, making it difficult for Zomato to compete, leading to a “race to the bottom” where companies compete solely on price rather than quality or service. The discounting strategy can attract customers who are only interested in discounts and are not loyal to the brand, resulting in a customer base that is less likely to engage with the brand beyond the discounts offered,

10. Limited Geographic Reach While Zomato operates in over ten countries, its presence is still limited compared to some of its competitors. This limited geographic reach can make it difficult for the company to compete globally and expand its customer base. It can also reduce economies of scale, making it more difficult for Zomato to achieve profitability in markets with smaller customer bases. Operating in multiple countries can also create additional regulatory and compliance challenges for Zomato, such as navigating local laws and regulations around food safety, data privacy, and labor practices.

11. High Competition Zomato operates in a highly competitive market, with numerous food delivery giants like Swiggy, Uber Eats, and Foodpanda competing for the same customer base. The intense competition can lead to pricing wars, lower margins, and reduced profitability for Zomato. It can also result in increased marketing and advertising costs for Zomato as the company seeks to stand out in a crowded market and focus on short-term gains rather than long-term sustainability, as companies look to gain market share at any cost. High competition can make it difficult for Zomato to differentiate itself from its competitors, leading to a commoditization of the food delivery industry and customers choosing based solely on price or delivery time rather than the quality of the food or the overall customer experience.

12. Zomato faces numerous operational challenges as a food delivery company, such as delivery delays, food quality issues, and logistical problems. These issues can result in negative customer feedback and reduced customer loyalty, ultimately hurting the company’s profitability. Furthermore, these challenges also increase costs for Zomato, as it may need to invest in additional technology, training, or logistics to address the issues. Operational Challenges

13. Dependence on a Single Market Zomato’s reliance on the Indian market is a major weakness. The company generates a significant portion of its revenue from India, making it vulnerable to economic fluctuations and regulatory changes in the market. The Indian market is highly competitive, with numerous players vying for market share. Zomato’s dependence on this market means that it must continuously innovate and adapt to remain competitive, which can be challenging given the intense competition.

14. Zomato Opportunities Despite the successes Zomato has enjoyed, it can achieve more. Below are some opportunities it can take advantage of:

15. Expansion to new market By expanding into new markets, Zomato can increase its customer base, diversify its revenue streams, and reduce its dependence on any single market. The company can also access new cuisines and food cultures, allowing the company to offer wider menu options. Additionally, it can develop partnerships with local restaurants and food delivery companies, further strengthening its network and brand recognition. This way, Zomato can increase its bargaining power with suppliers, helping the company to negotiate better prices and improve its profit margins.

16. Focus on sustainability Zomato can take a more active role in promoting sustainable practices in the food industry. By encouraging its restaurant partners to adopt eco-friendly practices, promoting plant-based and locally sourced foods, and reducing food waste, Zomato can position itself as a socially responsible company that cares about the environment and public health. Also, it can implement eco-friendly measures in its operations. This can include using biodegradable packaging materials, optimizing its logistics network to reduce carbon emissions, and reducing food waste in its kitchens

17. Diversification of services While Zomato is primarily known for its food delivery services, there is an opportunity for the company to diversify its offerings and provide additional value to its customers. This could include offering meal planning and grocery delivery services, or partnering with other companies to offer discounts and promotions to customers. This diversification can also help Zomato to reduce its reliance on food delivery as its primary revenue stream and increase its overall profitability.

18. Embracing technology and innovation As a technology-driven company, Zomato can leverage emerging technologies to improve its services and increase customer satisfaction. This could include using artificial intelligence to personalize customer recommendations or drones for faster and more efficient delivery. Embracing technology and innovation can also help Zomato to stay ahead of the competition by offering cutting-edge services and features that other food delivery companies may not be able to provide. This way, the company can also attract and retain younger, tech-savvy customers who may be more likely to use its services, streamline its operations, and reduce costs, leading to increased profitability and long-term growth.

19. Zomato Threats Below, there are some threats Zomato needs to eliminate:

20. Intense Competition Zomato faces intense competition in the food delivery market from well-established players like Swiggy, Uber Eats, and Foodpanda. The competitive pressure can lead to pricing wars, reduced profitability, and difficulty acquiring and retaining customers. Moreover, the competitors can also mimic Zomato’s business model and services, diluting the company’s differentiation strategy. The competitors can also offer more attractive discounts and promotions, attracting Zomato’s customers and eroding the company’s market share.

21. Regulatory Challenges Zomato is subject to various regulatory requirements, such as food safety regulations, labor laws, and licensing requirements. Any regulation changes could increase compliance costs and affect the company’s ability to operate in certain markets. They can also impact the company’s reputation and brand image if it is non-compliant with regulations. Zomato needs to stay up-to-date with regulatory changes and invest in compliance measures to mitigate the risks associated with regulatory challenges. Moreover, the regulatory environment is subject to political and social pressures, which can be unpredictable and challenging for the company.

22. Changing Consumer Preferences Consumer preferences and tastes constantly evolve, and Zomato needs to adapt to stay relevant.Failure to do so could lead to reduced demand for its services and a decline in market share. With the COVID-19 pandemic, there has been a significant shift towards home-cooked meals, which may impact the demand for food delivery services. The growing trend of plant-based diets and veganism may also affect the company’s offerings, as it needs to cater to these changing preferences to remain competitive. Moreover, consumers are becoming more environmentally conscious and may prefer companies to prioritize sustainability and eco-friendliness in their operations.

23. Geopolitical Risks Zomato operates in multiple countries, which exposes it to geopolitical risks, such as political instability and changes in trade policies. These risks can negatively impact the company’s operations and financial performance. Furthermore, Zomato’s international expansion strategy could be affected by political tensions or economic downturns in specific countries or regions. Trade restrictions, tariffs, and other trade barriers can impact the company’s supply chain and increase costs. The company may also face challenges complying with different regulatory frameworks across its international markets, increasing operational costs.

24. Cybersecurity Risks Zomato collects a significant amount of customer data, including payment information, which makes it vulnerable to cyber-attacks and data breaches. Any security breaches could damage the company’s reputation and lead to legal and financial liabilities. Furthermore, the increasing frequency and sophistication of cyberattacks pose a significant threat to Zomato’s cybersecurity defenses. The company’s reliance on third-party vendors for various services and technologies could increase its exposure to cybersecurity risks. Finally, the increasing adoption of remote work and cloud technologies in response to the COVID-19 pandemic has increased the risk of cyberattacks — therefore, Zomato must take appropriate measures to mitigate this threat.

25. Conclusion Zomato is a leading player in the food delivery and restaurant discovery industry, with a global presence and a strong brand reputation. However, the company faces several challenges and threats, such as intense competition, dependence on a single market, regulatory challenges, and cybersecurity risks. To maintain its competitive edge and sustain its growth, Zomato needs to capitalize on opportunities like expanding into new markets, diversifying its services, leveraging data to improve operations, building strategic partnerships, and embracing technology and innovation.

26. Thank you

27. About ZOMATO Zomato's mission statement is “better food for more people.” Since our inception in 2010, we have grown tremendously, both in scope and scale - and emerged as India's most trusted brand during the pandemic, along with being one of the largest hyperlocal delivery networks in the country. – Linkdin On the other hand, Zomato provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last-mile delivery service.

28. Vision and mission Zomato's mission statement is “better food for more people.” For over a decade now, we've been empowering our customers in discovering new tastes and experiences across countries. By putting together meticulous information for our customers, we enable them to make an informed choice. ––Zomato.Com