TUT 5 CASE STUDY

DELIVEROO’S ROAD
TO SUCCESS

GROUP 5
 member introduction

Hồng Hoa Nguyễn Lan Mai Linh Ánh Hồng

 CONTENT outline
1
Summary of strategic management strategy

2
Summary of Deliveroo case study

3 Solutions to 2 questions
Strategic Management
•Step 1: Identifying the organization’s
current mission, goals, and strategies
–Mission: the firm’s reason for being
•The scope of its products and services

–Goals: Measurable performance

targets

–Strategies: have a basis for assessing

whether they need to be changed.
step2: external analysis

Five force analysis

Rivalry Among Existing Competitors

Threat of Substitute Products or Services
Threat of New Entrants
Bargaining Power of Suppliers
Bargaining Power of Buyers
step3 : internal analysis

assessing organization’s resources

An organizational assets that are used to develop ,

manufacture and deliver products to its customer

assessing organizations capabilities

Its skills are the ability to perform the work activities

required in its business.
how it does its work
the major value-creating capability
•Step 4: Formulating strategies

Levels of Organizational Strategies

 Types of strategy
Corporate strategies
-Growth strategy: +concentration
+Vertical: backward+ forward
+Horizontal
+Diversification: related diversification and unrelated diversification
-Stability strategy
-Renewal strategy: +Retrenchment
+Turnaround

Competitive strategy
-Cost leadership strategy
-Differentiation strategy
-> Business trategies: +Focus-cost strategy: use cost advantage+ nique market
+Focus-differentiation strategy
+Best cost strategy
•Step 5: Implementing
strategies

•Step 6: Evaluating results

-Measure the effectiveness of the
strategies
-What adjustments are
necessary?
summary of case study

What is Deliveroo? Current concerns

--> A multi-billion- -new rules of gig
dollar company econmy
providing delivery -increasingly
services, founded by competitive market
Will Shu in 2013

Deliveroo’s success
-expanded to 84 cities
across 12 countries,
increased revenue
from £18 million in
2016 to £129 million in
2017 .
Question 1
Explain how Deliveroo’s growth from its
inception to becoming a multi-billion-dollar
business illustrates six steps of the strategic
management process.
step1: Identify current
goals and mission

Mission: to provide quick takeaways

2012 service from restaurants
Goals: to solve the problem of lack of
qualified food delivery in London+
superior to JustEat

Mission: to provide qualified delivery

current service
Goals: to maintain its leadership in
European’s market
 Step 2: External analysis
FACTORS START DAYS CURRENT

ECONOMIC (USE OF -O: affordable+large workforces of couriers

GIG ECONOMY) -T: argue welfare
PESTEL
2007: -T: smartphones and -O: technology
TECHNOLOGICAL apps were new advancements (better
(USE OF APPS) 2012:-O: smartphones app, expanded reach to
became common customers)

SOCIAL (TREND
T: Threat -O: people increasingly have demand for time-saving
TOWARDS
O: Opportunity services
CONVENIENCE)
Gig economy:a labor
market characterized by
short-term, freelance, or LEGAL
contract work, often (DEPENDENCY OF -T: strictly obey the policies of gig economy, thus
facilitated by digital LAW OF GIG vulnerable to changes
platforms. ECONOMY)
 Step 2: External analysis
FORCES START DAYS CURRENT

THREAT OF NEW -O: low (hard to enter the -T: high (easier to enter the
ENTRANTS market) market- highly competitive)

THREAT OF -T: high (substitutes like grocery

-O: low (no similar services)
SUBSTITUTES deliveries, home cooking apps,..)

5 forces BARGAINING POWER -O:low (customers have few -T: high (customers have many
anaysis OF BUYERS choices) options)

BARGAINING POWER -O:low (restaurants only have -T: high (restaurants have many
OF SUPPLIERS few choices) choices)

T: more rivalries (JustEat, Uber,

CURRENT RIVALRY -O: few rivalries (JustEat)
Shoppee Food,...)
 step 3: Internal analysis

STRENGTHS Weakness

Strategic use of
1 1 Dependency on the
Technology and the gig
gig economy
economy

2
Limited control over
2 Skillful leadership customer experience

3 Strong brand identity

 step 4: Growth
strategy
formulate Concentration

strategy Focus on food

delivery service,
expand by
entering new
markets
internationally

Competitive Focus on the

strategy differientiation
Differentiation- advantage, by
Focus providing high-
quality customer
experience
step 5: implement
strategies
-Organizing resources

-Designing suitable structure of the

company

-Taking actions
 step 6: evaluate
results
EFFECTIVENESS OF THE STRATEGIES
1
+successful expansion
+attracted enormous invesment
+gained rise in revenue
ADJUSTMENTS AND CHANGES
2
+Shu shifted form hands-on leader to build team.
+Face challenges of governments, new rules of the
gig economy and increasingly competitive market.
question 2:
Was Deliveroo's Success Primarily Due
to Internal or External Factors?
If Deliveroo were to implement its 2013
strategy in today’s environment, do you
think it would be as successful? Why?
Was Deliveroo's
Success Primarily Opportunities Technology
Gig economy
Due to Internal or
1
Social trends

External Factors? THREATS Legal risks

2 Intense competitions
Customer’s
experiences
Exteral factors
App & Technology
Strengths Gig Economy in HR
1
Leadership
Brand Identity

Interal factors Dependency on gig

weeknesses economy
2
Limited control over
customer experience
 external factors
oppotunities threats
Technology
Legal Risks
Opportunities from Rapid Technological
Changes in Labor Laws Related to the
Development
Gig Economy
Optimizing Processes through Technology
Social Trends Intense Competition
Popularity of Delivery Apps Competition from Major Rival
Opportunity to Expand into Other Services Pressure from New Market Entrants

Economic: Customer Experience

Utilizing the Gig Economy for flexibile and Dependence on Restaurant Partners
affordabe labor forces and Couriers

INTERNAL FACTORS
strengths weeknesses
App & Technology
Dependency on gig economy
Gig Economy in HR
Limited control over customer
Leadership
experience
Brand Identity
Conclusion
An effective strategy should match
the strengths of the company with
the opportunities, correct its
weaknesses, and guard it from
threats. Therefore, the success of
Deliveroo is a combination of internal
and external factors.
 ? Would Deliveroo’s 2013 Strategy Succeed
Today?

Increased Competition
Competitors like Uber Eats and GrabFood are now
much stronger and have also integrated advanced
technology.
Deliveroo cannot solely rely on its original business
model.
A Changing Market
Workers' rights have increased,
and labor regulations are
tightening.
---> 2013 strategy less applicable
in today’s environment.
Conclusion
Deliveroo’s 2013 strategy would need to
be adjusted to fit the current business
landscape, focusing on working with
governments and improving technology
to stay competitive.
Additional
information
about
Deliveroo
 Mission

Deliveroo's mission is to
transform the way people shop
and eat by bringing the
neighborhood to their doors,
effectively connecting
consumers, restaurants, shops,
and riders
 Vision
become the leader in the food
delivery industry with high-
quality customer experience.
 Products
Deliveroo has expanded its services to include:

Grocery Pharmacy Gift

delivery delivery delivery
Strategies
Growth strategy
Related diversification
Deliveroo partners with grocery
shops, pharmacies, retailers

Competitive Strategy
Best-cost strategy
Deliveroo's strategy currently
focuses on both cost advantage
and differentiation advantages,
indicating a best-cost approach
 Conclusion
Deliveroo has improved its strategies
to adapt to these days’ dynamic
market and gain competitive edges
over competitors and rivalries.