SWOT Analyis of Zomato | Business Teacher
Zomato is an online website that offers restaurant search as well as a discovery service. It provides the clients with a unique platform to assess choices for their preferred restaurants.
First, Zomato enjoys a very innovative culture that has enabled it to seal its place in the India’s IT culture. In a world where technological innovations are common, coming up with a new product can attract many people in the market. According to Deshpande (2016), this makes the company have an aggressive as well as an innovative marketing strategy that has resulted in brand recognition. Innovative culture has made Zomato win various accolades and awards. Second, the company boasts of financial leverage. This high financial leverage is as a result of its unique business model whereby the customers enjoy the use of a friendlier interface. Besides, financial leverage enables the company to use its statement of financial position (balance sheet) to expand the business activities and increase the profit base (Deshpande, 2016). This strength creates a significant impact on the business, and therefore, it should be analysed effectively. Third, Zomato enjoys cost advantages in the market. This has made it be a standout based on its unique services. Generally, it has been agreed that lower costs stimulate a lot of purchases from the customers. When more sales are made, higher profits are generated. In this case, Zomato’s lower costs have resulted in higher profits because as a low-cost leader, it stays above its rivals on price (Deshpande, 2016). Fourth, it takes credit for superior technological innovation. This kind of technology is making it all possible for the company to provide better services to the customers in a manner that its rivals cannot. It is also true that this technology has raised the awareness of the company (Deshpande, 2016). In this case, users have regarded it as a specialty product since it focuses on foods and restaurants.
The company has limited growth, and this is due to competition arising from search engines and similar applications. According to Deshpande (2016), it becomes very hard for the company to achieve global expansion, and it has lost the opportunity of becoming the first mover in online food delivery. Second, the company faces drastic growth, and this is caused by its susceptibility to outdated content (Deshpande, 2016). For example, menu cards without food prices are mentioned in some restaurants and in some cases, the menu content is even partial.
There are various opportunities to be exploited by the organisation. First, global expansion to new and emerging markets. Since the technology has been utilised extensively in India, Zomato can consider going global and address the needs of the new market (Deshpande, 2016). This is a sure way of increasing profitability through attraction of additional customers. Second, increasing internet penetration as well as the rising number of people using smartphones presents a good business opportunity for Zomato. The company should consider targeting these individuals so that they can get the experience of using a new service while selecting their best restaurants in India and abroad. Third, rapid technology advancement is shaping the market, and Zomato should take advantage of such new technology to make its presence in the market be known. For example, with the growth of internet technology and smartphone use, the company can increase its innovation to add value to the existing product (Deshpande, 2016).
First, there is intense competition from close rivals such as Foodpanda, JustEast, Yelp, Tiny Owl and Burrp (Deshpande, 2016). These companies offer brand competition from national and international. All these are a threat to the company and must be addressed effectively. Second, changes in the government policy affect its business model, and therefore, lack of clear rules and regulations is a threat to the company.