Low/ Moderate/ Threat of

Factors Data/ Remarks

High Entry
There are economies of scale in online food ordering, as
Economies of Scale companies can leverage technology to aggregate demand and Moderate Moderate
reduce costs.
Demand side benefits of
Moderate Moderate
scale
Capital Requirements High investment in technology, otherwise mostly asset light High Low
Limited product differentiation as all platforms offer almost the
Product Differentiation Low High
same restaurants
Strong brand recognition for bug players like Zomato and
Brand Differentiation High Low
Swiggy
Access to distribution Zomato and Swiggy have built extensive delivery fleets, giving
High High
channels them a significant advantage in distribution channels

Customers can easily switch between food ordering platforms,

Switching costs Low High
and restaurants can choose to partner with multiple platforms.

There are a lot of regulations around licensing,

Restrictive government
policies
food safety (FSSAI), data privacy etc. governing Moderate Moderate
this industry.
 Industry
Attractiveness

4
 Factors Data/ Remarks

Suppliers are highly concentrated with 2 major players

Suppliers’ concentration
in the economy.
High switching costs for restaurants to switch between
online food delivery platforms like Zomato due to
Industry switching costs
integration complexities and potential loss of customer
base.
There is low level of product differentiation as there are
Product Differentiation multiple restaurants in any city with similar food
available
There are no substitues to supplies except for own
Substitutes for supplies
cloud kitchen
Threat of forward They can also start their own delivery services
integration
Dependence on They are heaviliy dependent on them for covering
industry larger service area
Low/ Moderate/ Threat of Suppliers Industry
High power Attractiveness

High Low 4

High Low 4

Low Low 4

high Low 5

High High 2

High Low 2

3.4