Canadian university Of Bangladesh

Report for Final

term

Course name : Strategic Management

Course Code : MGT- 401
Semester : Spring 2024
Date : 14/05/2024

Submitted By:
Faria Tanjeem Mim

ID: 21103014

Rowf Ferdous Ifti

ID: 21103023
Submitted To:
Tawsif Bin Mahbub
S M Arifuzzaman
ID: 21103035

Mohsahek Billah

ID: 21103039 Executive Summary

This report is about Strategic Management of Food panda - A case study
based on A Platform business in Bangladesh.
This report contains:

 Brief History of FOODPANDA BANGLADESH.

 Vision, Mission and values of the company and a critical
analysis.
 Assessing the company’s industry and competitive
environment.
 Food panda company's most important resources and
capabilities and competitive advantage over rival companies.
 Is Food panda competitively stronger or weaker than key
rivals?
 Generic competitive strategy followed by Food panda
 The competitive moves taken by Food panda in the last 2/3
years.
 Competitive moves taken by the company’s strongest
competitor in the last 2/3 years.
 Three tests to determine whether the strategy of the company is
a winning strategy or not.
 Conclusions.

In this report, we tried to focus on the Strategic Management of Food

panda Bangladesh Limited. The purpose of this report is to justify the
improvement of the management of Food Panda Bangladesh Limited
and to compare the results with their previous data to evaluate the
changes in their performance.

Brief History of FOODPANDA in BANGLADESH:

Food panda is a global online food ordering and delivery marketplace that is operating in 40
countries across five continents. It is the number one food delivery marketplace in the
country and is headquartered in Berlin, Germany and is founded globally in the year 2012.
Through Food panda, people can discover innumerable number of restaurants and order
from home or office via online or their mobile application. Food panda was a venture of
Rocket Internet, world’s largest internet incubator. Food panda kicked off in Bangladesh in
December 2013. At present, it is operating in 5 continents, Asia, Europe, Latin America,
Middle East and Africa, and is spread out in more than 500 cities. It is partnered with more
than 45000 restaurants globally and is rapidly going up the ladder of success gobbling up
almost all the countries and expanding like wild fire.

Food panda entered the Bangladeshi market in 2013. Initially, it faced challenges
due to the lack of infrastructure for online payment and a nascent food delivery
ecosystem. However, it quickly adapted to local conditions, offering cash on delivery
and partnering with a wide range of restaurants across major cities like Dhaka,
Chittagong, and others.

Expansion:

1. Geographical Reach: After its initial launch, Food panda gradually expanded
its services to cover more cities and towns across Bangladesh. It focused on
urban areas with high population density and a significant concentration of
restaurants.
2. Restaurant Partnerships: Food panda forged partnerships with a diverse
range of restaurants, including local eateries, popular chains, and
international franchises. This extensive network allowed customers to access
a wide variety of cuisines and dining options.
3. Delivery Fleet: To support its expansion, Food panda invested in building a
robust delivery fleet. It recruited delivery riders and drivers, equipped them
with necessary training, and deployed them strategically to ensure efficient
order fulfillment.
Technological Advancements:

1. Mobile App Development: Food panda continually invested in enhancing its

mobile app, making it more user-friendly and feature-rich. The app enabled
customers to browse menus, place orders, track deliveries in real-time, and
provide feedback.
2. Order Management System: Behind the scenes, Food panda developed
sophisticated order management systems to streamline operations. These
systems optimized order routing, minimized delivery times, and improved
overall efficiency.
3. Integration with Restaurants: Food panda integrated its platform with
partner restaurants' POS (Point of Sale) systems to facilitate seamless order
processing. This integration enabled faster order transmission, reducing
errors and enhancing customer satisfaction.
Operational Refinements:
 1. Quality Control: Recognizing the importance of maintaining food quality and
freshness during delivery, Food panda implemented stringent quality control
measures. It provided guidelines to restaurant partners on packaging and
handling, ensuring that food reached customers in optimal condition.
2. Customer Support: Food panda prioritized customer satisfaction by
establishing dedicated customer support channels. Customers could reach
out for assistance regarding orders, refunds, or other inquiries, and Food
panda responded promptly to resolve issues.
3. Feedback Mechanisms: To continuously improve its services, Foodpanda
solicited feedback from customers and restaurant partners. It used surveys,
ratings, and reviews to identify areas for enhancement and implemented
corrective actions as needed.

Vision, Mission and values of the company and a critical analysis:

Vision:

Food panda’s vision in Bangladesh is likely aligned with its global vision of
revolutionizing the way people order food. This vision encompasses:

1. Convenience: Food panda aims to make food ordering as convenient as

possible for customers in Bangladesh. By offering an intuitive mobile app and
website, coupled with efficient delivery services, it seeks to simplify the
process of ordering food and eliminate the hassles associated with traditional
methods.
2. Choice: Food panda endeavors to provide customers with an extensive range
of dining options. Whether customers crave local delicacies, international
cuisines, or niche food items, Food panda aims to cater to diverse tastes and
preferences, offering a vast selection of restaurants and dishes to choose
from.
3. Reliability: Food panda prioritizes reliability in its services. Customers in
Bangladesh should be able to depend on Food panda for timely delivery,
accurate order fulfillment, and consistent quality. By maintaining high
standards of reliability, Food panda aims to build trust and loyalty among its
customer base.

Mission:

Food panda’s mission in Bangladesh is to provide customers with a seamless and

convenient platform for ordering food from their favorite restaurants, while also
enabling partner restaurants to reach a wider audience and increase their sales. This
mission involves:
 1. Seamless Ordering Experience: Food panda strives to offer a hassle-free
ordering experience for customers. Through its user-friendly mobile app and
website, customers can easily browse menus, place orders, customize their
preferences, and track deliveries in real-time, ensuring a smooth and efficient
process from start to finish.
2. Supporting Partner Restaurants: Food panda is committed to supporting its
partner restaurants in Bangladesh. By offering them a platform to showcase
their menus, expand their customer base, and boost their sales, Food panda
aims to empower local businesses and contribute to the growth of the food
industry in the country.
3. Customer Satisfaction: Food panda places a strong emphasis on customer
satisfaction. It endeavors to meet and exceed customer expectations by
delivering orders promptly, ensuring food quality and freshness, resolving any
issues or concerns promptly, and continuously improving its services based
on customer feedback.
By fulfilling its mission, Food panda aims to become the preferred choice for online
food delivery in Bangladesh, enriching the dining experience for customers and
fostering mutually beneficial partnerships with restaurants across the country.

Values:

Food panda’s values may include customer-centricity, innovation, reliability, and

collaboration. It likely prioritizes customer satisfaction, technological advancement,
operational efficiency, and partnerships with restaurants.

Critical Analysis:

Strengths:

1. Wide Network: Food panda has established partnerships with numerous

restaurants across Bangladesh, offering customers a wide variety of cuisine
options.
2. Convenience: Its online platform provides customers with the convenience of
ordering food from their favorite restaurants without leaving their homes.
3. Adaptability: Food panda has shown adaptability by introducing cash on
delivery and other measures to overcome local challenges.
Weaknesses:

1. Competition: The online food delivery market in Bangladesh is becoming

increasingly competitive, with the entry of other players.
2. Infrastructure: Issues related to infrastructure, such as traffic congestion and
address systems, can affect delivery times and service quality.
3. Quality Control: Ensuring consistent quality across various restaurants and
orders can be a challenge.
Opportunities:

1. Market Growth: Bangladesh's growing middle class and increasing internet

penetration provide opportunities for further expansion and growth.
2. Technological Advancements: Investing in technology can improve
efficiency and customer experience, such as through better tracking systems
or mobile app enhancements.
Threats:

1. Regulatory Challenges: Regulatory changes or restrictions could affect Food

panda’s operations in Bangladesh.
2. Economic Factors: Economic downturns or fluctuations could impact
consumer spending on food delivery services.
3. Supply Chain Disruptions: External factors such as natural disasters or
pandemics could disrupt the supply chain and delivery operations.
In conclusion, while Food panda Bangladesh has achieved significant success by
catering to the growing demand for online food delivery services, it faces challenges
such as increasing competition and operational hurdles. By leveraging its strengths,
addressing weaknesses, and capitalizing on opportunities, Food panda can continue
to thrive in the Bangladeshi market.

Assessing the company’s industry and competitive environment:

Porters 5 forces:

Threat of New Entrants:

 Low to Moderate: While the online food delivery market in Bangladesh is

growing rapidly, barriers to entry exist. These include the need for significant
investment in technology, infrastructure, and marketing, as well as the
requirement to build relationships with restaurants and establish a reliable
delivery network. Existing players like Food panda already have a strong
foothold and brand recognition, making it challenging for new entrants to
compete effectively.
Bargaining Power of Buyers (Customers):

 Moderate to High: Customers in Bangladesh have a moderate to high

bargaining power due to the availability of several online food delivery
platforms. They can easily switch between platforms based on factors such as
price, variety, and service quality. However, brand loyalty and convenience
may mitigate this power to some extent, especially for platforms with a strong
reputation like Food panda.
Bargaining Power of Suppliers (Restaurants):
  Moderate: Restaurants partnering with Food panda have some bargaining
power. They can negotiate commissions, terms of partnership, and
promotional opportunities with the platform. However, the presence of multiple
online food delivery platforms gives restaurants alternatives if they are
dissatisfied with the terms offered by Food panda. The bargaining power may
vary depending on the popularity and reputation of the restaurant.
Threat of Substitutes:

 Moderate to High: The threat of substitutes for Food panda in Bangladesh

includes traditional dine-in options, as well as other online food delivery
platforms. However, factors such as convenience, variety, and promotional
offers may mitigate this threat. Food panda and its competitors continually
innovate to differentiate their services and retain customers in the face of
substitute options.
Competitive Rivalry:

 High: The online food delivery market in Bangladesh is characterized by

intense competition among several players, including Food panda,
HungryNaki, Pathao Food, and others. Competitors engage in aggressive
marketing, offer discounts and promotions, and strive to expand their market
share. The high level of rivalry puts pressure on pricing, service quality, and
innovation as companies vie for customer attention and loyalty.

Food panda company's most important resources and capabilities

and competitive advantage over rival companies:
Food panda Bangladesh possesses several key resources and capabilities that
contribute to its competitive advantage in the online food delivery market:

1. Extensive Restaurant Network:

 Resource: Food panda has established partnerships with a wide range of

restaurants across Bangladesh, offering customers a diverse selection of
cuisines and dining options.
 Capability: Its ability to onboard and maintain relationships with numerous
restaurants strengthens its platform's attractiveness to customers and
provides a competitive edge in terms of variety and choice.

2. Robust Technological Infrastructure:

 Resource: Food panda has invested in developing and maintaining advanced

technological systems, including mobile apps, websites, and order
management platforms.
  Capability: Its technological capabilities enable seamless order placement,
efficient delivery routing, real-time tracking, and personalized customer
experiences, enhancing convenience and satisfaction.
3. Strong Brand Presence:

 Resource: Food panda has built a recognizable brand name and reputation in
the online food delivery industry in Bangladesh.
 Capability: Its brand recognition and trustworthiness attract customers and
differentiate it from competitors, providing a competitive advantage in terms of
customer loyalty and acquisition.
4. Efficient Delivery Operations:

 Resource: Food panda operates a reliable and efficient delivery fleet,

comprising riders and drivers equipped with technology-enabled tools.
 Capability: Its delivery capabilities ensure timely and accurate order
fulfillment, contributing to customer satisfaction and loyalty, as well as
operational efficiency.
5. Customer Data and Analytics:

 Resource: Food panda collects and analyzes vast amounts of customer data
through its platform, including ordering preferences, feedback, and behavior
patterns.
 Capability: Its data analytics capabilities enable targeted marketing
campaigns, personalized recommendations, and continuous service
improvements based on customer insights, enhancing competitiveness and
customer engagement.
Competitive Advantage Assessment:

Food panda’s extensive restaurant network, robust technological infrastructure,

strong brand presence, efficient delivery operations, and data analytics capabilities
collectively provide it with a sustainable competitive advantage in the online food
delivery market in Bangladesh.

While competitors may replicate some individual aspects of Foodpanda’s resources

and capabilities, the synergistic combination and effective utilization of these factors
create barriers to entry and imitation, reinforcing Foodpanda's position as a market
leader and enabling it to maintain a lasting competitive edge over rival companies.

Is Food panda competitively stronger or weaker than key rivals?

To ascertain Foodpanda's competitive strength in Bangladesh relative to its key
rivals, we need to evaluate the following criteria:
  Pricing and Costs: Foodpanda's pricing strategy and cost structure
compared to its competitors in Bangladesh are crucial indicators of its
competitive positioning. If Foodpanda's prices and costs are on par with its
rivals, it suggests a level playing field in terms of financial efficiency.
 Customer-Value Proposition: The competitive and cost-effective nature of
Foodpanda's customer-value proposition in Bangladesh is essential. This
involves assessing factors such as the variety of restaurants available on the
platform, delivery times, customer service quality, and any unique offerings or
promotions that enhance its attractiveness to consumers.
 Bundled Capabilities: Foodpanda's bundled capabilities encompass its
overall operational efficiency, technological advancements, logistics network,
and any other factors contributing to its competitive advantage. If these
capabilities are yielding sustainable advantages over its rivals in Bangladesh,
it positions Foodpanda strongly in the market.

For a comprehensive report on Foodpanda's competitive strength in Bangladesh,

detailed analysis and comparison with its key rivals based on these criteria are
necessary. Without access to specific market data and performance metrics, it's
challenging to definitively conclude whether Foodpanda is stronger or weaker than
its competitors in Bangladesh. However, conducting a thorough examination of
market dynamics, consumer preferences, and industry trends would provide valuable
insights into Foodpanda's competitive positioning in the Bangladeshi market.

Generic competitive strategy followed by Food panda:

Determining the generic competitive strategy followed by Foodpanda in Bangladesh
requires analyzing its business approach in the context of the provided options:

 Overall Low-cost provider strategy: This strategy involves offering products

or services at lower prices compared to competitors while still maintaining
acceptable quality. Companies following this strategy focus on cost reduction
and operational efficiency to achieve a competitive advantage.
 Broad Differentiation strategy: This strategy involves offering unique and
differentiated products or services that appeal to a broad range of customers.
Companies pursuing this strategy invest in product innovation, branding, and
customer experience to distinguish themselves from competitors.
 Focused Low-cost strategy: This strategy involves targeting a specific
market segment and offering products or services at lower prices compared to
competitors within that segment. Companies adopting this strategy
concentrate on cost leadership in a narrow market niche.
  Focused Differentiation strategy: This strategy involves targeting a specific
market segment and offering unique and differentiated products or services
tailored to the needs of that segment. Companies following this strategy focus
on providing superior value and meeting the specific preferences of their
target customers.
 Best-cost provider strategy: This strategy involves offering products or
services with the best value proposition in the market, balancing both low
prices and quality. Companies pursuing this strategy aim to provide superior
value compared to competitors at a competitive price point.

Based on these options, Foodpanda in Bangladesh appears to align more closely

with the Best-cost provider strategy. Foodpanda aims to provide a balance
between cost-effectiveness and differentiation, offering a wide range of food options
from various restaurants at competitive prices while also focusing on service quality,
convenience, and customer experience. This strategy allows Foodpanda to appeal to
a broad customer base by providing the best overall value proposition in the food
delivery market of Bangladesh.

The competitive moves taken by Food panda in the last 2/3 years:
Over the past 2-3 years, Foodpanda Bangladesh has made several competitive
moves to strengthen its position in the market. Let's discuss some of these moves
and critically assess their impact:

 Expansion of Restaurant Partnerships: Foodpanda has continuously

expanded its network of restaurant partners, offering customers a wider
variety of cuisine options to choose from. This move enhances its competitive
edge by providing a diverse selection to cater to different tastes and
preferences. However, the critical assessment here would involve evaluating
the quality of these partnerships and ensuring that they align with
Foodpanda's standards in terms of food quality, delivery reliability, and
customer satisfaction.
 Investment in Technology and Logistics: Foodpanda has likely invested in
technology and logistics infrastructure to streamline its operations and
improve delivery efficiency. This move is crucial for maintaining
competitiveness in the fast-paced food delivery industry, where speed and
reliability are paramount. However, the critical assessment would involve
analyzing the effectiveness of these investments in enhancing the overall
customer experience and whether they translate into tangible improvements
in delivery times and service quality.
  Promotional Campaigns and Discounts: Foodpanda frequently runs
promotional campaigns and offers discounts to attract and retain customers.
While these tactics can help drive short-term sales and increase market
share, the critical assessment would involve evaluating their long-term
sustainability and impact on profitability. Over-reliance on discounts could
potentially erode margins and devalue the brand in the eyes of consumers.
 Focus on Customer Experience: Foodpanda may have placed an emphasis
on enhancing the overall customer experience through improved user
interfaces, responsive customer service, and efficient dispute resolution
mechanisms. Investing in customer experience is crucial for building brand
loyalty and gaining a competitive advantage in a crowded market. However,
the critical assessment here would involve gathering feedback from
customers to assess whether these efforts have been effective in meeting
their expectations and addressing pain points.
 Expansion into New Services or Markets: Foodpanda might have
diversified its offerings by expanding into new services or entering new
geographical markets. While diversification can create new revenue streams
and mitigate risks associated with market saturation, the critical assessment
would involve evaluating the strategic fit and potential synergies of these
expansions. It's essential to ensure that resources are allocated efficiently and
that the company maintains a clear focus on its core competencies.

Overall, Foodpanda Bangladesh has likely implemented various competitive moves

over the past few years to strengthen its market position and drive growth. However,
it's essential to critically assess the effectiveness of these moves in achieving their
intended objectives and whether they align with the company's long-term strategic
goals. Additionally, monitoring market trends and adapting strategies accordingly will
be crucial for sustaining competitiveness in the rapidly evolving food delivery
landscape.

Competitive moves taken by the company’s strongest competitor in

the last 2/3 years:
In Bangladesh, Foodpanda faces competition primarily from other food delivery
platforms such as Pathao Food, Hungrynaki, and Shohoz Food. These platforms
offer similar services, allowing users to order food from a variety of restaurants and
have it delivered to their doorstep. Each of these competitors may have its own
unique features or strengths, but they all operate in the same space as Foodpanda,
vying for market share in the country's food delivery industry.

Pathao Food, one of Foodpanda's strongest competitors in Bangladesh, has made

several competitive moves in the last 2-3 years to solidify its position in the market:
  Expansion of Services: Pathao Food has expanded its services beyond
food delivery. Similar to its parent company Pathao, which started as a
ride-hailing service and later diversified into logistics and e-commerce,
Pathao Food has expanded its offerings to include grocery delivery,
medicine delivery, and more. This diversification allows Pathao Food to
capture a wider customer base and increase user engagement.
 Focus on Technology and Innovation: Pathao Food has invested in
technology and innovation to enhance user experience and streamline its
operations. This includes developing a user-friendly mobile app with
features such as real-time tracking, multiple payment options, and
personalized recommendations. By leveraging technology, Pathao Food
aims to differentiate itself from competitors and offer a seamless ordering
experience to customers.
 Partnerships and Collaborations: Pathao Food has formed strategic
partnerships and collaborations with restaurants, grocery stores, and other
businesses to expand its network and offer a diverse range of products
and services to customers. These partnerships enable Pathao Food to
access exclusive deals, discounts, and promotions, attracting more users
to its platform.
 Customer Engagement and Loyalty Programs: Pathao Food has
implemented customer engagement initiatives and loyalty programs to
retain existing customers and attract new ones. This includes offering
discounts, cash back rewards, and referral bonuses to encourage repeat
orders and increase customer loyalty. By prioritizing customer satisfaction
and retention, Pathao Food aims to build a loyal customer base and stay
ahead of the competition.

Critical Assessment:

 Pathao Food's expansion into additional services beyond food delivery

demonstrates its ambition to become a one-stop solution for various
consumer needs. However, this diversification strategy also comes with
challenges, such as increased operational complexity and competition from
specialized service providers in each category.
 While Pathao Food's focus on technology and innovation is commendable, it's
essential to ensure that these advancements translate into tangible benefits
for users, such as faster delivery times, improved order accuracy, and
enhanced customer support. Additionally, investing in technology requires
substantial resources, and Pathao Food must carefully manage its
investments to achieve sustainable growth.

 Strategic partnerships and collaborations can provide Pathao Food with

access to a wider range of products and services, but it's crucial to maintain a
 balance between exclusivity and inclusivity to avoid alienating customers or
limiting choices. Moreover, Pathao Food must ensure that its partnerships
align with its brand values and customer preferences to maintain trust and
credibility.
 Customer engagement and loyalty programs are effective tools for driving
repeat business and increasing customer lifetime value. However, Pathao
Food must continuously innovate and adapt its loyalty programs to remain
competitive in a dynamic market landscape. Moreover, the success of these
programs depends on Pathao Food's ability to deliver high-quality products
and services consistently and address customer feedback and concerns
promptly.
 Overall, Pathao Food's competitive moves in the last 2-3 years reflect its
determination to establish itself as a leader in the food delivery and related
services market in Bangladesh. However, to sustain its growth and fend off
competition, Pathao Food must continue to innovate, prioritize customer
satisfaction, and adapt to evolving market trends and consumer preferences.

Three tests to determine whether the strategy of the company is a

winning strategy or not:
Let's assess Foodpanda's strategy using the Fit Test, Competitive Advantage Test,
and Performance Test:

1. Fit Test:

 Foodpanda's strategy should fit the external environment, internal

resources, and organizational capabilities:

 External Environment: Food delivery is a growing industry in Bangladesh,

with increasing demand for convenience and online services. Foodpanda's
focus on this sector aligns well with market trends.

 Internal Resources and Capabilities: Foodpanda has a strong brand

presence, a wide network of partner restaurants, and robust technological
infrastructure. These resources support its strategy of providing a
seamless food delivery experience.

Overall, Food panda’s strategy appears to be well-aligned with both the external
environment and internal capabilities.
2. Competitive Advantage Test:

Foodpanda needs to demonstrate a sustainable competitive advantage over its

rivals:

 Brand Recognition: Foodpanda has established itself as a recognizable brand

in the food delivery industry in Bangladesh, which can attract customers and
foster loyalty.

 Partner Network: Foodpanda has a vast network of partner restaurants, giving

it a competitive edge in offering a wide variety of food options to customers.

 Technological Infrastructure: Foodpanda's investment in technology enables

features like real-time tracking and multiple payment options, enhancing the
user experience and setting it apart from competitors.

 Foodpanda possesses several sources of competitive advantage, but it must

continuously innovate and differentiate itself to maintain its edge in a
competitive market.

3. Performance Test:

Foodpanda's strategy should deliver superior financial performance:

 Revenue Growth: Foodpanda's revenue growth over the past few years would
indicate the effectiveness of its strategy. If it has been able to consistently
increase its market share and revenue, it suggests that its strategy is yielding
positive results.

 Profitability: Foodpanda needs to demonstrate profitability or a clear path to

profitability. If it's operating at a loss despite its market share or revenue
growth, it may indicate underlying issues with its business model or strategy.

 Customer Satisfaction and Retention: High levels of customer satisfaction and

retention are indicators of a successful strategy. Positive customer feedback
 and repeat business demonstrate that Foodpanda is meeting customer needs
effectively.

 Foodpanda's performance should be assessed based on these financial and

non-financial metrics to determine the success of its strategy.

Overall Assessment:

Foodpanda's strategy appears to have a good fit with the external environment and
internal capabilities, indicating a strong foundation. It possesses competitive
advantages such as brand recognition, a wide partner network, and technological
prowess. However, its performance, particularly in terms of revenue growth,
profitability, and customer satisfaction, should be closely monitored to determine the
long-term viability and success of its strategy. Continuous adaptation and innovation
will be key for Foodpanda to maintain its competitive position and achieve
sustainable growth in the dynamic food delivery market in Bangladesh.

Conclusion:
Foodpanda Bangladesh's journey from its inception in 2013 to its present state
reflects a commitment to growth, innovation, and customer satisfaction. By
expanding its reach, leveraging technology, and refining its operations, Foodpanda
has established itself as a leading player in the online food delivery market in
Bangladesh. Over the years, Foodpanda Bangladesh has expanded its reach,
improved its technology, and refined its delivery operations to cater to the growing
demand for online food delivery services in the country.