Student Name: Name

Student Number: Bxxxxxxxxx

Student ID: xxxxxxx

Module Title: Global strategy development and implementation

Module code: BMG 872

Topic: Global strategy development and implementation of DoorDash Company

Department: International business with data analysis

University: Ulster University London and Birmingham Branch Campus

 Table of content:

1. Introduction…………………………………………………………………………….3
1.1. Rationale for internationalization…………………………………………….5

2. Porter’s diamond analysis…………………………………………………………….8

3.1. Factor condition…………………………………………………………………...9
3.2. Demand condition………………………………………………………………10
3.3. Related and supporting industries…………………………………………......10
3.4. Firm strategy, structure and rivalry……………………………………………..11

3. Strategies for internationalization using Bartlett & Ghoshal framework…………11

4.1. International strategy…………………………………………………………….12
4.2. Global strategy……………………………………………………………………12
4.3. Multi-domestic strategy…………………………………………………………..13
4.4. Transnational strategy……………………………………………………………14

4. PESL- Environmental analysis in home country (United States)…………………14

5.1 political factors……………………………………………………………………..15
5.2. Economic factors………………………………………………………………15
5.3. Social factors……………………………………………………………………16
5.4. Legal factors……………………………………………………………………..16

5. Porter’s five forces analysis of DoorDash Company in India market…………..16

6.1. Threat to new entrants…………………………………………………………17
6.2. Threat of substitutes…………………………………………………………….18
6.3. Bargaining power of buyers…………………………………………………….19

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 6.4. Bargaining power of suppliers…………………………………………….20
6.5. Competitive rivalry…………………………………………………………..21

6. CSR and UN sustainable Development goals…………………………………22

7. DoorDash Company UN sustainable development goals…………………….23

8. Recommendation………………………………………………………………….24

9. Reference

Figure 1: DoorDash revenue statistics

Figure 2: Market capital statistics of DoorDash Company in the US
Figure 3: DoorDash business model
Figure 4: DoorDash logistics tactics
Figure 5: Number of employees of DoorDash Company
Figure 6: Market share of online delivery services provider in the US
Figure 7: Market share of leading online delivery meal in the US
Figure 8: Porter’s diamond model
Figure 9: Bartlett & Ghoshal framework
Figure 10: Porter’s five forces analysis

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1. Introduction

The purpose and aim of this study is to dissect the strategic administration
and management of the organization involved in international business. The
company selected for this study is DoorDash Company. DoorDash is a retail
multinational company which is based in the US and incorporated in 2013
(DoorDash, 2023).

Figure 1 (Source: Shreeves, 2023)

It is a company that provides food and groceries delivery services by allowing

consumers to place customized orders and track status through mobile app
(Globaldata, 2024). It operates in six different countries (DoorDash, 2023). It
currently employs 19300 people globally and has reported a turnover of $8.64
billion as at December 2023, with a market capital worth $53.25 billion (Dean,
2023). DoorDash Company has 32 million users, the vast majority of which
are from the United States (Curry, 2024).
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Figure1 (Source: Helplama, 2024)

Figure 2 (Source: Dean, 2023)

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 Figure 5 (Source: Statista, 2024)

The porter’s diamond model, porter’s five forces model. Bartlett & Ghoshal
framework and PESL is being used to analyze its opportunity in expanding its
business.

1.0. Rationale for internalization

DoorDash understood and realizes that India has a huge online business
consumer base and a growing economy and thereby decides to increase its
success by expanding its business in India (Bain, 2022).

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 Figure 3 (Source: Motschwiller, 2020)

In 2023, DoorDash generated $8.6 billion in revenue, an increase of 31%

compared to $6.5 billion in 2022 (Statista, 2024). DoorDash has over 65%
market share in US and 32 million user base all over the world (Curry, 2024).
In 2022, the market size of it food delivery increased by 15.6% in the US
compare to its competitors like GrubHub, Uber Eats and Postmates (Statista,
2022).

Figure 4 (Source: Motschwiller, 2020)

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The COVID-19 pandemic mobility restriction leads to an increase in incredible
demand for the DoorDash food delivery platform, thereby increasing its
efficiency over its competitors (Similarweb, 2024). DoorDash pulled ahead of
the competition in 2020 and currently have a market share of 65% in the US.
The data below shows that consumers are more loyal to DoorDash than its
competitiors like GrubHub, Uber Eats and Postmates, as there was a
significant increase of 8% in DoorDash operation, from 57% in 2021 to 65% in
2023, when compare to its competitors.

Figure 6 (Source: Beyrouthy, 2024)

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 Figure 7 (Source: Beyrouthy, 2024)

2. Porter’s Diamond Analysis

Porter’s diamond model which is also known as porter’s diamond theory of

national advantage propounded by Michael E Porter in 1990 emphasizes, on
the competitive advantage of a company that makes it work better than its
competitors in a country (Pathak, 2024). The model has four attributes which
are factor conditions, demand conditions, related and supporting industries
and firm strategy, structure and rivalry. This model is used to analyze the
competitive advantage of DoorDash Company over its competitors in the
competitive market.

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 Figure 8 (Source: Knowlegebase: 2024)

2.0. Factor Conditions

DoorDash categorized its audience into merchant, consumers and delivery

drivers. Natural resources, infrastructures, technological innovation, human
and capital resources are the factors conditions for DoorDash (DoorDash,
2023). DoorDash always had access to monetary and capital resources
through venture capital funding in its based country this has enabled the
company to acquire sufficient funding in advancing its research on innovating
its delivery app system for its users (Hustle, 2024). DoorDash delivers
groceries at competitive price, because of its access to farmlands and water
(Appinventiv, 2024). Moreover, DoorDash company have access to skilled
labor including software engineers, data scientists and delivery personnel
who operate on its platform and also robust infrastructures including delivery

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hubs and transportation networks to ensure timely food delivery and efficiency
in the competitive market (DoorDash, 2023).

2.1. Demand conditions

DoorDash operates in a fast growing food delivery markets driven by

urbanization, digitalization and busy lifestyles (Statista, 2024). The COVID-19
pandemic lead to an increase in demand for online shopping as a result of
restriction on mobility, this led to an increase of $1.22tn in the online food
delivery market share as at 2024 (Statista, 2024). The COVID-19 lockdown
lead to a further extension of DoorDash food delivery service. It is projected
that annual growth rate of food delivery service will increase to $1.79tn by
2028 (Statista, 2024). Today, the delivery platform has more than 20 million
active consumers and process $9.9 billion in gross order (Dean, 2023).

2.2. Related and supporting industries

DoorDash Company has been able to maintain continual growth and increase
in revenue over the years. The existence of supporting industries in
developed and developing countries all over the globe has led to its growth
and expansion (DoorDash, 2023). The accessibility of high level business
intelligence and effective payment processing services, including data server
platform provided by Amazon services and third party services has enhances
its supply chains (Dean, 2023). In addition, Google map navigation system
has enhanced its delivery services, leading to the further internationalization

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 and development of DoorDash Company (Snowflake, 2022). However, the
presence of industries, such as online payment processors and digital
marketing agencies, supports DoorDash’s operations by facilitating
transactions for its customers (DoorDash, 2023).

2.3. Firm strategy, structure and rivalry

DoorDash works by partnering with restaurants and stores to offer their food
and groceries to customers, when they place order online (DoorDash, 2023).
DoorDash uses customer segmentation to offer premium subscription called
“Dash Pass” to young professionals who have limited time for shopping; this
strategy enables it to target different class of people in the country where they
operate (Hopper, 2023). DoorDash also Partner with major food chains like
McDonald’s and Burger King, this collaboration makes its convenience for
customer to access their favorite fast food brand with their Smartphone
(Hopper, 2023). The company also uses promotions and discounts like buy-
one-get-one-free and percentage off in other to attract customers (Schroder,
2022).

3. Strategy for internationalization using Bartlett & Ghoshal framework

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 Figure 9 (Source: Brant, 2024)

DoorDash Company strategizes in penetrating into countries with low online

delivery cost (Kelso, 2021). The Company grow its business outside the inner
cities of countries where people had fewer delivery options available to them,
this help them to grow their brand especially in Australia where suburban
areas are largely ignored (Attest, 2020). In the US, DoorDash has the most
popular food delivery app, with over 50% market share (Curry, 2024). The
company maintains customer’s patronage by offering discounts, referral
programs and promotional offer to loyal customers for the continuing use of
service (Sharma, 2023). The understanding of competitor’s strengths and
weaknesses helps DoorDash to refine its pricing strategies and value
proposition (Tech, 2020).

3.0. International strategy

DoorDash Company integrates with foreign restaurants that provide it with
advanced data that help them understand consumer behavior (Attest, 2020).
DoorDash Company exports groceries to foreign locations while still operating
in the United State which is its home country (DoorDash, 2023). The

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company also uses advanced technology to track its customers across the
globe. DoorDash select its international market based on competition,
consumer behavior and population density, thereby prioritizing markets with
high demand for food delivery services and favorable conditions for
expansion (Appscrip, 2023).

3.1. Global strategy

DoorDash Company focuses on entering high-potential markets where
demand for food delivery is high and competition is low (DoorDash, 2023).
The company pursues acquisition and partnership to strengthen its position in
the existing market, recently the company acquired a premium food delivery
service called Caviar which helps it to cater for a wide of customers
(Mendonca, 2024). Moreover, the company invests in technology and
innovation to improve its platform’s efficiency and user experience (Sagar,
2023). By focusing on customer satisfaction and loyalty, DoorDash aims to
maintain its market leadership position and sustain long-term growth
(DoorDash, 2023).

3.2. Multi-domestic strategy

DoorDash customizes its mobile app and website to cater for specific needs
in each domestic market (Startio, 2022). The company complies with laws
and regulations governing food delivery and labor in the each domestic
market (Kedia, B.L., Nordtvedt, R. and Perez, L.M., 2002). Moreover, the
company partner with grocery stores in domestic markets in other to provide
different range of products to customers (Dale, 2024). They also offer
competitive price to their customers in the domestic market based on

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 consumer behavior and market dynamics (Coschedule, 2023). For example
DoorDash partner with McDonalds’s who offers menu that includes local
tastes to customers in the domestic market (Fastcompany, 2022).

3.3. Transnational strategy

The Company invests in research and development in other to develop new

technologies and business models that meet the needs of partners and
consumers across the globe (Pymnts, 2022). DoorDash Company builds
communication channels and cross-functional teams that aim at
disseminating efficient information and strategies across different markets
(Lung, 2024). DoorDash uses a strategy that increases local responsiveness
and reduce cost globally; just like KFC and McDonald’s they do this in other
to allow some degree of localization in their core menu (Ky, 2020). DoorDash
gain access to local expertise and distribution networks through partnership,
this help to meet the day to day demand of consumers (Bretos et al, 2020). In
addition, DoorDash Company have been able to tailor delivery routes and
times to align with local peak hours through its mobile app, this help them to
offer groceries that meet local tastes and preferences (Hill, 2022).

4. PESL-Environmental analysis in home country

4.0. Political factors

The United State of America has developed different regulations for food
delivery company, for example in the New York State a law has been

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introduced mandating companies to compensate delivery drivers with the
prevailing minimum wage rate starting from 2023 (Miller, 2022). The country
likewise has international alliances and a good trade relationship across the
globe (CBIC, 2021). Compliance to government laws and regulations to
environmental sustainability in various countries, such as restrictions on
packaging materials and vehicle emissions standards can influence
DoorDash operation (Miller, 2022). Health sanitation and food safety policies,
like food safety and regulations is essential to maintain consumer trust.
Changes in tax policies for online e-commerce and transactions influences
DoorDash pricing policy (College, 2021).

4.1. Economic factors

DoorDash Company supported an estimated value of $78 billion in economic

activity in the U.S and $15.7 billion in tax revenues (DoorDash, 2023). About
76% of dashers surveyed agree that they feel less stressed about finances
because they can dash whenever they need (DoorDash, 2023). However, the
rate of expansion in the United States decreased by 2.6% in 2023 in contrast
to 5.7% recorded in 2021, this had a negative impact on DoorDash Company
(Miller, 2022). Changes in interest rates can affect consumer spending
behavior and can also influence the financing costs of DoorDash Company; a
higher interest rate can lead to more growth opportunity for the company
(Miller, 2022). In addition, DoorDash needs to monitor inflation rates to
anticipate potential impacts on demand for food delivery and pricing structure
(DoorDash, 2023).

4.2. Social factors

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 Supporting communities and local businesses can through corporate social
responsibility strengthen DoorDash relationship with its customers
(Ritstenhouse, 2022). DoorDash will have to implement environmental
responsible delivery methods and packaging that are appealing to consumers
(Weissberger, 2018). Moreover, consumers of age bracket 16-24 order food
from online platforms the most (Miller, 2022). However, DoorDash can also
leverage on social media marketing with the use of 5G technology to enhance
brand visibility and target audience effectively across the globe (Carolan,
2022). The Company can offer wide range of goods to consumers; this can
be achieved by understanding cultural diversity that appeal to local tastes and
preferences (Miller, 2022).

4.3. Legal factors

DoorDash could face legal liabilities to food safety issues, compliance with
product laws and mitigating risks through terms of service is relevant for
DoorDash legal protection (Eidelson, 2023). For example among these, is the
Australian consumer law, which dictates that food delivery firms are prohibited
from using deceptive images of food items to entice consumers (Miller, 2022).
Misleading advertisement and unfair pricing practices could lead to
reputational damage; therefore DoorDash should ensure total compliance to
consumer protection law in the countries where it operates (Lyon, 2021).
Unfavorable tax rulings from the government in the country where it operate
can affect DoorDash’s financial performance (Hill, 2020). DoorDash should
endeavor to keep user’s data by complying with the general data protection
regulation, in other to avoid legal liabilities (Roy, 2020).

5. Porter’s five forces analysis

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The porter’s five forces is a framework used for analyzing the competitive
dynamics of an organization. The model was propounded by Michael E.
porter in 1980 (Karagiannopoulos et al, 2005). The five keys are explained
below;

Figure 10 (Source: Kumar, 2019)

Threat to new entrants

Capital requirement: Industries with high capital requirements act as a

barrier to entry for new competitors (Team, 2022).
Economies of Scale: Renowned companies benefit from economies of
scale making it difficult for new entrants to compete (JL, 2023)
Brand loyalty: Strong brand loyalty among existing consumers can
reduce the market share for new entrants (Team, 2022).

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Regulatory barriers: Industries with significant regulatory hurdles pose
great challenges for new entrants seeking to navigate laws requirements
(Baker, 2022).
Distribution channels: Limited access to distribution channels with
suppliers can restrict new entrants’ ability to gain customers (Baker,
2022).

Threat of substitutes

Switching costs: High switching costs for customer to adopt substitutes,

can pose threat to suppliers of similar products (Dan, 2013).
Regulatory laws: Regulatory barriers that limit the availability of
substitutes reduce threat level (Octopus, 2020).
Ease of substitution or alternative products: Substitute’s products that
are readily available and easy to switch can increase threat level (Baker,
2022)
Quality: product and services of high quality pose a greater threat
(Weinstein & Haire, 2023)
Price tradeoff: substitutes offering comparable performance at lower
prices pose a significant threat to existing products and services
(Weinstein & Haire, 2023)

Bargaining power of buyers

Price: Buyers that are sensitive to high price and low switching cost can
pose threat to suppliers (Dan, 2020)

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Volume of purchase: Large buyers with relevant purchasing volume
have more bargaining power to negotiate lower prices of goods in the
market (Dan, 2020)
Availability of information: Buyers who have access to relevant market
information can make more informed purchasing decision (Octopus,
2020).
Product differentiation: organizations with similar products give buyers
more options and bargaining power (Decter, 2024).
Integration: Buyers can increase their bargaining power if they integrate
vertical supply chain without depending on suppliers (Decter, 2024).

Bargaining power of suppliers

Switching costs: High switching costs for buyers to change suppliers can
increase supplier power (Barbara, 2023).
Number of suppliers: Few suppliers with specific products or services
may have greater bargaining power in the market (Barbara, 2023).
Availability of substitutes: Limited availability of substitutes for suppliers’
products can increase their bargaining power (Team, 2022).
Uniqueness of product: suppliers who offer unique products have more
leverage in negotiations (Barbara, 2023)
Supplier’s concentration: Industries dominated by few suppliers may
face high prices and unfavorable terms of buyers (Badgujar, 2024)

Competitive rivalry

Exit barriers: High exit barriers prolong intense rivalry by discouraging

companies from leaving the industry (Badgujar, 2024)

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 Number of competitors: High number of competitors intensifies rivalry
among companies (JL, 2023)
Strategic stakes: High strategic stakes like technological dominance
increases rivalry among competitors (JL, 2023).
Growth rate: Slow organization growth rate intensify competition as
companies bid for large market share (Baker, 2022).
Brand identity: Strong brand identities can mitigate competitive rivalry to
some extent by fostering customer loyalty and reducing price sensitivity
(Badgujar, 2024).

Application of the porter’s five forces on DoorDash Company

5.0. Threat to new entrants - High

As DoorDash company develop its operation in food and delivery industry, the
threat of new entrants has increased (Momin, 2022). The barrier to entry in
the food delivery industry in India is relatively high which make it difficult for
newly established firms to enter into the market (Statista, 2022). New firms
can enter the market with low switching costs, but will be faced with the
problem of high start-up costs, because the Indian market is occupied by local
key players like Swiggy, Eatsure and Zomato which take more than 70% of
the user base (Statista, 2022). Established companies like DoorDash benefit
from economies of scale and brand recognition making it challenging for

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new entrants to enter the market and compete effectively, this is because it
takes time to build a good brand and market reputation (Bloomington, 2020).

5.1. Threat of substitute - High

DoorDash Company faces a significant threat in its revenue as a result of it

competition from similar companies and traditional food delivery method in
the India market (Sgaramella, 2022). DoorDash services might decrease if
there is an increase in the number of consumers who chooses alternative
food platforms, this will pose a threat to DoorDash Company (Shetty, 2023).
The Company will need to differentiate itself from its competitors like Swiggy
and Zomato by creating brand recognition that offer unique benefits to
existing and new customers (Pal, 2023). DoorDash ability to expand its
operations and provide a unique value proposition can help counter this threat
(Mogharabi, 2021).

5.2. Bargaining power of buyers – High

This refers to the ability of customers to influence the price of goods or

services offered by any company (Cuofano, 2024). The fact that there are
large volume of food and grocery options available to consumers and online
delivery platforms like GrubHub, postmates, Uber Eats, Zomato and Shiggy,
makes the bargaining power of buyers very high (DoorDash, 2023).
DoorDash must endeavor to meet consumer expectations like timely delivery
and offering competitive prices in other to avoid customers switching
providers, because customers can easily compare prices and service quality
across different platform. Moreover staying above the market trends, offering

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incentives and excellent services can make DoorDash Company remain
competitive in the market (Mogharabi, 2021).

5.3. Bargaining power of suppliers – Low

During the pandemic in 2019, all restaurant were forced to close down and
this lead to an increase in online food delivery (Statistic, 2022). The
bargaining power of suppliers is low in this market, because there are large
numbers of suppliers offering the same delivery online services (Flow,
2023). The Company provides data analytics and marketing support which
strengthen its relationship with the local restaurants (Shetty, 2023). In addition
the greater the number of suppliers, the less bargaining power for each
suppliers (Zhang, 2021). Suppliers with unique products have greater
bargaining power in the market, therefore DoorDash should maintain a strong
relationship with this dynamic suppliers for it continually provision quality
products and services in Indian market.

5.4. Competitive Rivalry – High

DoorDash Company competes with local key competitors like Eatsure,

Shiggy, Zomato and this has made competition intense, because these
industry occupy more than 70% of the customer base in Indian (Zhang,
2021). Aggressive marketing campaigns, price competition, innovation and
technology are the features of these rivalries (Appscrip, 2022). Competitors
compete in terms of pricing strategies to attract customers in the India
market (Cuofano, 2024). DoorDash will have to increase market share and
advance technological innovation in other to compete effectively in Indian
market (Beyrouthy, 2024).

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6. CSR and UN sustainable Development goals

6.0. Corporate social responsibility of DoorDash Company

Corporate social responsibility refers to the way company play a positive

social role in the world around them by contributing positively to the growth of
the economy (Stobierski, 2021). DoorDash company policies are aligned with
ethical standards, which involve honesty and integrity in dealing with
customers (DoorDash, 2023). The company also donates to charitable
organizations and support local communities in rural areas (Res, 2023).
Moreover, the company upholds its code of conduct in carrying out its
operation which involves disclosing accurate financial report, upholding the
health and safety of consumers (Hunt, 2021). Its operation is centered on
accountability and transparency, which has helped them to gain trust among
its competitors. However, they have also supported small businesses during
the COVID-19 by partnering with local organizations in solving hunger
problem and ensuring food security in the communities where they operate
(Faster, 2021).

6.1. DoorDash UN sustainable development goals

DoorDash has positively contributed globally into the economic sustainability.

The company creates a strong alliance with the governments and
stakeholders in addressing environmental problems (Agarwal, 2023). It has
also invested in energy renewable sources for delivery equipments and has
established a platform for the reducing carbon emission during its delivery
service (United Nation, 2023). However, the company ensures fair treatment

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 and equal opportunities to all its delivery merchants irrespective of gender,
age or race (Brown, 2023). The company uses eco-friendly packaging while
reducing plastic and rubber waste in the environment (Gillam, 2023).
DoorDash continues to work hard in improving consumer’s health by offering
variety of food options and redirecting surplus food to those in need.

7. Recommendation

In order to maintain and enhance its competitive advantage in the dynamic

marketplace of USA, DoorDash should prioritize the implementation of
corporate social responsibility initiatives. The company can strengthen its
brand reputation and contribute positive to the society by integrating CSR and
SDGs into its business strategy. DoorDash should maximize its impact and
commitment to global sustainability by focusing on key areas like sustainable
cities and communities, zero hunger, climate action, addressing food
insecurity, developing community projects and supporting small businesses.
Collaborating with non-profit organizations, expertise and government
agencies can enhance the impact of DoorDash Company in addressing
complex societal issues. DoorDash should implement data analytics in
optimizing delivery routes, addressing food wastage and promoting
sustainable packaging. The company can optimize its CSR and SDGs
initiatives by offering training on sustainability practices and recognizing
employees who demonstrate commitment to social responsibility. The
company’s executive team should champion the social impact of CSR and
SDGs initiatives by integrating these principles into the company’s culture and
strategic decision making. By sharing best practices and collaborating with
industry peers, the company can influence positive change across the food
delivery sector. The company should actively engage with policymakers and

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 legislators to advocate for policies and laws that will support sustainability,
good business practices and social equity.

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