You are on page 1of 1

Write an industry analysis for Doordash using Porter’s Five Forces Model.

I considered, here, the organization Grubhub to prepare the Porter Five Force Model for the
Food Delivery Service, as noted below.

Suppliers ' bargaining power:


If the suppliers' dealings are high, suppliers can sell their raw materials and parts to
organizations for high costs, and again suppliers can supply organizations with comparably poor
materials. However, the organization accepts such raw materials and parts because the
negotiating power of suppliers is high enough.

Suppliers are rather strong or strong as suppliers like restaurants may partner with any food
service such as grubhub since many food delivery services providers are available and therefore
the cost of switching to food suppliers such as restaurants is quite small,

Power of the buyers to negotiate:


As the negotiating power of the buyers might be high in such cases, in organizations like food
delivery service providers, purchasers could get better quality products, and the buyer could
purchase these items from the delivery service providers at a relatively low cost, the reason is
that there are several food service providers.

Thus buyers can move to the next at low cost of switching, the bargaining power of buyers or
customers and consumers is very high here for Grubhub,

Replacement threat:

In this context, the risk of replacement could become high, if Buyer can get several replacement
products, but the cost of the changeover is low, and the quality could be higher, for now
Grubhub, Buyer has many choices of switching from a single product with good quality and very
low costs.

New entries threat:

We find that the danger of new entrants can be so high for Grubhub, the food supplier, that to
join a similar business, only a few barriers or a few resistance remain. It is therefore easy to enter
a similar enterprise, we want the same website, restaurants and hotels and a good delivery
network.

Competition competition in the industry as it existed:

For the business or food service provider, Grubhub, such a competition is very important as there
is a large number of rivals present on the market and they have to compete with and retain high
quality goods at fair pricing.

You might also like