Zomato PESTEL Analysis

Political
Any business firm wishing to enter the overseas market is highly prone to political
risks. The political decisions made by a host country are likely to affect the
organisational productivity and profitability (Deshpande, 2016). Extreme political
actions can very detrimental. The digital India campaign that was recently launched
by the country's Prime Minister Narendra Modi is more likely to allow the company
to get more internet penetration in India and everyone can easily access from every
corner of the market (Deshpande, 2016). Zomato can exploit this opportunity to
cover many restaurants of cities using the Digital India Campaign. The Indian
government puts more focus on ease of doing business in the country because it
encourages foreign direct investment (Deshpande, 2016). In this regard, Zomato can
be a beneficiary with such kinds of investment. The government puts emphasis on
skill development among the youths who will eventually help many people with skills
and knowledge. Zomato requires skilled people to enable it to penetrate and
establish itself in the market (Wikiwealth, 2017). In this case, Zomato can hire skilled
people from the Pradhan Mantri Kaushal Vikas Yojana program that develops skills of
the youths.

Economic
Between the periods of 2011 and 2014, Zomato achieved an overwhelming growth
by 1399%. This comes as a result of its tremendous achievements in 22 countries,
thus, contributing effectively to economies of the countries. Besides, there is a
potential rise in service prices after the country announced a service tax from 12.36%
to 14% (Deshpande, 2016). This move is likely to affect the economic well-being of
Zomato. Furthermore, the company is initiating cashless transaction aimed at
creating jobs in different countries (Chakraborty, 2016). As it stands, the company
has 2319 employees, and it has somehow managed to solve the unemployment
problems in the country (Deshpande, 2016). Lastly, the company attracts several
investments as well as funding from the government and foreign investment, all of
which are good for the country's economy.

Socio-Cultural
In the last six years, Zomato has turned out to be the country's favourite online
restaurant discovery tool. However, it has influenced the manner in which individuals
select their preferred restaurants. The changing lifestyle patterns and income levels
of the Indian working population, and this is advantageous to Zomato (Wikiwealth,
2017). This is because; many young people and new age working couples like eat
out, with this category attracting about 30% in 2012 (Deshpande, 2016). For this
reason, user engagement in its website is therefore critical for customer participation.
Finally, customer service Zomato has been amazing and going by the friendly replies
from the customers, the company has managed to maintain customer loyalty
(Chakraborty, 2016). As a dimension of social engagement with people, Zomato stays
ahead over its competitors.

Technological
Zomato has enjoyed a greater advantage by using technology in designing a
beautiful user interface that makes it easier for the users to browse (Wikiwealth,
2017). One advantage that Zomato continues to enjoy out of this kind of
technological innovation is that the service is much faster despite the fact that the
high resolution is needed for the menus. In essence, the technology encourages
online services. For example, incorporating what the restaurant into mobile app helps
the customers to select the restaurant on the go. According to Deshpande (2016),
the restaurant information is customised in a manner that the customer to obtain the
information he or she needs without necessarily making a hassle. Technology also
makes the company have a good business model that keeps the customers'
information (Wikiwealth, 2017). The only thing a customer is required to do is to log
and use the service. This move exposes the company to a competitive environment
with the likes Google. However, since the product is purely made to for Indian
restaurants, it cannot serve the demands of the global market. Therefore, Zomato has
used technology effectively to achieve competitive advantage (Deshpande, 2016).

Environmental
Achieving business sustainability is dependent on how the company addresses the
ecological requirements (Deshpande, 2016). Being a service company, there are no
significant environmental impacts from Zomato Company.

Legal
The company is required by the Indian law to comply with all regulations that control
technology firms in the country (Wikiwealth, 2017). This ensures that it is used
effectively without being subjected to abuse.