Shopee

Food
&
AirAsia
Food
INTRODUCTION
Shopee Food
e-commerce online shopping platform based in
Southeast Asia and it was founded in the year of
2015 by the SEA group
The headquarters is located in Singapore and
currently has operations in all six of Southeast
Asia’s major countries namely Malaysia,
Indonesia,Philippines, Vietnam and also Thailand.
practices Consumer to Consumer (C2C) business
model, had an official launch in Malaysia back in
June 2015
INTRODUCTION
Shopee Food
the first social Market where everyone can browse, buy
and sell
offers a wide range of products, complemented with
secure payment methods and innovative inspiration to
create more business competitions and also by providing a
much more safe and convenient way for shopping and
sales experience towards the consumer itself
4 main features which are Shopee Feed, Shopee Games,
Shopee Live and also Shopee Live Chat
Shop made a shocking announcement where they wanted
to launch its own in-house food delivery service named as
Shopee Food on the date of September 24, last year.
INTRODUCTION
Shopee Food
Before the official announcement was made, the new
feature in the application was actually being publicly
available for consumers.
The company was looking for delivery riders and
eatery partners way back in June 2021
A slight difference from other countries where they
were required to download separate applications for
Shopee Food
as for Malaysia's version of Shopee Food it can easily
be accessed through the mainpage of Shopee’s main
app
 AirAsia Food
The team works closely with 500 restaurants all
around Klang Valley
The Airasia application itself provides the food
delivery services which allow consumers to earn
and pay with their BIG points.
Besides that, having the right logistics
infrastructure and ecosystem indeed makes the
setup of AirAsia food a smooth process
Given the effects of the ongoing pandemic at that
time, this AirAsia food delivery service system
practices a zero-commission model to ensure on
helping as many local businesses as they can.
AirAsia Food also created opportunities for the
affected crew members to become their delivery
partners.
 AirAsia Food
formerly known as a low cost airline company
that was established in 1993 with commenced
operations in 1996
AirAsia company decides to venture into a new
field which is the food delivery industry
official launch of the AirAsia food delivery service
was in May 2020 where it was known as
‘OURFOOD’ but eventually rebranded to “AirAsia
Food''
AirAsia food initial efforts began in March 2020
many cabin crew from the airline business who
decided to join forces by supporting local
businesses through food delivery service
underpinned by AirAsia’s logistics department
STRENGTHS OF SHOPEE FOOD
Variety of choices
Choices are mountains
International franchise restaurants like KFC,
McDonalds
Famous merchants like Lim Fried Chicken, Tealive,
Korean Chicken

Quality care

Every purchase, customer is entitled to rate and give

feedbacks
Every feedback is rewarded with coins
High rating attracts new customer also help
merchants to improvise the food and services
STRENGTHS OF SHOPEE FOOD
Promotions and vouchers
Monthly promotions, free delivery, coupons
(buy 1 free 1)
Claim from the apps and use instantly
Save a lot of money while enjoying the luxury
of good food
STRENGTHS OF AIRASIA FOOD
Inflight Meals
Everyone can try the inflight meals from
Santan
Satisfies the craving of frequent flyer who
couldn't fly due to restrictions

Intercity deliveries
Launched in Mid August, fly fresh food from
Penang to Kuala Lumpur
- Famous restaurants like Nasi Kandar from
Hameediyah, Mee Goreng Sotong from
Bangkok Lane, Jeruk Madu Pak Ali and etc
- Every Wednesday for only RM5.99
STRENGTHS OF AIRASIA FOOD
Collect Points and Redeem
Every purchase through the apps gets points
Point can be accumulated from every
purchase.
Customer may redeem the coins not only on
food but also air tickets and hotels
WEAKNESSES OF SHOPEE FOOD
Price of food

When there are no promos or vouchers given, the price of food is

much more pricey than usual.
The price can be considered much higher than its competitors.

Availability of Shopee food riders

Experience a lot cancellations due to short of riders

Delivery
Available only at Klang valley
No option for self pick up
WEAKNESSES OF AIRASIA FOOD
Delivery time

Unlike the other applications, airasia food did not allow for
immediate deliveries and instead asked us to select a delivery time.

Delivery Radius Limitation

Although the service offers a delivery radius of up to 60

kilometers, it now only displays restaurants within 15 kilometers
of the ultimate delivery destination depending on customers
location.

Laggy app
Payment process was extremely slow due to extended
buffer times between switching pages on the app
OPPORTUNITIES OF SHOPEE FOOD
Variety of choices
It has mountains of choices
Famous franchise restaurants like KFC,
McDonald's
Famous merchants like Lim Fried Chicken,
Tealive
Quality care
Every purchase, customer is entitled to rate
and give feedbacks.
Every feedback is rewarded with coins
High rating attracts new customers also helps
merchant improvise their food and services.
OPPORTUNITIES OF SHOPEE FOOD
New Opportunities for Personal Growth
Continue to be relevant because it famously
known before the existence of Shopee Food.
Provide various work opportunities for
proffesionals because they are in high
demand.

Cater to Consumer’s Need Acessibility and Variety

Being able to filter and search for foods
specific according to their deietary needs.
OPPORTUNITIES OF AIRASIA FOOD
First Air-Flown Food Delivery
All meals will be prepared fresh and air-
flown in strict hygiene from Penang to
Klang Valley on selected days each week.
With affordable delivery fees of only RM
5.99.

Affected Crew Members

Affected by the reinstatement of the

Conditional Movement Control Order
(MCO).
Increase in order volumes within the Kalang
Valley.
THREAT TO SHOPEE FOOD
There’s a lot of Big Players in the Food
Delivery market

—Shopee food has to compete with other

Delivery companies such as Grab food, The more the choices, the more the
Food Panda, etc.
probability of losing a Loyal customer
-Therefore, customers are free to choose
as it makes the customer base
whatever platform that would benefit
unstable. This kind of matter would
and save their money for a cheaper cost.
eventually put pressure on a
It will lead to bigger business
company’s margins and affects their
competition as lots of other platforms
profitability.
provide cheaper fees and cost.
THREAT TO AIRASIA FOOD
Air Asia Food is a new brand in the Therefore, it is very difficult for them to prove
Food delivery market. Surely, The to their clients that they had better services.
biggest threat to Airasia Food is
Even the big players are having hard time
its Competitors,
maintaining their profitability, let alone
especially Grab and Foodpanda,
newcomers such as AirAsia Food.
who Have become the major
player in the food delivery
industry and have been known by
Malaysians.
RIVALRY AMONG COMPETING FIRMS
Identify and close holes in the customer experience. You may improve your
customer’s experience by taking and listening to their feedback. Feedback
needs to be taken seriously as it is what the customers feels and experienced
by using your service.

Create a distinct offering category to provide distinctiveness. Try to create

something different and unique that can attract other people to use your
service.

Innovation. Innovative items tend to attract an increasing number of

consumers

Enhance the customer service. Having good customer service is really

important. People will always ask for assistance from the customer service.
Therefore, it is important to have good customer service that can entertain and
satisfy your customer needs.
POTENTAL ENTRY OF NEW COMPETITORS
When new competitors enter into an industry
offering the same products or services, a company’s
competitive position will be at risk.
Depends on the BARRIERS TO ENTRY = Existence of
high costs or obstacles that can deter new
competitors from entering the industry.

ShopeeFood - Famously known as one of the cheapest

shopping platform, with addition of the food delivery
services, the barriers to entry are higher because of
the strong customer loyalty.

AirAsia Food - Cost Advantages.

Can easily offer their services at a lower cost and
price with the uniqueness type of delivery which is
the Air-Flown Food Delivery.
 POTENTIAL DEVELOPMENT OF SUB

PRODUCT
There will be more companies that
come with substitute products in this
Consequences :
industry that are trying to compete to
offer their customers the most low-
priced apps. when substitute’s prices fall and

Reasons : most of our activities these days switching costs for customers drop,

were made online, pressure on the organisation as a

People are willing to spend on online
delivery food services nowadays as it
saves their time and ease of access
that they can enjoy a whole variety of
foods.
whole grows. Therefore, these issues
would then lead to high marketing and
promotional costs when they are trying
to compete with other companies.
 In both Shopee and Airasia food, the bargaining

Bargaining power of suppliers is lower. This is because of

the restrictions and code of conduct by the

power of
brand owner. Both Shopee and Airasia food
grows in the form of vertical integration. The

suppliers
company are involved in everything process of
the business. The online platform that was made
are simple where sellers need buyers, buyers
need seller. However, both companies takes
different approach to sustain and develop their
business. Shopee food are more on advertising
while Airasia are based on technology.
Power of
consumers
the bargaining power of buyers in an
industry affects the competitive
environment for the seller and influences
the seller’s ability to achieve profitability
strong buyers can pressure sellers to
lower prices, improve product quality, and
offer more and better services
a weak buyer, one who is at the mercy of
the seller in terms of quality and price,
makes an industry less competitive and
increases profit potential for the seller.
 ANALYSE COMPANIES STRATEGY
Shopee Food

Strategy used : Volume Buy

They encourage people to buy more items for
cheaper delivery. Students can share buy
meals together and pay only one delivery fee.

Strategy used : Innovative in their

Application.
Eg : the ability to filter and search for foods
that are particular to the consumers dietary
demands.
 ANALYSE COMPANIES STRATEGY
Air Asia Food
Started due to impact of Covid-19
aviation sector.

Strategy used : Technological

advantages.

By improving technological
advantages, can improve productivity
or even market domination
EXTERNAL ENVIRONMENT IMPACT
the habits of ordering food via online
application has eventually became a
norm for everyone
a study conducted on food ordering
trends by cloud-based retail
management software company, Web
Bytes, the pandemic has caused a
seismic shift for the food and
beverage (F&B) industry where food
deliveries and takeaways exceed dine-
ins even post restriction order.

EXTERNAL ENVIRONMENT IMPACT

The study shows that deliveries and
takeaways contributed a whopping 85
per cent of total F&B) orders in the last
three months of 2021.
our F&B customers' transactions shows
that consumers in Malaysia have adapted
their lifestyle and are getting increasingly
used to takeaways and food deliveries.
 Methods to avoid threat for the business
1. new marketing materials and promotions.
lots of engagements on the internet nowadays.
promote their delivery service to every platform 3. Create Quality Assurance System
such as, print materials like flyers and stickers, whereby there would be action
making promotional videos on social media. taken to restaurants that
In order to keep. Customers interested, they should continuously having a low rate and
have at least one promo that could make their a bad review on the food delivery
customers attracted to the purchase website.
This is to ensure that both
company maintain the quality of
2. Make it easy for their customers to order food
foods by placing only the best-
anywhere, anytime.
quality restaurant to avoid matters
Their central aspect of the food delivery strategy pertaining the bad quality of food
should be to make their online food service available and so on.
to as many potential customers as possible. The better the quality of a
Therefore, the ordering process should have been as company, the stronger the
easy and intuitive as possible to increase the apps competitive position in the
website traffic. No extra clicks, no menu hidden industry.
away in your website’s footer.
 Conclusion
In conclusion, both Shopee food and Airasia food have their own advantages and disadvantages.
Both are just as good as they are but however, something needs to be changed so that the
customers will be more satisfied with the service provided.

Recommendation

Shopee food Airasia food

cover up more delivery options to their customers for

areas immediate deliveries.
add up the number of needs to improve their food
shoppe food riders app
Thank You
For Your
Attention