You are on page 1of 25

STRATEGIC GLOBAL MARKETING

1
Executive summary

Swiggy is an online food delivery company that aims to expand its international platform.
This assignment has been conducted through internal as well as external analysis of the
global event so that the strengths, weakness, threats and opportunities can be easily
determined and appropriate recommendations can be given to the firm for global expansion.
It has been analyzed that financial issues are a major theft for Swiggy as the global
economic inflation shall lead to lower profitability after international expansion. However, if
the firm can deploy modern technologies for delivery, it can gain a brand reputation on the
global platform. Along with some strength, the organisation has faced some major issues in
the market such as failure to maintain the market laws in India and it is accused of
establishing unfair pricing in order to enhance its monopoly in the market and the lack of
training for the service operators of Swiggy has enhanced the number of dissatisfied
customers. These two impacted the revenue earnings and food delivery of the organisation
in order to contribute to sustainability the organisation has decided to increase the number
of electric vehicles which further helps the organisation to reduce the emission of carbon
foot prints in the air. A brief STP of the company has been presented in the detail that
would help in assisting in the internationalisation of the businesses. Additionally, the
implementation of the Uppsala model has also been presented in the study to show the
aspects of partnership by Swiggy in Malaysia.   

2
Table of Contents
Introduction 4

Analysis of chosen organization’s current competitive position in the external environment 5

Organisation’s external environment and the models, which can be used to analyze both the
macro- and micro-environments 5

Critical evaluation of the global external environment using the Pestle framework 6

Critical evaluation of the global external environment using Porter's framework 8

Summary of the findings from the external analysis 9

Identifying the key opportunities and threats from the external environment and their
impact on the organization 10

Recommendations for action 11

Analysis of the internal environment strengths and weaknesses of the organization 12

Organisation's internal analysis and the MCTs that can be applied 12

Critically evaluation of the organization's internal environment utilizing the SWOT


framework 12

Critical analysis of mission, vision and values and the importance of aligning these with
internal stakeholders and the corporate social responsibility and sustainability agenda 13

Key strengths and weaknesses from the internal analysis and their impact on the
organization 16

Recommendations for action 18

Analysis of a foreign country’s market opportunities for your chosen organisation 18

A rationale for Malaysia based on the above discussion 18

Critical analysis of models, concepts and theories to justify 20

Conclusion 21

References 22

3
Introduction

The internal and external environment of a firm has a significant impact on the company's
business operations. Similarly, a detailed analysis of the environment helps in evaluating
the strengths and weaknesses which further provides the scope of expansion in foreign
countries. This assignment has used several frameworks to analyze the eternal global
environment of Swiggy and determine the potential threats that can provide a barrier to its
external expansion. Swiggy is an online platform for food ordering and delivery which was
founded in India. The platform is used by Indian citizens from different parts of the country
to order food from restaurants and also get quick supplies of groceries.

Figure 1: Swiggy logo


(Source: Swiggy.com., 2023)
As per statistics, the company earns maximum revenue from its food delivery service from
restaurants and in 2021; it earned over 15 billion INR from this sector by levying service
charges from the restaurants (Statista, 2023). In this assignment, strategies are deployed
to ensure that Swiggy can expand successfully in foreign markets and enhance its revenue
within the next decades. The frameworks that are mainly used for this assignment include
PESTLE, porter's five forces and SWOT. Recommendations are given after every analysis so
that the company can analyze its scope in international markets.

4
Figure 2: Revenue earned by Swiggy
(Source: Statista, 2023)
In this study, the company Swiggy will target the market of Malaysia. With the rising
demand for the home delivery food items from local restaurants and hotels, this company
will process the business with the local people as employees of the company.

Analysis of chosen organization’s current competitive position in the external


environment

Organisation’s external environment and the models, which can be used to


analyze both the macro- and micro-environments

An organization's external environment can be defined as all such factors that influence the
business operations of a firm but can be hardly controlled by the firm. Three external
factors include political issues, economic turbulence, sociocultural factors, competitive
environment and legal factors. However, a firm must respond to these issues so that it can
gain competitive advantages in the global platform and expand efficiently in order to
enhance its profitability and brand image. The macro-environment focuses on global issues
whereas micro factors are concerned with the specific industry that the company operates
(Sánchez-Cambronero et al., 2020). In this assignment, an analysis of the online food
delivery industry is done so that the macros and microenvironment of Swiggy can be
evaluated in detail. The models that are used in this section are PESTLE and Porter's five
forces. PESTEL framework evaluates six major domains of the global environment and they
are political, economic, social, legal, technological and environmental. The analysis of all

5
these factors helps in evaluating whether these factors create opportunities or threats for
Swiggy when it aims to expand in the external environment. On the other hand, Porter's
five forces are determined to analyze the competitive environment of a global environment
that can lead to issues for Swiggy if it enters a foreign market.

Critical evaluation of the global external environment using the Pestle framework

Figure 3: PESTLE framework


(Source: Created by the learner)

Factors Analysis

Political The global political environment is stable and


governments of most countries encourage
globalization. Moreover, governments of individual
countries along with global bodies are supporting
internal business expansion to maintain peace across
borders and improve economic stability as well.

Economic The economic crisis is forecasted by several


institutions as the world is facing repeated disasters.
As an example, the pandemic f covid-19 has reduced
the economic stability of developed as well as
developing countries. Furthermore, the global energy
crisis has increased due to the war between Russia
and Ukraine. It is forecasted that economic growth
will slow down in 2023. As an example, there was
6.0% economic growth in 2021 and it would reduce to
2.7% in 2023. Global inflation was 4.7% in 2021 but

6
it will increase up to 6.5% in 2023 (International
monetary fund, 2023).

Social The food delivery industry needs to satisfy the


appetite and needs of people who belong to different
cultures, races and traditions. Since these customers
have different food preferences, Swiggy must partner
up with multi-cuisine restaurants to gain higher profit
on the international platform.

Technological Technological use is encouraged by international


governing bodies as it is a sustainable mode of
business which increases profitability as well as
productivity. While competing on an international
platform. Swiggy shall gain opportunities of using
modern technology such as Artificial intelligence in
food delivery which shall help it to gain higher
profitability and reduce its dependence on human
resources for different business operations.

Legal Legal factors encourage global companies to follow


rules and regulations that can protect employees from
discrimination, sexual harassment and issues related
to inequality in the workplace. Moreover, as per the
online food delivery industry, legal implications
include maintenance of food safety so that delivered
food does not harm the customers. Swiggy has been
facing several legal issues in the Indian market due to
poor food quality issues, a lack of legal contracts with
the restaurants and payment issues with its
stakeholders (Singh, 2022).

Environmental Governments across the world are supporting


sustainability in the present era so that business
operations do not lead to environmental harm. As a
result, when Swiggy plans to expand internationally it

7
needs to adopt sustainable food delivery methods so
that it can gain support from the stakeholders of
national and international platforms.

Table 1: PESTLE analysis of Swiggy on a global platform


(Source: created by author)

Critical evaluation of the global external environment using Porter's framework

Figure 4: Porter’s five force framework


(Source: Created by the learner)

Factors Analysis

Bargaining power of suppliers Food supplies are gained by online food delivery
companies for restaurants and cafes. The global
environment has thousands of restaurants in every
country and Swiggy can partner up with several
companies. Therefore, bargaining power of suppliers
is low (Gupta, 2019).

Bargaining power of customers Customers have several options to order food. There
are many foods delivery companies that compete
with Swiggy and can provide the best services to the
customers in the context of higher discounts, faster

8
delivery and lower service charges. As a result,
customers have high bargaining power

Thetas of new entry The trend of ordering food from restaurants has
been increasing and governments are also
encouraging new entries in this industry. However,
the high cost of entering the industry cannot be
afforded by many firms.

Threats of substitute products Substitution of fast-food delivery is rare and the


restaurants that have their own delivery system are
slower than the industry that focuses only on food
delivery. As a result, getting substitutes by
traditional food delivery is low

Competitive rivalry The competitors of Swiggy are high in global


platforms and the main competitors are Zomato,
Uber eats, Foodhub and Hungry house (Trivedi and
Singh, 2021).

Table 2: Porter's five force analysis of Swiggy on a global platform


(Source: created by author)
In the selected country for the business expansion, the company Swiggy will face
competition in Malaysia, and that can be omitted with the help network and distribution
strategies.

Summary of the findings from the external analysis

Overall, it can be summarized that the global economic crisis can lead to a barrier for
Swiggy as it has lower chances of profitability in the international market. Similarly, not
maintaining legal implications is a challenge for the firm and it may lose support from
national as well as international stakeholders. On the other hand, Swiggy might get
opportunities for technological advancements in developed countries which can also help the
firm to reduce the number of human delivery agents and replace them with autonomous
vehicles and drones (Bruijl and Gerard, 2018). Similarly, the company can gain
opportunities from partnering with multi-cuisine restaurants and serving different customers
with diverse food preferences. The above farms have also summarized that they will face

9
high competition in global platforms as there are several food-delivery companies that can
compete with Swiggy.

Identifying the key opportunities and threats from the external environment and
their impact on the organization

Factors and impact on Swiggy Threat/


Opportunity

International governing bodies support globalization Opportunity


which will positively impact the expansion of Swiggy

Not maintaining the legal implications can be a challenge Threat


for the firm on a global platform.

Technological advancement in global platforms can Opportunity


encourage Swiggy to adapt to automatic technologies
and have a positive impact on the firm.

The global economic crisis will lead to lower profitability Threat


for the firm.

The low power of suppliers will provide ample Opportunity


opportunities for Swiggy to partner with several multi-
cuisine restaurants that serve high-quality food at a
higher service charge.

High competition in the global market will lower sales Threat


margins for the firm.

Low that form substitute service will enhance the Opportunity


productivity of the company

The high competition will also lead to a lowering of the Threat


customer base for Swiggy

Table 3: Identification of opportunity/threat of Swiggy on a global platform


(Source: created by author)

10
Figure 5: Opportunity/threat of Swiggy
(Source: created by author)

Recommendations for action

It is highly recommended that Swiggy gathers adequate financial resources before


expanding on an international platform. The firm must encourage national and international
stakeholders to invest in the firm so that they can buy modern technologies to modify their
business process and use autonomous vehicles for delivering food as well. On the other
hand, the firm can use a competitive pricing strategy to gain advantages over rival firms
and gain higher profitability even in a situation of economic crisis (Taleizadeh and Sadeghi,
2019). Another recommendation is to conduct a tough market analysis to understand the
needs of customers and stakeholders in global platforms. Such an analysis will further help
the firm to understand the preferences of consumers and customers or services accordingly
to gain a higher brand reputation in the global platform. Market analysis will help the
company to understand the legal implications of the county where they are expanding and
the firm can abide by the rules and regulations of food quality and contract-making with the
restaurants as well.

11
Analysis of the internal environment strengths and weaknesses of the
organization

Organisation's internal analysis and the MCTs that can be applied

Internal environmental analysis of a firm aims to evaluate the strengths and weaknesses
which can be monitored and managed by the company. Such issues lead to problems in the
business operation of the company and are induced by a lack of management and control in
the workplace. Human resources of the firm lead to such internal issues which must be
resolved so that competitive advantages can be gained by Swiggy. In this assignment, the
internal analysis is done with the help of the SWOT model. SWOT stands for strengths,
weaknesses, opportunities and threats. With the help of this model, the internal
environment of the firm can be evaluated and recommendations can be given on how
Swiggy can use its internal strengths to optimize its external threats.

Critically evaluation of the organization's internal environment

SWOT framework

Figure 6: SWOT framework


(Source: Create by the learner)

Strengths Weaknesses
● The company has partnered with ● Swiggy failed to maintain the market
15000 restaurants in India which laws in India and it is accused of
helps the firm to deliver several establishing unfair pricing in order to
cuisines to Indian customers who enhance its monopoly in the market

12
belong to a diverse range of cultures (Economic times, 2023).
and traditions. ● The lack of training for the service
● Swiggy uses social media marketing operators of Swiggy has enhanced
strategies such as Facebook to reach the number of dis-satisfied
out to the younger generation in customers.
order to enhance their revenue.

Opportunities Threats
● Swiggy can enhance its opportunities ● High competition for Uber eats and
by encouraging internal, local and Zomato is leading to a severe
national stakeholders to invest in challenge for Swiggy.
their firm as they have a significant ● Threats are increasing as the firm is
gross merchandise value of $1.3 selling its profitability and it's being
billion (Economic times., 2023). reported that Swiggy has lost 23%
● High financial investments from of its revenue in 2021 (Abrar, 2022).
stakeholders can enhance the ● Low financial gain from the market
opportunities for expansion as well can put barriers to international
as technological development for the expansion and the company shall fail
firm. to modify its business operations to
● Advancement of digital marketing gain competitive advantages in the
encourages Swiggy to target global market.
customer segments and attract them
to choose their food delivery
platforms over others.

Table 4: SWOT analysis of Swiggy on the global platform


(Source: created by author)

Critical analysis of mission, vision and values and the importance of aligning these
with internal stakeholders and the corporate social responsibility and
sustainability agenda

Mission and Vision


The mission and vision of Swiggy are to improve the quality of life of the urban people by
providing them with “unparalleled convenience”.

13
Values
The consumer is the first priority to the organization and the organization always looks for
showing the highest level of integrity in the business market. In addition to it, curiosity for
learning, commitment to the consumers and humility are the main organizational values of
Swiggy that helped the organization strive for excellence in the food business market.
Internal stakeholders Analysis
Stakehold Role Interest Influence Mitigation strategies
er Name
Board of Sriharsha Majety is High High Boards of directors
directors the director of the need to maintain a
organization (Tripathi strong relationship with
et al. 2022). The the stakeholders and
main role of the shareholders. Despite
board of directors is this, boards of directors
to provide direction need to treat all the
and strategy to the stakeholders fairly to
business. Despite get more funds for
this, recruiting, business. Some
supervising, retaining stakeholders of the
and evaluating the organization are Prosus
business and and Baron Capital. IIFL
financial Asset Management,
performances are Kotak PrivateEquity and
also the important Smile group.
role of the board of
directors
Managers The role of Swiggy High. High. The managers are
managers is to responsible for
oversee a particular competing sales
group or project. reporting activities.
Despite this, the Keeping track of
managers of Swiggy partner visits and
are responsible for competitor intelligence
managing the team are also some
or managing a responsibilities of

14
certain function. Swiggy managers.
Employee Delivery boys are the Low. Low. Swiggy provides
s main employees of salaries to its delivery
Swiggy and they boys every week. The
connect customers organization also
with the restaurants provides "effort-based
in their areas. pay" to allow the
employees to earn as
much as they can.
Table 5: Stakeholder’s Analysis Swiggy
(Source: Self-Developed)
Corporate social responsibility
As the organization aims to improve the quality of life of urban people, hence the
organization follows Caroll’s Four Part model. Swiggy with the help of this mode makes its
business economic, legal and philanthropic keeping the needs and demands of the people in
view. As a part of corporate social responsibility Swig provides meals to thousands of
“underprivileged”, “standard migrant laborers” and “daily wagers”. Swiggy further provides
some comprehensive schemes to its delivery partners as per which the children can take
admission either in a government or private school from primary to secondary level.
Recently Swiggy has launched the “Hope, Not Hunger” program in which the organization
has aimed to provide 5, 00,000 meals every day to the people (Panigrahi, 2022). The
organization has also ensured that each lunch and dinner must include an adequate number
of rices, dal and vegetables to maintain nutritional value.

Figure 7: Funding and Valuation of Swiggy


(Source: Singh and Chhabra, 2020)
The demand for the home delivery foods is similar for India and Malaysia, and that can help
the company to connect with the people effectively. Having similar kind of culture and
responsibility factor can assist the company to get audiences faster and serve them required
services.

15
Sustainability Agenda
In India, the organization has made a joint venture with Reliance BP mobility (RBML) to set
up “ecosystem and battery-swapping” stations across the nation for delivery partners. As
per some statistics it can be seen that the delivery boys of Swiggy cover 8 lakh kilometers
every day. That's why the organization has decided to increase the deployment of EVs or
Electric vehicles in the nation by the end of 2025(Jiji and Kenoth, 2022). In addition to it, an
increase in electrical vehicles will reduce the running cost of vehicles by 40%. In order to
build an EV ecosystem, the organization has made a joint venture with EV tech logistics. I
will also help the organization to reduce the emission of carbon footprints in the air.

Key strengths and weaknesses from the internal analysis and their impact on the
organization

Impact of strengths
The organization has made joint ventures with 15000 restaurants in India. Making joint
ventures with a large number of firms also increases the revenue earnings of the
organization. As per some statistics it can be seen that in the Fiscal year, 2022 sales of the
organization increased by 2 times and reached £51.25 billion which was £25.99 billion in
2021 (Prashar et al. 2022). In addition to it, making joint ventures with 15000 restaurants
is helping the organization deliver cuisines to Indian customers based on a diverse range of
cultures and traditions. It is expected that the core food and restaurant business of Swiggy
is going to rise by 40% by the end of 2023 (Khan and Priya, 2022). Presently the
organization has 128000 restaurants in 500 different cities in India which helped the
organization to get 20 million active users in the nation.

Figure 8: Order per month Swiggy


(Source: Gupta et al. 2021)

16
Swiggy uses social media marketing strategy to attract target customers. As per some
statistics it can be seen that in India there are 448 million active social network users which
were 351 million in 2019 (Beharay et al. 2022). In India people of 18 to 55 age groups
prefer Swiggy and the organization targets millennial audiences towards its brand.
Therefore, social media marketing will allow the organization to reach a large number of
users irrespective of demographics which will further increase the customer base in India.

Figure 9: Customer Base of Swiggy


(Source: Gupta, 2019)
Impact of weakness
Swiggy operates its business in India on a large scale but the organization failed to maintain
the market law in India. In 2018, the organization ended up paying 20,000 as a penalty
when it charged Rs. 4.50 on the soft drinks of a Haryana Boy (BBC.com,2022). It was
strictly a violation of the Mandatory Printing of Cost of Production and Maximum Retail Price
Act, 2006. Moreover, the incident reduces the transparency and brand image of Swiggy.
Therefore, by taking the advantage of their citation, competitors of Swiggy such as Zomato,
DoorDash, Uber and GrubHub can emerge as leading food restaurant chains in India. The
lack of transparency and accountability in Swiggy's business also created heavy cash burn
from the “quick commerce ventures”. In addition to it, the organization is lacking trained
delivery professionals as a result of it the organization faced 7, 00, 00 kgs of food waste
which is enough to feed 3000 people a year (Ayman et al. 2022). Despite this due to a poor
delivery system Swiggy receives 385278 cancellations every month which further directly
impacts the revenue earnings for the organization.

17
Recommendations for action

Recommendation 1
In order to ensure the fastest delivery of food, Swiggy can adopt a drone delivery system.
Despite this, the organization can use robotics, machine learning and artificial intelligence to
ensure faster food delivery for its customers. Along with it, the adoption of a Virtual kitchen
app and waste food collection app will allow the organization to prevent food wastage.
Recommendation 2
In order to enhance supply chain management Swiggy can adopt IoT, AI and Augmented
reality. Adoption of the technologies will increase “actual output” and improve the “quality
of foods” and “delivery process”. Along with it, the adoption of the latest technologies will
further decrease “energy consumption” and ensure “profitability” for the organization.

Analysis of a foreign country’s market opportunities for your chosen organisation

A rationale for Malaysia based on the above discussion

From the above study, it needs to be stated that the expansion of Swiggy in the Malaysian
market can be considered to be quite useful. The external market analysis in the above
section has made it evident that the Malaysian market is growing and is quite appropriate
for a new business. As per an article, it has been seen that over the past 10 years, many
businesses have chosen Malaysia for business expansion (Boardroomlimited.com, 2021). As
per the recent rankings of the World Bank, it has been seen that Malaysia has been ranked
at 55th position in the aspects of continuing business. The article has stated that Swiggy
while considering Malaysia for its business expansion, gains an advantage of gaining access
to about 667 million population of the country. Thus, it needs to be mentioned that the
development of the company in the chosen country can be observed to be at a higher
advantage for the company. Moreover, the studies of Menhat et al., (2021), have stated
that most countries have a norm of double taxation which can, however, be avoided in
Malaysia. Thus, this has made Malaysia an attractive country considering the tax
environment following an international flow of investment, financial activities and trade.
Furthermore, considering Swiggy to be an online food delivery business, it can be stated
that the development of the industry in the country is quite high. As per a recent study, it
has been opined that the revenue in the Online food delivery market has been projected to
reach US$2.61bn in the year 2023 (Statista.com, 2022). The image below is a visual
representation of the same.

18
Figure 10: The anticipated growth of the food delivery market in Malaysia
(Source: Statista.com, 2022)
Recent data has helped in stating the fact that the Malaysian online food delivery market is
expected to grow by 19.2% over the next few years up to 2026 (Acumen Research and
Consulting, 2019). Thus, it can be stated that the choice of country is highly justifiable. The
implementation of an STP analysis helps in identifying the target and positioning of the
company. The image below is a visual representation of the STP analysis.

Figure 11: STP analysis


(Source: Created by the author)
The STP analysis for Swiggy in the new market has been represented in the table below:

STP Analysis

Segmentation ● Under the demographic segmentation, it is better for


Swiggy to focus on the younger generation, mainly the
teenagers and the college students.
● Under behavioural segmentation, Swiggy can focus on
identifying the market trends, such as the preference of
having food by staying at home.
● The psychographic segmentation of the company is based
on identifying the total percentage of Malaysian citizens
opting for food delivery.

19
Targeting ● The main target audience of the company is the people
belonging to the age group of 18-35 years, which includes
millennials, students and the working population.
● The main target market of the company would be Kuala
Lumpur.

Positioning ● The main positioning strategy that would help the company
in gaining customers in the market involves the inculcation
of a convenient lifestyle for the people in Malaysia.
Table 6: STP Analysis
(Source: Created by the Author)

Thus, following the advantages of the chosen country, it needs to be mentioned that the
development of the above strategies by Swiggy would prove to be highly useful for the
growth of the company. It can be analyzed that the food habits of Malaysia and India people
are almost the same which will make it easier for Swiggy to enter the country and
encourage customers to use its services. However, while entering a new market, certain
pricing and promotional strategies need to be chosen which can be depicted by the
marketing mix model.

Digital Marketing mix

Product: Swiggy’s has partnered with a number of restaurants and their products include
multi-cuisine food that can attract the culture and food preferences of customers. In
Malaysia, market research has to be done through digital platforms and data needs to be
gathered about the food habits of the citizens. As a consequence, Swiggy must make
contracts with restaurants that serve authentic Malaysian food such as rice and beef, fish
curry, vegetable curry, lamb stew, Apam Balik and Ayam percik (Calderon, 2021).
Moreover, the quality of food must be high so that it can attract the customers of a foreign
country. Along with that, restaurants that serve authentic Indian, continental and Chinese
cuisine must also be contracted to provide different tastes of food in Malaysia.

Price: Being a new company in a foreign country, Swiggy must choose its pricing strategy
wisely in order to gain maximum profit. A competitive pricing strategy can be used as it will
help the firm to gain advantages over rival companies such as Foodpanda, Oodles, Grabfood
and Airasia delivery. A competitive pricing strategy will also encourage the firm to provide
discounts to the customers in Malaysia which will motivate customers to order food from
Swiggy and try their services (Hong et al., 2018). The low prices, discounts and offers must
be informed to the customers through a digital medium.

20
Place: Swiggy will operate and compete on digital platforms. The mobile application can be
used to order food from different restaurants and customers can track the order through the
mobile application itself. Similarly, the order can be placed over laptops and computers as
well. Customer service can be communicated over the telephone.

Promotion: Social media marketing will be used to promote market entry in Malaysia. As of
2022, 91.7% of Malaysian citizens are highly active on social media platforms such as
Facebook (Statista, 2023). Therefore, Facebook pages shall be created and promotions can
be done through live campaigns, regular posting of services along with informing the
customers about the variable discounts and offers on online food ordering through Swiggy’s
mobile application. 

Critical analysis of models, concepts and theories to justify

The development of the company based on the aspects of internationalisation can be


considered to be the most useful concept for the growth of Swiggy in Malaysia. The
implementation of the models, such as the Uppsala model of internationalisation, would help
in intensifying investments and activities in foreign markets. According to the research of
Chaldun et al., (2022), it is important to state that the Uppsala model helps in getting closer
to real business. The research of Wu and Vahlne (2020), has asserted that the Uppsala
internationalisation model is based on the concept of market commitment, market
knowledge, current activities and commitment decisions. The image below has helped in
representing the Uppsala model in detail.

Figure 12: Uppsala Model


(Source: Hansson et al., 2022)

21
Based on the above model, it needs to be mentioned that the development of the stated
company in Malaysia should be done based on the aspects of the partnership. Following the
above model, the state of the company would be identified through market knowledge and
commitment. On the contrary, the aspects of change in the business can be identified
through the commitment decisions and current activities. As opined by Feliciano-Cestero et
al., (2023), the partnership of the firms in internationalisation helps in providing the
resources for the growth of a particular business. Thus, it is advised that Swiggy, while
opting for internationalisation, needs to opt for partnerships with well-known restaurants in
Malaysia. This would help the company in reaching a greater number of customers in the
country. In a nutshell, it can be opined that the chosen model is highly suitable for the
expansion of Swiggy into Malaysia.

Conclusion

In this assignment, a detailed external and internal market analysis has been done for
Swiggy to get two market opportunities and two potential threats in the current
international market. From the whole analysis, the threats of economic crisis all over the
world, and high competition in the market are the most crucial to overcome. Along with
that, among all the opportunities modern technological development for developing delivery
networks with the help of AI is the most potential opportunity for Swiggy. Along with that,
in this assignment, a detailed SWOT analysis has been done for Swiggy based on its
operation in its current markets. In this assignment, the internal challenges of Swiggy that
the stakeholders face in operation have been also described here.
After analyzing different markets across the globe, a bunch of opportunities have been
found in Malaysia after analyzing the economic, political, and social advantages and
disadvantages present in the market. It can be concluded that in the current market,
Swiggy is experiencing a competitive advantage due to low competition in the market. At
the same time, Swiggy is also facing troubles from its weak supply chain in India. Here
some crucial criteria have been set to enter Malaysia for the international business of
Swiggy.

22
References

Abrar, P., 2022. Food delivery giant Swiggy's revenue drops 23% in FY21 to Rs 2,145 crore.
https://www.business-standard.com/article/companies/Swiggy-posts-rs-2-145-cr-revenue-
reports-rs-1-314-cr-net-loss-in-fy21-122021001336_1.html

Acumen Research and Consulting, 2019. Malaysia Online Food Delivery Market (By Type:
Restaurant-to-consumer delivery, Platform-to-consumer delivery; By Customer Age:
Generation Z, Millennials, Generation X, Baby Boomers; By Gender: Male, Female; By
Income Level: Low Income, Medium Income, High Income) - Industry Analysis, Market Size,
Opportunities and Forecast, 2018 – 2026. Available at:
https://www.acumenresearchandconsulting.com/malaysia-online-food-delivery-market
[Accessed on 11-01-2023]

Ayman, N., Nazihah, N.F., Izzati, N. and Syamimi, N., 2022. Usage Intention of Food
Delivery Apps During Covid-19. International Journal of Tourism and Hospitality in Asia
Pasific (IJTHAP), 5(2), pp.65-74.

Beharay, A., Tiwari, A.S., Rawal, P. and Mishra, U.M., 2022. Comparative Study on A
Branding Strategy of Online Ordering and Delivery Platforms of Food Industry with
Reference of Zomato & Swiggy. Journal of Positive School Psychology, 6(3), pp.5552-5560.

Boardroomlimited.com, 2021. 4 Reasons why incorporating in Malaysia could be a wise


decision. Available at: https://www.boardroomlimited.com/my/2021/12/10/business-
expansion-into-malaysia-yay-or-nay/ [Accessed on 11-01-2022]

Bruijl, D. and Gerard, H.T., 2018. The relevance of Porter's five forces in today's innovative
and changing business environment. Available at SSRN 3192207.

Calderon, J., 2021. Malaysia’s top 40 foods.


https://edition.cnn.com/travel/article/malaysian-food/index.html

Chaldun, E.R., Yudoko, G. and Prasetio, E.A., 2022. Underlying Internationalization Process
Theories for Small and Medium Enterprises (SMEs): A Systematic Literature Review and
Classification of Research Streams. Jurnal Manajemen Indonesia, 22(2), pp.199-216.

Economic times., 2023. CCI orders probe into Swiggy, Zomato for unfair pricing; other NRAI
allegations under lens.https://economictimes.indiatimes.com/tech/startups/cci-orders-
probe-of-zomato-Swiggy-into-alleged-competition-law-violation/articleshow/90645959.cms?
utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Economic times., 2023. Swiggy trailed Zomato in first half of 2022 despite offering bigger
discounts: Jefferies report. https://economictimes.indiatimes.com/tech/startups/Swiggy-
trailed-zomato-in-first-half-of-2022-despite-offering-bigger-discounts/articleshow/
95741332.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Feliciano-Cestero, M.M., Ameen, N., Kotabe, M., Paul, J. and Signoret, M., 2023. Is digital
transformation threatened? A systematic literature review of the factors influencing firms’
digital transformation and internationalization. Journal of Business Research, 157,
p.113546.

23
Gupta, A., Kumar, J., Dixit, S., Khan, M.R. and Dharwal, M., 2021. Swiggy Refurbishes
Trust: Managing Reputation Meltdown Through Public Relations. Vision, 25(3), pp.373-383.

Gupta, M., 2019. A Study on Impact of Online Food delivery app on Restaurant Business
special reference to zomato and Swiggy. International Journal of Research and Analytical
Reviews, 6(1), pp.889-893.

Gupta, M., 2019. A Study on Impact of Online Food delivery app on Restaurant Business
special reference to zomato and Swiggy. International Journal of Research and Analytical
Reviews, 6(1), pp.889-893.

Hansson, G., Sundell, H. and Öhman, M., 2022. The new modified Uppsala model. Available
at: https://www.diva-portal.org/smash/get/diva2:229460/FULLTEXT01.pdf [Accessed on
11-01-2023]

Hong, Z., Wang, H. and Yu, Y., 2018. Green product pricing with non-green product
reference. Transportation Research Part E: Logistics and Transportation Review, 115, pp.1-
15.

International monetary fund2023. World Economic Outlook.


https://www.imf.org/en/Publications/WEO

Jiji, K.P. and Kenoth, R., 2022. An Empirical Examination Of Consumer Perception Of Food
Delivery Apps Through Technology Acceptance Model. Webology (ISSN: 1735-188X), 19(2).

Khan, S. and Priya, M.S., 2022. Change in the ways of promotion and advertising-with
reference to Zomato and Swiggy. Eduzone: International Peer Reviewed/Refereed
Multidisciplinary Journal, 11(1), pp.8-12.

Menhat, M., Zaideen, I.M.M., Yusuf, Y., Salleh, N.H.M., Zamri, M.A. and Jeevan, J., 2021.
The impact of Covid-19 pandemic: A review on maritime sectors in Malaysia. Ocean &
Coastal Management, 209, p.105638.

Mind tools., 2023. Porter's Five Forces - The Framework Explained.


https://www.mindtools.com/at7k8my/porter-s-five-forces

Panigrahi, C.M.A., 2022. Derivative Trading Strategy of Bank Nifty-A Heuristic Model. RVIM
Journal of Management Research, ISSN, pp.0974-6722.

Prashar, K., Bawa, S.S. and Kaur, T., 2022. Case Study on working of SWIGGY. Gyan
Management, 16(1), pp.25-29.

Research optimus2023. Using SWOT and PESTLE Analysis Together for Crafting Strategy.
https://www.researchoptimus.com/blog/using-swot-and-pestle-analysis-together-for-
crafting-strategy/

Sánchez-Cambronero, A., González-Cancelas, N. and Serrano, B.M., 2020. Analysis of port


sustainability using the PPSC methodology (PESTEL, Porter, SWOT, CAME). World Scientific
News, 146, pp.121-138.

Singh, D. and Chhabra, M., 2020. Attainment of customer’s satisfaction in digital food apps
industry through result-oriented management. International Journal of Management (IJM),
11(12), pp.2527-2543.

24
Singh, M., 2022. India orders an antitrust investigation into Zomato and Swiggy's conduct.
https://techcrunch.com/2022/04/04/india-orders-antitrust-investigation-into-zomato-and-
Swiggy-conduct/#:~:text=The%20 Competition%20 Commission%20of%20India,the%20
outlets%2C%20delayed%20payment%20cycle

Statista.com, 2022. Online Food Delivery – Malaysia. Available at:


https://www.statista.com/outlook/dmo/online-food-delivery/malaysia [Accessed on 11-01-
2023]

Statista., 2023. Revenue of Swiggy in financial year 2021, by type.


https://www.statista.com/statistics/1310545/india-Swiggy-revenue-by-type/

Statista., 2023. Active social media users as percentage of the total population in Malaysia
from 2016 to 2022. https://www.statista.com/statistics/883712/malaysia-social-media-
penetration/#:~:text=Social%20media%20users%20as%20a%20percentage%20of%20the
%20total%20population%20Malaysia%202022&text=As%20of%20January%202022%2C
%20about,were%20active%20social%20media%20users.

Swiggy.com2023. Swiggy. https://www.Swiggy.com/

Taleizadeh, A.A. and Sadeghi, R., 2019. Pricing strategies in the competitive reverse supply
chains with traditional and e-channels: A game theoretic approach. International Journal of
Production Economics, 215, pp.48-60.

Tripathi, M.A., Tripathi, R., Yadav, U.S. and Shastri, R.K., 2022. Gig Economy: Reshaping
Strategic HRM In The Era of Industry 4.0 and Artificial Intelligence. Journal of Positive
School Psychology, pp.3569-3579.

Trivedi, S.K. and Singh, A., 2021. Twitter sentiment analysis of app based online food
delivery companies. Global Knowledge, Memory and Communication.

Wu, J. and Vahlne, J.E., 2020. Dynamic capabilities of emerging market multinational
enterprises and the Uppsala model. Asian Business & Management, pp.1-25.

Zomato and Swiggy: Indian Food Delivery Unicorns Face antitrust probe (2022) BBC News.
BBC. Available at: https://www.bbc.com/news/world-asia-india-60992263 (Accessed:
January 11, 2023).

25

You might also like