Foodpanda Group D Final 1 1

AMERICAN INTERNATIONAL UNIVERSITY-BANGLADESH
(AIUB)
A comprehensive analysis with recommendations to improve the current

competitive position for Foodpanda
Supervised By
Mohammed SakhwatHosain, Lecturer

Strategic Management, Section: B
Spring 2023-2024
Submission Date: 5/4/2023
Submitted By: Group D (Foodpanda)
SL No. Name ID
1. Rahman, Md. Naseeb 22-92316-1
2. Eikra Anisa Rahman 22-92562-2
3. Fariha Mostafa 22-92591-2
4. Chandramitra Chakma 21-91943-1
5. Ankita Roy 22-92632-2
6. Subrona Ema Akther 22-92362-1
1
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Signature ID
1. 22-92316-1
2. 22-92562-2
3. 22-92591-2
4. 21-91943-1
5. 22-92632-2
6. 22-92362-1
2
Project Goal & Deliverable
This project was a required assignment for the core course of Strategic Management as a part of our
Masters in Business Administration (MBA) Program. Our team was assigned to advise a local or foreign
organization of our choice conducting its business in Bangladesh. The overall goal was to analyze the
selected organization’s competitive situation and make recommendations to improve its current
competitive position. The assignment fundamentally provided us with an opportunity to apply the
theoretical concepts and frameworks discussed in class to a real organization. We were required to
research the company independently. And based on our primary and secondary data, we applied several
of the strategic tools learned from the course throughout the semester to assess the organization’s current
competitive position and recommend possible recommendations that the company can adopt to strengthen
its competitive position.
Outline of Work Distribution
ID Topic
22-92316-1 Political legal Pressures, Threat of Substitute Products, VRIO Analysis.
22-92562-2 1. Executive Summary

2. Section 1 Analysis
2.A: Environmental Analysis 2.A.I: Demographic Trends
DT Factor 1: Age
DT Factor 2: Income
2.B: Industry Analysis
2.B.IV: Bargaining Power of the Buyers
Component 1: Substitute products
Component 2: Brand loyalty
Component 3: Buyer low switching cost
3
2.D: Internal Factor Evaluation Matrix
2.D.I: Strengths
Strength 1:Brand Loyal Customers
Strength 2: Promotions and Discount
Strength 3: Wide Range of Restaurants
Strength 4:Low Delivery Charge
2.H: Survey Analysis:
2.H.I: Survey 1
2.H.II: Survey 2
3. Section 3: Recommendations
3.A: Top 5 Recommendations
22-92591-2 2.A: Environmental Analysis2.A.II: Socio cultural Influence
SI Factor 1: Lifestyle
SI Factor 2: Family Structure
2.B.III:Bargaining Power of Suppliers
Component 1: Switching cost
Component 2: Substitutes
Component 3:Large number of suppliers
2.F: Competitive Profile Matrix

3. B. Main Recommendation
21-91943-1
2. A: Environmental Analysis2.A.VI: Global Issue
GI Factor 1: Corona virus Pandemic
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GI Factor 2- Global Economic Crisis
2.B.II: Threat of New Entrants
Component 1: Capital Investment cost
Component 2: Demand side
Component 3: Capital Switching cost
2.E: External Factor Evaluation (EFE) matrix
2.E.II: Threats
Threats 1 Growing competition
Threats 2 Ease of going to nearby restaurants
Threats 3 Delivery challenges
Threats 4 Change in economic condition
22-92632-2 2.A: Environmental Analysis2.A.IV: Economic Development
ED: Factor 1- GDP
ED: Factor 2- Unemployment Level
2.B.I: Rivalry among competing firms
Component 1: No of competitors in the market
Component 2: Growth prospect of the market
Component 3: Competitors size and capability
2.E: External Factor Evaluation (EFE) matrix
2.E.I: Opportunities
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Opportunities 1 Growing market
Opportunities 2 Increase customer loyalty program
Opportunities 3 Customer expansion
Opportunities 4 Leveraging social media
3. B. Main Recommendation
22-92362-1 2.A: Environmental Analysis 2.A.III: Technological Development
TD Factor 1: social media
TD Factor 2: Internet
2.B.II: Threat of New Entrants
Component 1: Capital Investment cost
Component 2: Demand side
Component 3: Capital Switching cost
2.C: Industry Life Cycle Analysis
2.D: Internal Factor Evaluation Matrix
Weakness 1: They are not providing 24/7 services
Weakness 2: Limited Delivery areas
Weakness 3:Free delivery is expensive
Weakness 4:Customers are only able to order food from their nearest restaurant
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Table of Contents
1. Executive Summary……………………………………………………………………………..………… 9
2. Section 1: Analysis ……………………..………………………………………….…………………….. 10
2. A: Environmental Analysis …………………………………………………………..…………………. 10
2. A.I: Demographic Trends ……………………………………………………………………………….. 10-13
2. A.II: Socio cultural Influences ……………………………………………………………………………13-15
2. A.III: Technological Development ……………………………………………………………………….16-18
2. A.IV: Macro-Economic Development …………………………………………………………………..18-20
2. A.V: Political & Legal Pressure …………………………………………………………………………20-23
2. A.VI: Global Issues ………………………………………………………………………………………23-27
2. B: Industry Analysis Industry Definition ………………………………………………………………… 27
2. B.I: Rivalry among Competing Firms …………………………………………………………………28-30
2. B.II: Threat of New Entrants ……………………………………………………………………………30-32
2. B.III: Bargaining Power of Suppliers …………………………………………………………………...32-33
2. B.IV: Bargaining Power of Customers ………………………………………………..…………………33-36
2. B.V: Threat of Substitute Products ………………………………………………………………………36-38
2. C: Industry Life-Cycle Analysis ………………………………………………………………………….36-43
2. D: Internal Factor Evaluation Matrix ………………………………….………………………………….43
2. D.I: Strengths ……………………………………………….…………………………………………….44-46
2. D.II: Weaknesses …………………………………………………………………………………………46-48
2. E: External Factor Evaluation Matrix ………………………………………..…………………………49
2. E.I: Opportunities …………………………………………………………………………………………49-50
2. E.II: Threats ………………………………….……………………………………………………………51-52
2. F: Competitive Profile Matrix …………………………………….……………………………………..53-54
2. G: VRIO Analysis …………………………………………………………………………………………54-57
2. H: Survey Analysis………………………………………….………………………………………………57
2. H.I: Survey 1 …………………………………………………….……………………………………….57-61
2. H.II: Survey 2 ……………………………………………………………………………………………..61-71
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3. Section 3: Recommendations ………………………………………………………………………….71
3. A: Top 5 Recommendations……………………………………………………………………………71
3. A.I: Recommendation 1 ………………………………………………………………………………..71
3. A.II: Recommendation 2 ………………………..………………………………………………………71
3. A.III: Recommendation 3 …………………………………..………………………………………….. 72
3. A.IV: Recommendation 4 ………………………………………………………………………………72
3. A.V: Recommendation 5 ……………………………….………………………………………………72
3. B: Main Recommendation ……………………………………………………………………………..72-76
4. Section 4: Appendices …………………………………………………………………………………..77-87
5. Section 5: References/Bibliography…………………………………………………………………….88-90
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1. Executive Summary (22-92562-2)
According to the environmental analysis, Bangladesh, like many other nations, is affected by the conflict
between Russia and Ukraine. The cost of necessities rises as a result, and consumers start making
different purchases. People are already cutting back on their food intake. Since food panda has no control
over the price of the food and restaurants raise their prices as a result of rising raw material costs, they
also display the rising costs on their apps. The food panda may benefit from the unemployment issue.
They can attract a lot of workers to their platform, but the consumer section suffers. People will spend
less if they don't have a reliable source of income. Additionally, the food panda platform is losing
customers to the online food delivery industry. Customers can only order food from the closest restaurant;
comparable services are also provided by other established rivals. Customers can therefore switch
between the rivals. Food Panda does not offer 24/7 services, however one of its rivals, who you may get
here right now, does in select locations. The majority of delivery workers lack sufficient training. So,
there is a gap in the relationship between the customer and the delivery person. Several of the issues we
uncovered while conducting our analysis of the industry and the environment. EFE also assists us in
identifying some of the issues that now plague our company. Food might create a monthly subscription
plan where customers can order a minimum of food per day in an effort to draw in more customers. They
may also receive a bonus at the end of the month. My quick suggestions are practical for food panda and
the correct moment to put the plan into practice in order to compete with the competition and achieve a
greater competitive edge.
Competitive Rivalry in current enterprises is generally moderate in the industry analysis to analyze
Porter's five forces for the online meal delivery market; the offers of Hungrynaki, Pathaofood, and other
rivals are nearly equal. Through the support of their customers, they operate their business and make
money. Due to the industry's rapid growth in Bangladesh, where interest in this area of the market is
expanding, there is a high risk of new entrants. However, existing businesses like Food Panda,
Hugrynaki, and PathaoFoods claim that these apps are already popular in Bangladesh and have a high
brand recognition and value. Customers can always request better service, but it is still the responsibility
of the business and the restaurant to deliver a high-quality good or service, which has a significant impact
on consumers' ability to negotiate. Additionally, there appears to be a high threat of substitute products in
this industry due to the possibility of the development of substitute products and product value.
9
2. Section 1: Analysis (22-92562-2)
Food Panda can assess when it is busiest and when customers prefer to place the most orders because they
do not offer a 24-hour service. Additionally, they can modify their delivery crew and schedule in light of
the analysis. Let's say clients wish to order a dish that is only available at a particular restaurant, but that
restaurant is closed at that moment. If their apps expand the geographic scope of their restaurant,
customers will have more options. Food Panda gives their delivery boys at least the bare minimum of
training, but they should also improve the way they handle consumer complaints as they currently do not
do anything.
The study claims that Food Panda faces intense competition from existing businesses. There are many
different roles in this business. In the city, four necessary services—Food Panda, Hungry Naki,
Sohozfood, and Pathao Food—have just been available. We discover several aspects in the examination
of the industry that have an effect on the meal Panda Company and this online meal delivery service.
2. A. Environmental Analysis
2. A. I: Demographic Trends :( 22-92562-2)
I chose these three criteria because I think that the target market for the online food delivery sector is
between the ages of 22 to 30. Catering to the diverse food tastes and preferences of different age groups
may enhance sales and boost customer satisfaction. Due to their busy schedules and lack of free time,
many people in this generation don't enjoy cooking. Individuals in this Era are also recognized for having
access to and using technology. The income of a person can affect his purchasing habits. Consumers have
more purchasing power when their income is higher. Customers' income levels can be used to build
pricing strategies that are catered to particular customer groups.
DT Factor 1: Age
Effect on the Industry:
Those who reside in cities and are between the ages of 22 to 30 make up the majority of online food
delivery customers. It is based on our secondary data in Google form Individuals in this age range tend to
be busy professionals or students who are familiar with the most recent technology. The food delivery
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market in Bangladesh is estimated to be worth between 30 and 50 million BDT. 1 One of the reasons such
food delivery businesses have been successful is due to city dwellers. Almost 35% of the population of
the nation or around 40% lives in cities and is under the age of 25. 2 This customer group is significantly
impacted by the online food delivery market. They rely on internet food delivery services significantly
more. Many consumers select the online food delivery sector due to its handy timing.
Effect on your company directly:
The company, which has contracts with more than 4,000 restaurants by 2019, has a market share of more
than 30% based on the number of daily order deliveries. Located between one and two kilometers from
each other, food panda offers diverse cuisines at a wide range of prices in a particular area .3 There are
different types of customers at foodpanda. Consumers use foodpanda applications to find restaurants that
meet their expectations and to place food orders since they have a variety of option preferences and
financial constraints. Customers have access to a wide range of meal alternatives on Foodpanda, from fast
food to wholesome fare. Also, Food Panda offers promotions and discounts as well as better time
management. Foodpanda provides exceptional customer service, making sure that customer' demands are
met and that any issues are resolved quickly. Food Panda makes money because the industry is profitable.
How might the factor change over the short term (6 months-1 year) and long-term (5-10 years):
I predict that foodpanda will continue to increase its presence in the food delivery market. The company
will likely expand its delivery network to cover more cities and regions, as well as focus on improving
customer service and convenience. As competition in the market increases, foodpanda will continue to
focus on providing customers with an easy and efficient way to order food online. Daily workloads are
increasing, and there are more students and workers in urban areas. People are moving to metropolitan
regions in greater numbers every day to find work, and students are moving there to study and find jobs.
A decade of stable economic growth, a growing working-age population, and strong upward mobility will
boost Bangladesh's population by 2025 and in the coming decades, a young and growing working-age
population, with a median age of 24 years, will provide a solid base for rising consumption. 4 During the
short and long term, I expect my target customer to increase and foodpanda to become even more
essential to modern life.
1
B, J. (2021, February 7). Food Delivery Industry of Bangladesh Making Strides Through Influx of Foreign Capital.
Business Inspection
2
Business Inspection BD
3
B, J. (2021, February 7). Food Delivery Industry of Bangladesh Making Strides Through Influx of
Foreign Capital. Business Inspection BD
4
Affluent consumers on the rise: Study. (2015, October 23). The Daily Star
11
DT Factor 2: Income
In Dhaka city, there are an increasing number of middle-class groups, and customers spend a lot on food
regardless of their monthly income.5 Income affects different consumer decision-making styles. Different
industry marketing segmentation, targeting, and positioning related to consumer income segmentation
show how income affects commitment to a product class, brand, or consumption activity and in addition
to a growing population, Bangladesh's economy is growing rapidly, which enhances middle-class
purchasing power.6 There is an average monthly salary of 29,100 BDT for people who work in the city of
Dhaka.7 It is estimated that 80 percent of the MAC population is concentrated in Dhaka city, and that the
buying power in the city will more than double.8
Increased income could also lead to a better customer experience, with improved customer service and a
wider range of food options. In foodpanda there are several restaurants in different places. Locations of
restaurants include Bashundhara, Bisshoroad, Uttora, etc. It depends on the location, the reputation, and
the price of the restaurant. Food Panda builds relationships with clients by providing a variety of food
items since customers are not only concerned with price; developing a relationship with the brand is also
important to them.9Foodpanda have covers many areas restaurants. Customers can order food using their
app based on their budget by visiting their app.
In the short term foodpanda's income could potentially increase as more people become aware of the
service and take advantage of its convenience. foodpanda could also increase its marketing efforts to
spread the word about the service and attract more customers. The Bangladesh Department of Statistics
reports that in 2021–2022, the per capita income in Bangladesh increased by 9% year over year to $
5
S, S. S. (2020, August). FACTORS AFFECTING APARTMENT BUYING DECISION OF MIDDLE-
INCOME PEOPLE IN DHAKA, BANGLADESH. Ammattikorkeakoulut - Theses
6
S, S. S. (2020, August). FACTORS AFFECTING APARTMENT BUYING DECISION OF MIDDLE-
INCOME PEOPLE IN DHAKA, BANGLADESH. Business Management, Enterprise Resource Planning
(ERP)
7
Average salary in Dhaka 2022. (n.d.). Salary Explorer | Salary and Cost of Living Comparison
8
Affluent consumers on the rise: Study. (2015, October 23). The Daily Star
9
I, M. (2022, April). Factors Affecting Customer Satisfaction: A Case Study of Food Panda.
ResearchGate | Find and share research
12
2,824. The per capita income in 2020–2021 was $2,591.10 According to the Financial Express (March 13)
inflation in Bangladesh resurged in February this year to 8.78 percent. In fact, inflation has been on the
decline since September, 2022 until last month when it started to show an upward trend. Inflation indeed
peaked 9.52 percent in august last year. 11In the long term foodpanda's income may continue to grow as
the business expands into new markets and regions, develops new delivery options and technologies, and
builds loyalty with existing customers. In Bangladesh, the per capita income is expected to reach $3,089
in the fiscal year 2022–2023, according to a prediction made by the finance minister AHM Mustafa
Kamal on Sunday. Also, he predicted that in the following fiscal year, which starts in July 2022, the
country's gross domestic product would surpass the landmark of half a trillion US dollars. 12 According to
the data, people's income will rise even while the rate of inflation is still rising.
2. A.II: Socio cultural Influence (22-92591-2)
SI Factor 1: Lifestyle:
10
Per capita income in Bangladesh. (2023, March 29). The Daily Star
11
$3,089 per capita income projected for FY23. (2022, January 30). New Age | The Most Popular
Outspoken English Daily in Bangladesh
12
$3,089 per capita income projected for FY23. (2022, January 30). New Age | The Most Popular
13
Effect on Industry:
Lifestyle change is a process which depends over time. Now people become busier with own work.
Bangladesh has also followed this trend. Most of the people is employed or doing something. So, it
becomes difficult to manage everything at a same time. People have less time for cooking daily food
because cooking is a long process and it taken a lot of valuable time. So, there is a huge demand of ready
food delivery industry. Entire food delivery industry in the country was also turbocharged by the crisis as
people had to work study and find entertainment at home. 13
Effect on company directly:
Generally, everyone wants to change their food test and want to try different food. Food panda is offering
different restaurant which contains multi cuisine. Food panda connects users to thousands of local meal
ordering and delivery points. The hyper local delivery-based business model helps the delivery giant to
cater to the growing demand in the market. 14Which affect the food panda directly. Anyone can choice
food according to their choice.
As people are more engaged with work and in the upcoming days more and more people will engage with
work life, they want to spend their leisure hours relaxed. They will choose a quick solution where they
can spend their leisure hour more effectively. So, over the short and long term, people are increasingly
using online food delivery platforms.
SI Factor 2: Family Structure:
Effect on Industry:
In Bangladesh, most people are now educated and employed. Though Bangladesh is an agricultural
country but now as people are educated, they want to leave a better life and moving toward city from
village. In Bangladesh, the family structure has changed significantly. Now most of the families are
nuclear family and for educational purpose many students come to city. As the family members are less,
they do not give sufficient time at home. And that’s why Food delivery industry growing rapidly.
Effect on company:
13
Siddiky, Z. (2022, May 24). Foodpanda looks to tap growth opportunities. The Daily Star .
14
Joe, S. (2022, August 17). Foodpanda business model: How Foodpanda works & makes money .
14
As we know the family size becomes smaller so the members are also less. And most of the time the older
person of the family like parents becomes busy with their work. So, they don’t have much time. In this
busy time, they can use food delivery app. In celebration of the festive season, food panda for business is
offering a special discount on bulk purchase of vouchers for corporate clients. 15 If many guest come at a
time, then it becomes difficult to manage the situation. So that time food panda is a best option because
they give a special discount for bulk quantity purchase.
Nowadays, extended family has been scarce in Bangladesh since 1990, and nuclear families have
increased. People turned into the nuclear family are raised two times higher. 16 Family structure addresses
the consumption unit and reflects consumption behavior. As small family size increases, family purchase
decision patterns are different than before. 17 Based on the above observation, it can say that over the
long- and short-term number of small family size increases.
2. A.III: Technological Development (22-92362-1)
TD Factor 1: Social media

In Bangladesh, social media has played a significant role in the growth and development of the food
delivery industry. With the rise of social media platforms, food delivery companies have been able to
reach a wider audience and promote their services to potential customers. The total number of social
media users in the country is 45 million, in February 2021. 18 Then the number increased and according to
Statist, there were around 49.55 million social media users in Bangladesh in January 2022, which is a
significant number of potential customers. Social media has impacted the food delivery industry by
making it easier for companies to reach new customers through influencer marketing and social media
accounts. It has also influenced eating habits by promoting certain types of foods through food bloggers
and influencers. Social media has also made it easier for customers in Bangladesh to order food delivery
online. Many food delivery companies have their own social media accounts, where customers can place
15
Foodpanda provides special discount on corporate vouchers. (2021, December 13). The Business
16
Rezvi, M. R. (2018, September 30). Why extended family breaking down in Bangladesh. daily sun.
17
Chandrasekar, K. S., & R, V. R. (2013, July). Family and Consumer behaviour.
18
“90 Lakh Bangladeshis Joined Social Media between 2020 and 2021: Report” (The Daily Star, April 26, 2021)
<https://www.thedailystar.net/bangladesh/news/90-lakh-bangladeshis-joined-social-media-between-2020-and-
2021-report-2084037>accessed 12th April, 2023
15
orders, track their deliveries, and get in touch with customer service if they have any issues. Overall,
social media has had a significant impact on the food delivery industry in Bangladesh, making it easier
for companies to reach new customers through influencer marketing and social media accounts, and also
impacting eating habits by promoting certain types of foods.

Social media can be a powerful tool for Foodpanda, a food delivery company in Bangladesh. By using
social media platforms like Facebook, Twitter, and Instagram, Foodpanda can increase its brand
awareness, engage with customers, promote deals and offers, and build partnerships with other
businesses. These benefits can help Foodpanda attract more customers, increase sales, and grow its
business in Bangladesh. Therefore, it is important for Foodpanda to develop a strong social media
strategy that takes advantage of the opportunities presented by these platforms.
Social media is expected to have both short-term and long-term impacts on Foodpanda in Bangladesh. In
the short term, Foodpanda may face increased competition from other food delivery companies that are
also using social media to promote their services. However, social media platforms can also help
Foodpanda engage more effectively with its customers in Bangladesh by responding to queries and
complaints, providing updates on new services and promotions, and offering personalized
recommendations. In the long term, social media algorithms are becoming more advanced, which could
allow Foodpanda to personalize its services to individual customers based on their social media behavior
and preferences. Additionally, consumers are increasingly demanding that companies. Take social
responsibility seriously, which means Foodpanda may need to align it with social causes and demonstrate
ethical and sustainable practices to remain competitive. As new social media platforms and technologies
emerge over time, Foodpanda will need to adapt its social media strategy to remain competitive and take
advantage of new opportunities.
TD Factor 2: Internet
The Internet has had a transformative effect on the food delivery industry. With the rise of online ordering
platforms, customers can now order food delivery from their favorite restaurants with just a few clicks.
This has led to a significant increase in demand for food delivery services and has also created new
opportunities for restaurants to reach customers outside of their immediate area. One of the major benefits
of the Internet for the food delivery industry is the ability to streamline the ordering and delivery process.
Online ordering platforms allow customers to easily place and pay for their orders, and restaurants can
16
manage orders and track deliveries in real-time. This has improved the efficiency and accuracy of the
food delivery process, resulting in faster and more reliable service. The Internet has also made it easier for
food delivery companies to expand their operations. With online platforms, food delivery companies can
reach new customers and expand their delivery areas without the need for physical locations. This has led
to increased competition in the food delivery industry, which has resulted in lower prices and better
service for customers. Overall, the internet has had a significant impact on the food delivery industry,
improving the efficiency and accuracy of the ordering and delivery process and creating new
opportunities for restaurants and food delivery industry to reach customers.

The Internet has had a direct impact on Foodpanda in Bangladesh by driving growth and revenue for the
company. By leveraging the Internet and its various tools and platforms, Foodpanda has been able to
reach a larger audience, expand its customer base, and increase sales. Additionally, the Internet has
allowed Foodpanda to optimize its operations and provide more efficient and convenient services to its
customers. By offering online ordering and payment options, for example, Foodpanda has made it easier
for customers to order food and receive deliveries, which has helped the company to retain customers and
build loyalty. Overall, the Internet has been a crucial factor in the success of Foodpanda in Bangladesh,
directly contributing to its growth, profitability, and market share.
The Internet is likely to continue to have a significant impact on Foodpanda in Bangladesh over both the
short-term and long-term. In the short term, Foodpanda may face increased competition from other food
delivery companies that are also leveraging the Internet to promote their services. As a result, Foodpanda
may need to adapt its marketing strategies and improve its online presence to remain competitive.
Additionally, technological advancements could impact Foodpanda in the short term, with new tools and
technologies becoming available that the company could leverage to improve its operations and provide
better services to its customers. Over the long term (5-10 years), the Internet is likely to continue to
evolve and have even greater impacts on Foodpanda. As technologies like 5G networks and the Internet
of Things become more widespread, Foodpanda could leverage them to improve delivery times, optimize
logistics, and improve the overall customer experience. Moreover, advances in artificial intelligence and
machine learning could allow Foodpanda to offer more personalized services to individual customers,
based on their online behavior and preferences. At the same time, Foodpanda may also need to address
emerging challenges related to cyber security, data privacy, and ethical concerns as the Internet continues
17
to evolve. Overall, the Internet is likely to remain a critical factor in the success of Foodpanda in
Bangladesh over both the short-term and long-term, and the company will need to stay attuned to these
changes to stay ahead of the curve.
2. A.IV: Economic Development (22-92632-2)
Economic development depends on the overall living condition of a country’s total population. From
GDP people get the idea of economic condition of a country. If GDP increase per capita income also
increase and consumer purchasing power also increase. People have more money to spend on food and
other products and services. People can cook food but ordering food via online platform is when people
have more money to spend on. And this service also create employment so the unemployment problem
also reduces through this online food delivery service.
ED Factor 1: GDP
Effect on Industry:
The GDP of a country can significantly impact the food delivery industry. A growing GDP generally
indicates a healthy economy and growing consumer spending power, leading toan increase demand in
food delivery industry. A growing GDP may also attract new investment in the food delivery industry so
there is also increased competition. This competition may result in improvements in service quality. “The
Government provisional estimates were 7.25% GDP growth last fiscal year” 19
“GDP forecast shows that
the GDP will increase 11.80% in 2024” 20
People can cook their own food but when you got option to get food to your doorstep and you have
enough money on your hand then they’ll feel more comfortable in that. As people choose ordering food
online then cooking that is the point where food panda enters and make it easy for people to get their
favorite food.
How might the factor change over the short term (within 1 year) and long term (more than 1 year):
19
Correspondent, S. (2023, February 6). Bangladesh’s per capita income, GDP growth miss projections.
bdnews24.com.
20
O'Neill, A. (2023, March 21). Bangladesh - Gross domestic product (GDP) 2027 | Statista. Statista.
18
The GDP growth rate of Bangladesh is forecast to decline to 5.2% in the financial year 2023 says the
World Bank.21 In 2023 the GDP decline but after that from 2024-2027, It is estimated to increase. The
growth is estimated to 6, 9% in 2027. 22 In short term we can see the decline and that means purchasing
power also decrease and it also bad for business. But in the long run the GDP increase and purchasing
power is also increase people have enough money in their hand and have job. So, I think in long term
people will be more attracted to the food delivery service.
ED Factor 2: Unemployment Level
Effect on Industry:
Bangladesh’s unemployment rate hit on all time high of 6.91% in November 2022, indicating that high
economic growth has not been enough to create jobs for youth. 23 As the unemployment is too high this
online food delivery service creates jobs for the youth. This industry needs so many youths for their
delivery service, customer service division and other part of the organization that create employment for
huge number of people. Also because of food delivery service restaurants also have rush so they also need
more employees that also create employment for the people. This Industry create job opportunity for
many unemployment youths.
Food panda is the largest food delivery service in Bangladesh with more than 20000 employees. 24I think
people who don’t have that much skills and educational background they can join this food delivery jobs
and from this job they can earn some money. And also, students who came from rural area for study
purpose they also can do this job as a part timer. We can see most of the food delivery boys are teenage or
students who maintain their pocket money from this job. So, food panda is great option for them, and as
the students are the rider’s food panda doesn’t have to pay them that much so it’s also advantage for food
panda.
How might the factor change over the short term (less than 1 year) and long term (more than 1
year):
Unemployment problem is a big problem in Bangladesh. In short term food panda create job
opportunities for people and this is good to see but if we think about long term situation, there is a lot of
21
News, A. (2023, January 11). Bangladesh growth rate to slow down to 5.2 percent in 2023: World Bank.
22
Bangladesh - gross domestic product (GDP) growth rate 2027 | Statista. (2022, December 2). Statista.
23
Unemployment hits all-time high at 6.91% in Nov. (2023, January 18). The Business Standard.
24
Foodpanda. (2023, March 22). Wikipedia, the free encyclopedia. Retrieved March 25, 2023, from
19
unemployed people so who’ll buy your food or service. So, I think this will create a huge problem in the
long run.
2. A.V: Political-legal Pressures (22-92316-1)

To protect the interest of each the clients and suppliers, there should be a body in order that the meals
shipping industry cannot rate a high commission price. There should be a rule about after they ought to
pay the businesses. The commission charge ought to be fixed for the transport agencies. The price-
introduced tax creates earnings for the financial system and is relatively easy to control. It discourages tax
evasion and increases tax sales. Food panda has been accused of evading value-brought tax. so, I assume
Authorities mulls coverage on food delivery and Price-brought tax are the important thing in political-
legal pressures.
PP Factor 1: Authorities mull coverage on food delivery:
Effect on the industry:
Online purchasing behavior is growing, and the government plans to border an approach to control the
corporation and guard pursuits, consisting of clients and providers. This law comes as many restaurant
operators declare that the food transport enterprise charges an immoderate fee charge to supply food.
They claim that the food delivery platform prices a 40% commission for providing the food, making it
tough for them to income. So, the stakeholder and restaurant proprietors each demand the coverage for
the area. According to e-trade stakeholders, the country receives millions of each day orders thru online
food shipping platforms. The meals shipping company moreover takes a minimal charge of 30 to 40%
from each charge.25 This enterprise gets extra after turning inside the meals and the money accrued in
cash, but they take one or two months to pay the businesses, so the restaurant owner stays in catastrophe.
The ministry wants to specify the maximum fee that the shipping groups can take through discussions
with the worried stakeholders, how many days the food issuer will get hold of the charge or how to
deposit the cash on transport money. After discussions with the concerned stakeholders, the ministry
desires to specify the maximum commission the delivery can take.
25
Substandard online food delivery and available legal remedies. (2022, October 2)
20
If this plan applies, Food panda can't rate an immoderate commission charge to supply food due to the
fact the ministry will repair a quantity for them. Additionally, they must pay the organizations early after
receiving the cash.
As this plan is still inside the discussion stage, Foodpanda can normally price what they will be doing
over the quick time. However, if this plan passes, there might be a win-win state of affairs for each the
organizations and food panda.
https://www.thedailystar.net/business/economy/news/govt-mulls-policy-food-delivery-2171051
https://thefinancialexpress.com.bd/editorial/regulating-ridesharing-and-
fooddeliverycompanies1639238940
PP Factor 2: Price-brought tax:
The online food delivery sector is another commercial enterprise platform that is subject to taxation. They
are required to pay the required amount of tax, 5% vat at the business, and 15% toward the leasing. The
government has suggested a 5% tax on the restaurant sector in the national finances because eating
establishments are the industry's primary supplier. To lower the tax amount, the restaurant owner
contacted the government. The tax is too high for the restaurants and online food delivery sector. And in
order to achieve this, they must maintain high product costs, which inhibit consumer shopping habits.
When buying goods from online stores or making online purchases, customers must pay a value-delivered
tax of 7.5%. It also lowers client disposable profit margins. 26

26
https://customs.gov.bd/files/National%20Budget%20Speech%20FY2022-23%20English%20Version.pdf
21
Food Panda has been charged with hiding sales records and abusing carrier codes to evade price-brought
tax of about tk 3.4 core. Food Panda avoids paying the applicable tax on house rent by registering their
company as a data creation service. Despite being an international corporation, it disregarded local laws.
All business or commercial equipment with an annual turnover of taka 2 million or more will be subject
to 15% vat as of 2021. For the delivery of food and drinks, which would often be impossible to do at the
20% regular fee, the government introduced a short 5% vat price. Warm takeout food and non-alcoholic
beverages purchased for consumption off the premises are subject to the short 5% charge. The new VAT
rate is 12.5% for 2022, and in 2023, it will be 12% for goods exported with the help of well-known
enterprises and 10% for less-experienced ones.
https://www.dhakatribune.com/bangladesh/2022/06/09/fy23-5-tax-for-restaurant-sector
https://www.lightcastlebd.com/insights/2019/10/bangladesh-budget-education-e-commerce-and-capital-
markets/
https://www.thedailystar.net/business/news/foodpanda-faces-tk-34cr-vat-evasion-charge-1985977
https://www.dhakatribune.com/business/2021/10/11/nbr-vat-must-be-in-price-tag
https://legalseba.com/bd-resources/vat-rates-of-bangladesh-for-the-year-2021-2022/
2. A.VI: Global Issue (21-91943-1)

The coronavirus pandemic has affected Foodpanda, one of the leading food delivery companies in
Bangladesh, in several ways. On one hand, the pandemic resulted in a surge in demand for online food
delivery services, leading to an increase in orders for Foodpanda. On the other hand, the pandemic also
created challenges for the company, such as disruptions in the supply chain and the safety of delivery
personnel. Foodpanda had to take necessary measures to ensure the safety of its delivery personnel, which
added cost and logistical burden for the company. Additionally, the pandemic had an impact on the
restaurant partners of Foodpanda, with many restaurants closing down temporarily or permanently.
Overall, the pandemic has had both positive and negative effects on Foodpanda in Bangladesh. 27
27
“How Foodpanda Is Creating a Smart Q-Commerce Ecosystem” (The Daily Star, November 1, 2022)
22
GI Factor 1: Corona virus Pandemic
In Bangladesh, the food delivery industry, including Foodpanda, has experienced both positive and
negative impacts due to the corona virus pandemic. On one hand, the pandemic has led to an increase in
demand for online food delivery services as people stay at home due to lockdowns and social distancing
measures. This increase in demand has resulted in a surge in orders for Foodpanda and other food
delivery companies.
Also, Foodpanda in Bangladesh has faced a number of challenges as a result of the pandemic, with the
disruption of their supply chain being one of the most significant hurdles.The pandemic has affected the
availability of raw materials, and food delivery companies like Foodpanda have faced difficulties in
maintaining an adequate supply of food. This situation has led to delays in delivery times and an increase
in the number of canceled orders. Unprecedented interruptions brought on by the pandemic, particularly
in the supply chain area, had an impact on operations across the restaurant industry. Nobody was ready
for the lockdowns during the initial stage. There is a widespread misperception that greater online
ordering by consumers was profitable for delivery companies. Even with a global shift in trends and
individuals becoming more used to the internet world, the reality remained still somewhat bleak. In fact,
it’s trajectory was down throughout the first half of 2020.
Furthermore, the pandemic has also had an impact on the restaurant partners of Foodpanda. Many
restaurants have had to close down temporarily or permanently due to the pandemic's economic impact,
which has led to a reduction in the number of restaurant partners available for Foodpanda.
In summary, while the pandemic has increased demand for food delivery services, it has also created
challenges for Foodpanda in Bangladesh, such as disruptions in the supply chain and the safety of
delivery personnel, and a reduction in the number of restaurant partners available.
23
The coronavirus pandemic has affected Foodpanda directly in Bangladesh. While the pandemic has led to
an increase in demand for online food delivery services, Foodpanda has faced challenges due to
disruptions in the supply chain and ensuring the safety of delivery personnel. During March-May, their
business decreased by almost 50% with the lockdown. Foodpandalays off more than 100 employees during
that time.Despite these challenges, the company has taken measures to expand its services and support
local communities through initiatives like "Food for Good" and funding from its parent company,
Delivery Hero. The pandemic has presented both opportunities and challenges for Foodpanda in
Bangladesh.28
The coronavirus pandemic has already brought about significant changes to the food delivery industry in
Bangladesh, including Foodpanda. Looking ahead, the impact of the pandemic on the company is likely
to continue over the short and long-term.Over the next 6 months to 1 year, the demand for food delivery
services is likely to remain high as the pandemic continues to affect daily life. As people continue to stay
at home and avoid public places, the convenience and safety of food delivery will be increasingly
attractive. Foodpanda will need to continue to adapt to meet this demand while ensuring the safety of its
delivery personnel and adhering to government regulations.In the long-term (5-10 years), the pandemic's
impact on the food delivery industry is likely to be more uncertain. While it is possible that the pandemic
will have a lasting effect on consumer behavior, it is also possible that the demand for food delivery
services will decrease once the pandemic subsides. Additionally, other factors such as changes in
technology and economic conditions could also affect the industry.Foodpanda will need to be agile and
adaptable to navigate these changes over the long-term. The company may need to continue to invest in
technology and innovation to stay competitive and meet changing consumer demands. Additionally, it
will be important for Foodpanda to maintain strong relationships with its restaurant partners and delivery
personnel to ensure continued success in the industry.
GI Factor 2- Global Economic Crisis

The ongoing conflict in Ukraine and Covid-19 has had a limited impact on the operations of foodpanda,
as the company does not have a significant presence in the country. However, the conflict has caused
economic uncertainty in the region and has led to changes in consumer behavior. Foodpanda, like other
28
ProthomAlo English Desk, “Foodpanda’s Services Will Remain Open during Lockdown” (Prothomalo, April 5,
2021)
24
food delivery companies, has had to adapt its business model to the new reality of the pandemic. 29 The
company has expanded its services to include the delivery of groceries and essential items and partnering
with small and medium-sized restaurants that offer take-out and delivery services. Despite the challenges
posed by the pandemic and war, foodpanda has reported continued growth in many markets. In 2020, the
company reported a 40% increase in orders across its markets in Asia, the Middle East, and Africa,
compared to the previous year. The company also expanded its operations to new markets, such as Japan,
Cambodia and Bangladesh. However, the economic situation remains uncertain, and the impact of the
ongoing conflict in Ukraine on the global economy continues to be felt. This could affect the growth
prospects of foodpanda and other businesses in the food delivery industry in the coming months and
years.

The global economic crisis caused by factors such as trade wars, geopolitical tensions, and economic
uncertainty has affected foodpanda directly, as it has impacted the demand for food delivery services and
disrupted supply chains. The unstable economic conditions have affected consumer spending, which has
led to reduced revenue for many businesses, including foodpanda.In response to these challenges,
foodpanda has had to adapt its business model by expanding its services to grocery delivery and
partnering with small and medium-sized restaurants offering take-out and delivery services. The company
has also had to implement cost-saving measures to improve profitability, such as optimizing logistics and
improving operational efficiency.30
How might the factor change over the short term (6 months-1 year) and long-term (5-10years):
The global economic crisis caused by factors such as trade wars, geopolitical tensions, and economic
uncertainty has affected the food delivery industry, including foodpanda, and is expected to have both
short-term and long-term impacts. In the short term (6 months-1 year), the economic uncertainty caused
by the crisis is likely to continue to impact consumer spending, which could lead to a reduced demand for
food delivery services. Moreover, supply chain disruptions and operational challenges could result in
increased costs for foodpanda and other businesses in the industry. 31 On the other hand, the shift towards
contactless delivery and expanded services such as grocery delivery is likely to continue, which could
help foodpanda to sustain its growth in the short term. In the long term (5-10 years), the economic crisis is
likely to result in changes in consumer behavior and preferences, which could have lasting effects on the
food delivery industry. For example, consumers may become more price-sensitive and may prefer home-
29
Keane J, “As The Pandemic Evolves, Foodpanda Says Delivery Is ‘More Prominent In Everybody’s Thinking’”
(Forbes, November 17, 2020)
30
“How Can We Prevent a COVID-19 Food Crisis?” (World Economic Forum)
31
“Global Risks Report 2023 | World Economic Forum” (World Economic Forum, January 11, 2023)
25
cooked meals or alternative food options, such as meal kits. Additionally, businesses in the industry may
have to adapt to increased competition and changing regulations. Foodpanda may need to invest in
innovation and technology to remain competitive in the long term. They may also need to consider
diversifying their services and expanding into new markets to reduce their reliance on a single market.
Finally, they may need to focus on sustainability and social responsibility to meet the changing
expectations of consumers and regulators.
2. B: Industry Analysis
The market for online food delivery is growing significantly. Through online food delivery, people may
buy and get their favorite foods at their home. It involves going to the website or app, selecting from a
wide variety of cuisines, and making a payment using a variety of options. The user is informed of the
time limit for food preparation and delivery on the website or application. Three key parties are needed
for this online food delivery business model: a platform operator, retailers or food sellers, and food
delivery services. In order to deliver meals to customers, the platform owner often partners with a courier
or logistics company. These qualities are driving up demand for these services in Bangladesh, particularly
in the city of Dhaka, along with attributes like convenience, speed, and precision of delivery. The
expansion of Bangladesh's internet food delivery industry is being fueled by this, as well as an expanding
working population and rising income levels. In addition, demand for online food delivery services in the
nation is growing as on-the-go food goods and quick home delivery models gain popularity since they can
offer flexibility and inexpensive food delivery options.
Industry Forces Level of Impact
Strong Moderate Weak
Competitive Rivalry Among Existing Firms X
Threat of New Entrants X
Bargaining Power of the Buyers X
Bargaining Power of the Suppliers X
Threat of Substitute Products X
2. B.I: Rivalry among competing firms (22-92632-2)
26
Competitive rivalry among existing firm is moderate.
Competitive rivalry among existing firms
Impact on Industry
Strong Moderate weak
A. No of competitors in the market Moderate
B. Growth prospect of the market Strong
C. Competitors size and capability Moderate
The overall impact on Industry Moderate
A. No of competitor in the market: Number of competitors in the market is moderate. There are lot
of food delivery services in Dhaka city but the competitors for food panda is mainly
HungryNaki,,Pathao food, Shohoz food. These are providing similar type of food delivery service
that is app based. There are also some other food delivery services like efood, khaas food, sheba
food but those are not doing so good. But as they enter into this industry maybe they can also do
better in future in that sense foodpanda’s level is moderate in terms of no of competitors in
market.
B. Growth prospect of the market: Growth prospect of the market is strong as the growth is high
in future. Customers demand is increasing day by day, in near future customers will be more
adoptable with new technologies and lifestyles, they will be more active in social media and there
will be lot more innovations. There will more products to attract customers and these new product
innovators will also use new marketing techniques.
C. Competitor’s size and capability:The competitor size and capability of food delivery service
industry is moderate as they are providing similar kind of service and there is also no product
differentiation in this industry, they kind of deliver same kind of food and sometimes from same
restaurant they deliver same product. So, they can’t change the product but they can minimize the
price. But this is not capability so the size and capability are moderate.
Impact of competitive rivalry among existing firms on foodpanda:
27
In food delivery industry rivalry among competing firms is moderate. Almost every food delivery service
provides same or similar kind of food, product differentiation is very less in this industry. So as a
customer I’ll try to find out where can I get quality food with cheaper price, accepting order quickly and
also quick delivery? Hungrynaki, Pathao food, and Shohozfood also offers same kind of price and
service . So, we can say competitive rivalry among competing firm is moderate.
Foodpanda wants to become the fastest, most innovative business in the good food sector. Foodpanda also
face many challenges to reach this growing stage. The company now controls nearly 65% of the market
share in the country’s food delivery industry, estimated to be worth over 43 million dollars in early
2021.32
Hossain, M. (2022, November 21). Bangladesh’s food delivery startups struggle as funding dries up. Rest
of World
32
Hossain, M. (2022, November 21). Bangladesh’s food delivery startups struggle as funding dries up. Rest of World
28
2. B.II: Threat of New Entrants (22-92362-1 & 21-91943-1)
Threat of New Entrants is Moderate
2. Threat of New Entrants
Impact on Porter’s Forces

Components
High Moderate Weak
A Capital Investment cost X
B Demand side X
C Capital Switching cost X
The overall impact of the force on the industry Moderate
A. Capital Investment Cost

Foodpanda, like any other business, is susceptible to the threat of new entrants in the market. One of the
significant barriers to entry in the food delivery industry is the high capital investment cost required to
start a new delivery service. New entrants will need to invest in a range of resources, including
technology, logistics, marketing, and hiring staff. These costs can be substantial and may deter potential
competitors from entering the market.
For foodpanda, however, the high capital investment cost serves as a competitive advantage, as it creates
a barrier to entry for new players. Foodpanda has already made significant investments in technology,
logistics, and marketing to establish a strong presence in the market. Its established brand name and loyal
customer base also make it difficult for new entrants to gain a foothold in the industry.
In conclusion, the high capital investment cost required to start a food delivery service serves as a barrier
to entry for new players in the market. For foodpanda, this creates a competitive advantage, as its
established brand name, loyal customer base, and economies of scale make it difficult for new entrants to
compete on price and service quality.
B. Demand side
The demand-side economies of scale for foodpanda are expected to be strong due to the growing
popularity of food delivery services. As more people turn to online ordering and home delivery,
29
foodpanda's customer base is likely to grow rapidly. This can lead to greater bargaining power with
restaurants and vendors, lower costs, and improved profit margins. Furthermore, foodpanda can use the
data gathered from its expanding customer base to improve its services, target its marketing more
effectively, and enhance its customer experience. Overall, the increasing demands.
Darbinyan M, Perch D and Bazikyan V, “Marketing Strategy and SWOT Analysis of Foodpanda | The
Social Grabber” (The Social Grabber, March 20, 2021)
Ibid
for food delivery services is likely to be a major driver of foodpanda's growth and success in the coming
years.
C. Capital Switching cost

Capital switching costs are a type of barrier to entry that can make it difficult for new competitors to enter
a market. In the case of foodpanda, a food delivery company, the capital switching costs might refer to the
investment required to build the necessary infrastructure and technology to compete with foodpanda’
splatform. If food panda has high capital switching costs, it can act as a significant barrier to entry for
new competitors, as it would be difficult and expensive for new entrants to replicate foodpanda’ s
infrastructure and technology. This, in turn, can reduce the threat of new entrants to foodpanda’s business.
Impact of Threat of New Entrants on Food panda:

The threat of new entrants in the food delivery industry is not very high, with high capital investment
costs and capital switching costs acting as significant barriers to entry. For foodpanda, these costs serve as
a competitive advantage as it has already invested in the necessary infrastructure and technology, creating
economies of scale and a loyal customer base that makes it difficult for new players to compete on price
and service quality. Demand-side economies of scale are expected to be strong due to the growing
popularity of food delivery services, leading to greater bargaining power with vendors, lower costs, and
improved profit margins.
“Foodpanda Business Model | How Foodpanda Makes Money” (StartupTalky, April 20, 2021)
2. B.III: Bargaining Power of Suppliers :( 22-92591-2)
4. Bargaining Power of the Suppliers
Components Impact on Porter’s Forces
30
A Switching cost X
B Substitutes X
C Large number of suppliers X
The overall impact of the force Weak
Bargaining Power of suppliers is low.
A. Switching Cost:
Switching cost is very high in this sector. Suppliers enter in to online food delivery service by following
some procedure. First, they have to register and generate their app with the company and have to bear
some legal expenses. Suppliers do not need any initial investment for delivery service. Only they collect
their billing amount. For this switching cost the supplier’s bargaining power is low.
A. Presence of Substitute:
Suppliers of online food Delivery Company are restaurants, cafes, bakeries and home kitchens. Substitute
is a factor for measuring how much power suppliers have. From this point of view now there are many
substitutes exist in the market. KFC, Pizza hut, Pizza burg and many other restaurants have their own
delivery system. This is threat for suppliers and for this reason bargaining power of supplier is low.
B. No. of suppliers:
In food delivery service there are a lot of suppliers including with them. Restaurants, cafes, bakeries and
home kitchen these are the suppliers of food panda. There has many similar type of food suppliers in an
area. And most of them are joining with any home delivery services. So bargaining power of supplier are
moderate in these points.
Impact of bargaining power of suppliers in Food panda:
Food panda is in a growing industry. The suppliers of food panda are restaurants, cafes, bakeries and
home kitchen within a specific area. Here suppliers are relying on food panda. There are many suppliers
engage with food panda. Here suppliers cannot pressurize customers for increase price, decrease quality
and not giving sufficient supply. Because there are many other options have for customers. And any
31
suppliers do not lose an opportunity for more profit. Low supplier power creates a more attractive
industry and increases profit potential, as buyers are not constrained by suppliers.
2. B.IV: Bargaining Power of the Buyers :( 22-92562-2)
There was some sort of first mover advantage in this industry for the supplier. In this industry, brand
reliability has made most customers reliant on the services offered by some major companies. Our data
suggests that the buyers have significant bargaining power. In this sector, there are no fluctuating
expenses for the customer. Users only need to download and use the free app of their new favorite
company to switch companies. The client's expense in this case is very low. However, it depends on
couple of factors that determines level of bargaining power of the customer.
3. Bargaining Power of the Buyers
Impact on the industry

Components
A Substitute products X
B Brand loyalty X
C Buyer low switching cost X
The overall impact of the force on the industry Strong
C. Substitute products:
Substitute products may be able to provide similar benefits to consumers but at a lower cost, or with
additional features. This can reduce the demand for existing products and create opportunities for new
entrants to the market. There are many substitute products in this sector, the impact is significant.
Consumers in the online food delivery sector are free to choose any service provider using their
applications. In this regard, their ability to bargain in this sector is pretty great. There are so many
service providers and customers have freedom to choose their desired service provider like Pizza hut,
Pizza Burge, Jafran etc. In this time the customer orders a food online or through the phone. The
order is received by the restaurant and a delivery man is assigned to the order the delivery man checks
32
the order and packs the parcels and hands over the order to the customers. So, their bargaining power
is very high in this perspective.
B. Brand loyalty
Customers have freedom to choose their favorite company. They will choose that company which
meets their needs and demands most. When the service sets a distinctive competition in terms of
quality and assurance, customers by their instinct, identify that brand instantly. Not necessarily,
Foodpanda, HungryNaki, Shohoz food will remain the only brand in Bangladesh if they can’t serve
the desire level of service assurance with their capability and resources they have. So, brand
identification, customers have choices and they spread positive and become a loyal customer of that
brand. So, customer has the power in terms of brand identification. Effect on brand loyalty is
significant in this sector. Because it can be challenging and expensive to enter the market with a new
product when there is significant brand loyalty within an industry. A corporation may generate more
income from a single customer the longer they remain loyal & lowers the cost of operations.
Customers must be satisfied in order for businesses to succeed in the food delivery industry.
Businesses must invest money in order to attract new customers. Increasing customer satisfaction
may result in more loyalty, which is advantageous because retaining current customers is less
expensive than obtaining new ones. Brand loyalty is therefore the top objective for all businesses in
this sector.For example, foodpanda, hungrynaki, and pathaofood all provide reward programs to draw
in clients and boost their brand recognition. Users can receive instant benefits from their order from a
loyalty program in a meal delivery app, including discounts or cashback.
C. Buyer low switching cost
It allows customers to easily switch between different food deliveries services, thus creating more
competition in the industry. This competition can lead to lower prices and improved quality of
service, which can benefit buyers. When consumers switch suppliers, switching expenses are
incurred. Due to the low switching costs in this sector, the industry is strongly impacted. When there
are few alternative suppliers, switching is expensive. Customer power would be reduced as a result. A
large number of customers order food from third-party food delivery system. In Dhaka competitors
offer the same kind of the service to the customers which makes the switching cost is low. For
example, any food service delivery provider’s app is free of cost, so there is no switching cost for
customers. They just need to install the desired company’s app without incurring any cost. On other
hand, they have choices between Shohoz food, HungryNaki, Pathao, , and the restaurant's own
delivery system which is mostly free of cost for consumers and Foodpanda with low switching costs.
33
Impact of Bargaining Power of the Buyers on Food panda:
Food Panda has had a significant influence. Because the food is delivered directly from the restaurant
when a customer orders through an online foo delivery service, they have no control over its quality. Food
Panda has no control over the food's quality either. Although customers can always request better service,
it is still the responsibility of the business and the restaurant to offer a high-quality good or service. So,
the bargaining power of buyer is strongly impact on Foodpanda.
2. B.V: Threat of Substitute Products :( 22-92316-1)
In this industry there's high threat of substitute merchandise and provider, so impact at the industry is
high. Primarily based on our analysis chance of alternative merchandise is strong. Below we will be
presenting our analysis that brought about this end.
Threat of Substitute Products
Impact on the industry

Components
A Capability development of replacement product X
B Substitutes price value X
C Purchaser switching fees X
The overall effect of the force at the industry Strong
A. Capability development of replacement product: The possible development of opportunity

objects has a large effect on this industry. Because companies are working hard to provide
replacement items. As an instance, pizza hut, pizza burg can be idea of an alternative to food
panda online food transport services. In food panda there comprise transport expenses as much as
39 to 59 tk. If Pizza burg cut off their delivery fee at minimum level, or free from value, clients
tend to order pizza via pizza hut as opposed to ordering pizza via food panda. 33
33
https://www.quora.com/How-do-online-food-delivery-websites-such-as-foodpanda-in-place-customers-orders-
at-the-restaurant
34
B. Substitute’s price value: Substitutes fee effect strongly in online food delivery platform. As it
limits industry's capability returns by means of setting a ceiling at the fees. Because every
provider of the substitute product is attempting to promote greater, the most effective factors they
will expect are marketing and pricing. Moreover, the pricing of objects having multiple
replacements are in particular variable in this industry. Revenue is much more likely to be earned
in an industry when there are much fewer alternative items. As an end result, that enterprise can
charge with a view to earn a profit. As replacements' price opportunity grows more appealing, it
becomes progressively greater tough for the ones organizations to turn a profit.
C. Purchaser switching fees: Purchaser switching prices is vulnerable, because consumer is
purchasing the substitute as opposed to the industry's product, then the chance of replacement
merchandise is high. The switching price is the value or additional price incurred through a
consumer whilst switching from one provider to the opposite. For instance, if consumers used to
buy thru apps however now prefer to devour in restaurants, the switching fee is high due to the
fact they may pay for transport or a few different costs. 34 As an end result, human beings are extra
willing to use food shipping applications. At the same time, if the switching charges are modest,
human beings can transfer from ordering through packages to going straight to eateries.
Impact of threat of alternative products on Food panda: Food panda is operating difficult to
increase numerous alternative replacement products. As an example, Food panda waives the
transport fee for as much as 5 orders placed by using clients on the way to inspire app utilization,
and they launched a new marketing campaign to allow their customers to flavor homemade meals
at a cheap price, beginning at tk. 150. 35 Pizza Burg, at the opposite, affords reward-based
promotions wherein clients may also access extra discounts, and so forth. This phrase has a large
quantity of impact on those organizations.
2. C: Industry Life Cycle Analysis (22-92362-1)
Shakeout
Development
Market Size
Maturity
Growth
Decline
34
https://www.thedailystar.net/business/economy/news/customers-question-rationality-platform-fee-3127371
35
https://www.thedailystar.net/business/organisation-news/news/foodpanda-looks-tap-growth-opportunities-
3030391
35
Annealing Time
36
Foodpanda is an online food delivery service that allows customers to order food from different
restaurants and have it delivered to their doorstep. The company operates in multiple markets
around the world including Asia, Europe, and Africa. Based on its current business operations
and market trends, it can be argued that Foodpanda is currently at the growth stage of the industry
life cycle for several reasons.
Firstly, there has been a growing demand for online food delivery services in recent years due to
changing consumer behavior and technological advancements. Consumers are increasingly using
digital platforms to order food as it provides them with greater convenience, flexibility, and
accessibility. Foodpanda has been able to capitalize on this trend by providing a user-friendly
platform that allows customers to easily browse menus, place orders, and track deliveries. As a
result of this increasing demand, Foodpanda has been expanding rapidly in new markets and
investing heavily in technology and logistics to improve its services.
Secondly, Foodpanda has been able to establish itself as a major player in the online food
delivery industry by partnering with a wide range of restaurants and offering a diverse selection
of cuisine. This has enabled the company to attract a large customer base and generate significant
revenue. Foodpanda has also been able to differentiate itself from competitors by offering
attractive discounts and promotions to customers, which has helped to increase customer loyalty
and retention. (foodpanda, 2023)
37
36
foodpanda. (2023). Retrieved from https://www.foodpanda.com/about/
37
Abdullah, A. (2022, june 22). A decade of delivering food and more: How foodpanda is pushing the new era of
quick commerce. Retrieved from vulcanpost.com: https://vulcanpost.com/793620/foodpanda-turns-10-food-
delivery-quick-commerce/
36
The online food delivery industry is still relatively new, and there is considerable room for
growth and expansion. Foodpanda has been able to take advantage of this by expanding into new
markets and launching innovative services such as cloud kitchens and virtual restaurants. These
initiatives have helped to strengthen the company's position in the industry and set it up for long-
term success.
There are several other factors that contribute to Foodpanda's position in the growth stage of the
industry life cycle. These include:
 Increasing competition: While Foodpanda has established itself as a major player in the online
food delivery industry, it faces increasing competition from both established players and new
entrants. This competition is driving innovation and improvement, which is helping to grow the
overall market.
 Changing consumer preferences: Consumer preferences are constantly evolving, and

Foodpanda has been quick to respond by offering a diverse selection of cuisine, partnering with
local restaurants, and providing customizable options. By staying attuned to changing consumer
preferences, the company has been able to stay relevant and maintain its growth trajectory.
 Expansion into new markets:Foodpanda has been expanding rapidly into new markets,
particularly in developing countries where there is significant potential for growth. The company
has also been investing heavily in marketing and advertising to increase brand awareness and
attract new customers.
 Investments in technology:Foodpanda has been investing heavily in technology to improve its

service offerings, including mobile apps, online ordering platforms, and delivery tracking
systems. These investments have helped to streamline operations, reduce costs, and enhance the
customer experience.
 Partnerships and collaborations:Foodpanda’ s entered into partnerships and collaborations with

various stakeholders, including restaurants, delivery partners, and payment providers. These
collaborations have helped to strengthen the company's position in the industry and expand its
reach.
In conclusion, Foodpanda is currently at the growth stage of the industry life cycle due to its
ability to capitalize on changing consumer behavior, establish itself as a major player in the
37
industry, and expand rapidly into new markets. While the industry is still in its early stages, the
potential for growth and expansion is significant, and Foodpanda is well-positioned to take
advantage of these opportunities. (Abdullah, 2022)
To assess the growth stage of foodpandawe has to look at its financial statements over time.
Primary financial statements such as balance sheets, income statements, and cash flow statements
provide valuable insights into a company's financial health and growth potential. Analysts often
examine metrics such as revenue growth rates, profit margins, and return on investment to gauge
whether foodpanda is growing or contracting.38
Another way to evaluate a foodpanda company’s growth stage is to look at secondary data
sources such as news reports, market research reports, and industry benchmarks. These sources
can provide information on trends in the company's industry, competitive landscape, and
customer demand. For example, industry reports may indicate that food delivery services are
experiencing rapid growth due to changing consumer habits, indicating that companies like
foodpanda could be in a strong position to grow their market share.
Analyzing both primary and secondary information can help verify iffoodpanda is in its growth
stage. By examining key financial metrics and industry trends, we can better understand whether
the company is poised for future success.
It's difficult to predict an exact timeline for when Foodpanda will reach the maturity stage of the
industry lifecycle, as this will depend on a variety of factors such as market conditions,
competition, consumer preferences, and technological developments. However, based on
currenttrends and projections, it's likely that Foodpanda is still in the growth phase of the industry
lifecycle, and it may take several years before it reaches the maturity stage.One reason for this is
that Foodpanda is still expanding rapidly into new markets, including emerging economies where
there is significant potential for growth. For example, the company recently announced plans to
enter the Bangladesh market, which is expected to drive further expansion and revenue growth
for the company. Additionally, Foodpanda has been investing heavily in technology and
innovation to improve its service offerings and enhance the customer experience, which is
contributing to its continued growth and competitiveness in the industry.
38
DUBLIN, b. w. (2022, january 28). Global Online Food Delivery Market Report 2021: Market Size, Forecast,
Insights, and Competitive Landscape, 2016-2020 & 2021-2027 - ResearchAndMarkets.com. Retrieved from
https://www.businesswire.com/news/home/20220128005224/en/Global-Online-Food-Delivery-Market-Report-
2021-Market-Size-Forecast-Insights-and-Competitive-Landscape-2016-2020-2021-2027---
ResearchAndMarkets.com
38
Another factor supporting continued growth for Foodpanda is the increasing trend towards online
food delivery services, which is being driven by changing consumer preferences and the
convenience of ordering food through mobile apps and websites. This trend is expected to
continue over the next few years, providing further opportunities for growth in the industry.
However, there are also some challenges that could slow down or hinder Foodpanda's growth,
such as increased competition from rival players, regulatory hurdles, and changing market
conditions. For example, the COVID-19 pandemic has disrupted the food delivery industry and
led to changes in consumer behavior, which could impact Foodpanda's growth trajectory in the
short term.
To further support this prediction, we can look at some of the recent developments and trends in
the online food delivery industry, as well as Foodpanda's performance and strategy.
First, according to a report by Research and Markets, the global grocery market is expected to
grow with a CAGR of about 6.4% during the 2021-2026 forecast period. This indicates that the
industry is still in a growth phase and has significant potential for expansion in the coming years.
Secondly, Foodpanda is continuing to expand into new markets and invest in technology and
innovation to improve its service offerings. For example, the company recently launched a new
feature called "Pandamart" which allows customers to order groceries and other household
essentials for delivery. This move into new verticals shows the company's commitment to
sustained growth and diversification beyond traditional restaurant food delivery services.
Thirdly, there is still significant room for growth in emerging markets such as Southeast Asia,
where Foodpanda operates and is rapidly expanding. According to a report by Google, Temasek,
and Bain & Company, the Southeast Asian internet economy is projected to reach $300 billion by
2025, with the online food delivery market being one of the key drivers of growth.
However, Foodpanda also faces increasing competition from rival players such as GrabFood,
Deliveroo, and Uber Eats, as well as possible regulatory hurdles and changing consumer
preferences. These factors could impact the company's growth trajectory and slow down its
progression towards maturity. Overall, while it's difficult to predict an exact timeline for when
Foodpanda will reach the maturity stage of the industry lifecycle, it's likely that the company is
still in the growth phase and will continue expanding and innovating in the coming years.
However, the industry is becoming more competitive and challenging, and Foodpanda will need
to stay focused and nimble to maintain its position as a leading player in the online food delivery
market.
39
2. D: Internal Factor Evaluation (IFE) Matrix:
Based on our secondary study, we have identified the important internal factors (strengths/weaknesses)
that are present in the analysis that follows. Our IFE matrix may be found in the table below, which is
followed by a thorough study of the IFE matrix.
IFE Matrix Weight rating Weight

score
1 Brand Loyal Customers 0.25 4 1
2 Promotions and Discount 0.18 4 0.72

Strengths
3 Wide Range of Restaurants 0.17 3 0.51
4 Low Delivery Charge 0.10 3 0.3
1 They are not providing 24/7 services 0.10 1 0.1
2 Limited Delivery areas 0.03 2 0.06

Weakness
3 Free delivery is expensive 0.05 2 0.1
4 Customers are only able to order food from their nearest 0.12 1 0.12
restaurant
Total 1 2.91
2. D.I: Strengths (22-92562-2)

Strength 1:
The first internal factor we want to discuss is brand loyal customers. Foodpanda is a leading online food
delivery platform that has built a loyal customer base by delivering convenience and value. The company
has leveraged customer loyalty by offering a wide range of services from local restaurants, discounts,
quick delivery times, and loyalty programs. 39Foodpanda has been able to keep customers loyal by offering
a wide selection of restaurants. In contrast, we believe the factor to be the most significant internal
component and gave it a weight of based on our analysis. 0.25. They have built up a loyal customer base
over the years that come back to them for their food delivery needs. For example, foodpanda runs loyalty
39
Bhasin, H. (2019, September 3). SWOT analysis of Foodpanda. Marketing9.
40
programs such as their “frequent diner program” which rewards customers for using the app more often.
We gave the component a grade of 4 and believe it to be a significant strength of the Food panda based on
our study. This translates to a weighted score of 1 for Food Panda. Foodpandahas developed a strong
loyalty program which rewards customers for their loyalty. Customers can earn points when they order
food and these points can be used to get discounts on future orders. They also offer exclusive discounts to
members of their loyalty program, which encourages customers to keep coming back.
Strength 2:
The second internal factor we want to discuss is promotions and discount. Foodpanda offers a variety of
promotions to its customers to encourage them to order more. Some of these include discounted prices for
certain items, free delivery. Foodpanda offers discounts in the form of coupons and vouchers that
customers can use to save money on their orders. These discounts vary in amount and are usually only
available for a limited time. For example, Foodpanda may offer a 25% discount on orders over $50 or a
20% discount on orders over $100.40 We rated the factor a weight of and believe it to be an essential
internal component. 0.18. It is a combination both resource and capability.Promotions and Discounts are
an important way to attract customers to a business. Foodpanda offers promotions and discounts to its
customers in order to increase sales and build brand loyalty. Foodpanda offers a variety of promotions
and discounts to its customers. Customers are also eligible for promotional codes, which can be used to
get discounts on their orders. Additionally, Foodpanda often runs promotional campaigns such as “Free
Delivery”, “50% off” and “Buy One, Get One”. 41 These campaigns are usually available for a limited
period of time and can be found on the website, social media pages, and emails. On our analyses, it
demonstrates that, we consider the factor to be a good strength of the food panda and assigned a rating of
4. This leads to the weighted score of 0.72. OtherFoodpanda promotions and discounts include special
offers for first-time orders, special discounts for holiday seasons, referrals, and group orders. Customers
can also get discounts on their orders by paying with specific payment methods, such as debit cards,
credit cards, and bank transfers. Overall, Foodpanda is a great platform for customers who want to get
discounts and promotions on their orders.
Strength 3:
The third internal factor is wide range of restaurants.Foodpanda is a leading online food delivery service
with a wide range of restaurants to choose from. With foodpanda, customers can order food from their
favorite restaurants, or discover new ones. With foodpanda, customers can order from a variety of
40
SWOT analysis of Foodpanda brand: [Essay example], 1837 words. (n.d.). GradesFixer.
41
Online food delivery business models - A detailed guide. (2022, May 10). FATbit Blog.
41
cuisines, ranging from fast food to Indian, Chinese, Italian, Japanese and much more. 42 The restaurants
available on foodpanda are carefully curate, so customers can be sure to find what they are looking for.
For example, customers can order Indian food from a local restaurant in their area or order Chinese food
from a regional Chinese restaurant. Based on our analysis we consider the factor to be the third internal
factor and assigned a weight 0.17. It is a capability. Food pandas make deal with many restaurants to beat
competitors. It is the third strength, and more restaurants are joining Food panda day by day. On the based
on our analysis, we consider that Food panda collaborate with local restaurants as well as branded
restaurants and we assigned food panda a rating of 3. Moreover, this leads to the weighted score is 0.51.
For Food panda and Food panda make promotional deals with international, branded, and local
restaurants. Food panda also make contract with to help these businesses to find customers. Such
collaborations help Food panda to obtain both their and restaurants goals.
Strength 4:
The fourth internal factor is low delivery charge. Foodpanda is a well-known online food delivery service
that offers great convenience to its customers. One of the key strengths of foodpanda is its low delivery
charge. Customers can order food from a wide range of restaurants without paying high delivery
charges.43Based on our research, we consider the factor to be the fourth internal factor and assigned a
weight of 0.10. It is a capability. It provides a hassle-free and affordable food delivery experience to its
customers. For example, customers can enjoy a discount on their delivery charges when they order food
from foodpanda.We assigned Food panda a rating of 3. Moreover, this leads to the weighted score of 0.3.
Overall, foodpanda’s low delivery charge is one of the key reasons why it is so popular among food
delivery customers. It allows customers to enjoy affordable and convenient food delivery with minimal
hassle.
The weighted score for this weakness is 0.1, reflecting the low impact it has on the overall performance of
Foodpanda. This means that while it is an area for improvement, it may not be a top priority when it
comes to addressing more pressing issues within the company.
To address this weakness, Foodpanda could consider expanding their service hours to provide 24/7
services to customers. This would require additional staffing and resources, but it could result in increased
revenue and customer loyalty. Alternatively, Foodpanda could focus on improving other areas of their
42
Business Inspection
43
Foodpanda business model | How Foodpanda makes money. (2021, April 20). StartupTalky.
42
business, such as their delivery times or menu options, which may have a greater impact on their overall
performance.
2. D.II: Weaknesses (22-92362-1)
Weakness 1:
The identified weaknesses for Foodpandaare their limited-service hours, which impacts their ability to
provide 24/7 services to customers. The weight assigned to this weakness is 10%, indicating that it has a
relatively low impact on the overall performance of Foodpanda. However, it is still an area for
improvement, as providing 24/7 services could potentially result in increased business opportunities and
customer satisfaction. The rating assigned to this weakness is 1, which suggests that it is a very significant
issue for Foodpanda. This is because the inability to provide round-the-clock services can be a major
disadvantage in the highly competitive food delivery market where companies are constantly trying to
outdo each other in terms of convenience and accessibility. The weighted score for this weakness is 0.1,
reflecting the low impact it has on the overall performance of Foodpanda. This means that while it is an
area for improvement, it may not be a top priority when it comes to addressing more pressing issues
within the company. To address this weakness, Foodpanda could consider expanding their service hours
to provide 24/7 services to customers. This would require additional staffing and resources, but it could
result in increased revenue and customer loyalty. Alternatively, Foodpanda could focus on improving
other areas of their business, such as their delivery times or menu options, which may have a greater
impact on their overall performance.
Weakness 2:
Foodpanda having limited delivery areas refers to the company's inability to deliver food to certain
geographic locations.The weight assigned to this weakness is 3%, meaning it has a relatively low impact
on the overall performance of the company. However, it still represents an area for improvement as
expanding delivery areas could lead to increased revenue and customer satisfaction.The rating assigned to
this weakness is 2, indicating that it is a moderately significant issue for Foodpanda. This is because
having limited delivery areas can restrict the number of customers that the company can serve, which can
negatively affect their market share. The weighted score of this weakness is 0.06, reflecting its low impact
on the overall performance of the company. Addressing this weakness may not be a top priority for the
43
company, but it could still have a positive impact on their business if they are able to expand their
delivery areas. To address this weakness, Foodpanda could consider investing in more delivery resources
to expand their coverage areas. Alternatively, they could partner with other companies or delivery
services to help them reach more customers in areas where they do not currently operate. This would
require additional resources and investment, but it could ultimately help Foodpanda to grow their business
and improve their market position.
Weakness 3:
While offering free delivery can be a great way to attract customers, it can also be expensive for the
company to provide. Foodpanda may need to find ways to reduce its delivery costs or adjust its pricing
strategy to address this weakness. In terms of the weight assigned to this weakness, 5% suggests that it is
considered a relatively minor issue for Foodpanda. However, the rating of 2 indicates that it is still a
significant concern that needs to be addressed. The weighted score of 0.1 (calculated by multiplying the
weight by the rating) reflects the fact that while the weakness is not a major factor, it still has some
impact on Foodpanda's overall performance. The cost of offering free delivery can be a significant
expense for Foodpanda. Delivery fees typically make up a substantial portion of the company's operating
costs, and providing free delivery can eat into its profit margins. This is especially true in today's
competitive food delivery market, where customers have come to expect free or low-cost delivery
options. One potential solution that Foodpanda could consider is to offer free delivery only on orders over
a certain amount. By setting a minimum order size for free delivery, the company may be able to offset
some of the costs of providing this service while still attracting customers with the promise of free
shipping. Another approach would be to adjust pricing strategies in other areas to help cover the costs of
free delivery. For example, Foodpanda could increase menu prices slightly or charge a small delivery fee
for orders under a certain amount. These types of adjustments may help the company achieve a better
balance between offering attractive incentives for customers while still maintaining profitability. Overall,
the weakness identified in the IFE matrix may not be the most critical issue facing Foodpanda, it is still
important for the company to address if it wants to remain competitive in the food delivery industry. By
carefully evaluating its options and making strategic adjustments, Foodpanda can continue to grow and
thrive in the years ahead.
Weakness 4:
The weakness highlighted in the IFE matrix is that foodpanda customers are only able to order food from
their nearest restaurant. This limits the variety of options available to customers, potentially leading to
dissatisfaction and loss of business.The weight assigned to this weakness is 12%, indicating that it is not a
44
major issue but still worth considering in the overall analysis of foodpanda's internal environment.The
rating of 1 suggests that this weakness is significant and requires attention from foodpanda's management
team.To calculate the weighted score, we can multiply the weight (0.12) by the rating (1), giving us a
weighted score of 0.12. This indicates that while the weakness may not be a major concern, it is still
worth addressing to improve the customer experience and potentially gain a competitive advantage in the
market.One potential impact of this weakness is that it may limit foodpanda's ability to attract and retain
customers in areas where there are few or no participating restaurants. Customers who do not have many
options for ordering food through foodpanda may choose to use a competitor's platform instead.In
addition, even in areas with many participating restaurants, limiting customers to ordering from their
nearest restaurant may result in a lack of variety and choice. This could lead to customer dissatisfaction
and lower levels of repeat business.To address this weakness, foodpanda could consider expanding its
network of participating restaurants or allowing customers to order from any restaurant within a certain
distance range. This would increase the variety of options available to customers and potentially improve
customer satisfaction. Overall, while this weakness is not a major issue, it is worth considering as part of
a broader analysis of foodpanda's internal environment and potential opportunities for improvement.
2. E: External Factor Evaluation (EFE) matrix
In the following analyses, we identified key external factors (opportunities and threats) that are present in
the industry based on our secondary research. i See the table below that represents our EFE matrix,
followed by a detailed matrix analysis.
EFE Matrix Weight rating Weight

score
1 Growing market 0.30 4 1.2

Opportunities
2 Increase customer loyalty program 0.25 3 0.75
3 Customer expansion 0.12 3 0.36
4 Leveraging social media 0.08 3 0.24
1 Growing competition 0.10 4 0.4

Threa
45
2 Ease of going to nearby restaurants 0.08 3 0.24
3 Delivery challenges 0.05 2 0.1

ts
4 Change in economic condition 0.02 2 0.04
Total 1 3.33
2. E.I: Opportunities (22-92632-2)
Opportunity 1: The 1st external factor that we choose is Bangladesh food delivery market is a growing
market. Based on our research we consider it as the most important factor and assigned a weight of 30%.
Advances in technology made it easier for food delivery services to reach customers with faster. Mobile
apps, online food ordering change the way food delivery operates. Based on our analyses, we consider
that foodpanda is responding to the opportunity so as it is the major opportunity and foodpanda also
working on it that’s why we give rating 4 and the weight score is 1.2. Overall food panda is creating a
good place in this food delivery industry.
Opportunity 2: The 2nd external factor is increasing customer loyalty program. Foodpanda can also focus
on customer loyalty through loyalty programs by offering discounts, special offers and reward points.
This can encourage customer to order more frequently and remain loyal to the brand. That’s why we
consider it as 2nd most important external factor and assigned a weight 25%.Based on our analyses, we
consider food panda’s ability to respond to this opportunity is above average that’s why we give rating 3
and the weight score is 0.75. Through this foodpamda can differentiate itself and retain customers to the
competitive market.
Opportunity 3: The 3rd external factor is customer expansion. Foodpanda can expand its customer base
by reaching new markets and customers. It can be possible for them by partnering with more restaurants
and expanding its delivery network to reach more areas. Based on our research we consider this as the 3 rd
most important factor and assign a rating 12%. Based on our analyses, we consider food panda’s ability to
respond to this opportunity is above average that’s why we give rating 3 and the weight score is 0.36.
Customer expansion can be a great opportunity for food panda to build its network inside and outside
Dhaka city.
Opportunity 4: The 4th external factor is leveraging social media. Foodpanda can join social media like
face book, Instagram, twitter to engage with its customer and through these platforms they can announce
46
new menus, discounts, vouchers. They also can add some influencer marketing as it’s a powerful tool
nowadays. Create a platform so that the customers can share their reviews. For engagement in social
media Foodpanda should announce some contest and provide some vouchers for the winners.
Foodpandaalso can give some special discounts to the social media followers. Based on the research we
consider this the 4thmost factor and assign a rating 8%.
Based on our analyses we consider food panda’s ability to this opportunity is above average that’s why
we give rating 3 and the weight score is 0.24. Food panda’s social media engagement can build an online
relation with their customers that benefits food panda with a larger customer community.
2. E.II: Threats (21-91943-1)
Threats 1: The external factor "Growing Competition" for the food delivery industry is primarily derived
from industry analysis. The weight of 10% has been assigned based on the significant impact that
competition has on the industry's growth and sustainability. Food delivery companies face intense
competition from established players as well as new entrants. The growth of online food delivery has
attracted many new players to the market. According to a report by Allied Market Research, the global
online food delivery market is expected to grow at a CAGR of 16.7% from 2019 to 2025. The report also
highlights that the entry of new players is intensifying the competition in the market.The food delivery
industry heavily relies on customer acquisition and retention, and competition plays a crucial role in
determining the market share and growth of the companies. Companies invest heavily in marketing and
promotions to stay ahead of their competitors. They also need to continuously innovate and improve their
services to keep their customers loyal.Moreover, the impact of growing competition is not limited to
individual companies, but it also affects the overall industry structure. With increasing competition,
companies may need to operate on thinner profit margins, leading to consolidation in the
industry.Considering the above factors, a weight of 10% has been assigned to growing competition. The
growing competition is the fourth most important external factor for this industry, and its impact on the
industry cannot be ignored.
Threats 2: The weight of 8% was likely assigned because the given external factor is an important
consideration for the food delivery industry. If customers choose to dine in at nearby restaurants instead
of ordering food for delivery, it can significantly reduce the demand for food delivery services, which
could negatively impact the industry. The weight assigned to this factor could be justified by examining
industry trends, customer behavior, and competitor analysis. For instance, if there is a growing trend of
customers choosing to dine in at nearby restaurants, it could indicate a shift in customer behavior that
could significantly impact the industry. Competitor analysis could also reveal if competitors are losing
47
market share to nearby restaurants or if they are adapting to this trend. Additionally, this external factor
could have a significant impact on the success of food delivery companies as it could affect their revenue
and profitability. As a result, the weight of 8% is justified as it highlights the importance of this external
factor in the food delivery industry. Valid information sources such as market research reports, industry
publications, and expert opinions could be used to justify the weight assigned to this external factor. The
weight could be adjusted based on the impact of the trend on the industry and the degree of importance it
holds in the success of food delivery companies.
Threats 3: The weight of 5% was likely assigned because the Delivery Challenger is one of several
external factors that could impact the food delivery industry's success, but not the most significant factor.
The weight may have been determined based on the degree of impact Delivery Challenger has on the
industry compared to other factors. Delivery Challenger is considered the second most important external
factor for the food delivery industry because it can disrupt the market share and profitability of existing
players. As a new competitor, Delivery Challenger could introduce new features or services that attract
customers away from existing players, forcing them to innovate and improve their services continuously.
To justify the weight assigned to Delivery Challenger, valid information sources such as market research
reports, industry publications, expert opinions, and financial statements of food delivery companies could
be considered. The weight could be adjusted based on the impact Delivery Challenger is observed to have
on the industry. If the delivery challenger has a significant impact, the weight may be increased, and if it
has a minimal impact, the weight may be reduced.
Threats 4: The weight of 2% was likely assigned because while economic conditions are an important
external factor for any industry, it may not have as significant an impact on the food delivery industry as
some other factors, such as customer preferences or technological advancements. The weight may have
been determined based on the degree of impact economic conditions have on the industry compared to
other factors. A change in economic conditions, such as a recession or a sudden spike in inflation, can
significantly affect the purchasing power of consumers and ultimately, the demand for food delivery
services. As a result, it could lead to changes in consumer behavior, such as decreased spending on
discretionary items like food delivery services, which could negatively impact the industry. However,
other external factors such as customer preferences or technological advancements may have a more
significant impact on the industry's success. To justify the weight assigned to the change in economic
conditions, valid information sources such as economic reports, industry publications, and expert opinions
could be considered. The weight could be adjusted based on the impact the change in economic
conditions has on the industry. If the economic change has a significant impact, the weight may be
increased, and if it has a minimal impact, the weight may be reduced.
48
i
Hasan, M. (2022, May 24). Foodpanda looks to tap growth opportunities. The Daily Star.
2.F: Competitive Profile Matrix (22-92591-2)

Food Panda Hangrynaki Pathaofood Sohoj Food
Key Success Factors Weight Rating Score Rating Score Rating Score Rating Score
1. Brand Loyal Customer .25 4 1.00 3 .75 2 .50 2 .50
2. Growing Market .23 4 .92 3 .69 3 .69 2 .46
3. Promotions and discounts .20 3 .60 4 .80 2 .40 2 .40
4. Wide Range of restaurants .17 4 .68 3 .51 3 .51 2 .34
5. Increase customer loyalty .15 3 .45 2 .30 2 .30 2 .30

program
Total Score 1.00 3.65 3.05 2.40 2.00
We wanted to conduct a Competitive Profile Matrix (CPM). We focused on three main competitors of our
company. They are: Hangrynaki, Pathaofood and Sohoj Food. These three companies we chose as the
immediate competitors. We consider them as our competitor because we all are from same industry and all are
giving same types of service.
Details of the critical factors under the CPM analysis are below:
1. Brand Loyal Customer:

Brand loyal customers always choose their preferred brand for purchasing product or getting services. If the
competitor offers lower prices or promotions a loyal customer doesn’t change brand preference because of
positive experience. As we are giving online services so customers satisfaction is more important for us. If we
can make some loyal customers by giving our best service then they will be loyal to us and also it will be a good
medium of marketing through word-of-mouth recommendation and also social media sharing. Brand loyal
customers can also help us to improve the reputation of our business by giving positive reviews. By analyzing
the importance, we weighted band loyal customer at 0.25. And our rating for this factor is 4 where other apps
rating is lower than us. Food panda gain a huge number of loyal customers by giving best services. Food panda
always maintain delivery time. Sometimes for environmental issue they extend delivery time but they give
compensation for this situation. Food panda’s customer care department is very active. Customer can easily
contact with customer care department for any issue and get a solution as soon as possible. Customer also can
take refund their money by any payment method like Bkash or online banking. Food panda can handle all the
issue very perfectly. For which Food panda is successful to make brand loyal customer. One the other hand
Hungrynaki contains rating 3 and Pathao and Sohoj food is very weak in this factor. Because they have poor
customer service.
2. Growing Market:
Online food delivery industry is expanding to meet customer demand. Customer demand is increasing day by
day. People have less time to spend time for homemade food. And now internet is available in our country. So,
they preferred to order food from online because of easy to access. This is a big opportunity to capture the
market now. So we give weight 0.23 and consider as second important factor.Food panda is growing their
business by adding new restaurants and attract their customer by online marketing. This factor is major strength
for Food panda. So, the rating for growing market is 4 for Food panda. Both Hangrynaki and pathao food’s
rating is 3. Because, they are new in this industry and trying to growing in their market. Where are Food panda
already made a good position and trying to more growing the market
3. Promotions and Discounts:
Promotions and discounts are a part of marketing. For attracting customers promotion and discount can be an
important factor. New customers will be come for their first try and by this way company gain a chance to
provide their best service and can prove themselves. Sometimes customer order more food for discounts. In this
way company increase their sales volume. Food panda gives discounts but Hangrynaki is giving more discounts
for attracting customers at a short time. So, Food panda’s rating is 3. And Hanrynaki’srating is 4. Food panda’s
total score is 3.65 which is the highest score among other competitors. Hangrynaki’s score is 3.05 which is the
second highest score. Food panda’s score of third factor promotions and discounts is 0.60 where Hangrynaki’s
score is 0.80. This factor is major strength for Hangrynaki and minor strength for Food panda. So, Food panda
should increase their promotion and discounts facility to compete with Hangrynaki. Customer loyalty program is
the fifth factor. Though it is an important factor but Food panda’s score is 0.45 and all the competitors score is
0.3. Which represent Food panda’s minor strength and competitor’s minor weakness. So, food panda should
focus on this factor to increase their score. Food panda’s score is the heights score. So, Food panda is the
strongest player in the competitive landscape. It is a competitive advantage for Food panda. So, the company
should work hard for retain this advantage.
2. G: VRIO Analysis: (22-92326-1)

The VRIO analysis is a strategic tool used to evaluate the competitive advantage of a firm's resources and
talents. VRIO stands for value, rarity, imitability, and company, and it helps to decide if a firm possesses center
abilities which could offer a sustained aggressive gain. Let's behavior a VRIO analysis for 3 of the maximum
precious resources/abilities of Foodpanda, a food delivery company. Details of the VRIO analysis is below.
Resources / Is it Is it Is it hard Is Organization What is the result?
Capabilities Valuable Rare to Organized
Imitate Around
(R/C)
1. Brand Loyal YES No NO Yes Customer service, user interface etc.

Customers
2. Strong Brand and Yes Yes No Yes Strongcustomersupport, Easy ordering

Market Presence process etc.
3. Wide Network of Yes No No Yes Increased customer choice, Stronger

Partner Restaurants relationships with restaurants etc.
1. Brand Loyal Customers: Value: Brand loyal clients of Foodpanda are a valuable useful resource as they
invent repeat commercial enterprise and high-quality word-of-mouth advertising and marketing, main to
improved revenue and marketplace percentage.
Rarity: Brand loyal customers of Foodpanda may be notably rare as not all meals transport companies may
additionally have the equal stage of customer loyalty.
Imitability: Brand loyal clients of Foodpanda might not be effortlessly imitable as it calls for extensive
investment in purchaser courting management, customer support, and logo constructing to create a similar
level of patron loyalty.
Organization: The brand loyal clients of Foodpanda are effectively prepared in the corporation through
consumer relationship control strategies, client retention applications, and loyalty rewards packages, offering
a supply of sustained aggressive benefit.
2. Strong Brand and Market Presence:
Value: The strong brand and marketplace presence of foodpanda are valuable assets as they devise brand
popularity, client considers, and market proportion, main to extended enterprise opportunities and purchaser
loyalty.
Rarity: The strong logo and marketplace presence of Foodpanda can be in particular uncommon as now not
all meals shipping businesses may additionally moreover have the same degrees of logo recognition and
market proportion.
Imitability: The brand and market presence of Foodpanda might not be easily imitable as it requires great
investment in advertising, advertising, and customer relationship control to build a strong brand and
marketplace presence.
Organization: The strong brand and market presence of Foodpanda are successfully prepared in the
organization via branding strategies, advertising campaigns, and patron dating management, providing a
sustained competitive advantage.
3. Wide Network of Partner Restaurants:
Value: The huge community of accomplice restaurants of Foodpanda is a treasured useful resource as it lets
in the organization to provide a diverse variety of meals options to customers, attracting greater customers
and generating greater orders.
Rarity: The wide network of partner restaurants of Foodpanda won't be uncommon as different meals
transport organizations may additionally have comparable partnerships with restaurants inside the market.
Imitability: The wide network of accomplice restaurants of Foodpanda may be imitable as other meals
delivery agencies can also establish partnerships with restaurants to enlarge their offerings.
Organization: The wide network of partner restaurants of Foodpanda is prepared via strategic partnerships,
negotiations, and collaborations; however it is able to now not provide a sustained aggressive advantage as it
could be easily imitated via competitors.
Based on the VRIO evaluation, it seems that Foodpanda's advanced food transport generation platform and
strong brand and market presence may be sources of sustained competitive advantage, as they're valuable,
noticeably uncommon, now not without difficulty imitable, and effectively prepared in the enterprise. But, the
wide network of companion restaurants won't offer a sustained competitive gain as it could now not be rare or
hard to imitate. It's important to continuously evaluate and replace the VRIO analysis because the competitive
panorama and resources/capabilities of the organization evolve through the over time.
2.H: Survey Analysis ( 22-92562-2)
2.H.I: Survey 1 ( 22-92562-2)
1. The survey was available to the participants from 02.28.2023 to 03.20.2023
2. Total Sample Size: 114
3. Mode of Survey: Online

4. Target Audience: The target audience of online food delivery platform is 22-30 years old who are
looking for a convenient, hassle-free way to order food online.
5. Results:
Quantitative data:
- The majority (74%) of customers using online food delivery platform are between the ages of 22-30.
- The majority (53%) of customers using online food delivery platform are male.
-. The primary motivation for using online food delivery service is convenience.
-Variety of food options, Delivery time, Quality of the foods are important factor when ordering food online.
- The majority (39%) of customers are more likely to recommend online food delivery service to their friends
and family.
- User friendliness, Delivery fee, Easier payment system are features or functionalities of online food delivery
service technology do you find most helpful.
Qualitative data:
The qualitative analysis of the survey results revealed that the majority of respondents had a positive experience
with online food delivery services. Most respondents indicated that they would recommend online food delivery
platform to others and that the overall service was good. The primary reasons for satisfaction were the
convenience offered, the wide selection of food options, and the ease of ordering. The survey also asked
customers to rate the quality of food, speed of delivery, customer service, and overall value. The survey asked
customers to rate the features or functionalities of online food delivery service technology find most helpful. The
survey asked customer’s factors influence your decision to order from online food delivery platform that
includes variety of food options, Quality of the food, Delivery time, Promotions and discounts. Overall, the
survey results suggest that online food delivery service is providing a positive experience for its customers and
that customer are likely to continue using the service in the future.
Now use some graphs &charts to present the data in a clear and organized manner:
6. Findings:
The survey results also revealed several common themes among the respondents’ feedback. The majority of
respondents praised the overall experience, with many citing the convenience, quick delivery times, and quality
of food as the main reasons for their satisfaction. Additionally, many respondents noted that they would
recommend online food delivery platform to others and would continue to use the service in the future. A few
respondents also mentioned that they found the ordering process to be straightforward and user-friendly.
Additionally, the survey found that customers had a positive attitude towards the delivery speed, with of
respondents rating the speed of delivery as satisfactory or better. Finally, the survey asked customers to rate their
likelihood of using online food delivery service again. The majority of respondents said that they were likely to
use online foodpanda in the future.
Insights:
- The target customers of online food delivery platform are mainly young male adults.
- The convenience of ordering food online is the primary motivation for customers.
- Customers are willing to pay more for better quality food, faster delivery, and better customer service.
- Customers are more likely to order food online if they know they can get discounts or deals or delivery
fee.
The results of the survey were mostly in line with our expectations. There were no major surprises in the
results.
7. Based on the findings, additional information or follow-up questions do you have for the
target customers:
o What do you think could be improved about our services?

o How do you prefer to receive customer service and support?
o How likely are you to recommend our services to others?
o What other features would you like to see online food delivery service offer?
o What other services have you considered before deciding to purchase food?
o What do you think of the food quality and selection offered by online food delivery
platform?
o What was the deciding factor that made you choose our services over the competition?
o What suggestions do you have for how we can make our services stand out from the
competition?
Questions I thought of that I should have asked but didn’t include:
- How often do you order food from online food delivery platform?
- How would you rate the overall customer experience with online food delivery services?
- What improvements would you like to see in the online food delivery platform ordering
process?
- What do you think of the variety of food and restaurants available through online food delivery
platform?
- Do you think the online food delivery service delivery fees are reasonable?
- What do you think of the speed and accuracy of online food delivery service deliveries?
8. One of the challenges of this survey was the fact that it didn’t allow for a large enough sample size. This
survey was conducted with a small group of participants, which could limit the accuracy of the results since it
didn’t account for a wide range of opinions and experiences. Another challenge was the fact that the survey
didn’t ask participants any open-ended questions, which could have provided more insight into participants’
thoughts and experiences.
This survey had a weakness in not asking customers to rate their overall experience, which could have provided
valuable insight into customer satisfaction.Furthermore, the survey did not capture customer loyalty, as it only
asked about general experiences and did not ask customers to rate the likelihood of returning. The survey did not
include questions about the frequency of online food delivery platform use or the reasons why people used the
service. This could have provided valuable insight into how to better meet customer needs.
2.H.II: Survey 2 ( 22-92562-2)
1. The survey was available to the participants from 04.11.2023 to 04.18.2023

2. Total Sample Size: 118
3. Mode of Survey: Online
4. Target Audience: The target audience of online food delivery platform is 22-30 years old who are
looking for a convenient, hassle-free way to order food online. And the vast majority of them are
male
5. We attempted to relate the survey statistics and secondary data to our study objectives after
analyzing the survey statistics and secondary data. Additionally, we tried to figure out customers'
expectations and perceptions of foodpanda. We selected 118 participants at random from an online
survey. They weighed in on the survey questioners. They assessed foodpanda service quality using a
variety of questions, measuring measures, ratings, and points. The following are the results are:
Gender
We wanted to determine the proportion of male and female users. The survey was completed by about 61% of
male and only 37.3% of female. Foodpanda statistics show that males order food more than females. Meaning
more males is interested in foodpanda.
Age Group
Our next findings were about the age group of foodpanda consumers. According to the survey results, the
majority of foodpanda customers are between the ages of 22-30 this age group also has the highest proportion of
foodpanda. Yet, their primary concerns are often quality, delivery time, and so on.
Have you heard of Food panda before?

In this graph we found 93.2% peoples heard of foodpanda before. That means most of the people already know
foodpanda online food delivery services and 93.2% peoples also know foodpanda app.
How likely are you to try Food panda in the future?
This graph shows that the majority of people will test foodpanda in the future, followed by some individuals who
will try it very likely and then a small number of people who will try it neutrally.
How often do you use Food panda for ordering food?
In this graph we found 44.1% customers use foodpanda for ordering food in several times. 29.7% customers use
foodpanda for ordering food in daily basis. 16.1% customers use foodpanda for ordering food in once a week
and 10.2% customers use foodpanda for ordering food in several times in a month.
How likely are you to recommend Food panda to your friends?

According to this graph, the majority of customers are relatively likely to refer Food Panda to their friends,
followed by some customers who are extremely likely to do so and a small number of customers who are neutral
about the idea.
What makes Food panda different from other food delivery services?
The majority of consumers in this graph overwhelmingly concur that what sets Food Panda apart from other
food delivery services is the large variety of restaurants it serves. Then, some customers completely agree that
Food Panda's low delivery fee sets it apart from other food delivery services, followed by others who completely
agree that its user-friendly website fee sets it apart from other food delivery services and still others who
completely agree that its fee distinguishes it from other food delivery services. Again, the majority of consumers
think that meal Panda differs from other meal delivery services because of its user-friendly website pricing, and
other customers opt to agree that it offers appealing discounts.
What could Food panda do to improve food Safety?

In this graph, we can see that the majority of customers strongly agree that better packaging will improve food
safety, followed by restaurant monitoring and then training in food safety and good hygiene practices.
Additionally, we discovered that some customers slightly agreed with training on food safety and good hygiene
practices as well as cleaning the delivery bag used by the delivery man for improve food safety.
How satisfied are you with the speed of delivery from Food panda?
This graph shows that most consumers were only moderately satisfied, followed by a small number who were
extremely satisfied, and finally a very small number who chose neutral.
What suggestions do you have for how we can make our service stand out from the competition?
We can see from this graph that the majority of customers are in favor of more discounts, followed by a slight
agreement to lower delivery fees, and then a slight agreement to grant vouchers. Several customers support
lowering the price of food, while a few others only slightly support the idea.
How satisfied are you with the overall experience of ordering food from Food panda?
We can see from this graph that the majority of customers were somewhat satisfied followed by a small number
who were extremely satisfied, and finally a very small number who chose neutral.
Qualitative data:
The majority of survey participants reported having a positive experience with online food delivery services,
according to a qualitative analysis of the survey results. Most respondents indicated that they would recommend
online food delivery platform to others and that the overall service was good. The analysis can be used to
identify customer needs, preferences, and attitudes towards the product or service. The survey can also be used
to measure customer satisfaction and loyalty, and to identify areas of improvement. The analysis begins by
collecting customer feedback through surveys. Customers felt that the ordering process was easy and convenient,
that the delivery was fast and reliable, that the food quality was good, and that customer service was helpful and
responsive when needed. Peoples likely recommended his or her friends and family members. Customer’s wants
foodpanda improve safety. Additionally, customers appreciated the wide selection of restaurants and the
discount offers provided by foodpanda.
8. Findings:
As a result of the survey, several common themes emerged among the responses. The majority of respondents
were between the ages of 22-30, indicating that this is the primary demographic for the company's customers.
The majority of customers using Foodpanda are male. The majority of respondents indicated that they were
satisfied with the company's services. The most important factors for respondents when considering a potential
purchase included quality, and customer service. The majority of respondents most of the customers heard
foodpanda before. Additionally, they are likely to try Food Panda's services in the future. Customers order food
in daily and several times a week, according to most respondents. Peoples likely recommended his or her friends
and family members. The majority of respondents praised the overall experience, with many citing the
convenience, quick delivery times, and quality of food as the main reasons for their satisfaction. Additionally,
many respondents noted that they would recommend online food delivery platform to others and would continue
to use the service in the future. Customers are satisfied with the delivery speed and the accuracy of their orders.
Most of customers completely agree Food panda different from other food delivery services. The majority of
respondents said that they were likely to use online foodpanda in the future.
Insights:
- Mostly young male adults are the target customers of foodpanda
- Customers are willing to pay more for better quality food, faster delivery, and better customer
service.
- It is the convenience of ordering food online that motivates customers to use the service.
- Delivery speed is an important factor that customers take into consideration when ordering food
online.
- This is an important insight for the company to take into consideration when developing new
strategies and services.
The results of the survey were mostly in line with our expectations. There were no major surprises in the results.
9. Based on the findings, additional information or follow-up questions do you have
for the target customers:
- What were the primary reasons for choosing foodpanda over other food delivery services?
- What could foodpanda do to further improve its user experience?
- How do you typically use foodpanda?
- What do you think sets foodpanda apart from its competitors?
- Are there any areas where you think foodpanda could improve?
- What was the deciding factor that made you choose our services over the competition?
- What would you like to see from foodpanda in the future?
- What do you think of the food quality and selection offered by online food delivery platform?
- How likely are you to recommend our services to others?
- Do you have any other comments or feedback that you would like to share?
Questions I thought of that I should have asked but didn’t include:
- Does the frequency of ordering from Food panda vary across different age groups?
- Are there any other restaurants that you prefer to order from instead of Food panda?
- Do you prefer to pay for your Food panda orders?
- Payment system is reliable?
- Did the availability of food delivery services such as Foodpanda influence your food choices?
- Do you think that ordering food through Foodpanda has had any effect on your cultural identity?
- Has the convenience of Foodpanda impacted the way you view food-related activities such as
cooking and dining out?
- Has the use of technology impacted your experience with Foodpanda?

- Has using Foodpanda services impacted your overall economic standing?
- Are you aware of the laws and regulations that protect consumers when ordering food through
Foodpanda?
- Do you think the online food delivery service delivery fees are reasonable?
10. Some of the challenges of this survey:
This survey had difficulties because there was insufficient room for a large enough sample size. Due to the
survey's limited sample size and lack of consideration for a wide range of perspectives and experiences, its
accuracy may be constrained. Another issue was that the survey didn't include any open-ended questions, which
may have given respondents greater context for their opinions and experiences.
Some of the weaknesses of this survey:
The survey's shortcomings were that it did not allow respondents to score their overall experience, which could
have revealed important information on customer satisfaction. Additionally, because the survey only asked about
general experiences and did not ask respondents to estimate their likelihood of returning, it did not account for
consumer loyalty. The survey did not ask participants about how their motivations for doing so. This might have
revealed important information about how to better satisfy client needs.
3. Section 3: Recommendations ( 22-92562-2)
3.A: Top 5 Recommendations ( 22-92562-2)
We believe Company X has a few alternatives moving forward to increase the company's competitiveness based
on our thorough investigation. We suggest the top five strategies the organization should think about moving
forward based on our thorough study. (You should limit your recommendations to your top five. Each
recommendation should be at least two to three paragraphs long. Although brief, they must be precise and
contain pertinent information.)
3.A.I:Recommendation 1:
Customers are able to order food from their nearest restaurant. Only place orders within a 3-kilometer radius.
Let's say a consumer wants to order something that is only accessible at a certain restaurant, but the restaurant is
closed at the time. Customers will have more options if restaurants expand their geographic reach in their
applications.
3.A.II:Recommendation 2:
Foodpanda does not provide their service, so they may analyze when customers prefer to place the most orders
24 hours a day, 7 days a week. And based on the analysis, companies can modify their delivery manpower and
timetable. When they close, customers can place more orders, and if they want to attract more customers, they
might think about being open a little while longer. Additionally, once they have determined which deliveries are
thought to be more profitable, they should expand their crew.
3.A.III:Recommendation 3:
Expand your delivery area for your foodpanda business; take advantage of the latest technology available to
maximize your reach. Consider using location-based services. Additionally, you can leverage social media and
digital advertising to reach customers in areas outside of your delivery zone. Finally, consider partnering with
local businesses to provide delivery services in their area. This will allow you to reach customers who may not
have access to your current delivery area. By taking advantage of these modern tools, you can increase your
customer base and expand your business's reach.
3.A.IV: Recommendation 4:
Delivery free is an important component in foodpanda business model, as it provides customers with an
incentive to order from foodpanda instead of other food delivery services. However, delivery free can be
expensive for foodpanda, as it has to pay for the cost of delivery for each order. In the future, foodpanda could
look into implementing a subscription-based model, where customers could pay a monthly fee for unlimited
delivery free. This could help to reduce the costs associated with delivery free, allowing foodpanda to remain
competitive in the industry. Additionally, foodpanda could look into using more efficient delivery methods.
3.A.V:Recommendation 5
Their delivery heroes lack the necessary training. Numerous customers have complained about the delivery boy's
rudeness. They occasionally refuse to arrive at the specified address. Their delivery timeframes can occasionally
be far longer than anticipated. Food Panda gives their delivery boys at least the bare minimum of training, and
they should also improve the way they handle consumer complaints, as they now do not take any action.
3. B. Main Recommendation (22-92632-2 & 22-92591-2)
Out of all strategies I think Market Penetration will be the best possible option for the company right
now. We choose this strategy because our company is already a good going company and we have less
competitors in the market so we should focus on expanding our area and targeting new customers. Out
of all the strategies we choose market penetration strategy. According to us it will be the best option for
the company right now. In the CPM analysis we mentioned that Food panda get highest score. As Food
panda is dominating this food delivery industry so we should choose a strategy which have less risk.
Market penetration is the safest strategy among all the strategy. In CPM analysis we can see that our
score is low in Promotion and loyalty program. Market penetration strategy will be help us to
increasing advertise expenditure and sales promotion. Our service will be same as before. We just want
to reach more customers and cover more area. Through market penetration strategy we can include
more restaurants of Dhaka city.
From the survey analyses we got this information that 6.8% people don’t know or may be heard about
food panda but a large portion of people know about food panda as our service is within Dhaka city and
food panda is doing good so now from the survey our concern is to target this small portion of
customer to learn about food panda and also order from it. As we realize that these portions of people
don’t know about food panda, we come to this recommendation that we need market penetration
strategy.
Almost 90% people want to try food panda may be some of them can’t access it so from these analyses
we come to the recommendation of market penetration.
This is the best strategy for the company because out of all strategies this is the lowest risky and as our
company is doing well, we don’t need to take risk we just need to think how to do better without taking
risk.
Execution of the strategy
To execute market penetration strategy Food panda should focus on the targets. Food panda will tryto
increase the access that they can serve more people. We should increase our promotion and discounts
offer to attract more customer. We can reduce the terms and conditions for using the discount and
coupon code. For advertisement Facebook, YouTube can be good option. Also, we can use Television
media and newspaper. We should improve our loyalty program. We should keep touch with customers
and inform them about our offers time to time. We can encourage our loyal customers by offering
rewards for share their reviews. Collect feedback from customers on the loyalty program to identify
areas for improvement and make necessary changes to improve customer satisfaction and loyalty. From
above analysis we find some opportunities that food panda can pursue. Through this strategy these’ll
and market share will be increase by adding new customer. If the sales volume increases food panda
will be able to lower their cost. It will be help to reduce competitors in the market. By capturing a
larger share of the market, a business can gain a competitive advantage over its rivals of the market.As
we are including more restaurants and trying to reach more customers there is a threat of existing
business-like restaurants who have their own delivery system, they will be our competitor in this
circumstance. Customer may need time to accept a totally new service from online. Food panda is a
well-known brand in the food delivery industry which will be helped it to attract new customers. Food
panda have its own financial ability to spread their business. Food panda always use updated
technology and app is very user friendly to attract the customers. The logistics and delivery system of
food panda is enables it to deliver food quickly because they are following in-house delivery system.
These resources and capabilities helped the company to establish itself as a leading player in the food
delivery industry and to continue to grow and expand the business.
From the given evidence we can reach this recommendation
Expand delivery area for our foodpanda business; take advantage of the latest technology available to
maximize reach. Consider using location-based services. Additionally, leveraging social media and
digital advertising to reach customers in areas outside of your deliveryzone. Finally, consider
partnering with local businesses to provide delivery services in their area.This will allow you to reach
customers who may not have access to our current delivery area. By taking advantage of these modern
tools, you can increase our customer base and expand our business’s reach.
Expanding delivery area within Dhaka city as our service is only in Dhaka city, we need to reach each
corner of the city. In some areas like kafrul our service is not available there so we have to reach there
through advertisement and partnering with restaurants their and started many kinds of campaigns so
that people will know about the service and avail the service. By taking advantage of technology like
face book instagram and other social media as nowadays people are active on social media and they
can easily reach to the target customers. Partnership with restaurants that is not part of food panda now
but we can partnering them so that the customers those don’t have access to our delivery area they also
join us.
Food panda face many challenges while executing the penetration strategy and dealing with these
challenges-
 Food panda face intense competition while executing market penetration but it has responded
by investing in innovation, technology to deal with the increasing competition.
 For market penetration food panda needs high operational costs like investment in marketing,
customer service etc. They deal with this high cost by optimizing their delivery network,
improving efficiency and leveraging economies of scale to reduce cost.
 For market penetration food panda face challenges as the customers switch to the competitors.
As most customers are price sensitive if they got better option, they will switch to that. But food
panda also deals with that by giving promotions, discounts and also arranging loyalty programs
for customers.
 For market penetration food panda also face regulatory challenges like food safety, labor laws
and tax laws, to deal with this food panda closely work with regulators to ensure that they meet
all requirements.
 Another challenge for food panda is that the online food delivery market is very fragmented.
Food panda has responded by targeting specific markets and focusing on building a strong
relationship with each market.
 Overall, Food panda has responded to these challenges by investing in technology, optimizing
their delivery network, targeting specific markets, building customer loyalty, complying with
regulations, and offering competitive pricing and promotions. These efforts have allowed them
to successfully execute their market penetration strategy and establish a strong presence in the
online food delivery market.
4. Section 4: Appendices
Survey 1:
Survey 2:
5. References / Bibliography
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INCOME PEOPLE IN DHAKA, BANGLADESH. Ammattikorkeakoulut - Theses
6. S, S. S. (2020, August). FACTORS AFFECTING APARTMENT BUYING DECISION OF MIDDLE-
INCOME PEOPLE IN DHAKA, BANGLADESH. Business Management, Enterprise Resource
Planning (ERP)
7. Average salary in Dhaka 2022. (n.d.). Salary Explorer | Salary and Cost of Living Comparison
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9. I, M. (2022, April). Factors Affecting Customer Satisfaction: A Case Study of Food Panda. Research
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10. Per capita income in Bangladesh. (2023, March 29). The Daily Star
11. $3,089 per capita income projected for FY23. (2022, January 30). New Age | The Most Popular
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AMERICAN INTERNATIONAL UNIVERSITY-BANGLADESH

A comprehensive analysis with recommendations to improve the current

Mohammed SakhwatHosain, Lecturer

Submitted By: Group D (Foodpanda)

1. Rahman, Md. Naseeb 22-92316-1

2. Eikra Anisa Rahman 22-92562-2

3. Fariha Mostafa 22-92591-2

4. Chandramitra Chakma 21-91943-1

5. Ankita Roy 22-92632-2

6. Subrona Ema Akther 22-92362-1

Outline of Work Distribution

22-92316-1 Political legal Pressures, Threat of Substitute Products, VRIO Analysis.

22-92562-2 1. Executive Summary

2.A: Environmental Analysis 2.A.I: Demographic Trends

2.B: Industry Analysis

2.B.IV: Bargaining Power of the Buyers

Component 1: Substitute products

Component 2: Brand loyalty

Component 3: Buyer low switching cost

Strength 1:Brand Loyal Customers

Strength 2: Promotions and Discount

Strength 3: Wide Range of Restaurants

Strength 4:Low Delivery Charge

2.H: Survey Analysis:

3.A: Top 5 Recommendations

22-92591-2 2.A: Environmental Analysis2.A.II: Socio cultural Influence

SI Factor 2: Family Structure

2.B: Industry Analysis

2.B.III:Bargaining Power of Suppliers

Component 1: Switching cost

Component 3:Large number of suppliers

2.F: Competitive Profile Matrix

GI Factor 1: Corona virus Pandemic

2.B.II: Threat of New Entrants

Component 1: Capital Investment cost

Component 2: Demand side

Component 3: Capital Switching cost

2.E: External Factor Evaluation (EFE) matrix

Threats 1 Growing competition

Threats 2 Ease of going to nearby restaurants

Threats 3 Delivery challenges

Threats 4 Change in economic condition

22-92632-2 2.A: Environmental Analysis2.A.IV: Economic Development

ED: Factor 1- GDP

ED: Factor 2- Unemployment Level

2.B: Industry Analysis

2.B.I: Rivalry among competing firms

Component 1: No of competitors in the market

Component 2: Growth prospect of the market

Component 3: Competitors size and capability

2.E: External Factor Evaluation (EFE) matrix

Opportunities 2 Increase customer loyalty program

Opportunities 3 Customer expansion

Opportunities 4 Leveraging social media

22-92362-1 2.A: Environmental Analysis 2.A.III: Technological Development

TD Factor 1: social media

2.B.II: Threat of New Entrants

Component 1: Capital Investment cost

Component 2: Demand side

Component 3: Capital Switching cost

2.C: Industry Life Cycle Analysis

2.D: Internal Factor Evaluation Matrix

Weakness 1: They are not providing 24/7 services