Your task for this week is to use the GECE tools to do an external analysis.
In your syllabus, you will find a link to a case material and instructions. Use the Google Sheet templates I made for you -You can make a copy of the spreadsheets and add your name to the title then work on it then link it in the submitted one page write-up.
Your deliverable is a one page synthesis of your GECE analysis with a hyperlink to the spreadsheets filled.
You can think here that you are advising a government official on what is likely to happen in this industry in the future.
Remember that the big point of this exercise is to LOOK OUTSIDE into the future so you must examine in detail the extrenal environment (or General Environment and Competitive Environments) in order to determine likely future developments in the industry and its fate.
links to read before doing the discussion:-
example of how a classmate did it in class:-
Food Delivery Industry in the Middle East
The food delivery industry in the middle east faces several global factors which affect the profitability of investors. The global pandemic has really hurt the restaurant businesses everywhere, causing many doors to close and revenues to be lost. A bounce back, however, is expected and a three-fold increase in customer reach penetration is expected by 2025. This creates opportunities for delivery outlets to capitalize on the expected growth and scoop up the bevy of quick service restaurants that choose to outsource its food delivery to a third party. Economic forces such as pressure to reduce commission, inefficient driver usage, high delivery costs, and low average order costs present challenges to any potential investor. A push towards maximizing average customer value means food delivery services are pressured to take a leaner approach integrating its partnerships with local quick chain eateries with other lines of business such as logistics to maximize driver usage and lower delivery costs. Politically, ride sharing services that deliver food such as Uber Eats face pressure from drivers to better compensate them, as well as provide social protection in the form of benefits beyond their independent contractor status. There is, however, a growing push towards electric vehicles and ride sharing from local governments which helps the outlook of a company like Uber Eats to return to the middle east to capitalize. Proliferation of online ordering and expansion of the middle class with increasing access to mobile phones and ways to order their food digitally are positive technological factors affecting the food delivery industry.
CE (5 forces Analysis)
There is intense rivalry between competitors in the food delivery industry in the middle east. A multitude of established players and new up and comers makes it imperative to hold true to your values as a company and differentiate themselves. Companies can do this by offering loyalty programs and other incentives such as lower commission, marketing, and sustainability in its employment practices. Bargaining power exists among customers of food delivery services because they can demand lower delivery costs and drive down the profit margins for delivery services. On the supplier side, restaurant chains can demand lower commissions and pit the delivery services against each other to try to get the best deal. This has caused some services to change their model to offering flat -fee monthly fees as opposed to variable commission. The threat of new entry into the industry always exists as bigger companies such as Noon branch out and offer leaner models, integrating food delivery along its other lines of business such as logistics, better customer loyalty programs, driver incentives, etc. Substitute to food delivery services exist in that several restaurants are dabbling into their own in-house apps and removing the outsourcing component of their delivery.
Ultimately, I believe that the food delivery industry in the middle east will consolidate into an Amazon-like power player and restaurants doing their own delivery. Smaller outlets will have a difficult time competing with the leaner, more efficient models that are born in the face of all the economic, political, and socio-cultural pressures that exist within the industry. Driver pressure, client pressure, and the need to keep a sustainable customer value all point to the inadequacy of the current segmented delivery app business.
do it in the same way one page and do a spreadsheet and i will send a example so you know how to do it
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