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The Threat Of Zomato

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Threat from Substitutes
Zomato is of the strong belief that their focus on restaurant discovery and facilitating a holistic dining experience gives them an edge over competition.
As Deepinder Goyal, founder, Zomato, says, Zomato is driven to constantly improve our product within the space with a small margin of error. Zomato realizes that it is a winner-takes-all and is therefore focused on dominating the competition within its space.
• Google Maps - Latest release of Google Maps for desktops includes listings of restaurants in the neighborhood. It also facilitates restaurant search and provides photos, reviews, ratings and even the floor the business is located at. Zomato’s advantage over Maps is that Maps hasn’t started menu listings yet …show more content…

Industry Rivalry
Foodpanda– foodpanda who has also acquired TastyKhana and JustEat is a competitor to Zomato in this marketspace. But, as per one of interviews with Mr. Deepinder Goyal, Zomato doesn’t consider it as a threat because foodpanda in spite of being present in market for 3 years has clocked only 10,000 orders a day whereas people visiting Zomato has 1, 00,000 searches a day. Zomato’s large sales team gives an added advantage to Zomato.
Burrp! – Burrp! is a competitor to Zomato? But due to its expansion from restaurant listing to other divisions such as events and retail outlets, the company’s focus has been distributed whereas Zomato has stuck to its core functions.
TinyOwl – TinyOwl is an emerging startup with business model of food ordering through App on smart phones. It is currently present in Bangalore, Mumbai, Gurgaon, Hyderabad and Pune.
Yumist – Yumist is a new player in this market started by Ex-CMO of Zomato which is targeting customers who want low priced daily meals market. Although it has received the investments worth US$ 1 million, but these investments are till now not significant to compete with …show more content…

• Since it is easy-to-use online platform, constraints related to distribution is eliminated. This removes a potential factor for bargaining of buyers.

Bargaining power of suppliers
• Suppliers of Zomato - Print media and online media - Editors' choice on play store
• Zomato has become famous through its publicity in print media, through play store, through advertisements in Restaurants. To add to this, there is also dependency on reviewers - they do not have any way to check the authenticity of reviews as of now.
• These all become the suppliers of Zomato. Thus the threats which they face are:
• What if restaurants do not want to list themselves on Zomato? What if they move to another app?
• Since the reviews are subject to the perspective of the patron, it may be a biased one - moreover, spam may defeat the purpose - Ratings may get subjective. They have a content team, but it needs to expand.
• Zomato does not have a system of rewarding the reviewers who spend a lot of time writing reviews - which may put them off from writing
• Incentives for reviewers are required - if competitors give them - they may switch to other apps - they should make sure the reviewers stay

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