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In comparison, what strategy is Zomato using? The same? Or are they using multiple strategies for different initiatives or a hybrid? What evidence do you have to support this?

Question

In comparison, what strategy is Zomato using? The same? Or are they using multiple strategies for different initiatives or a hybrid? What evidence do you have to support this?

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Solution

Zomato, an Indian food delivery and restaurant discovery platform, appears to be using a combination of Differentiation and Cost Leadership strategies, which can be considered a hybrid of Porter’s Generic Strategies.

  1. Evidence of Differentiation Strategy: Zomato differentiates itself by offering a wide range of services beyond just food delivery. These include restaurant discovery, user reviews, table reservations, and Zomato Gold (a subscription service offering exclusive dining out and social drinking privileges). They also provide a platform for restaurants to advertise and promote their businesses. This wide range of services, coupled with a user-friendly interface and a strong brand image, sets Zomato apart from its competitors.

  2. Evidence of Cost Leadership Strategy: Zomato also uses a cost leadership strategy by offering competitive prices and discounts to attract customers. They have various offers and deals running throughout the year, and they also introduced Zomato Pro, a subscription service that offers extra discounts on delivery and dining out.

  3. Use of Multiple Strategies: Zomato's approach suggests that they are using multiple strategies for different initiatives. For instance, they use a differentiation strategy for their overall platform and services, while a cost leadership strategy is used for their food delivery service and subscription programs.

  4. Evidence: Zomato's wide range of services and their competitive pricing are well-documented and can be easily observed on their platform. Their success and growth in the Indian market, as well as their recent IPO, further support the effectiveness of their strategies.

In conclusion, Zomato's hybrid approach, combining differentiation and cost leadership, has allowed them to cater to a wide range of customer needs and preferences, giving them a competitive edge in the Indian market.

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