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Strategic Management: Swiggy and Zomato Blockbuster

This document compares and contrasts Swiggy and Zomato, two major Indian food delivery startups. It also summarizes the rise and fall of Blockbuster, a once dominant video rental chain. Swiggy focuses on controlling the entire customer experience through its delivery network, while Zomato emphasizes a good user interface and convenience. Both use innovative marketing strategies like loyalty programs and content to engage customers. Blockbuster originally grew through aggressive store expansion but struggled with high costs. It failed to adapt to Netflix's more flexible and online-based model by not lowering prices, offering limited selection, and requiring store visits. This inflexibility led to its bankruptcy as consumer preferences changed.

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stuti jain
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229 views

Strategic Management: Swiggy and Zomato Blockbuster

This document compares and contrasts Swiggy and Zomato, two major Indian food delivery startups. It also summarizes the rise and fall of Blockbuster, a once dominant video rental chain. Swiggy focuses on controlling the entire customer experience through its delivery network, while Zomato emphasizes a good user interface and convenience. Both use innovative marketing strategies like loyalty programs and content to engage customers. Blockbuster originally grew through aggressive store expansion but struggled with high costs. It failed to adapt to Netflix's more flexible and online-based model by not lowering prices, offering limited selection, and requiring store visits. This inflexibility led to its bankruptcy as consumer preferences changed.

Uploaded by

stuti jain
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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STRATEGIC

MANAGEMENT
SWIGGY AND ZOMATO
BLOCKBUSTER
SWIGGY
Swiggy was founded in 2014 by Nandan Reddy, Sriharsha Majety, and Sriharsha Majety. It’s an online food ordering and
delivering service and has its head office in Bengaluru, Karnataka.  It operates in over 25 cities of India.
Mission: Their mission is to change the way India eats.
Vision: It is the first milestone in Swiggy’s vision to elevate the quality of life for the urban consumer by offering
unparalleled convenience.

ZOMATO
Zomato is an Indian restaurant aggregator and food delivery start-up founded by Deepinder Goyal and
Pankaj Chaddah in 2008. Zomato provides information, menus and user-reviews of restaurants as well as
food delivery options from partner restaurants in select cities.
Mission:
Their mission is to ensure nobody has a bad meal
Vision:
They want to be the ‘Google’ of food. Their vision is to be the global platform when someone is looking for food locally
COMPARATIVE ANALYSIS OF SWIGGY AND ZOMATO
BASIS OF COMPARISON SWIGGY ZOMATO
TECHNOLOGY FOCUS Swiggy aims to control the entire value chain of the The biggest advantage Zomato has over its customers is its
customer’s experience and this strategy has helped in beautifully designed User interface.
triumph in the market place.
CUSTOMER ANALYSIS Two major customers: restaurants and delivery partners. Zomato has been able to show strong growth because the
The main customer segments are the people who do not users are not using Zomato for discounts, they are using it for
want to go out to eateries and restaurants to buy food. convenience. To have easy access to food and get reliable
information about restaurants.

MARKETING STRATEGIES It comes up with numerous ways to keep the customers Zomato creates innovative schemes that keep the customers
to themselves. E.g. Swiggy stores, synonym for quick engaged. E.g. Zomato Gold (an exclusive membership loyalty
food, recent expansion into groceries, medicines, flower program), Zomaland, etc.
shops, etc.
PROMOTIONAL Swiggy is now a very reputed brand and it’s not just Zomato is one of the few companies to have been successful
STRATEGIES because of its quality services but due to its excellent in the content market and uses images to promote its
social media strategy. Every campaign of Swiggy is products. Zomato ensures that its contents stay fresh and has
remarkable as they are extremely engaging and is very invested vastly on SME’s and SEO.
interactive.
BLOCKBUSTER
• Based in America, Blockbuster Inc. chain of stores is concerned with distribution of videotapes, video
games and DVDs. 
• Starting out, Blockbuster Inc. enjoyed high profits. However, with entry of competitors in the video
renting industry, particularly Netflix, it began experiencing significant drops in profit.
• Eventually, in September 2010, Blockbuster Inc. filed for bankruptcy, resulting in a take-over of some
of its outlets by Grapevine, GameStop, among other companies.

ORIGINAL STRATEGY
• To open up as many stores as possible- It thought this to be the best way to capture a huge share of
the market. And true, it did get a large share of the market. However, this strategy was not suitable, as
it led to increase in operating costs. the huge profits made were used to cover the high cost incurred.

• The other strategy was to stock up on the latest releases in the movie scene- The company thought it
was better to have more of the newer movies, and less of the older ones. While this strategy made
complete sense, it failed because customers still demanded classic movies.
BLOCKBUST
ER
REASONS FOR FAILURE
• Unreasonably high prices
It refused to lower its price than its competitors which gave Netflix and others a great opportunity.
• Not flexible
Blockbuster was very strict about the return dates and the customers could not hold the movie as
long as they wanted.
• Limited choice
Customer choice was limited to what was available in the stores.
• Time consuming store visits
People needed to visit the stores for getting the movies or dvds which proved to be a weakness after
the introduction of online streaming
• Not adopting new technology
With changing times and technology blockbuster was late to catch up.

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