Analysis of Zomato: A Case Study

CASE STYDY
ANALYSIS OF
ZOMATO

Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Short Synopsis of the case, Zomato Gold Platform Overreach..............................................2
How did cross side network turn negative?............................................................................3
Did Zomato Gold really increase loyalty to restaurants, support response from facts?.........3
Why restaurants did revolts against Zomato? Specifically what actions enraged the
restaurants?.............................................................................................................................3
What are the challenges of two sided business platform business model? Draw a diagram to
illustrate Zomato’s two sided platform business model showing key stakeholders...............4
CONCLUSION................................................................................................................................5
References:.......................................................................................................................................6
Books and Journals.................................................................................................................6
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INTRODUCTION
Business activities takes place in complex and uncertain market conditions which affects
their performance level in long run. There are numerous challenges that pose serious threats
to the business and there are many opportunities too through which business can attain
success and growth. Below mentioned case study cover a detailed analysis of Zomato
business which helps the company in understanding how well company is performing in a
competitive market through exploiting opportunities with the help of strong strategic
planning.
MAIN BODY
Short Synopsis of the case, Zomato Gold Platform Overreach
The case study is conducted on the Zomato Gold Platform launched by Zomato, an online
platform for customers to place a food order online and interact with the restaurants of their
choices (Srivastava and et. al., 2021). The idea emerged way back in 2008 by Deepinder Goyal
and Pankaj Chaddah when an attempt was made to make the menu of their then employer Bain
and Company cafeteria online to ease the employees in ordering food. The company was
formerly known as “Foodie bay “making available images and contact details of restaurants and
cafeteria. With continuous efforts of expansion Foodie Bay received funding from Info Edge of
$ 3 million when company re-launched itself as Zomato, which have also funded big ventures
like 99 acres and Naukri.com. Zomato expanded its overseas operations through acquisitions and
aimed at cost cutting and focus on increasing sales revenue. To the matter of fact, company
launched Zomato’s Gold Programme in Portugal, Abu Dhabi and Dubai in the year 2017. Soon
company reaches at 1.3 million subscribers by the end of August 2019. The aim of the
programmed was to attract fines diners who are price sensitive and valued fine dining
experience. However frequent changes by Zomato have created an unfavourable condition for
both customers and restaurant owners (Park, and Song, 2020). For instance, Zomato can up with
the two offers for diners in India out of which one was 300rs per year which offered 3 uses per
year and other one was for rs1050 unlimited usage, the latter was revised to rs1800 per year and
former was discontinued.
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