Deliveroo Case Study: Key Drivers of Innovation and Business Strategy

This case study explores the key drivers of innovation contributing to the success of Deliveroo and critically analyzes the different approaches undertaken by Deliveroo to shape its entrepreneurial vision and business model. It also evaluates the application of the Blue Ocean strategy in Deliveroo's success.

Deliveroo Case Study

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Using appropriate frameworks/models, identify and evaluate the key drivers of innovation
contributing to the success of Deliveroo.....................................................................................4
Using appropriate strategy frameworks, critically analyse the different approaches undertaken
by Deliveroo to help shape its entrepreneurial vision and business model.................................6
Critically evaluate the following statement: Deliveroo’s success can be attributed to the..........8
Successful application of the “Blue Ocean strategy.”.................................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................12

INTRODUCTION
The preparation of innovative strategy is the essential part of the successful organisations
that makes them competitive and appeals the interest of audience. So the organisation need to
focus on the skill of manpower that can be groomed their ability to participate in the decision
making and come forward with valuable opinion. Along with that the manager need to have
foresight vision and anticipate the dynamic environment effectively because it can strengthen the
functioning of firm and led them to exploit the opportunity (Alvarez and et. al., 2018). For the
better understand Deliveroo's company case study has been selected which is the well known
food deliver company that help to connect the local restaurant with the customer. Such
innovative or creative thinking ability helped the company to expand its operations by gaining
the loyalty of various parties. This report cover topics like explanation of the innovative drivers
by using appropriate model that has contributed in the success of organisation. Application of
strategy that has shape the vision as well as business model. Critically determine the application
of Blue Ocean Strategy in order to justify the Deliveroo' success. Further, highlight the essential
aspects that are responsible to flourish the performance of business are covered in this report.
MAIN BODY
Using appropriate frameworks/models, identify and evaluate the key drivers of innovation
contributing to the success of Deliveroo
Innovation represent the imagine thinking ability which act as a solution to explore the
future opportunity or offset the chances of threat. This articulates the new strategy that can
strengthen the internal functioning and help to accommodate the future requirement significant.
In context to the founder of Deliveroo company which is Will Shu in 2013 analysed that London
which is the civilised and organised sector has immense restaurant but the customer has to be
physical present in order to prepare the order (Briziarelli, 2019). This leads to the evaluation of
innovative thinking and grab the opportunity by building strong ecosystem that connect each
party suitably. So to justify the innovation PEST analysis is used because an enterprise need to
evaluate all the external environment factors while carrying out any operations. Explanations of
diverse factors are stated below:
Political factor: It includes the existing political condition, rules as well as regulation on
the basis of which business takes decision to carry out the operations (Cant, 2019). The founder

of Deliveroo company identify the scope of online delivery opportunity and perform functioning
at London UK where the political situation are stable. So this was the favourable factor for
company where they can make the strategy and implement it without any issue related to the
unstable market. Along with that the taxes and additional packaging cost which are imposed on
the takeaways facilities are high which can possibly restrict the profit margin of middlemen that
is Deliverroo company. Although it successfully managed the operations in online platform by
keep the process of offering competitive which even lay to abide by the minimum wages laws.
Thus, it helps to build suitable image amongst internal and external stakeholders (Li and
Gregory, 2019).
Economic factor: This refers to the diverse economic cycle that directly affects the
operations of firm. Along with that it includes interest rate, exchange rate, GDP of an economy
as well as inflation rate based on which the company needs to prepare the strategy. Respected
company during the time of Britain exit from European Union faced harden time due to the
slowdown of economy that affected the operations as well as circulation of funds within an
economy. In addition to it because of the weakening pound most of the worker switch to other
countries this enhances the turnover rate. Future, the company managed its operations in diverse
condition and re-established its position (Kamaraj and Thangavelu, 2018).
Social factor: Deliveroo company investigated the taste, preference, attitude as well as
availability of the opportunity to deal with upcoming trend. The services of company were
praised by local residence of London because in the fast economy they get the convince by
ordering the food from their favourite restaurant and get it delivered at their footsteps. It
basically offer the diverse options for customer that act as innovation driver and cater their desire
by reducing the waiting and delivery time (Deliveroo PESTEL Anaysis. 2018). Involvement of
such short span of time enhanced the sales as well as customer base of company which helped
them to gain sustainable growth as well as development.
Technology factor: It represents the chances of innovation and involvement of latest
technology that directly uplift the position of company. Due to the evaluation of Internal in most
of the countries like London has an experience of huge evaluation in terms of the smartphone
technology which is the key innovation driver (Pinto and et. al., 2019). Deliveroo company
without much investment makes it easier for people to deliver food through their electronic
deliver. The company has even used the Frank Algorithm which is the devices that clearly helps

to identify the location of customer, restaurant as well as rider and connect them accordingly by
mitigating the chances of unnecessary cost. Thus, by spreading awareness and availing the
interest of customer respected company gained the hike in its business because the people of all
age group became the part of company.
Therefore, these are some of the external factors which is the key drivers based on which
Deliveroo company bring the innovation. So by building strategy on the basis of PEST model
circumstances helps the company to function systematic functioning by exploring the
opportunity within stipulated period of time.
Using appropriate strategy frameworks, critically analyse the different approaches undertaken by
Deliveroo to help shape its entrepreneurial vision and business model
Competitive strategy are prepare to maintain the adequate position and profitably of firm.
This helps to bridge the gap between the companies as customer which relatively leads to gain
the sustainable advantage. Adoption of the strategy differs from one organisation to the other like
some organisation may prefer to penetrate in the large market and maximise their market share.
While other organisation can increase the price by serving the supreme quality of products to
customer at premium prices (Xhauflair, Huybrechts and Pichault, 2018). So it depends upon the
structure as well as functioning on the basis of which company position its offerings in the minds
of customer. In context to the Deliverioo organisation immensely focuses on the completive
strategy in order to accomplish the vision of company to cut deliver time and satisfy the
expectations of customer by enriching the delivering processes of company.
Further, Porters Generic model is used for competitive strategy which is the matrix that
consistent low cost and differentiation strategy designed either for niche or mass market. The
fundamental basis for the application of respected model is that it helps the firm to sustain its
positions and gain the benefit associated with long term sustainable development. Explanation of
diverse factors are stated below:
Cost Leadership: Within this strategy the objective of company is to accommodate the
needs of broad market and increase the existing market share of company for which it lower
down the prices of offering. Along with that it manage to maintain the quality of people because
this leads to buzz and attract the interest of majority of customers. Generally large company uses
the advantage of economies of scale in order to penetrate within whole geographical area. This
enhances the sales of company which cover up cost and laid company to earn significant amount

of revenue by mitigating chances of risk. This strategy can be used by Deliveroo company to
accomplish its vision and satisfy the model which is prepared to cover the whole region
effectively. This promotes the interest of external stakeholder because at minimal rates they are
getting the best food delivered at their homes and make their meal enjoyable.
Differentiation: Within this strategy the firm rather than setting the low prices deal in
premium prices on behalf of which they serve the supreme quality of product. The additional
attribute and enriching quality of products instigate the customer to make the decision and avail
the offerings. Even here the company targets the broad market by establish the unique image
which can be adopted by respected company y as it bring the revolutions in terms to add the
delivery boy and rider that connect the restaurant and customer (Keutgens, 2018). Along with
that the come used specialised technology and algorithm so that they meal gets deliver within
stipulated time. On the basis of additional service the company can charge additional prices and
enhance the profit margin.
Focus strategy: According to Cost focus strategy the firm seek the cost advantage where
it target to narrow or niche market at reasonable prices. This relatively helps to float the offering
in whole geographical market where buyer gets the options of significant dealing. Based on this
strategy respected company can confines its areas like London where it focuses to widespread its
operation. Whereas, different focus strategy target specific audience on the basis of the quality
offering that include the interest of high income group as it act as a status symbol for them.
Similarly, above stated company can even target the narrow area with this strategy and gain huge
revenue out of its sales (Vicente, 2019).
Therefore, almost the various strategy the most suitable ones for Deliveroo company is
Cost leadership strategy because with the help of this strategy it is recognised in the diverse
region. Also due to the portfolio investment the overall cost of the delivery decreases by
enhancing the sales and penetrate in each and every corner. Thus, respected strategy effectively
meets the operations of firm both at business and corporate level.
Critically evaluate the following statement: Deliveroo’s success can be attributed to the
Successful application of the “Blue Ocean strategy.”
An organisation adopts diverse strategy such as low cost bas well as differentiation that
assist the company to gain the potential space within market in order to cover the demand of
customer. The industry player needs to construct boundaries and constantly restructure the

actions as well as beliefs in order to capture the wide operational market (Moares, 2019). It
comprises of the Red ocean and Blue Ocean which demonstrate diverse strategies that are made
by an organisation order to remain competitive. In context of the Deliveroo organisation the
main reason of the success was the innovative actions that helped the people to understand the
significant of online delivery facility. This basically generates the emergence of new need to
build better customer services.
Blue Ocean involves almost all industry that exists or may exist in the market as there is
ample of opportunity all around the world. So to gain profitability and rapidly establish in the
wide region the leaders need to enhance the arena to think and cater the innovative opportunity
that leads to productive functioning. Within this strategy the firm does not experiences any
competition because of their leading approach that spread the awareness amongst customer and
sharply raise the profitability of firm. Deliverro was the part of Blue Ocean strategy as it was
completely based on the innovation and constantly focuses to offer the online food delivery
facility. As one few restaurants used to serve the food into the place and London has immense
restaurant that widen gain the attention of people. Based on this factor the company through
extensive planning continuously enhance its operations. This has effectively assisted the
company to explore the wide region where they have monopoly rights over products and explore
the new way to carry out operations.
Red Ocean involves all the new and innovative businesses that exist within the market
with the objective to overpower other competitors. Here precautions are made to outperform the
operations so that the customer recognises particular company over other competitors. This
successfully help to grab wide market share by effectively meeting the emerging demand of
customers (Bailey and et. al., 2018). Additionally, this strategy is mainly applied during the time
of intensive competition where the only way to fight within competitors is by focusing on the
customer and retain their interest. After the certain period when other companies analyse the
scope in particular sector they too exist as a competitors. So here instead of setting monopoly
prices the company needs to identify it existing performance as well as rivalries strategy.
Although Deliveroo company gets the advantage of fast mover but there exist other competitors
as well so to keep the need build the significant opportunity. The company constantly enhances
its strategy in order to wipe out competitive pressure.

So the company needs to adopt valuable practices in order to gain long term growth and
development by attaining the competitive advantage. As successfully companies like Deliveroo
instead of fighting with competitors as per Red Ocean strategy focuses to critically analyse the
way by where they can differentiate them with other and operate Blue ocean strategy. This,
substantially appeal the interest of customer and establish the stable image of company that
cannot be affected by the competitors (Xiao, 2019). Here concentration is given to the market
research tactics and changing priorities of customer to gain the dominance and build unique
image of company. Therefore, all the pioneer companies prefer blue strategy over red because it
generates the loyal customer that does not get affected by the dynamic situation and large
switching cost.
CONCLUSION
On the basis of above heads it has been evaluated that innovation refer to the existence of
new and productivity ideas which is the significant part of the organisation. All the successfully
organisation in order to maintain its growth adopts innovative strategies by which they compete
with competitors and retain the strong position. Deliveroo is the well recognised enterprises
because it actually analyse the untapped need which finally act as an opportunity and source of
revenue for company. Most of the male and female work outside in London so instead of going
out to the dining places or restaurant they can simply with that helps of Deliveroo company can
order the best meal at their respected residence. Currently, it is the most widely used tool and the
company retain its position and turnover by constantly working upon its mechanism. For
instance it uses Frank algorithm that help to lower down the serving time and become one of the
fast delivery company. There are various innovation drivers that need to be effectively managed
by company after anticipating the external factor on the basis of which focuses is given for
sustainable growth and development. The CEO of company who is Will Shu in 2013 analysed
the opportunity that exist in external market. So by anticipating external factors and understand
only few companies serve the food and at home the leader worked on the application and
facilitates awareness by using advance technology. Such predictive used of technology circulated
and covered the whole region by expanding operations successfully. It simply determined the
manager of company research the whole market and brings the best possible way to execute plan
and explore the opportunity suitably. Moreover, apart from carrying out day to day operations
the firm should focus on competitive advantage to retain the position of firm for long duration.

Each and every firm irrespective of size and operations makes efforts to gain sustainable
development. In terms of the Deliveroo company can leverage the advantage to gain competitive
edge being a fast mover and recognised brand due to innovative operations. For on the
continuous basis they need to cater the market by anticipating significant change and essence to
improvise the existing operations. Respected company has adopted Cost leadership strategy
because its objective is to penetrate the operations in whole region so that all the local residence
gets dependent on application and use it for convenience. So to continue making it a habit of
customer the company adopts the latest technology in order to reduce the delivery time. It has
relatively cut down waiting time by 20% but it need to continue following it otherwise extreme
circumstances can lead to negative publicity and chances of customer dissonance.
Further, blue ocean strategy is the interesting model that encompasses the organised to
identify the preferable space in the market irrespective of using differentiation and cost
leadership strategy. This leads the company to become major market player where it does not
offer the space to competitors on order to overpower their operations. So there are wide
strategies that need to be effectively articulated by Deliveroo company in order to remain
competitive and cover the wide market significantly. Therefore, involvement in innovation leads
to the brand equity where chances of profitability as well as market share gets maximised.

REFERENCES
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Online
Deliveroo PESTEL Analysis. 2018. [Online]. Available
through:<https://businessteacher.org.uk/pestel/deliveroo.php>