Critical Success Factors for Online Food Businesses in Australia

CRITICAL SUCCESS FACTORS
FOR ONLINE FOOD BUISNESSES IN
AUSTRALIA
By
Subject
Professor
Date
Acknowledgment
I have taken consistent efforts for the successful competition of the particular project.
However, it is crucial to mention that the project could not have been completed without the
guidance and support of various individuals and organizations alike. Hence, it is my duty to
extend my sincere thanks to these people.
I want to acknowledge the consistent efforts of my professor, (Name of the Professor), for his
assistance and guidance in the project and also for providing relevant information which
would then assist me to complete the particular project. Moreover, I also want to express my
gratitude for the different industrial individuals who provided me with the time as well as
attention to perform well. Lastly, my gratitude goes out to my colleagues who helped me with
their abilities and enabled me to complete the project.

Table of Contents
LIST OF TABLES AND FIGURES.........................................................................................................3
1. BACKGROUND TO THE RESEARCH............................................................................................4
2. AIM OF THE RESEARCH............................................................................................................4
3. LITERATURE REVIEW................................................................................................................4
3.1. ONLINE FOOD DELIVERY PLATFORMS IN AUSTRALIA...........................................................................4
3.2. FACTORS CONTRIBUTING TO THE SUCCESS OF ONLINE FOOD ORDERING.................................................5
3.2.1. TECHNOLOGICAL ADVANCEMENTS....................................................................................................5
3.2.2. CUSTOMER-RELATED FACTORS.........................................................................................................7
3.2.3. MARKETING FACTORS.....................................................................................................................8
3.2.4. CYBER SECURITY ISSUES...................................................................................................................9
4. RESEARCH AIM AND OBJECTIVES.............................................................................................9
5. SITUATION ANALYSIS...............................................................................................................9
6. FRAMEWORK.........................................................................................................................12
7. METHODS..............................................................................................................................13
7.1. RESEARCH PARADIGM..............................................................................................................13
7.2. RESEARCH APPROACH..............................................................................................................13
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7.3. RESEARCH METHOD.................................................................................................................13
7.4. SAMPLE SIZE..........................................................................................................................14
7.5. SAMPLING TECHNIQUE.............................................................................................................14
7.6. DATA COLLECTION...................................................................................................................14
7.6.1. PRIMARY DATA............................................................................................................................14
7.6.2. SECONDARY DATA........................................................................................................................14
7.7. DATA ANALYSIS......................................................................................................................15
8. DATA ANALYSIS.....................................................................................................................15
8.1. PROFILE OF THE INTERVIEWEES....................................................................................................15
8.2. RESULTS................................................................................................................................16
8.2.1. GENERAL OVERVIEW.....................................................................................................................16
8.2.2. TECHNOLOGICAL FACTORS.............................................................................................................16
8.2.3. CUSTOMER CONVENIENCE.............................................................................................................17
8.2.4. MARKETING RELATED FACTORS.......................................................................................................18
8.2.5. CYBER SECURITY ISSUES.................................................................................................................18
8.3. SUMMARY OF THE RESULTS........................................................................................................19
9. FINDINGS...............................................................................................................................19
9.1. TECHNOLOGICAL FACTORS..........................................................................................................19
9.2. CUSTOMER CONVENIENCE..........................................................................................................20
9.3. MARKETING FACTORS...............................................................................................................21
9.4. CYBER SECURITY......................................................................................................................21
10. RECOMMENDATIONS...........................................................................................................22
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11. CONCLUSION.......................................................................................................................25
REFERENCES.................................................................................................................................26
APPENDIX – INTERVIEW QUESTIONS............................................................................................29
LIST OF TABLES AND FIGURES
Figure 1: Research Framework..................................................................................................9
Table 1: Profile of the Interviewees.........................................................................................13
Table 2: General Overview......................................................................................................14
Table 3: Technological Factors................................................................................................15
Table 4: Customer Convenience..............................................................................................15
Table 5: Marketing Related Factors.........................................................................................16
Table 6: Cyber Security Issues.................................................................................................17
Table 7: Summary of Results...................................................................................................17
Figure 2: Framework for the Success of Online Businesses....................................................22
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1. BACKGROUND TO THE RESEARCH
The technology has advanced greatly and this has made the business environment very
competitive and given rise to the scope of various technological advancements. Hence for this
reason, the internet has become a major part of the business and led to a shift in the operating
strategies of the firm. Various Supermarkets like Tesco and Walmart have launched their
online applications and strategies so as to ensure considerable success for themselves. This
approach is also being followed by various restaurants which has benefited them largely bb
allowing them to increase their sales and improve customer service with the help of an online
medium like that of Uber eats. This technology has thereby made it easier for various
businesses to enter into the market. The main aim of the project is to highlight the status of
food delivery services in Australia and undertake relevant research based on the same which
would help the companies to perform well. Certain recommendations have also been
provided following the factors of cyber security, customer convenience and technological
factors which have to be considered by the businesses.
2. AIM OF THE RESEARCH
The aim of the report is as follows:
 To highlight the status of Food delivery in Australia
 To analyze the factors affecting the success of the technology like customer
convenience, technology and cyber security.
3. LITERATURE REVIEW
3.1.ONLINE FOOD DELIVERY PLATFORMS IN
AUSTRALIA
pg. 4

Online food ordering is the process by which consumer can order food, like other consumer
goods, over the internet having it delivered to their doorstep. Online food delivery platforms
were initially introduced by restaurants, as they offered item on their menus to customers
over the internet (Patel, 2015). However, with the passage of time, numerous ‘third-party’
food ordering platforms, like Online food business, Seamless and Grubhub have emerged.
These platforms operate via websites and mobile applications, offering customers items
belonging to different cuisines and restaurants. Not only does this allow customers to
compare different options, it also enables them to order anything using a single platform,
contributing to greater convenience and subsequently, satisfaction (Kamarudin et al., 2009).
According to a study, online food ordering has taken over phone-based ordering in terms of
both transaction value and sales volume, representing growth of the sector (and therefore,
revealing the existence of numerous opportunities here).
3.2. FACTORS CONTRIBUTING TO THE SUCCESS
OF ONLINE FOOD ORDERING
The growth and successful operation of online food ordering platforms, including Online
food business, is contributed to a number of factors. Across the literature, these factors have
been distributed into three major classes, namely:
 Technological advancements
 Customer-related factors
 Improvements in marketing (Kim et al., 2018).
3.2.1. TECHNOLOGICAL ADVANCEMENTS
3.2.1.1. INTERNET AVAILABILITY:
Continual improvements in internet access throughout the world, coupled with the success of
e-commerce, has led towards the establishment of a large number of online food delivery
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systems. According to a study, since the year 2000, global internet usage has increased by
more than 570 percent owing to technological advancements and expansion of global
network ‘webs’ (Kim et al., 2018). Increased internet availability has had a two-way impact
on digital food sales by encouraging organizations to offer more variety online and on the
other hand, providing consumers with greater options to choose from (Kedah et al., 2015). In
addition to that, increased internet availability and usage has allowed Online food business
and similar platforms to provide advanced options to customers, such as creating accounts for
convenient placement of orders in the future, as well as comparison of different cuisines and
restaurants.
3.2.1.2. IMPROVED OVERALL NETWORK ACCESS AND CONNECTIVITY:
Advancements and technology, particularly the introduction of new communication media,
such as wireless systems and optical fiber have greatly enhanced the reliability and reach of
global networks. This, in turn, has led towards growth in online shopping, as more people can
access e-commerce platforms (Kedah et al., 2015). Since more people can access online
shopping platforms as well, this factor opens up opportunities for them, motivating more and
more organizations to enter this sector (See-Kwong et al., 2017). Not only does the growing
online population present an untapped market, improved network connectivity offers other
opportunities too. Existing services like Online food business can enhance their services
using improved networking and communication media, allowing them to better understand
and fulfil the requirements of customers (Adithya et al., 2017). This is another major factor
contributing towards the success of Online food business, as well as other companies
operating in the said sector.
3.2.1.3. UNATTENDED FOOD DELIVERIES
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There is a consistent increase in the importance of and research pertaining to last mile
deliveries using unmanned vehicles. The report, titled “Parcel delivery: The future of the last
mile”, developed by Joerss et al (2016) indicated that by the year 2025 80% of all the
deliveries throughout the world will be conducted through unmanned vehicles. The increase
in the customer pressures now require the companies to deliver faster, while at the same time
ensure lower costs. Hence, the following new means of delivery can be deployed by the
organizations in the future:
o Crowdsourcing / Shared Economy
o Autonomous ground vehicles
o Drones
o Semi Autonomous Ground Vehicles (Frank and Albertz, 2017).
3.2.2. CUSTOMER-RELATED FACTORS
Factors pertaining to consumers contribute significantly to the success of online food delivery
systems.
3.2.2.1. CUSTOMER CONVENIENCE AND SATISFACTION:
Services like Online food business increase customer convenience, tempting them to order
food rather than visiting restaurants physically. Moreover, the ability to order food from any
place at any time greatly enhances customer convenience (ALagoz and Hekimgolu, 2012).
This increase customer satisfaction, improving the popularity and demand of such services
(resultantly aiding in successful operation of Online food business and other similar services).
In addition to that, in contrast to phone-based ordering, online order placement provides an
interactive interface to customers, where they can view the product they are ordering and go
through its characteristics (ALagoz and Hekimgolu, 2012). In addition to that, customers can
compare different restaurants, cuisines and products using an online delivery system, an
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