Analyzing Deliveroo's Competitive Advantage with Business Intelligence

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Added on  2023/06/18

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AI Summary
This report examines how Deliveroo utilizes business intelligence (BI) to achieve a competitive advantage in the online food delivery market. It begins by defining BI and introducing Deliveroo, highlighting its presence in over 200 locations across the UK. The report details the crucial roles BI plays in Deliveroo's operations, including enabling quick analysis and planning, increasing data accuracy, improving sales forecasting, and optimizing pricing strategies. A SWOT analysis identifies Deliveroo's strengths, weaknesses, opportunities, and threats, emphasizing the company's ability to adopt new technologies. Furthermore, the report explores how Deliveroo can leverage BI for cost reduction, customer needs analysis, business opportunity identification, operational efficiency improvement, market trend analysis, loyalty scheme implementation, self-service platform enhancement, and effective inventory management. The analysis includes examples and frameworks to critically evaluate Deliveroo's competitive advantage through BI, concluding that BI is essential for strategic planning and long-term survival in the market.
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Business intelligence
Big data report
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Executive summary
Business intelligence play important role in organization growth. This report has analysed
the case study of Deliveroo where company keeps growing by business intelligence tool. This
report has been evaluated how business intelligence helps to improve decision-making in an
organization. Moreover, by using business intelligence, company can take competitive advantage
in terms of pricing, operation efficiency etc. has been analysed.
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Table of Figures
Figure 1 Deliveroo is reported to the target a valuation of $10 billion............................................7
Figure 2 deliveroo's GMV by country.............................................................................................8
Figure 3 Total visit per month.......................................................................................................10
Figure 4 Deliveroo website traffic.................................................................................................12
Figure 5 Number of food delivery trasaction in UK......................................................................14
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Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
The role Business Intelligence in Deliveroo................................................................................4
SWOT analysis of Deliveroo.......................................................................................................7
Deliveroo can achieve competitive advantage using business intelligence and examples of
scenarios and frameworks to critically analyse the competitive advantage................................8
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1
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INTRODUCTION
Business intelligence (BI) can be defined as technology which enable organization to
analyse, organize and contextualized the business data in order to transform or generate
meaningful information. This report is based on the case study of Deliveroo. It is an online food
delivery organization which was founded in 2013 in Landon. As it is operated over 200 locations
across the United Kingdom. This report will cover the role of business intelligence in decision
making process along with example. How company can get competitive advantage by using
business intelligent will be evaluated.
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MAIN BODY
The role Business Intelligence in Deliveroo
Business intelligent is a process through which business use technologies in order to analyse
current and past data with an objective to improve strategic decision-making.
Quick analysis and planning: Business intelligence plays crucial role in better planning and
analysis (Xu and et.al., 2017). As Deliveroo feel that BI system helped in fast reporting, strategic
planning, interpreting and analysing data. Moreover, business intelligence helps the company to
make decision for the future by analysing the past data.
Increased accuracy:
By applying business intelligent, company can get accurate and reliable data. As all data
is to be handled by business intelligence system there is no involvement of human being which
will generate accurate and efficient result. Moreover, it also makes interpretation easy for the
management of Deliveroo.
Sales forecast
Business intelligent reduces manual work in an organization. All the budget and sales
forecast can be done with the help of business intelligence. Further, company can generate quick
standard budget by analysing past performance by implementing business intelligence system.
Improved pricing and offers
Business intelligent play important role in setting the prices and offers. It is because by
analysing and interpreting cost in different forms which will help to set the prices and decide the
profit margin. Without business intelligence, it becomes tough for the company to record all the
data manually and find out minor error which becomes time-consuming process. It also helps the
management by analysing which segment of company required more focus.
Understand the customer needs
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Deliveroo can collect required data of their targeted customer such as like-dislike and
factors which influence their decision etc. This data helps the company to evaluate the trend and
understand the need of the customer. This will help in providing right services to the customer as
per their needs.
Deliveroo is reported to the target a valuation of $10 billion
Informed decision-making
Reports can be generated through accurate and timely information which helps company
to measure the current performance. Business intelligence facilitate company in order to make
informed strategic decision (Torres, Sidorova and Jones, 2018). Moreover, historical data can
help while taking accurate decision related to profit, prices, sales, stock etc. Further, company
Figure 1 Deliveroo is reported to the target a valuation of $10
billion
Illustration 1: deliveroo is reported to target a valuation, 2021
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can evaluate their stock requirement in the market through past sales records and maintain
optimum raw material. It will help in reducing the wastage of resources and decide order place
duration. Business intelligence helps in decision-making process because with tech system
company record all the data on server and can access whenever required.
For example: Deliveroo use business intelligence tools in the company in order to maintain sales,
profit and productivity. Management needs to prepare their budget so that it is required to have
all the past recorded data. With the help of business intelligence system, all the data has been
recorded and now with the one click, management can generate useful information. Moreover,
efficient budget can be prepared with these data. Now all the information which are related to the
cost and profit of the company are to be analysed. Further, management forecast their future
sales and profit.
Deliveroo's GMV by country
SWOT analysis of Deliveroo
Strength: As company has experienced staff who can easily adopt new change as occurred in
the market. Business intelligence tools are easily adopted which work as a strength for the
company. Cheaper prices of the product and services, because company is using business
intelligence tool to prepare cost budget and price analysis. Easily modification in menu card by
analysing market trend of customer taste and preferences.
Figure 2 deliveroo's GMV by country
Illustration 2: Deliveroo's GMV by country, 2021
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Weakness: due to the limited capital, company can not invest their whole amount the business
intelligence tool this lead to reduce the growth of the company (Babinska, 2017). Costly food of
the company, it is because company use high quality of raw material due to the trust issue their
relationship gets affected with supplier which lead to increase in the prices of raw material
converted into finished goods. High competition in the market and trust of the customer also gets
affected the growth of the company.
Opportunity: in terms of technology, market is changing day by day. Deliveroo has adopted and
will continue take an advantage of technological updation. As new technology come this will
help to company in more and strong data to get process. Moreover, company gets a chance to
easily adopt new market trend as changed. But on the other hand, company required to have high
amount of capital to meet all the opportunities in the market.
Threat: As food industry delivery is easily market to enter it is because there is low capital
required and few government restriction. This will lead to increase the competition in the market
for the long term survival.
Deliveroo can achieve competitive advantage using business intelligence and examples of
scenarios and frameworks to critically analyse the competitive advantage
In order to survive in the market company, need to use business intelligence. It is because
company can make strategic planning related to cost, budget, trends, inventory model etc.
Moreover, it also helps in taking competitive advantage through setting nominal price, analysing
their taste, preparing budget to reduce cost etc. Deliveroo can take competitive advantage by
reducing cost, analysing customer needs, identifying business opportunity etc.
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Pricing: With the help of business intelligence tool entity can get detailed report through which
can analyse its cost in order to determine prices. Further, efficient pricing models helps company
to survive in the market. Business intelligence helps to evaluate where company is spending their
money and which segment required more focus etc. This will help to decide right price in order
to stand in the mind of the consumer. Further, by generating high quality of data, company can
take fast decision as opportunity occur in the market which helps to stand step ahead from the
competitors. For example: competitor is using traditional approach to analyse the price of the
product and Deliveroo is using business intelligence to evaluate the price of each food which are
mentioned in the menu card. So Deliveroo will take less time because all the data are recorded
and result can be generated with the help of business software. So it reduces the time while
taking decision and Deliveroo can make changes and update their prices before competitor do.
But on the other hand, company have to pay high amount in order to get business intelligence
tools. This will increase the cost of the company.
Total visit per month
Figure 3 Total visit per month
Illustration 3: Total visit per month, 2021
Text 1: Total visits per month
Text 2: Total visits per month
Operational efficiency: Moreover, business intelligence system can improve operational
efficiency of the organization by unifying (spent less time on searching useful information) the
data source. By improving the operational efficiency, company can take valuable information in
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order to make strategic planning (Puklavec, Oliveira and Popovič, 2018). Moreover, sales
manager of Deliveroo are able to identify which customer are purchasing product or services and
which segment is declining. On the other hand, company can’t put their innovative ideas into the
practices which will reduce competitive advantages. It is because without updation and
innovation organization can’t survive for the long term.
Analyse future market trend: With the help of Business intelligence, company can quickly
visualize or interpret the trend of customer spending by controlling their purchase and sales on
weekly, monthly, daily basis. These trends help to identify new sales opportunity present in the
market. Which will help to grab competitive advantage in order to survive for the long run.
Moreover, market trend helps to decide consumer taste and preference in order to prepare
updated menu (Mariani and et.al.,2018). For example: Deliveroo has made updated menu by
analysing past market trend by using business intelligence. On the other hand, competitors are
following traditional approach in which all the information is to be gathered manually. So
Deliveroo will get again competitive advantage by getting higher consumer base. Moreover, it
has been criticized that there is no certain information exist related to the future. So it becomes
tough for the company to take decision for attain their objective.
Loyalty scheme: Company can create loyal customer base by adopting marketing strategies
through which entity can encourage their customer to keep shopping. Moreover, customer can
also use the services which are associated with business loyalty programme. Moreover, company
need to use business intelligence tool to take competitive advantage. But on the other hand, due
to the use of business intelligence tool, it is required to invest high amount which reduces the
capital and increases the cost of food.
Self services: With the help of business intelligence tool, Delivroo is offering self-service
platform where customer can enjoy each and every moment by taking this service (Lin And
et.al., 2021). Self services includes customized their product and services as per the requirement,
independently verify or conform their buying etc. But on the other hand, company need to make
update with high technology and keep continuous record so that higher facility can be provided.
Inventory management: Moreover, a significant method is to be used to reduce unnecessary
inventory with the help of inventory management system. In addition to this, company has main
goal to keep enough stock in hand in order to fulfil immediate order of the customer (Liang and
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Liu, 2018). Further, overstocking also ties up business capital which can be spent or invested
somewhere else. So business intelligence can keep the record of inventory uses and supply which
helps to determine efficient inventory management strategies to get rid of competition. On the
other hand, by keeping inventory on the basis of past record, company can not meet uncertain
demand which occur accidently or suddenly. For example: by applying business intelligence
tool, company has kept all record of data then this lead to take accurate and reliable decision.
Deliveroo website traffic
Figure 4 Deliveroo website traffic
Illustration 4: Deliveroo website Traffic, 2021
Text 3: Deliveroo wensite traffic
Analyse market performance and brand image: Moreover, company can track their
competitor's marketing and sales performance, can also learn how to make differentiate product.
In Deliveroo, company need analyse taste of food and services which will help to stand ahead of
competitors (Lennerholt, van Laere and Söderström, 2018). Moreover, BI can facilitate company
to satisfy their customer by analysing their behaviour and pattern. Moreover, BI tool helps a
company to ask right questions and make comparison by seeing all the aspect which make
company's product and services unique. Competitors may move quickly and it is necessary for
the company to make quick decision as fast as possible. If company don't take support of
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