Strategy, Enterprise and Innovation Report: Deliveroo Analysis

This report offers a comprehensive analysis of Deliveroo's entrepreneurial and innovative strategies. It begins with an overview of Deliveroo's mission and evolution, followed by an evaluation of the key drivers of innovation, including market demand, technological advancements, economic growth, and the UK's competitive environment. The report then delves into the different strategic approaches undertaken by Deliveroo, such as the Ansoff matrix (market penetration and development) and Porter's generic strategies (cost leadership). The analysis also includes an evaluation of Deliveroo's success using the Blue Ocean Strategy framework, value innovation, and the three tiers of innovation. The report emphasizes the application of relevant theories and frameworks to support the analysis and evaluation of Deliveroo's business model and strategic decisions.

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Contents
Introduction......................................................................................................................................2
Overview of Deliveroo's..............................................................................................................2
Evaluate Key Drivers of Innovation................................................................................................3
Demand on market.......................................................................................................................3
Advances in technology...............................................................................................................3
Growth of economy.....................................................................................................................4
Environment................................................................................................................................4
Different Approaches Undertaken By Deliveroo............................................................................5
Ansoff matrix strategies...............................................................................................................5
Market penetration...................................................................................................................6
Market development................................................................................................................7
Porter’s generic strategies Framework........................................................................................8
Cost leadership Approach........................................................................................................8
Evaluate the Success of Deliveroo..................................................................................................9
Value innovation........................................................................................................................10
Three Tiers of innovation..........................................................................................................10
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
The report aims to analyse the entrepreneur and innovation of the case study of Deliveroo's. The
paper shows the assessment of key drivers of the innovation that has contributed to business.
Further, it includes the application of the innovation as well as entrepreneurship models like 4Ps
of innovation and entrepreneurship model. Also, there is a critical analysis of the different
approaches that are undertaken by the deliveroo to provide assistance to shape its entrepreneurial
vision as well as a business model. The evaluation related to the success of the Deliveroo
Company has been done by applying the blue ocean strategy tools or framework. Thus, it has
been determined that the entire is related to the application of the relevant theories as well as a
framework that will support the evaluation and analysis of the tasks.
Overview of Deliveroo's
In the year 2013, Deliveroo's founder and CEO Will Shu moved to London where they
determine the city that is full of great cafes but they were shocked that so few they distributed the
food. The mission of Deliveroo's begins to bring greatest native cafés direct to the door’s people
(Deliveroo, 2019). It has been found that Deliveroo's has presently reduced the distribution time
by 20% meaning riders that can attain more deliveries per hour and enhance their wages,
restaurants can enhance their deals and of course the clients can get their diet even in the faster
manner.

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Evaluate Key Drivers of Innovation
This section includes important drivers of the innovation that contribute to achievement of case
study Deliveroo's. There is a discussion about major drivers of the invention: -
Demand on market
The demand within the market is one of the factors that drive innovation and to bring the way to
provide effective services. The demand is the dominant influence on the process of innovation
(Ferreira, J.J., Fernandes, Alves and Raposo, 2015). In the market, there is need of the proper
delivery as well as timely delivery due to which Deliveroo's company makes use of the
technology to bring the innovation in the products and services that they are offering.
Deliveroo’s Editions platform assists in the restaurant to expand its business in the new areas.
The editions determine the different cuisines that customers want but they don't have access to
the locally due to which they invest in restaurants who excel in those foods to provide help in
set-up of the local areas ((Deliveroo, 2019). This innovation allows the customers to meet their
demand from the food in the market.
Advances in technology
The innovation is driven by technology which is one of the major reasons behind the success of
the business. The introduction of ‘Frank’ algorithm which is founded on the dominant analytical
technology that majorly estimates the most effective way of allocating the orders that are
founded on riders, cafés as well as the customers (Deliveroo, 2019). The machine learning
provides the assistance to estimates time that it will take to manufacture the mealtime, assisting
to streamline knowledge of delivery. The innovation in the technology for bringing the mobile

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app is one of the reasons behind the success of Deliveroo's company. However, it has been
determined that delivery apps are notoriously hard to make into something that genuinely leads
to profit. Although, the approach of the Deliveroo's is different in which they claim for the
delivery of food in 30 minutes (Deliveroo, 2019). The app has the feature of their logistics-
driven approach. It has been found that they crunched the numbers to identify things like local
traffic is like for cyclists. In the research, it has been found that innovation has allows the
Deliveroo’s in winning the great app platform for the client and also for the effective logistic
system of the company.
Growth of economy
The growth of the economy is considered one of the important drivers of the innovation which
contribute to achievement of Deliveroo’s business. One of the major benefit due to which
companies bring innovation is that it contributes to the growth of the economy (Deliveroo,
2019). Simply, it is the fact that innovation leads to the rise in productivity which means that
high input leads to the rise in the higher output. Deliveroo’s bring the innovation of the app and
allows the customer to enhance the productivity which will lead to high output and contribute in
improving the GDP of the country. This element can better be understood with the help of the
product life cycle, the Deliveroo’s product is at the growth stage in which there is need of the
development (Trading Economics, 2019). The development is possible with the effective
innovation that enhances productivity. The growth is the stage in which Deliveroo’s brings
innovation so that they can contribute to the development of the country.
Environment
The environment of the UK is one of the major factors due to which innovation drives and this
leads to a rise in productivity. In the current market, there is high competition among companies

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to deliver the products. As per the social factor, there are wide ranges of the customers in the UK
market who are looking for quick delivery of the products which is possible through Deliveroo’s
(Deliveroo, 2019). This drive of innovation can be understood with the help of push and pull
factors. In the market, the evolution in technology pushes the companies to bring innovation in
their product as it will lead to the rise in productivity. However, it has been found a change in the
rules and regulation related to the minimum wage law by government or the change in the labour
market might influence the companies due to which these factors are considered as the pull
factors for the companies in the environment (Cai and Li, 2018). It has been found that
environmental protection is one of the major concerns of government due to which they bring
regulations. It pulls the company as they are contributing to the environmental issues.
Different Approaches Undertaken By Deliveroo
In the current market environment, Deliveroo Company has adopted the different approaches
that provide help with the motive to shape its entrepreneurial vision as well as the business
model. The vision of the company is to become foremost food delivery app in market of the UK
which is possible by meeting the prospects of customers. The mission of company is very simple
is to bring amazing local restaurants direct to the doorstep of everyone (Deliveroo, 2019). The
company needs to get a competitive advantage in the market against its competitors who are
present in the market.
Ansoff matrix strategies
The competitive advantage of the deliveroo company can be understood effectively with the help
of the Ansoff matrix strategies which are majorly used by them for helping the business to deal
with the competitors present in the market (CFI, 2019). It also allows the company to shape its

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vision as well as its business model in the UK market. The below given is the discussion of the
strategies that are used by deliveroo for the growth at the business and the corporate level.
(Source: CFI, 2019)
Market penetration
The market penetration strategy focuses on rising sales of the present product in the existing
market. The company apply this approach of the market penetration in which they generate
attentiveness for the brand in market which helps them to improve the sales in the market. In
February 2018, the company went live with the innovative worldwide brand campaign which is
intended to inspire the clients to “eat more amazing at every food occasion” (Deliveroo, 2019). It
was observed that running across TV, outdoor, mobile, social; experiential, as well as direct
mail, are different modes that presented the brand which is the reason behind the success
(Matoso, 2018).
Recently, it has been determined that Deliveroo embarked an experimental road-show which the
name of Tasting Rooms which lead to the four dissimilar foods to the shopping midpoints within

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UK market as the method of involving the clients who might be not aware of the brand. It is
observed that the answer to Eat More Amazing was confident for the company as it generates
awareness among the mind of clients. This assists business to give tough competitive advantage
to company as well as they can deal with their competitors who are present in the market to
attain the success in the market (Sukma, Lubis and Utami, 2019).
(Source: Financial Times, 2019)
Market development
The strategy of market development is utilised by the company. In this strategy, the company
focuses on entering into the new market by making the use of the existing products (Hales and
Mclarney, 2017). In the research, this has been witnessed that determined development marks are
nothing new within company. The five-year-old business is on mark to hit more than six million
UK clients by the end of 2018 and raise of its schedule of 10,000 cafés by approx. 50% which
include expanding the business to more than 50 towns as well as metropolises countrywide. This
tracks the choice in June to open up its stage to more than 5,000 restaurants by approving them
to make use of their fleets instead of the network of 15,000 rides by putting the business in the
straight struggle with the one of the major rival Just Eat (Rogers, 2018). Further, it has been
found that the company is expanded in more than 12 nations across the world in the 5 years since

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the company came into existence. The company is strong-minded to preserve its disruptive edge
as it scales up (Fleming, 2019).
Porter’s generic strategies Framework
According to Porter's Generic Strategies model, there are main three main strategic options that
are available to the company for attaining the competitive advantage within market. These
strategies include Cost leadership, Focus and Differentiation (Ouma and Oloko, 2017).
Cost leadership Approach
From the above strategies, the company apply the cost leadership strategy in the market of UK
where they find the tough competition (Bell, Dyck, and Neubert, 2017). Deliveroo Company has
the cost-driven construction whose aim is to maximize the expenses through important
automation as well as the low-price worth propositions. It has been found that competition
between Uber Eats, Deliveroo and Just Eat is very intense in the market of UK (Business
matters, 2018).
Recently, it is observed that Uber will cut the fees for the delivery of the food in the market of
UK and Ireland (Financial Times, 2019). It allows the restaurants to make use of this it's an app
but carries out their deliveries because of the competition intensifies with other companies like
Deliveroo and Just Eat which are the leading food delivery companies. However, the Deliveroo
and Uber Eats have their own couriers system though which they can easily deliver the products
to their clients while in that they charge the restaurants higher commissions. The market has
affected Just Eat as their share fell 5% to £6.98, in trading within London in 2019. The share of
Uber keeps from the food deliveries after making the payment of couriers and restaurants is on
average lower than the cut the business takes from rides (Financial Times, 2019). Thus, the cost

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leadership strategy of a company affects the competitors due to which they bring a reduction in
their cost.
Evaluate the Success of Deliveroo
The section shows the evaluation of the success of Deliveroo by applying the blue ocean strategy
tools as well as frameworks. This strategy is simultaneous pursuit of the difference as well as
low charge to open up the novel space in the market and to form the new demand (Blue Ocean
Strategy, 2019). It is all related to capturing as well as forming the uncontested market space due
to which they are making the competition irrelevant. This strategy has been applied by Deliveroo
Company due to which they attained the success in the UK market (Singh, 2019). This strategy
has allowed the Deliveroo Company to push all the boundaries of their industries and to provide
the consumer with something unique to immense value. The focus of the company at the time of
formation was to form the new market in the UK by offering the products and services to their
clients. They want to give the new value to their customers by competing with the competitors
that are present in the market. Deliveroo Company is obsessive around the food and bringing the
persons with more choice (Deliveroo, 2019). The mission of the company is to ensure that the
restaurants present within the area are present to the client when they need it.
The company has applied the strategy through they can bring the nutrition from the cafés and
unlike the transport amenities. It provides food from the fanciest cafés that are present in the city.
The strategy has allows the company to become the new delivery type of service due to which
they have handled all the transportation by themselves. For generating the value for the
customers through whom they can deliver the products to the customers on time they
continuously rent the riders so that they can go around cities by bike or car and deliver product to

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clients (Deliveroo, 2019). Blue ocean strategy consists of the major tools and frameworks that
are applied by the Deliveroo Company within their business. Some of the tools which are used
by the companies are given below: -
Value innovation
The value innovation is the important standard of the blue ocean strategy is a commercial
method that emphasizes on the forming the new marketplace seats as an alternative of aggressive
the contestants present market share (Deliveroo, 2019). Instead of opposing for market share,
value innovation is majorly intended to form innovative marketplaces. The value innovation
includes providing value to the clients by making effective use of technology. For instance: The
introduction of ‘Frank’ algorithm which is founded on the dominant extrapolative expertise that
majorly assesses most active way of allocating the instructions that are based on the riders, cafés
as well as the customers (Deliveroo, 2019).
Deliveroo Company applies the blue ocean strategy through which they are forming the new
market. For example; business expands the commercial in the different marketplace across UK
and in different regions across the world with the help of the latest technology. This shows that
the company has applied the strategy and found the blue ocean. Along with this, the low cost and
effective delivery on time have attracted the wide range of customers towards the company.
However, it has been found that the company is dealing with tough competitors from Uber Eats
and Just Eat who are offering delivery services to the customers (Deliveroo, 2019). For example;
customer loyalty is one of the benefits which are attained by these competitors in the market.
Although, the unique service of the business has grabbed the attention of the customers in every
short period. This is the only way through which the company was able to give the tough
competition.

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Three Tiers of innovation
W. Chan Kim and Renée Mauborgne formed three tiers of noncustomers. For every company, it
is essential to produce their part of the market they struggle to retain as well as to expand their
present customer base. The company apply this approach to understand the target market of the
customers and also to provide the value to them (Blue Ocean Strategy, 2019).
(Source: Mauborgne and Kim, 2005)
 “Soon-to-be”: - It includes those noncustomers who are at edge and they will become the
customers of company. In the first tier, Deliveroo Company finds the customers who are
soon going to the present customers (Anastasia, 2015). These people are those who make
the order from Deliveroo on a rare basis due to which they offer valuable services
through which they can attract maximum customers. For instance; people who are youth
as they are one who is becoming the diet-conscious due to which they prefer home-made
food. Further, it has been found that there is a rise in the number of new customers of the
company. Thus, this shows that Deliveroo is effectively able to avail the blue ocean in the
current market.

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 “Refusing”: - Refusing includes those noncustomers who deliberately chose in
contradiction of the market. The second tier shows that Deliveroo Company finds other
customers who remain close to the market (Mi, 2015). These people consider Deliveroo
as one of the options for ordering the products in the UK market. It has been found that
such sort of person generally visits the restaurants for a meal. Shortly, Deliveroo
Company can try to attain the attention of these customers and it will become Blue
Ocean. However, it is considered as one of the difficult tasks for the company.
 “Unexplored”: - The unexplored include the noncustomers who are in the marketplaces
distant from yours. The third tier assists Deliveroo Company to understand range of
customers who are farthest from the market (Agnihotri, 2016). It is very difficult for the
business to attract clients for goods and services that are offered by the company.
Deliveroo needs to bring more products as well as services through which they can attract
these customers. For example, aged people are those who don’t like to order from
Deliveroo company. They will need new services that the company can bring shortly.


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Conclusion
Overall, the analysis shows that Deliveroo Company strategies, as well as a business model
which include innovation, has been analysed. The analysis includes the 4 major key drivers
which include demand on the market, advances in technology, growth in the economy as well as
the environment. This has been done with the analysis of the push and pulls factors and product
life cycle. Further, there is an analysis of Deliveroo Company with the help of the different
approaches that contribute in shaping the entrepreneur vision as well as a business model. The
different approaches which are used to analyse are Ansoff matrix and porter’s generic strategies.
The company make use of approaches like market penetration and market development in terms
of Ansoff matrix. Further, the cost leadership strategy is used by the company for porter’s
generic strategies. The report shows that there is an evaluation of the success of Deliveroo which
include the implementation of blue ocean strategy. The tools of Blue Ocean strategy which are
used for the analysis include value innovation and three tiers of the innovation.

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