Analyzing Deliveroo: A Case Study on Innovation and Strategy (LSBM306)

This case study examines Deliveroo, a prominent online food ordering and delivery service, focusing on its business strategy, innovation drivers, and competitive tactics. The analysis includes an evaluation of key innovation drivers such as economic, technological, and social factors that contribute to Deliveroo's success. The study further explores Deliveroo's strategic approaches, including Porter's generic strategies (cost leadership, differentiation, and focus) and the Ansoff matrix (market penetration, product development, market development, and diversification), assessing their applicability and effectiveness. The report also covers the use of Blue Ocean tools and frameworks. The study offers a comprehensive understanding of Deliveroo's strategic choices and their impact on its market position and growth, providing insights into how the company has achieved and maintained its competitive advantages in the dynamic food delivery industry.

Strategy Enterprise and
Innovation
(Deliveroo Case Study)

Table of Contents
MAIN BODY...................................................................................................................................3
Using models classify and evaluate the key innovation drivers that contribute to Deliveroo's ..3
Appropriate Blue Ocean tools and frameworks ..........................................................................8
Set of conclusions that succinctly highlights the key aspects covered in the literature. ...........10
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................12
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INTRODUCTION
Business strategy is the main target of any organisation which helps to deal with
difficulties and improve the working activities. There is a combination of different plans which
are used to increase the production. This is important for business industry to make effective
business strategy which can be used to develop the products and services. In other words,
strategy is a plan which is prepared by management in order to accomplish the business goals
and objectives (Caloffi and Mariani, 2018). Every industry focus on goals and then make
strategies which helps to deal with critical situations. To understand the importance of case study
of Deliveroo that is running online food ordering and delivering organisation. This organisation
was founded in 2013 by will shu and headquarter at United Kingdom, England, London and
other places. A delicious food is provided by this company which helps to meet with mission that
is become best local restaurant direct to people doors and transform the method to eat. The aim
of Deliveroo is to deliver healthy and tasty food direct to customers as fast as possible in less
time.
Different topics are going to be covered in this report that are model and key drivers who
are contributing in success of Deliveroo. Moreover, description of different approaches which is
shaping entrepreneurial vision and business model. In addition to this, competitive strategy at
both business units and corporate level are discussed in this report.
MAIN BODY
Using models classify and evaluate the key innovation drivers that contribute to Deliveroo's
Innovation is the way of introducing new products and services in order to attract customers
which helps to increase the organisational image and productivity. Technology is changing as per
customer demand where organisation need to make changes in their existing products and
services that can attracts customers and encourages them to buy them (Ramus and et. al., 2018).
To earn higher profits organisation need to make strong strategy which can help to run business
activities effectively. For instance, Deliveroo which is food delivering organisation mission is to
bring best local restaurant which directs people's doors as transform the way customers eat. This
helps to innovate and expand the business by offering best choice and convenience. Its main
target is to bring healthy and tasty food direct to customers in less duration that helps to increase
the nbumber of customers. The chosen organisation 'Frank algorithm' which relies on powerful
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predictive technology, helps to deliver and distribute on different location, restaurant, riders and
customers. The time of delivery of food is reducing in context to respective organisation which
helps to deliver the food in less time in order to increase organisational productivity and
profitability (Vlados, Katimertzopoulos and Blatsos, 2018). In business environment there are
many factors which works as innovative key drivers in context to Deliveroo that are as explained
Economic key driver – This is one of the main key driver which is playing important role in
innovation and organisation who is adopting that states if economic condition of any country is
good then it become easy to run business by implementing innovation. This has good impacts on
Deliveroo as management bring innovation because economic condition of UK is good that
shows people have good source of income. By having good source of income people place more
food order which helps to increase the organisation productivity. This factor give good and bad
both impacts on working when organisation is introducing new product or services with the help
of innovation (Yang and Fang, 2018).
Technology key driver – Demand and lisfestyle of people are changing day byu day which
is require new technology and innovation in order to introduce from new products and services.
This is important which helps in managing the operation effectively and attracts customers more.
This driver is affecting business of organisation in good and bad way. For instance, by using
technology key driver Deliveroo become more able to deliver food in less time and get prepare
tasty and heathy food which make feel good to customers and increase the number of delivery
orders. The negative impact is this require high investment and funds to implemnt new
technology which many be difficult for organisation.
Social key driver - This factor includes some aspects such as taste, preference and lifestyle
of people which is important for organisation to establish and run it effectively. This is important
for business organisation to focus on customer needs and wants which helps to make customers
happy and satisfy. As management of Deliveroo has identified that people are suffering from late
delivery of food that make them sad and dissatisfy. By considering this problem management has
decided to establish a company and deliver food at less time by using new technology and
innovation which affect business in good manner and grabbing the attention of customers more
(Santoro and et. al., 2018).
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Therefore, all discussed key drivers of supporting innovation which help Deliveroo to
bring new and innovative idea in business market and garb the customers attention. Such drivers
attracts customers by introducing new methods which increases number of customers.
Deliveroo's numerous strategies to help shape its company strategy and business model.
Competitive tactics at both the level of the business unit and the level of the organization.
The goal of Deliveroo is to bring the best local restaurant to the doors of the people and
to transform the way in which customers eat. The business offers the best option and comfort by
continuously innovating and expanding. In addition, Deliveroo's mission is to provide consumers
with great food directly within a minimum duration of less than 30 minutes (Sinclair and et. al.,
2018).
The 'Frank' algorithm is constructed on influential predictive technology, which helps to
evaluate effective distribution order based on restaurant location, riders and customers.
Having already reduced their time by 20 percent, Deliveroo simply means that riders can now
deliver more per hour and boost their earnings. In addition to this, the respective organization
has introduced many techniques that help shape it market strategy and business model. Such
methods are explained as follows:
Porter's generic strategy – This technique helps to assess a company's course. Michael
Porters developed Porter's standardized approach that involves four tactics that a company can
use to attract customers and achieve competitive advantages (Yunfei, Bo and Jiaming, 2018).
According to the respective author company, the clear course to beat competition should be
chosen. Three techniques formed the basis of this model. For example, That is to say, cost
control, distinction and emphasis. He subsequently split into the emphasis on cost and
distinction. Dileveroo's description of these four phases is as follows:-
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Source: Porter's generic strategy, 2019)
Cost leadership – In this strategy, an organization's motive is to become industry's lowest cost
producer. In addition, the traditional method of achieving the goal of cost leadership is
manufacturing on a large scale that allows an enterprise to maximize economies of scale. To
become a low-cost producer, such techniques, such as high productivity rates, high capacity
utilization, lean production methods, efficient use of technology in production processes, and
many more, are needed. Cost leadership strategy requires close cooperation across all company
functional areas. Cost leadership approach is not ideal for Deliveroo's if they come up with an
innovative idea to supply food in less time (Kutsyk and Kovtun, 2019).
Differentiation - This approach makes their products distinctive and more appealing to others in
order to achieve competitive advantages. Business companies target large markets by
differentiation strategy and emphasis on wider-scale differentiation. Deliveroo focuses on
differentiation strategy as its delivery time is low by 20 percent and consumes less than 30
minutes. There is a high level of rivalry in food ordering and distribution, so it is necessary to use
dda diverse strategy for the respective business. This will allow them to attract large numbers of
customers and to service them effectively as well. As they concentrate on large market area
across multiple consumers as they provide services to various locations such as UK, Netherlands,
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Illustration 1: Porter's generic strategy, 2019

France, Belgium, Hong Kong, Ireland, Spain, Italy, Australia, Singapore, Kuwait and the United
Arab Emirates.
Cost focus – Focus on reaching the niche market and providing the lowest possible price in this
strategy business. Cost-focus strategic goods are typically generic, somewhat similar, to the
typical market-leading products, as well as appropriate to a sufficient number of customers for
revenue generation. For Deliveroo, the respective approach is not appropriate as they do not
concentrate on both the expense and the small market segment (Yuping, 2019).
Differentiation Focus – The company aims to achieve product differentiation in this approach,
but in an smaller, number of market segments. As this company focuses on this group's small
number and clearly attract this group's necessity. Therefore, for this approach to be effective, a
business firm must first recognise that a consumer group has a different set of requirements than
the broader market population. There is no valid basis for distinction if there is no difference in
need. In fact, the company must also ensure that the specific and unique needs they have
established are not already attracted by another competitor (Kraśnicka, Głód and Wronka-
Pośpiech, 2018).
Deliveroo implements a strategy of differentiation as they come up with something else
That is to say, 20% reduction in delivery time, meaning in less than 30 minutes. In addition, they
cover the large market segment in order to make their respective approach more appropriate for t
hem.
Ansoff matrix
It is also called the product or market expansion grid as well as it is also considered as
techniques which is utilised through entities for analysing and planning its growth strategies
effectively. Moreover, this also represents four strategies that aids into their growth as well as
also aids them to analyse the risk associated with each plan of action.. all the strategies in respect
of Deliveroo are discussed below:
 Market penetration: It is also considered as strategy which is no so much expensive as
this leverage various existent resources and abilities of firm. Into growth market,
maintaining the share of market will outcomes into growth as there are few existent
opportunities that aids in enhancing market share. This strategy is not effective for
Delievroo as they are not coming up with existent product into existent market place.
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 Product development: Within this strategy, firm formulate new goods through targeting
its existent market share. Delievroo is executing strategy related to product development
strategy into its performance as they are brining something creative that is minimisation
into delivery timing by 20% that means that items will be delivered in less than 30
minutes (Shtal and Babenko, 2019). With this creative ideas Delievroo is brining it into
existent marketplaces so they may grab the attention of various consumers as well as
offer them in efficacious way.
 Market development: Within this strategy, organisation seeks for development through
targetting new marketplace with its existent goods. The market development strategy is
not appropriate for respective organisation as they are providing creative services into an
existent marketplace (Vézina, Ben Selma and Malo, 2018).
 Diversification: Organisation develop through diversifying into new business by
formulating new products and targeting new market place. Therefore, for respective
organisation, the product development strategy is very much appropriate as they bringing
something creative ideas within existent marketplace.
Appropriate Blue Ocean tools and frameworks
Blue ocean tool is a strategy or simultaneous pursuit of differntiation that states a
organisation can establish a business at a lower cost in new market by creating demand and
needs. In other words, this model includes capturing uncontested market place, creating, and
innovating the products which helps to increase the productivity of organisation. By using this
model organisation maintain high brand image and position in market which increases sale and
profits. In context to Deliveroo, management uses this strategy which is based on market
boundary and industry structure that is not given. Management of such organisation
reconstructed structure by actions as well as beliefs which helps to maintain the customers.
Deliveroo organisation is getting success by implementing Blue Ocean model which
helped to run business in competitive environment. For example, management of respective
company has analysed that people are suffering from late delivery of food. This threat of other
organisation became opportunity for Deliveroo which has used Blue Ocean model to compete
with competitors by delivering healthy and tasty food in less time or 30 minutes. So, respective
organisation has bring new technology in their business which help to deliver the food by
reducing delivery time up to 20% and try to serve food in 30 minutes. By using this model
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company is enjoying uncontested market space and Blue Ocean nwhich increases number of
customer as they get food delivery on specified time or less time period. Moreover, by using this
organisation is getting many advantages such as it make competition irrelevant, break the value
cost trade off, align the whole system of firm's activities in pursuit of differentiation and low
cost. So, Blue Ocean framework is effective tool which is used by organisation to won the
competition by innovating products and services. Moreover, Deliveroo company is using Value
innovation tool in their business activities as it brings innovation and new technology in market
area that are as explained:
Value innovation – This is a process which is used by a company to introduce new
technology or upgrade existing process which is designed to attain both product differentiation
and low cost. This is synchronous quest for separation which make minimqal efforts for two
purchaser and the organisation. This framework was create by W. Chan Kim and Renee
Mauborgne who states this is the foundation of market making procedure. This is not necessary
for organisation to create a completely new product and technology instead of this they can
improve on existing services and lower the cost of that service for both which helps to maintain
the productivity of organisation. Deliveroo creates value for customers when they create options
that are not previously accessible in food ordering and delivery industries. Execution of such
imaginative idea has numerous benefits of Deliveroo, such as being able to attract large numbers
of customers, business growth, catching future market chances, and most importantly, their
delivery boy will deliver more order products every hour. The groundbreaking aspect that they
introduce is a 20 percent reduction in delivery time, which ensures that the requested item will be
shipped in less than 30 minutes after ordering.
Deliveroo analyses the entire market and its situation, rising demand for customers and
much more. All this is important because, before coming up with something new, it is essential
to analyse the business atmosphere as well as the current industry in which the corporation is
working to ensure that the innovative idea is successful. Thus, Deliveroo has identified that
customers are facing problems with organization's late delivery services within this industry.
Thus, by taking benefit of this issue, the respective organization implements innovative ideas by
reducing their delivery time by 20% and delivering ordered item in less than 30 minutes.
Through these activities, Deliveroo Company will be able to attract a significant number of
customers as well as a better market position.
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Set of conclusions that succinctly highlights the key aspects covered in the literature.
As per the literature, it is concluded that using various innovational drivers, an entity
implements to make the surrounding business environment suitable in executing workings. In
addition, it is crucial for an enterprise to apply innovational model in their workings so to come
up with something unique and new as it will assist in conducting the operations in innovative
ways. Other than this, various strategies are adopted by Deliveroo company managers while
executing operations at the time inventing new idea so to reduce the delivery duration by 20%. in
context to Porter's generic model, the entity uses differentiation strategy at the time they comes
with unique things through covering large market segment (Kitsios and Kamariotou, 2019). In
contrary, the another strategy that is opted at respective business is Ansoff matrix that is majorly
used for attaining business growth by opting product development as the entity will deliver
innovative idea in current market in respect to current clients. With the mentioned strategies, the
company gets assistance services in carry forwarding and executing innovational idea in the
practices of company in effective ways. In Moreover, management team of Deliveroo also
exercise practices through Blue Ocean Model within their day to day activities as to gain success
in the dynamic business environment. With the Blue Ocean model, strategy of value innovation
is more preferred by the organisation as to bring innovational idea in the discussed market.
CONCLUSION
Preparing creative strategy is the essential part of the effective company that keeps it
profitable and draws the audience's attention. In addition, the manager must have a foresight
vision and efficiently predict the dynamic environment as it can improve the company's
functioning and lead them to take advantage of the opportunity. The company must therefore
concentrate on leadership capabilities that can be groomed in its ability to participate in the
decision-making process and provide valuable advice.After the discussion above, it was
summarized that it is important for a company to execute business strategies in a suitable manner
as these will be the only ones that will help to gain competitive advantages. There are several
engines of innovation that help businesses come up with something creative in the marketplace
and satisfy consumers by meeting their needs and wishes. Blue Ocean is the approach that helps
the organization succeeds. Uncontested market share or Blue Ocean can be enjoyed by applying
the Blue Ocean strategy business. There are two models the implementation of which is
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important for an enterprise as it allows them to execute an effective strategy for gaining
competitive advantages such as the traditional model of porter and Ansoff.
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REFRENCES
Books and Journal
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Shtal, T. and Babenko, D., 2019. The management system of information procuring of the
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Vézina, M., Ben Selma, M. and Malo, M. C., 2018. Exploring the social innovation process in a
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(Caloffi and Mariani, 2018)(Ramus and et. al., 2018)(Vlados, Katimertzopoulos and Blatsos,
2018)(Yang and Fang, 2018)(Santoro and et. al., 2018)(Sinclair and et. al., 2018)
(Yunfei, Bo and Jiaming, 2018)(Kutsyk and Kovtun, 2019)(Yuping, 2019)(Kraśnicka,
Głód and Wronka-Pośpiech, 2018)(Shtal and Babenko, 2019)(Vézina, Ben Selma and
Malo, 2018)(Kitsios and Kamariotou, 2019)
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