Strategic Analysis Report: Evaluating Eleme Inc.'s Performance

This report provides a strategic analysis of Eleme Inc., a prominent online food delivery platform. It begins with an executive summary and introduction, followed by a detailed PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors affecting Eleme Inc.'s operations. The report then conducts a SWOT analysis to evaluate the company's internal strengths and weaknesses, alongside external opportunities and threats. The analysis highlights Eleme Inc.'s strengths in managing the business environment, its loyal customer base, and its innovative approach to product and service launches. Weaknesses include a focus on internal delivery, lack of diversity, and inventory management issues. The report concludes by summarizing the findings and emphasizing the importance of considering both internal and external factors for strategic planning and market share growth. The report also includes a comprehensive list of references.

STRATEGIC ANALYSIS
REPORT

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
PESTLE Analysis of Eleme Inc...................................................................................................4
SWOT Analysis of Eleme Inc......................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

EXECUTIVE SUMMARY
Strategic analysis refers to the process of assessing the working environment of an
organization to formulate an effective strategy. The current study has been based on Eleme Inc.,
which is an online food delivery platform. It has been highlighted the various factors affecting
the operations of the chosen organization. These factors are analysed using the SWOT and
PESTLE analysis to gain an overview of their impacts over the business.

INTRODUCTION
Strategic analysis is described as the process by which a research can be conducted on a
company and their business environment to develop an effective strategy. The current
assignment will be based on Eleme Inc. which falls under the category of leading online food
delivery firms in the China. It is able to provide online food providing services that help to
satisfy customers and retain with purchase of chosen brand. The report will explain external and
internal environmental analysis in the context of selected organization.
MAIN BODY
PESTLE Analysis of Eleme Inc.
The external environment of a company is analysed with the help of PESTLE analysis,
which is an effective tool used to determine key factors that may put direct impact on current
organizational practices. This model defines several forces and these are:
Political factor: The factors such as high trading policies imposed by government may
affect the profitability of a business. In case of Eleme Inc, this factor may put negative impact on
company in term of increasing trade or tax duties, which firm may need to pay (Danish, Blais
and Champagne, 2019). It may lead to increase in the cost for food product delivery that affect
organizational profitability. The standards of transportation and storing of food are also regulated
by the government and these restrictions may hinder in the workflow of the business. The trade
restrictions in the country may introduce barriers for the organization in order to access
resources. These factors posses a negative impact on the operations and decision-making of the
company.
Economic factor : This category of factor shows a negative influence on the business as
the economic environment is highly dynamic. The economic condition of business environment
may affect the profitability of organizations (Racz and et.al., 2018). The rapid changes in the
inflation or exchange rates may impact the chosen company strategy and practices such as online
food delivery. Fluctuations in the income levels of the population may influence the buying
behaviour of the consumers which will lead to changes in the productivity of the business.
Social factor : This factor may put a positive influence over the company as the online
food delivery service is in fashion and the customers may choose to order food rather than
visiting restaurants. These factors examine the social environment around a business and identify
different determinants. The cultural trends often affect the eating habits of people which may

have an influence on the sales of Eleme Inc. and preferences of customers change due to these
factors. People currently consider healthier food options and it impacts the company by reducing
the sales of unhealthy foods.
Technological factor: This factor may put a positive impact on the company by
increasing its market share. The developments in the automation sector has helped online food
platforms by giving information about the preferences of customers (What is PESTLE Analysis?
An Important Business Analysis Tool, 2022). The introduction of new technologies such as
applications, drone delivery etc. has facilitated the company to improve its productivity and
reduce the possibilities of errors. Regular changes in the technology has attracted the customers
towards buying food online.
Legal factor : The legal factors may have a negative impact over the business as they
tend to create barriers for the company as per the legal framework of the country. The online
food delivery industry has high safety standards, there are certain rules and regulations in the
country for the transportation of food to the customers (PESTEL Analysis, 2022). The companies
are penalized if there is a breach in these legal structures, it forces the business make negligible
mistakes to avoid these penalties.
Environmental factor : This factor may posses a positive impact for the business as the
customers may have the tendency to attract towards the companies adapting towards
environment friendly options. Packaging of the food has a significant role in the company as
consumers may focus towards the harmful effects of plastic, Eleme Inc. is shifting towards
plastic free packaging which is a bit costly to the company but is environment friendly. The
pollution created by the vehicles transporting the food is a major factor which the company may
be looking to overcome by adapting electric vehicles for the delivery men.
SWOT Analysis of Eleme Inc.
SWOT Analysis is an effective framework used to analyse the competitive position of the
organization in the market. The internal environment of an organization is analysed with the help
of this tool to develop strategic planning in order to achieve the goals of the organization. It is
designed to make a fact based overview of the strength and weaknesses of an organization.
Strengths : The major strengths of the Eleme are managing the business environment
and regulations as the management may have strong workforce that help to follow regulatory

terms and concepts (SWOT Analysis: What It Is and When to Use It, 2022). The customers are
loyal to the brand due to its superior service which helps the company in increasing its market
share. The company enjoys a strong relationship with its existing suppliers and other members of
the supply chain and can increase its productivity by leveraging them. Another factor is the
highly successful track record of Eleme Inc. in the field of launching innovative products and
services in the market. These are the major capabilities of the business to build a sustainable
advantage of the competitive environment.
Weakness : The management of the organization is highly focused on internal delivery
rather than focusing on the external stakeholders which can lead to poor relationships with the
customers. The other weakness is lack of diversity in the company as it may be currently
growing in the domestic market only. Another factor may be inventory management as there is
huge improvement required in this segment (What Is a SWOT Analysis and How to Do It Right
(With Examples), 2022). Culture of the organization may be dominated by conflicts between
various divisions leading to leak of crucial information. The poor track record on the
environmental damage done by the business is a major weakness as the customers may considers
companies with good business ethics. These are the areas in which the company lacks and needs
to make changes in order to increase its productivity
CONCLUSION
From the above report it has been concluded that organization has gained benefits by
considering varied external and internal factors. By conducting this practice it has developed key
tactics that helped to overcome the negative impact of some forces. The company have been
focusing upon these factors to increase its productivity and market share.

REFERENCES
Books and journals
Danish, A., Blais, R. and Champagne, F., 2019. Strategic analysis of interventions to reduce
physician shortages in rural regions. Rural and Remote Health. 19(4). pp.5466-5466.
Racz, L. and et.al., 2018. Extensive comparison of biodiesel production alternatives with life
cycle, PESTLE and multi-criteria decision analyses. Clean Technologies and
Environmental Policy. 20(9). pp.2013-2024.
Online
PESTEL Analysis. 2022. [Online]. Available
Through<https://corporatefinanceinstitute.com/resources/knowledge/strategy/pestel-
analysis/>
SWOT Analysis: What It Is and When to Use It. 2022. [Online]. Available
Through<https://www.businessnewsdaily.com/4245-swot-analysis.html>
What Is a SWOT Analysis and How to Do It Right (With Examples). 2022. [Online]. Available
Through<https://www.liveplan.com/blog/what-is-a-swot-analysis-and-how-to-do-it-
right-with-examples/>
What is PESTLE Analysis? An Important Business Analysis Tool. 2022. [Online]. Available
Through<https://pestleanalysis.com/what-is-pestle-analysis/>

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