Porter’s Five Forces framework will help to identify the competitors of the online food

ordering industry.

Rivalry among competing firm

Currently, the main competitors are GrabFood, Yangon D2D who have a wide range
of delivery services under the brand. Although those companies heavily rely on
technology, Yangon Door 2 Door website and applications are the weakest.
GrabFood, on the other hand, is also an internationally successful brand like
Foodpanda. Other brands in the market have become popular like foodmall and
startup brands. However, those brands failed to reach the success that Foodpanda
Myanmar enjoys but there is high pressure in these sectors.

Threats of substitute products

There are many kinds of online delivery service/ freelance delivery riders/ own
business delivery services in the market. Other services company can be substituted
services like foodpanda. Therefore, Foodpanda should consider substitutes as a
threat and focus on improving its service. Generally, there is high pressure in the
area.

The threat of new entrants/ Potential entrants

Entry barriers are medium for online food delivery. However, Foodpanda Myanmar is
seen not only as an online food ordering service but also as a brand. Foodpanda
Myanmar has held a very significant market share and its loyal customer base.
There is an increasing number of new services appearing in the market and even
start-up businesses entering the industry. For new-entrants can face difficulty to
compete with a successful brand. Generally, there is high pressure in the area.

Bargaining power of suppliers

Foodpanda is the middle person between the restaurant and consumers. The main
suppliers for online food delivery include restaurants and bars that they linked with
the company. So Foodpanda Myanmar needs to maintain and improve relationships
with restaurant suppliers. There is moderate pressure in the bargaining power of
suppliers.

Bargaining power of the buyer

There is low pressure on Foodpanda from individual customers. A key strength of

Foodpanda here is its various choice of restaurant and delivery free charges.
Foodpanda Myanmar relies on customers to operate and customer’ expectations
evolve as new trends emerge over time. This strong position that customers have,
can then result in considerable pressure on the company and enable the customers
to demand improved quality or lower prices. Foodpanda Myanmar is aware of
customer complaints and review the service and improve the requirement to satisfy
the customers.

The macro-environmental analysis (PESTLE)

Political Factors

Foodpanda Myanmar must abide by political factors like any business in the food
industry. There are so many restrictions during COVID-19 pandemic like social
distancing, restaurants are not allowed for dine-in customers. Foodpanda needs to
make sure they’re following the rules in each location strictly.

Economic Factors

The economic factors play an important role in shaping the organization as it deals
with the buying power of the consumer. GDP growth for Myanmar slows significantly
to 4.2% in 2020 under the COVID pandemic but, if the virus is confined quickly,
recover to 6.8%in 2021. Social Factors Nowadays, customers on online food
ordering are rising so Foodpanda Myanmar expands a new market, they need to
research living styles like people prefer online delivery than eat out or other facts
where they want to operate. Technological Factors There is less struggle for
Foodpanda in Myanmar Market. Myanmar people are no distant with technology so
customers can be easily familiar with Foodpanda’s mobile application or online
websites.

Legal Factors

When Foodpanda Myanmar can’t maintain proper compliance, safety procedure,

hygiene of their delivery staff then they can get a lot of complaints from customers
and loss believes form customers.

Environmental Factors

Foodpanda Myanmar mostly runs the delivery service with bicycles that can reduce
air pollutions that helps to create green environments. In the six dimensions of the
PESTLE analysis model, Foodpanda has mostly opportunities. Moreover, the
organization can expand the foreign market.

PESTLE analysis shows that Foodpanda has a strong potential to continue growing.

SWOT Aanlysis

Strength Weakness

Strong brand recognition Technology improvement,eg; bug fix

 High market share Need for new partnerships ,eg; grocery
shop
Strong technology

Customer loyalty

Opportunities Threats

Product development Changes in economic conditions

Application improvement Price Competitions

Technological advancement both offline Ease of Substitutes

and online

Ansoff’s directional matrix is a quick and simple way to think about risks and
growth. After the internal and external analysis, the foodpanda isIn a market
penetration strategy that the organization assumes its products in the existing
market. In other words, Foodpanda Myanmar is aiming to increase its market share
with a market penetration strategy to approach the organization’s business strategy.
Foodpanda Myanmar with the market penetration strategy carry out in several ways:

1. Decreasing prices to attract existing or new customers for example free delivery,
discount code for new users, no minimum order spending.

2. Increasing promotion and distribution efforts for example, buy 1 get 1 promotion

3. Acquiring with other brands, For example- collaboration with Coca Cola with Pizza
Company When Foodpanda Myanmar aims to expand to gain higher market share,
the company need to focus on improving the relations with stakeholders and
merchant-partner and improve customer relationship with online offline. Foodpanda
can add new functions like Pet food or medicine shop which are possible ways to get
market shares and to get customers’ interest and less struggle.

Others strategic route

The Ansoff Matrix: Product Development

When an organization develops a new product to introduce to the existing market.

The product development for business strategy is engaged when organizations have
a strong understanding of their current market and can provide innovative solutions
to meet the needs of the existing market. For example, foodpanda is willing to
introduce a new product like drone delivery, investing in drones, and R&D is more
expensive and takes so many times and also need skilful staff to drive drone.
Current customers are not used to drone functions and someplace in Yangon and
other cities in Myanmar are do not allow flying drones. There are so many risks and
difficult to do product development is the meantime and new product can be lead to
negative profitability.

As a strategist of Foodpanda Myanmar, organization should market penetration

stage for corporate strategy and modify the existing service. There are so many
requirements to expand new products or service in the pandemic period.