Академический Документы
Профессиональный Документы
Культура Документы
MARKET OVERVIEW
Started in August 2014, food ordering and delivery start-up X today has which has gained
substantial portion of the Indian food industry, and has become the household name for
anyone and everyone who wants to order-in food.
The company has a valuation of Rs. 35000 crore with its operations spreading in USA apart
from operating in its parent country.
The following list lays the statistics of its current food aggregating operations in India
S.No Criterion Statistical numbers
1) Total investment Rs. 3500 crore
The following pie chart shows the use of funds for meeting the total expenditure in India
DELIVERY
NETWORK
30%
MARKETING
37%
SALARIES
15%
TECH
MAINTAINANCE
18%
The company’s operations in the foreign country have resulted in gaining a substantial
market shares with its details provided in the tabular form below:
5) Market share 12 %
6) Total investment Rs. 2500 crore
The following pie chart shows the use of funds for meeting the total expenditure in USA
MARKETING
22%
DELIVERY
NETWORK
35%
TECH
MANAGEMENT
15%
SALARIES
28%
The company has also started its own cloud kitchen unit 6 months prior to current date
with an investment of Rs. 210 crore with a market share of 7%, this unit due to
improvisation in internal and marketing strategies makes better profits for the
company.
Currently the company takes 90% of its orders comes via restaurant partners while the
rest of the 10% order comes via the cloud kitchen unit.
The following tabular representation show the detailed operations of the cloud kitchen unit
Sn.no Criterion of operations Statistical data
The current market leader in cloud kitchen domain is Y, a two year old start-up having
a market share of 31%. Y operates through food aggregators and is growing rapidly.
The following pie chart shows the use of funds for meeting the total expenditure by Y
TOTAL EXPENDITURE
SALARIES
RAW MATERIALS 12%
25%
TECH
MANAGEMENT
23%
MAINTAINENCE
10%
MARKETING
30%
PROBLEM STATEMENT
X has a majority investor Softbank who has a veto in the decision making process of the
company. X has raised a Rs. 700 crore round and the board has decided to use this amount to
do two equally important things as stated below-
The company wants to expand its venture in 2 countries- C and D . C shares
demographics with India and D on other hand shares it’s demographics with USA.
The board wants to acquire at least 1% market share in both C and D. State the amount
and projected market share in both C and D.
The company wants to expand its cloud kitchen such that it takes the bigger slice of
the total orders and increases profitability. The company’s board wants to increase the
current market share of 7% to at least 12%.
Softbank hired you as a consultant and wants to optimise the situation with the above
constraints.
Provide a fixed number to each stated operation and then back it up by your
reasoning/hypothesis and strategy the company must take to maximize the operations
in both the cases.
You can refer to the cost structure charts for optimising and strategizing the operations.