Post on 09-Jan-2017
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ZomatoTransforming the Global Restaurant Business
MT5016: Business Model for High-Tech Products
National University of Singapore
Introduction
Business Model
Value Proposition
Customers
Scope of Activity
Value Capture
Scope Extension
Competitor
Strategic Control
Introduction
Food is a Necessity
Convenience
Technology
Self-actualization
Esteem
Love / Belonging
Safety
Food
Food discovery application
23 countries
62.5 million registered users
9 languages
90 million visits monthly
1.4 millions restaurant listings
Founded: 2008
Business model
Business Model
User Restaurant
• Restaurant Pays Zomato for being featured
• More Customer footfall for the restaurant
• User Views restaurant
Increasing value for restaurants, users & Zomato with more users & restaurants
Network Effect
Restaurants Users
Attracted by More Users
Attracted by More Restaurants
Revenue Sources
Source
http://techcircle.vccircle.com/2015/06/04/zomatos-revenue-and-operating-loss-more-than-
tripled-last-year-meritnations-growth-slowed/
Source
http://www.medianama.com/2013/06/223-chart-zomato-
revenue-split-fy13/
2.8%
1.5%
95.7%
Latest Update:
Feb 8th 2016: Zomato breaks even in 6 countries
out of portfolio of 23 countries.
Core Competency
Field Teams
App / Website Platform
Customer Service
User & Restaurant
Database
Restaurant Advertising
Key ActivitiesKey Resources
Data Analysis
Zomato maintains a strong internal structure to complement their business model
• Abundant dining options
• Ease decision making process while saving time
Location
Rates
Menu
Reviews
Promotions
Share
experience
Find restaurants
nearby
Accurate
Information
Personal
ProfileIts weekend. I want
to eat something
Dine in
Value Proposition - Users
Zomato enable restaurants to:
Customer Service &
EngagementTargeted Advertising
Improved Visibility Manage Online Presence Track Performance
Event Management
Value Proposition - Restaurants
Customers
Customer Groups
Medium
Luxury
Small
Convenience Seekers
Tourists
Restaurants Users
Food lovers
Customer Channels
App for Business
Field Teams
Dedicated iPad
App for User
Advertising
Customer Care
User
Restaurant
Zomato maintains different channels of communication with their Customers
Scope of activities
Restaurant business is fragmented
Zomato is tying up the industry
Vertical disintegration of the restaurant
business
Restaurant Business
Beverages
Food
Customer services Restaurant visibility
Food delivery
Cashless payment
Table management
Food supplyKitchen appliances
Furnishing
Zomato sees an opportunity to
broaden its scope of activities
Value network for restaurant business
Visibility
Online listing
Advertisement
Services
Food delivery
Restaurant Solution
POS system
Table management
Inventory
Suppliers
Equipment
Food
Furniture
Consulting
Design
Menu engineering
ExpansionRestaurant Customers
Online platform
Food order
Table reservation
Value network for restaurant business
Visibility
Online listing
Advertisement
Services
Food delivery
Restaurant Solution
POS system
Table management
Inventory
Suppliers
Equipment
Food
Furniture
Consulting
Design
Menu engineering
ExpansionRestaurant Customers
Online platform
Food order
Table reservation
Value network for restaurant business
Visibility
Online listing
Advertisement
Services
Food delivery
Restaurant Solution
POS system
Table management
Inventory
Suppliers
Equipment
Food
Furniture
Consulting
Design
Menu engineering
ExpansionRestaurant Customers
Online platform
Food order
Table reservation
+ =DATASTRONG NETWORK
EFFECTNEW PRODUCTS
NEW SERVICES
COMPETITIVE ADVANTAGES
Capturing new values in the restaurant business value
network
Zomato is vertically integrating
restaurant business
Value chain in restaurant business
Supplier value chain
Equipments seller
Furnitures seller
Food supplier
Channel value chain
Advertisement
Online listing
Online presence
Food delivery
Customers value chain
CRM
Cashless payment
Comfort
Quality food
Restaurant value chain
POS system
Reservation
Table management
Value chain in restaurant business
Supplier value chain
Equipments seller
Furnitures seller
Food supplier
Channel value chain
Advertisement
Online listing
Online presence
Food delivery
Customers value chain
CRM
Cashless payment
Comfort
Quality food
Restaurant value chain
POS system
Reservation
Table management
Zomato’s scope of
activities
Zomato for business
Answer reviews, analytics,
manage deals and events.
Zomato order
Online delivery orders
Zomato Base
Cloud-based POS system
Zomato Book
Table management
and reservations
Zomato Whitelabel
Personalized restaurant
smartphone apps
Zomato Widgets
Widgets for restaurant
Value capture
Market where Zomato is performing well :
India Philippines Indonesia Middle East Australia New Zealand
Capturing value with full stack
features
Focus on growing app penetration and ecosystem :
Zomato public app Zomato business app Zomato Advertisement
Zomato Order Zomato Base Zomato Book
Zomato Whitelabel Zomato Widget
Focusing on Enterprise Features, mainly on “Zomato Book” for market characterized by:
Small Size
Slow Economic Growth
Zomato is not dominant
Capturing value with enterprise features
Full-Stack
Full-Stack
Full-Stack
Full-Stack
Full-Stack
Full-Stack
Enterprise
Enterprise
Enterprise
Enterprise
Enterprise
EnterpriseEnterprise
Proposed Extension of
Scope
Value network for restaurant business
Visibility
Online listing
Advertisement
Services
Food delivery
Restaurant Solution
POS system
Table management
Inventory
Suppliers
Equipment
Food
Furniture
Consulting
Design
Menu engineering
ExpansionRestaurant Customers
Online platform
Food order
Table reservation
Value network for restaurant business
Visibility
Online listing
Advertisement
Services
Food delivery
Restaurant Solution
POS system
Table management
Inventory
Suppliers
Equipment
Food
Furniture
Consulting
Design
Menu engineering
ExpansionRestaurant Customers
Online platform
Food order
Table reservation
• Connect restaurants to suppliers
• Advertising platform for suppliers to 1.4 million restaurants
Supplier Restaurant
Zomato Supply
Database
Zomato Consultancy
Output
Provide advice to restaurants
• Restaurant database
• User data
• POS data
• Open data
Input
Knowledge from large database
Data
Analytics
Where
How
What
Zomato Partners
UberTaxi
Book a taxi to the restaurant by
Uber
UberRush
Order food through Uber’s food
delivery service
• Leverage its position and partner with other technologies
• Create synergies and add value to their product
Zomato Partners
Value Proposition
Users
• Convenient
• More restaurants choices
Restaurants
• Profitability: Reach a new segment
of customers
Catering options for travelers around railway stations
Station A Station B
Indian railways
Zomato Cook
Local Cooks
Connecting local cooks and people who want home-cooked food
Foodies/
Tourists
Competitor Analysis
Competitors
Since Zomato is expanding drastically, they face competition in different areas:
Geographic Service-based Technology-based
Local Players
IncumbentsFood Delivery
POS System
Search Engine
Recommendation System
Online Platform Food deliveryRestaurant
search & discovery
Restaurants guide,
shopping, entertainment,
& hospital reviews
Countries40
India, Singapore etc.
23
India, Australia etc.
32
USA, Europe etc.
Found 2012 2008 2004
Monthly
Users(million)4.5 90 160
Competitors
0
1
2
3
4
5
Delivery
Service
Advertisement POS Restaurant
Solution
Partnership Global
Presence
Ra
tin
g
Zomato
Foodpanda
Yelp
TakeoverCompetitors
Strategic Control
Growth Strategy
Entry into new
markets
Increase revenue sources
Boost network effect
Faster customer
acquisition
Visibility &
MarketingEntry timing Capture initial
customer base
NZ Czech Republic AU, CA, NZ, IE, UK, US US
Jul 14 Aug 14 Aug 14 Dec 14 Jan 15 Jan 15 Apr 15
• Natural growth in 16 countries,
• Acquisitions in 7 countries
Slovakia ItalyTurkey
Acquisitions
Growth Strategy
Thank You