Swot Analysis of Zomato

The consumer behavior of the people is changing, earlier the people used to prefer eating homemade food and dining out in their favorite restaurants. But now, in order to save time, the people prefer to get food simply sitting at home from their favorite restaurants by just ordering it online. The online food business has flourished due to digital marketing across the globe.

Many companies have entered this field. One of them is Zomato. Zomato is a company that delivers food as ordered by the customers from their favorite restaurant. This company was established with the concept to solve the problems of the customers. Zomato was established in December 2008 by two partners Deepinder Goyal and Pankaj Chaddah in Delhi. It was primarily named as Foodie Bay, then later named as Zomato after the name of Tomato. Zomato is present all around the globe like the United States, Canada, Australia, and many other countries.

Zomato has launched the Zomato App, so that the customers can order the food easily. This app is user friendly. The people can order the food while sitting anywhere from their favourite restaurant in just one click. This app also provides the facility to 

• rate the and give feedback to the restaurants by the customers.
•   Zomato also helps the customers to book the table beforehand in their favourite restaurant.
• It has also started delivering groceries at the doorsteps of the people.

Swot Analysis

Swot analysis makes the company analyse its strength, weakness, opportunities and threat , So that the company can perform marketing strategy by analysing these features. This analysis is done by all the companies. 

Zomato Company Details

Swot Analysis of Zomato

Strength

• Globally Present– Zomato is globally present in 24 countries of the world. They are also trying to expand their network in other countries. It also enjoys a market share of 56-57% in the food delivery market.
• Market dominance in India– In the Food delivery outlets Zomato is considered as the number one industry, as it has partnership with very good restaurants . It also tries to deliver the food on time.
• Own fleet of people– Zomato has its own fleet of service boys.
• Strong goodwill in the market – Zomato enjoys a strong goodwill in the market. The customers are very much satisfied with their delivery services and booking their table for dining out. They also have tied up with restaurants from which most people order from.
• Reviews and feedback– The very good aspect of Zomato is that we can give reviews and feedback about the restaurants from which the food is ordered. Thus, indirectly it also helps the restaurant owners to improve their quality of food.
• Customer Support– Zomato Customer support is very strong in handling queries and complaints. 

Weakness

• Charges of the food are high– The rate of food listed in the menu of Zomato is high as compared to customers themselves visiting the restaurant and purchasing it. Zomato also takes delivery charges from the customers , leading to very high prices of food.
• Changes in prices during festive season– Zomato raises its prices too high during festive seasons.
• Handling is not good– Some Zomato delivery men deliver the food on cycle, thus the food becomes cold and loses its quality till it reaches the customers.
• Restaurant owners also suffer– Zomato delists the restaurant owners more often.
• Delivery Man- Zomato gives Rs 50 to Rs 60 per food delivery to its delivery man. It does not support its delivery people.

Opportunity

• Widen its network- Zomato should try to widen its network even in villages.
• Collaborations- Zomato can increase its sales and revenue by collaborating with the local delivery restaurants of other countries.
• Increase its sales– Zomato can increase its sales by introducing other attractive measures like
• For loyal members it should give free movie tickets
• It should give points to the members to regularly order the product from their apps, and then afterwards they can encash their points.
• They should update their app on a daily basis.
• Expand their business into other sectors- The company should also try to expand their business into other sectors like booking of hotel rooms and booking airline tickets.

Threat

• Competitors– The main threat to the company is from its competitors like swiggy, Door dash, dineout etc.
• Customers change in preferences– The customers are not loyal in this industry, as they continuously shift. They buy the food from where they get more discount.
• Cybersecurity risk- Once Zomato data was stolen by the hackers. Thus, there is a great risk in data leakage

Thus, SWOT analysis is very important for every company. Even though the company has weakness which is shown in swot analysis matrix Zomato is trying to overcome. In spite of that Zomato acquires the number one position in the Indian market beating its competitor Swiggy. Its turnover in 2024 is Rs 12961 compared to Rs 7761 crore in 2023.