This document discusses competition analysis for food delivery services in Portugal. It analyzes competitors using Porter's Five Forces and SWOT analyses. It also segments the market and estimates total addressable market and serviceable available market sizes using top-down and keyword search traffic methods. Key lessons learned included understanding customer problems and solutions through hypothesis testing, thorough competitor analysis, customer segmentation, and accurate market sizing.

1. March 9, 2015
CLASS PRESENTATION 4
Chief
Food
Officers

2. Agenda
Market sizing2
Competition1
Lessons learned3

3. Limited Competition from Rivals and Entrants
Rivalry
+ Few comparable firms
+ Industry growth
+ Sustainable competitive advantage
Supplier
Power
+ Low concentration and low differentiation
+ Potentially strong distribution channel
- Strong business impact
Substitutes
+ No alternatives with comparable
performance
Buyer
Power
+ Low concentration
± Low switching costs
+ Differential advantage
New
Entrants
- Low entry barriers
± Medium capital requirement
- Global players with EoS and experience
+ Scalability of our business model
Rivalry
Low
Substitutes
Low
Buyers
Low
Suppliers
Low
New
Entrants
MediumSubject of
further analysis
COMPETITION | MARKET SIZING | LESSONS LEARNED

4. SWOT: YUM NEXT DOOR
WEAKNESSES
- Difficulty in ensure food
quality at delivery
- Customers may not see
the differentiation
STRENGTHS
+ Great food variety
+ Customer relationship
+ Usability & automation
+ Leveraging network
effects as first movers
+ Economies of scale
OPPORTUNITIES
+ Trend towards mobile
+ Internationalization
THREATS
- Few entrance barriers
- Entrants w/ higher
performance & scalable
business models
- Portuguse consumer
behavior (?)
COMPETITION | MARKET SIZING | LESSONS LEARNED

5. SWOT: Food Ordering Portugal
WEAKNESSES
- Long delivery times
- Poor usability
- Little automization
- Poor variety
- Poor online marketing
STRENGTHS
+ Partnerships
+ Coverage and
established customer
basis
+ Brand (e.g. Telepizza)
OPPORTUNITIES
+ Leverage customer
basis and partner
network to go digital
THREATS
- Seasonality
- Entrants w/ higher
performance & scalable
business models
COMPETITION | MARKET SIZING | LESSONS LEARNED

6. SWOT: Online Food Ordering International
WEAKNESSES
- Little differentiation
- Minimum order values
STRENGTHS
+ Economies of scale
+ Global footprint
+ Partnerships & variety
+ Fast delivery
+ Mobile applications
+ Advertising
OPPORTUNITIES
+ Further
internationalization
+ Further leverage
advertising for growth
+ Mobile commerce
growth
THREATS
- Dependence on
restaurants for delivery
- High reliance on fast-
food but changing
consumption trends
COMPETITION | MARKET SIZING | LESSONS LEARNED

7. SWOT: Restaurant Listings Portugal
WEAKNESSES
- Only information, no
transaction
- Dependence on
advertising revenue
STRENGTHS
+ Broad variety of
restaurants
+ Usability (customized
site, filters, easy
search)
+ Credibility and trust
OPPORTUNITIES
+ Online market
+ Internationalization
+ New services (online
booking and ordering)
+ Consulting services for
additional revenue
THREATS
- Competition, e.g.from
websites offering
delivery or booking
- Seasonality
COMPETITION | MARKET SIZING | LESSONS LEARNED

8. Market Sizing: Top – Down
TAM
 CS1: Students, Internet access: 351k
 CS2: Professionals, 18-55 years, high education, Internet access: 2.157 m
SAM
 CS1: Students, Internet access: 108k
 CS2: Professionals, 18-55 years, high education, Internet access: 329k
SOM
 CS1: Students, Internet access: 11k
 CS2: Professionals, 18-55 years, high education, Internet access: 33k
2.5m
437k
44k
COMPETITION | MARKET SIZING | LESSONS LEARNED
Geography:
Lisbon
Market Share:
10%
Sources: INE, PORDATA, Census 2011

9. Market Sizing: Google Keyword Planner
COMPETITION | MARKET SIZING | LESSONS LEARNED
Traffic Source Traffic % Telepizza (100%) Zomato (100%) Tripadvisor (25%) NoMenu (100%) Total
TAM Brand Search 40% 165,000 12,100 18,500 6,600 202,200
Direct 40% 165,000 12,100 18,500 6,600 202,200
Referral 20% 82,500 6,050 9,250 3,300 101,100
100% 412,500 30,250 46,250 16,500 505,500
Food-related Search 4,900
Total 510,400
SAM Brand Search 40% 74,000 9,900 6,750 3,600 94,250
Direct 40% 74,000 9,900 6,750 3,600 94,250
Referral 20% 37,000 4,950 3,375 1,800 47,125
185,000 24,750 16,875 9,000 235,625
Food-related Search 1,960
Total 237,585
Explanation
 Total: traffic on major brands and through
food-related keywords
 Portugal as TAM, Lisbon area as SAM
 Traffic % based on own assumptions
using indications from Alexa
 Search traffic estimations from Google
Keyword Planner

10. Lessons Learned
COMPETITION | MARKET SIZING | LESSONS LEARNED
 Customers – problems - solutions
 Hypothesis testing
 Competitor analysis: 5 Forces & SWOT
 Customer segmentation
 Market sizing and traffic estimation

11. Thank you!
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