Zomato PESTEL Analysis
Info: 902 words (4 pages) PESTEL Example
Published: 2nd Nov 2020
Any business firm wishing to enter the overseas market is highly prone to political risks. The political decisions made by a host country are likely to affect the organisational productivity and profitability (Deshpande, 2016). Extreme political actions can very detrimental. The digital India campaign that was recently launched by the country's Prime Minister Narendra Modi is more likely to allow the company to get more internet penetration in India and everyone can easily access from every corner of the market (Deshpande, 2016). Zomato can exploit this opportunity to cover many restaurants of cities using the Digital India Campaign. The Indian government puts more focus on ease of doing business in the country because it encourages foreign direct investment (Deshpande, 2016). In this regard, Zomato can be a beneficiary with such kinds of investment. The government puts emphasis on skill development among the youths who will eventually help many people with skills and knowledge. Zomato requires skilled people to enable it to penetrate and establish itself in the market (Wikiwealth, 2017). In this case, Zomato can hire skilled people from the Pradhan Mantri Kaushal Vikas Yojana program that develops skills of the youths.
Between the periods of 2011 and 2014, Zomato achieved an overwhelming growth by 1399%. This comes as a result of its tremendous achievements in 22 countries, thus, contributing effectively to economies of the countries. Besides, there is a potential rise in service prices after the country announced a service tax from 12.36% to 14% (Deshpande, 2016). This move is likely to affect the economic well-being of Zomato. Furthermore, the company is initiating cashless transaction aimed at creating jobs in different countries (Chakraborty, 2016). As it stands, the company has 2319 employees, and it has somehow managed to solve the unemployment problems in the country (Deshpande, 2016). Lastly, the company attracts several investments as well as funding from the government and foreign investment, all of which are good for the country's economy.
In the last six years, Zomato has turned out to be the country's favourite online restaurant discovery tool. However, it has influenced the manner in which individuals select their preferred restaurants. The changing lifestyle patterns and income levels of the Indian working population, and this is advantageous to Zomato (Wikiwealth, 2017). This is because; many young people and new age working couples like eat out, with this category attracting about 30% in 2012 (Deshpande, 2016). For this reason, user engagement in its website is therefore critical for customer participation. Finally, customer service Zomato has been amazing and going by the friendly replies from the customers, the company has managed to maintain customer loyalty (Chakraborty, 2016). As a dimension of social engagement with people, Zomato stays ahead over its competitors.
Zomato has enjoyed a greater advantage by using technology in designing a beautiful user interface that makes it easier for the users to browse (Wikiwealth, 2017). One advantage that Zomato continues to enjoy out of this kind of technological innovation is that the service is much faster despite the fact that the high resolution is needed for the menus. In essence, the technology encourages online services. For example, incorporating what the restaurant into mobile app helps the customers to select the restaurant on the go. According to Deshpande (2016), the restaurant information is customised in a manner that the customer to obtain the information he or she needs without necessarily making a hassle. Technology also makes the company have a good business model that keeps the customers' information (Wikiwealth, 2017). The only thing a customer is required to do is to log and use the service. This move exposes the company to a competitive environment with the likes Google. However, since the product is purely made to for Indian restaurants, it cannot serve the demands of the global market. Therefore, Zomato has used technology effectively to achieve competitive advantage (Deshpande, 2016).
Achieving business sustainability is dependent on how the company addresses the ecological requirements (Deshpande, 2016). Being a service company, there are no significant environmental impacts from Zomato Company.
The company is required by the Indian law to comply with all regulations that control technology firms in the country (Wikiwealth, 2017). This ensures that it is used effectively without being subjected to abuse.
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