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·     With the growth of online demand, many companies have taken upon the opportunity to use this at their advantage or even create a new market to be first established.

·     An example of this is the online on-demand food delivery service market which has significantly grown over the years.

·     CAGR predicts this market will grow up to 32% from 2017 to 2021 as it is a fast-growing dynamic market.

·     A significant market driver is it is convenient and easily accessible as with a touch and type of a button consumers can choose from a wide range of cuisines and be able to get it within a specific timeframe.

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When choosing what brand to analyse within this market specifically, I chose JustEat which was the first to enter this market and aims to ‘provide customers with an easy and secure way to order and pay for food from their restaurant partners’.

This company acts as an intermediary between independent restaurants or takeaways and consumers. JustEat is then able to receive 13% commission from these restaurants and payment from customers as well as the direct delivery charge and 50p surcharge on card payments.

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JustEat is well established in the food delivery market however they do have high threats to new entrants (porters five forces). This is because this market is very popular new businesses or existing businesses are trying to take this opportunity and enter the market. For example, a recent entrant is amazon who is now delivering takeaway even though they are best known for selling product retailer online. Other competitors who JustEat face include: Deliveroo and UberEats.

Deliveroo is currently trying to compete fiercely with JustEat by expanding it operations into new restaurants and an increase in advertising.

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Revenue- £546.3m
Increased by 42%

Net operating cash flow £166.7m.
Increased by 72%

From it's financial report it shows it's main geographical market is the United Kingdom.

This shows a strong cash flow which strengthens JustEat and enables them to invest in significant new opportunities.

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Geographic- JustEat is a wide spread business as more restaurants want to partner with JustEat to supply food to consumers. Over time, JustEat continues to expand it's operations worldwide through ventures, acquisitions and mergers. For example, the acquisition of HungryHouse. The Annual Report published by JustEat shows active customers have grown by 22% to 21.5 million and is predicted to increase further.

Socio- demographic- the main consumer for JustEat is young people. This shows that these individual want more convenience and easy availability for food.

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JustEat need to be able to provide a service when delivering the products where it reduces congestion and pollution. This is because the use of delivery motorcycles is not environmentally friendly.

Moreover, JustEat has expanded it's trail of 100% compostable and biodegradable sauce ratchets in restaurants in London. This helps to tackle plastic pollution. This shows that JustEat are trying to be more environmentally friendly which in turn can help improve their brand image.

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In order to understand JustEat better I decided to conduct a PESTLE analysis in order to see how to company operates in their environment and to examine other agencies external.

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Strengths

The company has a successful history of expansion and implementing complimentary firms such as RestauranteWeb in Brazil through techniques like merges, joint ventures and acquisitions.

This enabled them to gain a solid foundation in their markets through the world. In addition to that, they were able to incorporate even technological firms to restructure their operations and create a reliable and efficient supply chain.

JustEat currently has a strong cash flow which means that if they want to continue growing as a business, they have the resources available to do so or even take upon new opportunities. For example, in their annual account report in 2017, it should a 72% increase in net operating cash flow. In addition to that, the company will have the capability to borrow money from banks and other sources.

Weaknesses

With JustEat the service lacks personal interaction between the takeaway company and consumer. This causes a lack of communication which can mean the consumers needs are not fulfilled as they may have a direct request from the food service however due to the use of JustEat it makes it difficult to do so.

JustEat has recently been receiving negative publicity from the media. This includes the food being received as not being up to hygiene standards. This is the long-term ruins their reputation and brand image as well as reduce their customer loyalty.

Opportunity

The Competition and Market Authority has allowed JustEat to acquire rival HungryHouse, a deal worth £240 million. HungryHouse is a weak competitor however it offers an expansion in the geographical area.

They have just announced the acquisition of Canadian firm SkipTheDishes.

Threat

Analysing Porter five force the market suffers from the high threat of new entrants such as UberEATS and Deliveroo. The market has a rapid expansion of innovative suppliers showing high competitive rivalry (Porters five forces). Meaning JustEat needs to gain a unique selling point to get a competitive advantage.

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·     The UK economy and its future is quite uncertain due to EU negotiations continue.

·     Many argue that with this big move it will carry out significant costs to businesses and its consumers if the EU and UK do not create an agreement in regards to trading.

·     This means that for JustEat this will affect them as it will mean that their partnerships with restaurants may weaken as these restaurant may find it difficult to survive in this environment as the costs will increase especially in procedures (importing new food) and strict trade requirements with additional tariffs to pay.

·     This means leaving the single market costs predict to increase to £1.2billion in the food industry, it means that JustEat will need to find a solution in order to deal with this extra outflow such as increasing their commission or charges to customers.

·     Additionally, migrants will look for jobs elsewhere as further requirements will be needed to work in the country and will face less job opportunities.

·     This means that JustEat needs to be able to adapt and think of their future of how they will adapt in order to support their partnerships and continue to have a strong position in the market.

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Market map for the on-demand food delivery service market:

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Market map for the on-demand food delivery service market:

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From this diagram it is comparing JustEat and it's competitors with two factors:

1) Choice of cuisine- limited or wide.

2) Location availability- limited or numerous.

This diagram shows that JustEat holds a strong position in the market map due to a wider location availability, which means that it reaches a wider audience. Furthermore, it has a wider service portfolio of cuisines compared to rivals which means they are able to satisfy customer needs more sufficiently.

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JustEat has already has the upper hand as they were already about to see a gap in the market of the food delivery service platform. However, the innovation of technology continues to grow especially of those aged 16-24 the market who uses JustEats platform. This means that Just Eat needs to continue to update it app and provide features it competitors will not provide. For example, JustEat is in the discussion of providing a comment section in it's app to empower customers to review what they received and the service that was provided.

In addition, JustEat is trying to cut out the middle man in the service by providing an automatous kitchen which speaks directly with the app order.

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JustEat is a multi-sided business platform which means it has two different interdependent customer segments:

Direct consumers: these are the individual who want to order food from these restaurants through JustEat platform. The target market in particular is 16-34 young professionals who require a convenient quick food service due to their busy life style. They hope to offer a wide choice at any time or day to their customers. JustEat believe to drive customer loyalty it is about a wider food availability.

Restaurant and takeaway partners: the foodservice businesses who offer the goods the customer wants and want to expand their operates beyond traditional channels of distribution channels.JustEats vision is to help them to reach a wide range of consumers, support these businesses and improve standards.

JustEat is both a B2B and B2C company. This means that it needs to satisfy both segments. They will have two different value propositions. For example, the B2B (JustEat to restaurants/ takeaways) need to enable far reaching promotions- advertising which ensures a wide range of customers are likely to chose JustEat to order from these restaurants. For the business to consumer, JustEat needs need to provide a  platform in which consumers are able to browse, compare, order good and securely pay in order to get this service within a particular area and time frame.

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·     The UK Government has been under put under pressure by online food delivery platforms such as JustEat to alleviate laws on immigration in order to enable more Indian and Chinese chefs to gain entry to the UK to meet demands in these cuisines in their product range.

·     In regards with JustEat it works with over 28,000 restaurants and takeaways as the demand for home delivered food is on the rise however due to short staffing it is not clear on the future long-term survival of these restaurants.

·     The UK government currently have a list of shortage occupations which are consider in visa decisions which include chefs, however it only includes restaurant chefs not takeaway services.

·     Furthermore, these laws will be further restricted since the UK will be leaving the EU.

·     Some would that if this is such as problem then these restaurants and takeaways need to invest further into training staff in order to provide more authentic and high-quality cuisine.

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JustEat are suffering backlash after employees arguing they are being prevented in joining a union and gaining better working rights.

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2017- the global marketing strategy was to drive brand fame and target those consumer segments who still order their takeaway using the telephone. JustEats brand spent  £23 million and was supported by our entrepreneurial country teams investing in local high profile projects including Dublin bikes.

UK, JustEat was sponsored by The X Factor, to help drive up our awareness levels to new highs.

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JustEat will be under criticism for partnering with takeaway companies who serve foods that is high in saturated fats and sugars. This is because due to this affecting health and causing an increase in obesity companies like JustEat should increase prices in order to deter consumers from purchasing an unhealthy meal, instead choosing to make someone homemade and healthy. This means that JustEat needs to be able to be ready for this and adapt their operations in order to still be successful in this industry.

Furthermore, with the current day and age it has numerous growing trends and different eating practices. This means that for JustEat need to partner with restaurants that are able to meet different needs of consumers such as vegans (a growing eating practice). This enables JustEat to compete fiercely compared to their rivals, providing a competitive advantage.