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Present a comprehensive assessment of the MNCs competitive environment (industry characteristics) emphasizing the key industry globalization drivers and factors that actually influenced the MNCs globalization. Present an outline of the generic global strategy (Ghemawat 2007) that the company has adopted. Moreover, using the Barlett and Ghoshal framework, assess the company’s stage of internationalization and the corresponding global strategy it is using. What kind of organizational structure is the company using in managing its international operations? Do you see a fit in strategy and structure?

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Elvis Erics Group Lead

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1. Elvis Erics 3823820

2. Kyei Gyamfuah Peggy 3826320

3. Bernice Serwaa Nyarko 3829420

4. Bright Nuetey 3829320

5. Nana Ama Mermaa Osei-Bonsu 3831420

6. Ivan Obeng Asare 3818720

7. Yaa Serwaa Nhyira Amoateng-3835920

8. Calvina Boafo 3821820

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This unit should present the official registered name of the company, year of formation, name of founder(s), and country of origin. Next you present a track record of the company’s growth path including how it has expanded in terms of market coverage, number of employees, product range, assets, and sales volumes. You can use graphs and tables if possible

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Present an outline of the key organizational assets i.e. Tangible Assets, Intangible Assets and Capabilities. In comparison to key competitors, what are the Glovo's core competencies?

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Given the environmental assessment and the RBV analysis, would you recommend that the MNC holds on to its competitive advantage position or you will recommend a shift in paradigm in terms acquiring new assets, capabilities and competences or a fundamental change in global strategy

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Official Registered Name of the Company

Year of Formation

Name of Founder(s)

Country of Origin

Track Record of Growth Path:

Market Coverage

Number of Employees

Product Range

Assets

Sales Volumes

Use of Graphs and Tables

In case you find any that will represent all the information above.

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Competitive Environment (Industry Characteristics)

Key Industry Globalization Drivers

Factors Influencing MNCs' Globalization

Tags:

Industry Characteristics

Globalization Drivers

Factors Influencing Globalization

Generic Global Strategy (Ghemawat 2007)

Outline of the Strategy Adopted by Glovo

Tags:

Global Strategy

Ghemawat's Globalization Framework

Barlett and Ghoshal Framework Assessment

Stage of Internationalization

Corresponding Global Strategy (Transnational, Multinational, Global, International)

Tags:

Barlett and Ghoshal Framework

Internationalization Stage

Global Strategy Types

Organizational Structure for International Operations

Type of Organizational Structure Used by Glovo

Fit between Strategy and Structure

Tags:

Organizational Structure

International Operations Management

Strategy-Structure Fit

These tags should make one paragraph each

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Ensure to provide detailed descriptions and analysis of each asset category (tangible, intangible, capabilities) and how they contribute to Glovo's competitive advantage. Comparative analysis with competitors will provide insights into Glovo's strengths and areas where it excels in the market.

Outline of Key Organizational Assets:

Tangible Assets

Intangible Assets

Capabilities

Tags:

Tangible Assets

Intangible Assets

Organizational Capabilities

Comparison of Core Competencies with Key Competitors:

Identify Glovo's Core Competencies

Compare with Competitors' Core Competencies

Tags:

Core Competencies

Competitive Analysis

Competitor Comparison

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1. Summary of Environmental Assessment:

Key findings from the environmental assessment (economic, social, technological, etc.)

Tags:

Environmental Assessment

Key Findings

2. RBV Analysis:

Identification of Glovo's key resources, capabilities, and core competencies

Assessment of how these contribute to its competitive advantage

Tags:

RBV Analysis

Key Resources and Capabilities

Competitive Advantage

3. Recommendations:

Recommendation on whether Glovo should maintain its current competitive advantage position

Consideration of acquiring new assets, capabilities, and competences if needed

Evaluation of potential fundamental changes in global strategy (if applicable)

Tags:

Recommendations

Competitive Advantage Strategy

Acquiring New Assets

Global Strategy Change

Discuss the feasibility, risks, and potential benefits of any recommended shifts in strategy or acquisition of new assets. This will provide a clear and actionable conclusion for your research

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Kindly put links to all your sources here

References

1.   ^ Rennolds, Lucas Gª Alcalde, Nathan. "How Glovo co-founder Oscar Pierre helped build a startup worth $2.6 billion". Business Insider. Retrieved 9 June 2023.

2.   ^ "Home". Conector (in European Spanish). Retrieved 9 June 2023.

3.   ^ "TechCrunch is part of the Yahoo family of brands". consent.yahoo.com. Archived from the original on 9 June 2023. Retrieved 9 June 2023.

4.   ^ Gonzalez, Alberto (27 February 2023). "Top 20: The reference venture builders in Europe, country by country". Marketing 4 Ecommerce – Tu revista de marketing online para e-commerce. Retrieved 9 June 2023.

5.   ^ "Delivery Hero picks up Glovo's LatAm ops for $272M in latest food delivery consolidation – TechCrunch".

6.   ^ Thykjaer, Christina; Faus, Joan (21 September 2022). "Spain fines Delivery Hero's Glovo $78 mln for hiring breaches". Reuters. Retrieved 22 September 2022.

7.   ^ "Why Delivery Hero is acquiring a majority stake in Spanish delivery company Glovo".

8.   ^ "European competition watchdog raids Delivery Hero and Glovo". RetailDetail. Retrieved 12 December 2022.

9.   ^ "Delivery Hero becomes majority shareholder of Glovo". YPOG. Retrieved 12 December 2022.

10. ^ "Brazil's Banco Safra buys Alfa financial conglomerate for $192 mln". elEconomista.es (in Spanish). Retrieved 12 December 2022.

11. ^ Gowran, Leigh Mc (21 January 2022). "Glovo claims to be first carbon-neutral player in the delivery industry". Silicon Republic. Retrieved 9 June 2023.

12. ^ "Home – Glovo Corporate Site". Glovo Corporate. Retrieved 9 June 2023.

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Kindly put links to all your sources here

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Kindly put links to all your sources here

Case study on GLOVO App: https://www2.deloitte.com/es/es/pages/technology/articles/glovo.html

Gig Economy Model: https://www.ft.com/content/b894c50a-02f0-11ea-b7bc-f3fa4e77dd47

Integration with Local markets: https://www.forbes.com/sites/marcellusbuchheit/2021/06/03/how-glovo-is-localizing-its-delivery-business/

Brand and Marleting Strategy: https://www.marketingweek.com/glovo-brand-strategy/

Market Adaptability: https://techcrunch.com/2021/07/01/glovo-expands-across-40-cities-in-africa/

Cost Management Strategies: https://www.businessinsider.com/glovo-business-model-analysis-2021-4

Financial Health: https://www.crunchbase.com/organization/glovo

Algorithms for Delivery Optimization: https://www.techradar.com/news/how-glovo-uses-algorithms-to-make-deliveries-smarter

Data Analytics Capabilities: https://sloanreview.mit.edu/article/glovo-uses-data-analytics-to-drive-on-demand-delivery/

Operational Model: https://hbr.org/product/glovo-optimizing-on-demand-delivery-service/IN1086-PDF-ENG

Dark Stores and Inventory Management: https://www.retaildive.com/news/how-glovo-is-using-dark-stores-to-disrupt-grocery-delivery/600621/

Service Customization and User experience: https://uxdesign.cc/how-glovo-enhances-customer-experience-through-app-design-1d4f18e1c5e8

Customer Feedback and Adaptation: https://cxm.co.uk/how-glovo-integrates-customer-feedback-into-service-improvements/

GLOVO’s Courier Fleet: https://glovoapp.com/en/courier

GLOVO’s Technology Overview: https://jobs.lever.co/glovo/technology

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Resource Based View Analysis - GLOVO

Resource-Based View (RBV) analysis is a strategic framework that focuses on assessing a company’s internal resources and capabilities to understand how they can be used to achieve a competitive edge. It shades the importance of unique, valuable, and hard-to-imitate assets like expertise, technology, or brand strength, in maintaining a long-term competitive advantage as against its competitors.

Overview of GLOVO’s Tangible Assets

A. Technological Infrastructure

Platform and App: Glovo’s platform and mobile application are central to its operations, serving as the primary interface for customers and couriers. These tools are engineered to handle high volumes of transactions, support multi-language options, and integrate various payment systems.

Data Centers: Glovo invests in robust data centers and cloud infrastructure, which ensure the reliability, availability, and security of its services. This infrastructure supports real-time data processing and analytics essential for operations and decision-making.

B. Courier Fleet

Fleet Management: Glovo’s fleet consists of freelance couriers using personal vehicles or bicycles, complemented by partnerships with third-party logistics providers. This model provides flexibility allowing them to expand or contract its delivery capacity in response to demand fluctuations.

Delivery Equipment: To ensure the quality of deliveries, Glovo provides couriers with essential delivery gear, such as thermal bags and GPS-enabled smartphones for navigation and tracking.

C. Office and Logistics Facilities

Regional Offices: Glovo maintains regional offices and hubs that support local operations, including recruitment, training, and logistics coordination.

Warehouses and Dark Stores: The company uses warehouses and “dark stores” (retail locations not open to the public) for inventory storage and fulfillment, particularly for grocery deliveries. This infrastructure allows for efficient stocking and quick dispatching of goods.

Overview of GLOVO’s Intangible Assets

A. Brand Equity

Market Reputation: Glovo has developed a strong brand known for reliability, convenience, and a wide range of delivery services. This reputation enhances customer loyalty and attracts new users through word-of-mouth and good recommendations.

Marketing and Advertising: Intense marketing campaigns, both online and offline, have built brand recognition. Glovo’s branding strategies emphasize convenience and diversity, distinguishing it from competitors targeted at niche markets.

B. Intellectual Property

Proprietary Algorithms: Glovo’s proprietary algorithms optimize delivery routes and order allocation, improving efficiency and customer satisfaction. These algorithms are a key part of its competitive edge, enabling faster and more cost-effective deliveries.

Data Analytics: The company’s investment in data analytics capabilities allows it to analyze consumer behavior, predict demand trends, and personalize service offerings. This analytical strength helps Glovo refine its operational strategies and enhance user experience.

C. Partnerships and Network

Vendor Relationships: Glovo’s partnerships with local vendors, restaurants, and retailers expand its service offerings and enhance its value proposition. These relationships are often exclusive, giving Glovo access to a unique inventory of products.

Strategic Alliances: Alliances with payment processors, logistics firms, and technology providers facilitate operational efficiency and broaden service capabilities.

D. Knowledge and Expertise

Operational Know-how: Glovo’s deep insight of local markets and operational nuances enables it to tailor its services to meet regional demands effectively. This local expertise is crucial in differentiating its services in diverse markets.

Human Capital: The expertise of Glovo’s management and technology teams in scaling digital platforms and optimizing logistics contributes significantly to its strategic execution and innovation.

Overview on Capabilities

GLOVO has a lot of capabilities that enables their performance and abilities. First, operationally they are efficient. Glovo’s gig economy model allows it to quickly adjust its delivery workforce in response to changing demand, maintaining operational flexibility and cost-effectiveness. Additionally, the use of local warehouses and dark stores for inventory management facilitates rapid order fulfillment, especially for groceries and essential items.

Second, they are technologically agile. Glovo’s technology infrastructure can swiftly adapt to new market conditions and integrate additional services. This trait enables quick responses to customer feedback and market trends, such as the expansion into new product categories or regions. Additionally, the ongoing investment in technology development and enhancements ensures that Glovo remains at the forefront of innovation, offering features like real-time tracking, in-app customer support, and personalized recommendations.

Another capability is their customer-centric approach. Glovo’s data-driven approach allows it to customize its services based on customer preferences and purchasing trends, increasing user engagement and satisfaction. Furthermore, the emphasis on creating a seamless and enjoyable user experience through app design, customer service, and delivery quality contributes to high customer retention and positive brand perception.

Lastly, they are very effective and efficient in market expansion and adaptation. Glovo’s ability to enter new markets rapidly and adapt its operations to local regulatory environments and consumer preferences supports its international growth strategy. Furthermore, offering a wide range of delivery services, from food and groceries to pharmaceuticals and parcels, enables Glovo to cater to various consumer needs, reducing reliance on a single revenue stream.

GLOVO’s assets such as its advanced technological infrastructure, flexible delivery network, strong brand equity, intellectual property, and strategic partnerships, provide a solid foundation for efficient and scalable operations as well as create significant value by enhancing customer trust, operational capabilities, and market adaptability. The company’s capabilities in operational efficiency, technological agility, customer-centric service, and market expansion enable it to outmaneuver competitors by offering faster, more reliable, and diverse delivery services. These integrated assets and capabilities form a robust competitive advantage, positioning Glovo as a leader in the on-demand delivery industry. By continuously leveraging and enhancing these strengths, Glovo maintains its ability to innovate and meet evolving market demands, sustaining its competitive edge in a dynamic environment.

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Introduction

Glovo is a key player in the rapidly growing on-demand delivery market, providing a wide range of services that extend beyond food delivery to include groceries, pharmaceuticals, and courier services. Founded in 2015 by Oscar Pierre and Sacha Michaud in Barcelona, Spain, Glovo has swiftly expanded its footprint to over 20 countries across Europe, Latin America, and Africa. The company’s unique selling proposition lies in its "Anything" button, which allows users to order virtually anything from local stores and restaurants, positioning Glovo as a versatile and convenient delivery solution for various consumer needs.

Glovo’s business model is built on leveraging advanced technology to optimize delivery logistics and enhance user experience. The company uses sophisticated algorithms for route optimization, ensuring that deliveries are made efficiently and on time. This focus on technology and innovation has been crucial in helping Glovo differentiate itself in a highly competitive industry characterized by low barriers to entry and intense competition from major players like Uber Eats, DoorDash, Deliveroo, and Just Eat Takeaway.

The aim of this document is to analyze Glovo’s internationalization strategy in detail. We will address several key questions to understand how Glovo has navigated its expansion into global markets and what strategic approaches it employs. These questions include:

1. What is the competitive landscape of the on-demand delivery industry?

- We will examine the major players in the industry, the factors contributing to intense competition, and the role of technology in shaping this market.

2. How has technology played a critical role in Glovo's success?

- We will discuss specific examples of how Glovo leverages technology to enhance its service offerings and operational efficiency.

3. What strategic approach does Glovo employ in its international operations?

- We will assess whether Glovo uses a multidomestic strategy and how it adapts its services to fit regional market needs.

4. How does Glovo balance global integration with regional responsiveness?

- Using the Bartlett and Ghoshal framework, we will identify Glovo’s stage of internationalization and corresponding global strategy, analyzing its decision-making processes and product adaptations.

5. What structural changes might occur following the acquisition by Delivery Hero?

- We will explore the potential shift towards a Matrix Structure and how Glovo might leverage global resources while maintaining regional flexibility.

Additionally, this document will touch upon Glovo’s recent focus on sustainability and social impact. This includes initiatives aimed at reducing the company's carbon footprint and supporting local communities, which are becoming increasingly important in shaping its future strategy. We will also consider potential future challenges and opportunities in the evolving on-demand delivery landscape, drawing insights from market trends and internal data.

By the end of this analysis, we aim to provide a comprehensive understanding of Glovo's position within the competitive landscape and its strategic approach to globalization. This will not only highlight the company's current strengths and strategies but also suggest areas for future growth and adaptation in a continually changing market environment.

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Hey

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Delivery Hero SE - Trading Update Q1 2024

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“While we recognise the potential of the Ghana market, building a stronger position in the market and achieving profitability would require substantial investment over an extended period of time.

“This is why we have decided to redirect our resources towards the other 23 countries where Glovo operates, enabling us better serve the millions of customers who use Glovo app everyday,”

https://africa.businessinsider.com/local/markets/glovo-pulls-out-of-ghana-market-citing-profitability-challenges/83wr8r9

https://www.deliveryhero.com/newsroom/delivery-hero-welcomes-glovo-to-the-group-all-closing-actions-taken/ ---- Delivery Hero acquired Glovo in July 2022. The deal made Delivery Hero the majority shareholder of Glovo, controlling approximately 94% of its shares. This significantly expanded Delivery Hero's footprint, reaching new markets and solidifying its position as a leading global delivery platform

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Glovo, a food delivery platform, will cease operations on May 10, 2024, in Ghana, two years after investing €3.5 million ($3.7 million) to expand its operations.

The platform announced this via email to its restaurant partners. According to the company, it decided to cease operations due to profitability issues in the Ghanaian market.

With this development, Glovo will concentrate on other African markets such as Morocco, Uganda, Kenya, Côte d'Ivoire, and Nigeria.

"While we recognise the potential of the Ghana market, building a stronger position in the market and achieving profitability would require substantial investment over an extended period of time.

"This is why we have decided to redirect our resources towards the other 23 countries where Glovo operates, enabling us better serve the millions of customers who use Glovo app everyday," the delivery platform says via email.

Glovo also stated that as of 10 p.m. on May 10, 2024, customers' apps will no longer be available for ordering, while restaurant partners will receive outstanding payments following the terms and conditions.

Meanwhile, in 2021, Co-founder Sacha Michaud stated, "The Ghanaian market is a promising market for Glovo, and we will continue to invest to reach all regions of the country and provide convenience to people."

He went on to say that Ghana's growing population and increased Internet penetration were advantageous for business.

Besides, he said that Glovo Ghana collaborated with approximately 400 partners in Accra, including pharmacies, groceries, electronics, and restaurants, and that the order growth for Glovo Ghana services ranged from 30-45% month to month.

According to reports, the food delivery ecosystem is struggling with several problems, such as high taxes, low wages, and high inflation. Ghana's online food delivery market is expected to generate US$224.60 million in revenue in 2024, with a 19.37% annual growth rate (CAGR 2024-2029), resulting in a projected market volume of US$544.30 million by 2029.

Jumia, like some other African countries, discontinued its services in Ghana in December 2023. Meanwhile, Bolt Food has closed its operations in Nigeria and South Africa but remains active in Ghana.

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Glovo to shut down in Ghana, two years after investing $3.7 million

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Glovo, an online food delivery platform, will cease operations in Ghana on May 10 to focus on other African markets, two years after investing $3.7 million to expand operations in the West African country.

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Financial Reports and Presentations - Delivery Hero

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Delivery Hero Sells Food Delivery Operations in Germany to Takeaway.com for Cash and Shares and Reinvests for Further Growth

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BUSINESS STRATEGY

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Our presentation slides

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Unit 2 Slides