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

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

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.

These tags should make one paragraph each

• 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

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

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

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.

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.

 “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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