Yemeksepeti: Growing and Expanding the Business Model through Data SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Yemeksepeti: Growing and Expanding the Business Model through Data
In October 2016, Nevzat Aydin, co-founder and CEO of Yemeksepeti, the Turkish online food-ordering company, was looking over the company's quarterly results and projections for the upcoming year with his management team. It had been almost a year and a half since Aydin had agreed to sell the company's shares to Delivery Hero, the Berlin-based global leader in online and mobile food ordering, for $589 million. In 2016, the company had had grown to include more than 13,000 member restaurants servicing six million users and achieved a 41% year-on-year growth. Yemeksepeti operated with an EBITDA margin of over 50%. Although the company had introduced other revenue streams over the years, commissions remained as the main source of income. Aydin believed that, while there was plenty of room to grow by taking market share from phone orders, much could be done by revenue diversification; the company simply had too much valuable data to be ignored. What should the company do to take advantage of its data analysis capabilities and the new technologies on the market? What kind of outside-the-box solutions could create additional revenue streams and vertical growth capabilities? What about the cohort analysis and data generated from order histories? He motivated his the management team to come up with new ideas to put the vast amount of transaction data to use. The case describes potential avenues for a company to monetize its data, illustrates the pros and cons of each option. The case will help students think about how to prioritize growth over diversification, and forward think with regards to new technologies and customer trends.
Authors :: William R. Kerr, Gamze Yucaoglu, Eren Kuzucu
Swot Analysis of "Yemeksepeti: Growing and Expanding the Business Model through Data" written by William R. Kerr, Gamze Yucaoglu, Eren Kuzucu includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Aydin Yemeksepeti facing as an external strategic factors. Some of the topics covered in Yemeksepeti: Growing and Expanding the Business Model through Data case study are - Strategic Management Strategies, Change management, Customers, Data, Emerging markets, Entrepreneurial management, Growth strategy, Internet, IT, Supply chain and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the Yemeksepeti: Growing and Expanding the Business Model through Data casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, geopolitical disruptions, central banks are concerned over increasing inflation, wage bills are increasing, challanges to central banks by blockchain based private currencies, increasing inequality as vast percentage of new income is going to the top 1%,
competitive advantages are harder to sustain because of technology dispersion, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of Yemeksepeti: Growing and Expanding the Business Model through Data
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Yemeksepeti: Growing and Expanding the Business Model through Data case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Aydin Yemeksepeti, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Aydin Yemeksepeti operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Yemeksepeti: Growing and Expanding the Business Model through Data can be done for the following purposes –
1. Strategic planning using facts provided in Yemeksepeti: Growing and Expanding the Business Model through Data case study
2. Improving business portfolio management of Aydin Yemeksepeti
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Aydin Yemeksepeti
Strengths Yemeksepeti: Growing and Expanding the Business Model through Data | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Aydin Yemeksepeti in Yemeksepeti: Growing and Expanding the Business Model through Data Harvard Business Review case study are -
High switching costs
– The high switching costs that Aydin Yemeksepeti has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Cross disciplinary teams
– Horizontal connected teams at the Aydin Yemeksepeti are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Effective Research and Development (R&D)
– Aydin Yemeksepeti has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Yemeksepeti: Growing and Expanding the Business Model through Data - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Aydin Yemeksepeti
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Aydin Yemeksepeti does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Innovation driven organization
– Aydin Yemeksepeti is one of the most innovative firm in sector. Manager in Yemeksepeti: Growing and Expanding the Business Model through Data Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Aydin Yemeksepeti in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Ability to recruit top talent
– Aydin Yemeksepeti is one of the leading recruiters in the industry. Managers in the Yemeksepeti: Growing and Expanding the Business Model through Data are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Diverse revenue streams
– Aydin Yemeksepeti is present in almost all the verticals within the industry. This has provided firm in Yemeksepeti: Growing and Expanding the Business Model through Data case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Successful track record of launching new products
– Aydin Yemeksepeti has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Aydin Yemeksepeti has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Learning organization
- Aydin Yemeksepeti is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Aydin Yemeksepeti is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Yemeksepeti: Growing and Expanding the Business Model through Data Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– Aydin Yemeksepeti has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Yemeksepeti: Growing and Expanding the Business Model through Data HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Analytics focus
– Aydin Yemeksepeti is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by William R. Kerr, Gamze Yucaoglu, Eren Kuzucu can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Yemeksepeti: Growing and Expanding the Business Model through Data | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Yemeksepeti: Growing and Expanding the Business Model through Data are -
Workers concerns about automation
– As automation is fast increasing in the segment, Aydin Yemeksepeti needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Aydin Yemeksepeti is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Aydin Yemeksepeti needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Aydin Yemeksepeti to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Aydin Yemeksepeti has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Products dominated business model
– Even though Aydin Yemeksepeti has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Yemeksepeti: Growing and Expanding the Business Model through Data should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Yemeksepeti: Growing and Expanding the Business Model through Data HBR case study mentions - Aydin Yemeksepeti takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Yemeksepeti: Growing and Expanding the Business Model through Data, it seems that the employees of Aydin Yemeksepeti don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
High bargaining power of channel partners
– Because of the regulatory requirements, William R. Kerr, Gamze Yucaoglu, Eren Kuzucu suggests that, Aydin Yemeksepeti is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Aligning sales with marketing
– It come across in the case study Yemeksepeti: Growing and Expanding the Business Model through Data that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Yemeksepeti: Growing and Expanding the Business Model through Data can leverage the sales team experience to cultivate customer relationships as Aydin Yemeksepeti is planning to shift buying processes online.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Aydin Yemeksepeti is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Yemeksepeti: Growing and Expanding the Business Model through Data can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Need for greater diversity
– Aydin Yemeksepeti has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow decision making process
– As mentioned earlier in the report, Aydin Yemeksepeti has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Aydin Yemeksepeti even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities Yemeksepeti: Growing and Expanding the Business Model through Data | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Yemeksepeti: Growing and Expanding the Business Model through Data are -
Manufacturing automation
– Aydin Yemeksepeti can use the latest technology developments to improve its manufacturing and designing process in Innovation & Entrepreneurship segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Developing new processes and practices
– Aydin Yemeksepeti can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Aydin Yemeksepeti can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Yemeksepeti: Growing and Expanding the Business Model through Data, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Aydin Yemeksepeti in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Innovation & Entrepreneurship segment, and it will provide faster access to the consumers.
Buying journey improvements
– Aydin Yemeksepeti can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Yemeksepeti: Growing and Expanding the Business Model through Data suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Learning at scale
– Online learning technologies has now opened space for Aydin Yemeksepeti to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Creating value in data economy
– The success of analytics program of Aydin Yemeksepeti has opened avenues for new revenue streams for the organization in the industry. This can help Aydin Yemeksepeti to build a more holistic ecosystem as suggested in the Yemeksepeti: Growing and Expanding the Business Model through Data case study. Aydin Yemeksepeti can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Building a culture of innovation
– managers at Aydin Yemeksepeti can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Innovation & Entrepreneurship segment.
Using analytics as competitive advantage
– Aydin Yemeksepeti has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Yemeksepeti: Growing and Expanding the Business Model through Data - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Aydin Yemeksepeti to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Leveraging digital technologies
– Aydin Yemeksepeti can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Aydin Yemeksepeti to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Aydin Yemeksepeti can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Aydin Yemeksepeti to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Aydin Yemeksepeti to hire the very best people irrespective of their geographical location.
Threats Yemeksepeti: Growing and Expanding the Business Model through Data External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Yemeksepeti: Growing and Expanding the Business Model through Data are -
Technology acceleration in Forth Industrial Revolution
– Aydin Yemeksepeti has witnessed rapid integration of technology during Covid-19 in the Innovation & Entrepreneurship industry. As one of the leading players in the industry, Aydin Yemeksepeti needs to keep up with the evolution of technology in the Innovation & Entrepreneurship sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Aydin Yemeksepeti in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Aydin Yemeksepeti high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Aydin Yemeksepeti with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Aydin Yemeksepeti can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Yemeksepeti: Growing and Expanding the Business Model through Data .
Stagnating economy with rate increase
– Aydin Yemeksepeti can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Environmental challenges
– Aydin Yemeksepeti needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Aydin Yemeksepeti can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Aydin Yemeksepeti.
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Aydin Yemeksepeti can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Aydin Yemeksepeti is facing in Innovation & Entrepreneurship sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Aydin Yemeksepeti in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Aydin Yemeksepeti will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Yemeksepeti: Growing and Expanding the Business Model through Data Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Yemeksepeti: Growing and Expanding the Business Model through Data needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Yemeksepeti: Growing and Expanding the Business Model through Data is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Yemeksepeti: Growing and Expanding the Business Model through Data is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Yemeksepeti: Growing and Expanding the Business Model through Data is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Aydin Yemeksepeti needs to make to build a sustainable competitive advantage.
