Market Analysis of an Online Food Ordering Service (Essay Sample)

MARKET ANALYSIS
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MARKET ANALYSIS
Current situation of EAT
EAT is an online food ordering platform that offers takeaway delivery services from its restaurants. The headquarters of this enterprise is located in London. Currently, the organization has 1.3 million fans on Facebook and more than 124 thousand followers on twitter. EAT is the 'World's leading online and mobile takeaway ordering service with its operations in 15 countries in the WorldCITATION Dun18 \p 10 \l 1033 (Dunn, 2018, p. 10). The platform allows the customers to locate a restaurant to order food online and choose from the delivery options. The company thus ensures convenient techniques to order takeaways. The company empowers its customers to love their services by providing them with a choice from the menu and the payment method. The major competitors of this company include Delivery Hero and Grub hubCITATION Dun18 \p "par. 13" \l 1033 (Dunn, 2018, p. par. 13).
Product/Service
EAT company provides various food types such as pizza, burgers, sandwiches, poke bowls, ribs, tacos, salad, and gyros. The enterprise also offers more products and services including coffee, ice cream, and wine bar. The 'customers' feedback illustrates their love for these recipes. The company sources all of its Arabica coffee from the Rainforest Alliance certified farmsCITATION Azu16 \p 9 \l 1033 (Azuayi, 2016, p. 9). The coffee trees grow at high altitude, which enables it to develop more sophisticated and with balanced flavours which satisfies the customers. The eggs used in EAT company are either from barn reared hens who have the freedom to consume or feed naturally or are either free range from an award-winning farmCITATION Dun18 \p "par. 7" \l 1033 (Dunn, 2018, p. par. 7). The enterprise, therefore, ensures value for their customers by also selecting their suppliers who meet the standards for high-quality ingredients.
Place
The buyers of the commodities from EAT company access the menu of their products online, either from their website or the appCITATION Azu16 \p 12 \l 1033 (Azuayi, 2016, p. 12). The platform enables the customers to choose from the restaurant and order the food and also select the delivery option. The online platform enables the buyers to register with the enterprise and sign into 'one's EAT online store where they purchase from the delivery menu. The order is delivered to the doorstep of the customer or the location illustratedCITATION Azu16 \p 11 \l 1033 (Azuayi, 2016, p. 11). The competitors of EAT also transport food to their customers in exchange for a fee, although it has a loyalty program that allows its customers to earn rewards in food-delivery platforms.
Price
The company updates its prices in its website menu where the customers identify the cost of a specific type of food before he orders. For instance, the budget for breakfast may range between 4 – 7 dollars. Lunch meal, which may include sandwiches and kebabs may cost 7-12 dollars. The budget for dinner may range from 9-17 dollars for an adult. Fish and chips are expensive and may cost 10-15 dollars in the EAT menuCITATION Dun18 \p "par. 6" \l 1033 (Dunn, 2018, p. par. 6). Prices vary depending on the kind of food that the customer wishes to order.
Promotion
The EAT company advertises its products on its websites, which contains pictures that illustrate the type of food it prepares and the menu. Every item has a description of its prices and ingredients. The list is regularly updated depending on the advancement in styles of cooking and varying cost of the partsCITATION Azu16 \p 14 \l 1033 (Azuayi, 2016, p. 14). Additionally, the company has social media accounts such as Facebook and Twitter, where it updates its customers about their services.
PEST Analysis of Spain
According to the FDI Regulatory Restrictiveness Index, Spain has been enhancing foreign investment since the mid-2000s and is the eleventh economy, which is the most open to foreign direct investment. Companies such as the EAT enterprise should analyse the macroenvironment factors in this nation for identifying the potential market by adopting the PEST framework. The model evaluates external factors affecting businesses, including political, economic, socio-cultural, and technological aspects.
Political Factors
Spain has enhanced various investment policy measures that have resulted in foreign liberalization, facilitation, and promotion. The 'country's membership to the European Union and reforms to strengthen entrepreneurship has resulted in duty-free transactions and free movement of goods, capital, labour, and servicesCITATION Mar17 \p 160 \l 1033 (Martinez & Briz, 2017, p. 160). Spain has desirable economic and business ties with other nations and has been the headquarters of multinational companies for European activities. EAT corporation can thus develop in this nation and create its headquarters, which the Spanish government can encourage them to remain competitive and promote their 'country's economyCITATION Mar17 \p 161 \l 1033 (Martinez & Briz, 2017, p. 161).
However, the political spectrum, including the recent change of government and the Catalonian situation, may influence the foreign investors'', such as the EAT enterprise, perception of the country. Spain is a member of the International Centre for Settlement of Investment Disputes union which involves multilateral global treaties that enhance protection of foreign investments. The cohesion of the members of ICSID ensures the obligation for the host nation to bestow fair and equitable treatment on foreign investmentCITATION Nav18 \p "par. 4" \l 1033 (Navarro & Ventoso, 2018, p. par. 4).