Competitive strategy and digital business strategy

Porter's competitive forces

Porters competitive forces model identifies that not only the company is competing with traditional competitors but also four other forces in the environment known as new market entrants, substitute product and services, customers and suppliers. Its used to identify the determine strategic position of the company.

T‌raditional competitors:

Just Eat Takeaway.com is gaining more share in the market place globally by merging with other online food delivery services in other countries. Although, the merging companies needs to be gaining more market share in their own respective operating country.

New market entrants:

It is rather difficult for new entrants to enter the online food delivery market as they would need to have many connected restaurants in areas they want to operate within for customer's convenience. Smaller restaurants may accept the offer of connecting with online food delivery services to increase their own sales.

Substitute products and services:

There are many substitutes in the market that is similar to Just Eat and may have restaurants that the company isn't connected too.

Customers:

Customers can easily switch to competitors services if they have more restaurants available than Just Eat Takeaway.com.

Suppliers:

There are hundred thousands of restaurants that is connected to Just Eat Takeaway.com which gives them more control on charge fee on restaurants.

Competitive strategies

Focus on market niche: use information system to enable a focused strategy on a single market niche (Laudon, 2019, p. 128).

Just Eat can collect data on what type of food that customers purchase and enjoy (via the review feature) in specific areas. They could then try to connect to restaurants who serves similar products and push it to customers who enjoy the product.

Strengthen customer and supplier intimacy: use informational systems to develop strong ties and loyalty with customers and suppliers (Laudon, 2019, p. 128).

Its easy to search for specific type of food in the search bar for customers but also allowing restaurants to appear on search based on location. They also have a low fee charge on restaurants with a 14% commission rate per order compared to competitors such as Uber Eats which can go up to 30%.