March 9, 2015

CLASS PRESENTATION 4

Chief Food

Officers

Agenda

Market sizing2

Competition1

Lessons learned3

Limited Competition from Rivals and EntrantsRivalry

+ Few comparable firms+ Industry growth+ Sustainable competitive advantage

Supplier Power

+ Low concentration and low differentiation

+ Potentially strong distribution channel- Strong business impact

Substitutes

+ No alternatives with comparable performance

Buyer Power

+ Low concentration± Low switching costs+ Differential advantage

New Entrants

- Low entry barriers± Medium capital requirement- Global players with EoS and

experience+ Scalability of our business model

Rivalry

Low

Substitutes

Low

Buyers

Low

Suppliers

Low

New Entrants

MediumSubject of further analysis

COMPETITION | MARKET SIZING | LESSONS LEARNED

SWOT: YUM NEXT DOOR

WEAKNESSES

- Difficulty in ensure food quality at delivery

- Customers may not see the differentiation

STRENGTHS

+ Great food variety

+ Customer relationship

+ Usability & automation

+ Leveraging network effects as first movers

+ Economies of scale

OPPORTUNITIES

+ Trend towards mobile

+ Internationalization

THREATS

- Few entrance barriers

- Entrants w/ higher performance & scalable business models

- Portuguse consumer behavior (?)

COMPETITION | MARKET SIZING | LESSONS LEARNED

SWOT: Food Ordering Portugal

WEAKNESSES

- Long delivery times

- Poor usability

- Little automization

- Poor variety

- Poor online marketing

STRENGTHS

+ Partnerships

+ Coverage and established customer basis

+ Brand (e.g. Telepizza)

OPPORTUNITIES

+ Leverage customer basis and partner network to go digital

THREATS

- Seasonality

- Entrants w/ higher performance & scalable business models

COMPETITION | MARKET SIZING | LESSONS LEARNED

SWOT: Online Food Ordering International

WEAKNESSES

- Little differentiation

- Minimum order values

STRENGTHS

+ Economies of scale

+ Global footprint

+ Partnerships & variety

+ Fast delivery

+ Mobile applications

+ Advertising

OPPORTUNITIES

+ Further internationalization

+ Further leverage advertising for growth

+ Mobile commerce growth

THREATS

- Dependence on restaurants for delivery

- High reliance on fast-food but changing consumption trends

COMPETITION | MARKET SIZING | LESSONS LEARNED

SWOT: Restaurant Listings Portugal

WEAKNESSES

- Only information, no transaction

- Dependence on advertising revenue

STRENGTHS

+ Broad variety of restaurants

+ Usability (customized site, filters, easy search)

+ Credibility and trust

OPPORTUNITIES

+ Online market

+ Internationalization

+ New services (online booking and ordering)

+ Consulting services for additional revenue

THREATS

- Competition, e.g.from websites offering delivery or booking

- Seasonality

COMPETITION | MARKET SIZING | LESSONS LEARNED

Market Sizing: Top – Down

TAM CS1: Students, Internet access: 351k CS2: Professionals, 18-55 years, high education, Internet access: 2.157 m

SAM CS1: Students, Internet access: 108k CS2: Professionals, 18-55 years, high education, Internet access: 329k

SOM CS1: Students, Internet access: 11k CS2: Professionals, 18-55 years, high education, Internet access: 33k

2.5m

437k

44k

COMPETITION | MARKET SIZING | LESSONS LEARNED

Geography: Lisbon

Market Share: 10%

Sources: INE, PORDATA, Census 2011

Market Sizing: Google Keyword Planner

COMPETITION | MARKET SIZING | LESSONS LEARNED

   Traffic Source Traffic %

Telepizza (100%)

Zomato (100%)

Tripadvisor (25%)

NoMenu (100%)

Total

TAM Brand Search 40% 165,000 12,100 18,500 6,600

202,200

Direct 40% 165,000 12,100 18,500 6,600

202,200

Referral 20% 82,500 6,050 9,250 3,300

101,100

    100% 412,500 30,250 46,250 16,500

505,500

Food-related

Search           4,900

Total             510,400

SAM Brand Search 40% 74,000 9,900 6,750 3,600

94,250

Direct 40% 74,000 9,900 6,750 3,600

94,250

Referral 20% 37,000 4,950 3,375 1,800

47,125

  185,000 24,750 16,875 9,000

235,625

Food-related

Search           1,960

Total             237,585

Explanation Total: traffic on major brands and

through food-related keywords Portugal as TAM, Lisbon area as SAM Traffic % based on own assumptions

using indications from Alexa Search traffic estimations from

Google Keyword Planner

Lessons Learned

COMPETITION | MARKET SIZING | LESSONS LEARNED

Customers – problems - solutions

Hypothesis testing

Competitor analysis: 5 Forces & SWOT

Customer segmentation

Market sizing and traffic estimation

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