Harvard Case - DeliverMeal Ivory Coast: Addressing Headquarters' Demands
"DeliverMeal Ivory Coast: Addressing Headquarters' Demands" Harvard business case study is written by Benoit Decreton, Phillip C. Nell, Alison E. Holm. It deals with the challenges in the field of International Business. The case study is 9 page(s) long and it was first published on : Mar 28, 2017
At Fern Fort University, we recommend DeliverMeal Ivory Coast (DeliverMeal CI) implement a phased approach to address headquarters' demands while navigating the complexities of the Ivorian market. This strategy will involve a combination of internationalization, growth strategy, global marketing, business expansion, and strategic alliances to achieve sustainable growth and profitability.
2. Background
DeliverMeal, a successful food delivery platform in France, is seeking to expand its operations to Ivory Coast, a rapidly growing emerging market in West Africa. The case study highlights the challenges DeliverMeal CI faces, including:- Headquarters' Pressure: DeliverMeal France expects rapid growth and profitability in Ivory Coast, despite the unique market dynamics.
- Local Market Challenges: The Ivorian market presents complexities like limited digital penetration, underdeveloped logistics infrastructure, and cultural preferences for traditional food preparation.
- Internal Conflicts: The local team's focus on local market understanding clashes with headquarters' demands for fast expansion.
The main protagonists in the case are:
- Jean-Pierre Dubois: CEO of DeliverMeal France, pushing for rapid expansion and profitability.
- Amadou Diallo: Country Manager of DeliverMeal CI, advocating for a more cautious approach to address local market nuances.
3. Analysis of the Case Study
To analyze the situation, we can utilize the Porter's Five Forces framework:
- Threat of New Entrants: High, due to the ease of entry into the food delivery market and the presence of local competitors.
- Bargaining Power of Buyers: Moderate, as customers have options for food delivery and traditional food preparation.
- Bargaining Power of Suppliers: Moderate, as DeliverMeal CI depends on restaurants and delivery personnel, but the market offers alternatives.
- Threat of Substitute Products: High, due to the availability of traditional food preparation and other food delivery services.
- Competitive Rivalry: High, as several players compete for market share in the growing food delivery sector.
This analysis highlights the need for DeliverMeal CI to differentiate itself and build a strong competitive advantage.
4. Recommendations
DeliverMeal CI should implement a phased approach to address headquarters' demands while adapting to the Ivorian market:
Phase 1: Market Entry and Adaptation (6-12 months)
- Local Market Research: Conduct in-depth research to understand consumer preferences, food trends, and cultural nuances.
- Strategic Partnerships: Partner with local restaurants, delivery companies, and technology providers to leverage existing infrastructure and expertise.
- Pilot Launch: Start with a limited launch in a specific area with a curated selection of restaurants and delivery options.
- Marketing Localization: Develop localized marketing campaigns that resonate with the target audience, considering cultural sensitivities and language.
- Technology Adaptation: Modify the platform to address local challenges, such as limited internet access and payment methods.
Phase 2: Expansion and Growth (12-24 months)
- Targeted Expansion: Gradually expand to new areas based on market response and data analysis.
- Product Diversification: Introduce new food categories and delivery options, such as traditional Ivorian cuisine and grocery delivery.
- Customer Loyalty Programs: Implement loyalty programs and rewards to retain existing customers and attract new ones.
- Operational Efficiency: Optimize delivery routes, logistics, and payment systems for efficiency and cost-effectiveness.
Phase 3: Sustainability and Profitability (24+ months)
- Build a Strong Brand: Develop a strong brand identity that resonates with the Ivorian market and differentiates DeliverMeal CI from competitors.
- Corporate Social Responsibility: Implement initiatives to support local communities and promote sustainable practices.
- Profitability Analysis: Monitor key performance indicators (KPIs) and adjust strategies to achieve profitability.
- Continuous Innovation: Stay ahead of the competition by introducing new features, services, and technologies.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: Leveraging DeliverMeal's core competencies in technology and logistics while adapting to the Ivorian market.
- External Customers and Internal Clients: Addressing the needs of both Ivorian customers and the DeliverMeal France headquarters.
- Competitors: Differentiating DeliverMeal CI from competitors through localization, partnerships, and customer-centric strategies.
- Attractiveness ' Quantitative Measures: The phased approach allows for gradual investment and risk mitigation, maximizing the potential for profitability.
- Assumptions: The success of this strategy relies on the availability of reliable data, effective partnerships, and a commitment to continuous improvement.
6. Conclusion
DeliverMeal CI has a significant opportunity to succeed in the Ivorian market by implementing a phased approach that balances headquarters' demands with local market realities. By focusing on localization, strategic partnerships, and customer-centric strategies, DeliverMeal CI can build a sustainable and profitable business in Ivory Coast.
7. Discussion
Other alternatives not selected include:
- Immediate Expansion: This approach carries significant risks due to the complexities of the Ivorian market and could lead to financial losses.
- Focus on Local Preferences Only: This approach might alienate headquarters and limit growth potential.
Key risks and assumptions include:
- Political Instability: Political instability in Ivory Coast could disrupt operations and impact profitability.
- Competition: The emergence of new competitors or aggressive strategies from existing players could impact market share.
- Technology Adoption: The pace of technology adoption in Ivory Coast could influence the success of the platform.
8. Next Steps
- Develop a detailed implementation plan: Outline timelines, milestones, and resource allocation for each phase.
- Establish a dedicated team: Assemble a team with expertise in local market knowledge, technology, and operations.
- Secure funding: Obtain the necessary funding to support the initial investment and ongoing operations.
- Monitor progress and adjust strategies: Regularly track KPIs and make adjustments to the plan based on market dynamics and performance.
By following this phased approach, DeliverMeal CI can achieve sustainable growth and profitability in the Ivorian market while meeting headquarters' expectations.
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Case Description
In 2015, DeliverMeal was a Norwegian online food delivery firm, mostly present in what could be considered emerging markets such as those in Africa. Founded in 2010, the company had experienced extremely rapid international expansion. DeliverMeal followed a global strategy, and standardized processes and turnkey solutions were provided from the headquarters to the subsidiaries.
The local business development manager at DeliverMeal's Ivory Coast subsidiary needed to make some decisions on how to react to three demands that had recently been passed down from corporate headquarters, all of which were at odds with the West African environment. How could the Ivory Coast manager meet her headquarters' corporate expectations and still conduct successful business operations within the local cultural context?
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