Swiggy is a well-known online food ordering and delivery application. The company has expanded its business to a greater extent since its establishment. In recent years, people who go to restaurants physically and wait for the food to be prepared. But Swiggy changed this complete scenario with its online food delivery strategy.
Let’s now see more about the company’s SWOT analysis, financial strategies, and much more in detail.
About Swiggy
Swiggy was established in 2014 in Bangalore India. At present, the company operates in more than 350 cities across the country. For 6 years the company has been expanding its business operations in general product deliveries through Instamart.
Let us now see the SWOT analysis of Swiggy that talks about the opportunities, weaknesses, strengths, and threats.
Swiggy at a Glance
| Founders | Sriharsha Majety
Nandan Reddy Rahul Jaimini |
| CEO | Sriharsha Majety |
| Year of Establishment | 2014 |
| Annual Revenue (as of FY24) | Rs 10,695 crore |
| Net Profit (as of FY24) | Rs 351 crore |
| Type of Company | Private |
| Total no. of employees | 6,000 |
| Total assets (as of FY24) | Rs 24,230 crore |
SWOT Analysis of Swiggy
SWOT analysis helps companies analyze their weak points, threats, opportunities, and strengths in detail which again helps in increasing the sales and revenue of the company.
Strengths of Swiggy
Strengths of Swiggy include the following factors-
Promptest delivery
Swiggy is very famous for its fast delivery service. The technical forum is made in such a way that it accepts orders from customers from any location. This is how the ordered food is collected from the restaurant nearby and is delivered to the customers.
The interface is so intuitive and excellent that it allows customers to discover the best restaurants nearby. It can effectively process the orders for each customer.
Sleek user interface
For customers, Swiggy has been a great interface to book their orders. Its interface is very neatly and systematically arranged and users can see the menu and rates of their dishes by just clicking on the hotel name.
The payment gateways are so secure and simple to execute. The interface also showcases space for discounts to be applied. The best part of the interface is that customers can track their orders online and take every update.
A wide array of eateries
Another strength of the brand is that it has a broad collection of it and offers various restaurants near the location. It can also give you restaurants that best on your eating preference like veg or non-veg food.
Weaknesses of Swiggy
Weaknesses are those areas where Swiggy needs to focus for future development.
Focusing local restaurant
Swiggy accepts orders only from restaurants that are situated within the area of the customers. But a lot of competitors increase the areas to please their customers.
Limited brand recognition
The brand awareness of Swiggy is quiet low and hence the company should focus more on branding. The company should also create lucrative marketing strategies to enhance the brand image.
Delivery charges
Swiggy levy particular packing and delivery charges from the customers in the total bill making the bill amount increase. This is a big weakness for the companies since a number of customers may hesitate to order as it may cost some extra amount for delivery.
Opportunities for Swiggy
The opportunities for the company include –
Market share
The company can increase its re-branding to get increased market share. The company can also tap into those cities where it is not present.
Offer quality Services
Even though the company offers quick delivery it should focus more on delivering the items faster to those areas where transportation may be a challenge. The company should also get figure out how to waive delivery fees.
Effective value
As the market is growing the company should also get a chance to collaborate with local restaurants and expand its network.
Threats to Swiggy
Threats to Swiggy include the following –
Limited customers
Swiggy has very limited customers which is one of the biggest threats to the company. When there are fewer customers it becomes very tough to enhance sales which may impact the profit.
Intense competition
The company has top players in the industry including Zomato, Zepto, etc. These competitors may give discounts to the customers and hence they might switch from Swiggy to the other brands. Hence, the company should focus more on retaining customers.
Health conscious customers
Today people are getting more conscious about their health and are preferring homemade food instead of restaurant food. This poses a big threat to the company.
Top Competitors of Swiggy
Here are the top 3 competitors of Swiggy –
- Zomato: Zomato is also the best player in the online food delivery industry. The company offers great food delivery services and has a strong presence in cities and rural areas as well.
- Dunzo: It also offers delivery services including medicines, groceries, etc.
- Dineout: It is also a competitor to Swiggy in the areas of restaurant offers & discounts. The app helps users to get the best deals on their favorite restaurants.
Conclusion
The SWOT analysis of Swiggy has mentioned all four important factors of the company. The company’s strengths lie in its fastest delivery service and involving professional employees. The packaging of the company is also very neat and clean. The weakness can be seen in the targeting of local restaurants with minimal brand image, etc.
The company holds opportunities to bring innovation to the area and to increase its market share. Finally, the threats for the company include the increase and health-conscious people and having fewer customers and its competitors.