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Analysis of Mumbai Dabawallahs

In: Business and Management

Submitted By firescorpy
Words 595
Pages 3
Medge’s confidence in the survival of the Dabbawallah is not misplaced, and several important factors will facilitate the stability and growth of the Dabbawallah for years to come.
First, using Porter’s Five Forces analysis, the overall profitability and attractiveness of the market that the Dabbawallahs operate in may be determined. Competition-wise, the services which the Dabbawallahs offer (on-time lunch delivery from home) is not replicated or found elsewhere. In this regard, the Dabbawallahs have a virtual monopoly of sort. Also, although the Dabbawallahs would not be likely to face the threat of new entrants with a service similar to theirs, there are perceived threats from other sources, such as fast-food chains, roadside vendors, canteens, and “ticket restaurants.” However, since these are restaurants and does not serve home-cooked food, the Dabbawallahs’ core offering remains unchallenged. The Bargaining power of sellers is not applicable in this case since the Dabbawallahs are not dependent on suppliers or sellers. The bargaining power of buyers is minimal since the monthly charge for the service is already quite low at around 150 to 200 Rupees a month. Finally, there are no substitutes to the food delivery service, at least for the foreseeable future. Costs would be too high and prohibiting for smaller courier firms, known as angadias in Mumbai, since most of them are small mom-and-pop style businesses, and larger courier services such as DHL and FedEx are not interested in this market segment.
Next, SWOT Analysis can be used to analyze the strengths, weaknesses, opportunities, and threats facing the Dabbawallahs. First off, the Dabbawallahs possess much strength. For instance, they focus only on their core competencies and nothing else, which is simple and fast delivery of lunches to the customer’s workplace. The teamwork and coordination...

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