Question

Take the example of any tech sector in the Indian economy. For example: edutech, retailtech, foodtech. meditec, RPA, digital transformation consulting etc. Elaborate how covid 19 influenced the relative strength of the competitive forces in that industry. (you will be evaluated on the basis of the different perspective that you are able to bring to surface}.

Answer 1

We will take the example of the Food tech sector specifically , the online food ordering businesses like Swiggy and Zomato. We know that these two are the biggest players after Uber Eats was acquired by Zomato earlier this year. There are also some small players among which some are regional and some cater to specific foods. We see that due to Covid19, their businesses have gone down because people don't trust such players who aren't that big in this space. Safety is the biggest concern in this space because of the contact of food with so many people viz, restaurants and the delivery person. Hence, the industry has become more concentrated and the competition has gone down. Another reason is that to ensure safety standards and to convey this message to people, the firms require capital and hence only those companies who have good amount of funds and investors backing them up will be able to survive and gain market share from those who don't have them