Question

Write an industry analysis for Doordash using Porter’s Five Forces Model.

Answer 1

I considered, here, the organization Grubhub to prepare the Porter Five Force Model for the Food Delivery Service, as noted below.

Suppliers ' bargaining power:
If the suppliers' dealings are high, suppliers can sell their raw materials and parts to organizations for high costs, and again suppliers can supply organizations with comparably poor materials. However, the organization accepts such raw materials and parts because the negotiating power of suppliers is high enough.

Suppliers are rather strong or strong as suppliers like restaurants may partner with any food service such as grubhub since many food delivery services providers are available and therefore the cost of switching to food suppliers such as restaurants is quite small,

Power of the buyers to negotiate:
As the negotiating power of the buyers might be high in such cases, in organizations like food delivery service providers, purchasers could get better quality products, and the buyer could purchase these items from the delivery service providers at a relatively low cost, the reason is that there are several food service providers.

Thus buyers can move to the next at low cost of switching, the bargaining power of buyers or customers and consumers is very high here for Grubhub,

Replacement threat:

In this context, the risk of replacement could become high, if Buyer can get several replacement products, but the cost of the changeover is low, and the quality could be higher, for now Grubhub, Buyer has many choices of switching from a single product with good quality and very low costs.

New entries threat:

We find that the danger of new entrants can be so high for Grubhub, the food supplier, that to join a similar business, only a few barriers or a few resistance remain. It is therefore easy to enter a similar enterprise, we want the same website, restaurants and hotels and a good delivery network.

Competition competition in the industry as it existed:

For the business or food service provider, Grubhub, such a competition is very important as there is a large number of rivals present on the market and they have to compete with and retain high quality goods at fair pricing.