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Kitopi Case Study

The Kitopi case study explores the company's operational model, highlighting its strengths in technology and flexibility, while also addressing challenges such as competition and high capital expenditures. It suggests potential opportunities for growth, including becoming an aggregator, launching new B2C offerings, acquiring brands, and expanding into new geographies. Each opportunity comes with its own pros and cons, emphasizing the need for strategic decision-making to maintain competitiveness and control over the value chain.

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akshay
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124 views6 pages

Kitopi Case Study

The Kitopi case study explores the company's operational model, highlighting its strengths in technology and flexibility, while also addressing challenges such as competition and high capital expenditures. It suggests potential opportunities for growth, including becoming an aggregator, launching new B2C offerings, acquiring brands, and expanding into new geographies. Each opportunity comes with its own pros and cons, emphasizing the need for strategic decision-making to maintain competitiveness and control over the value chain.

Uploaded by

akshay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Kitopi Case Study

Dr Jigna Srivastava
Optimistic or Pessimistic

Optimistic Pessimistic
Economies of scale First mover advantage Commoditized food prep Low barriers to entry

Flexibility to Mix N Match meets Limited room to improve Difficult to compete in


experiment as backend customers needs margins big markets
Strong tech capabilities Good for smaller Competition from Good for smaller
fragmented markets deliveryapps/aggregrato fragmented markets
rs
Solves aggregators
problem High capex to expand Privacy and IP Concerns

Better data on Doesn’t own customer Hard to go B2C


inventory avail etc. relations

Improved customer Data owned by platform


services(speed, quality)
Operating Model
Traditional Kitopi
Single Menu Deprioritizes delivery Centralized Kitchens Tech is a core
competency
Kitchen and staff Challenges to make
dedicated to single changes to the Satellite kitchens for Can pursue low cost real
menu operations last mile estate
Higher staff and infra Manual decision Better utilization of Streamlined,
costs making facilities (aggregation of standardized and
Procurement based on Dine in and takeaway brands) integrated biz processes
limited menu from the same kitchen SCM/ERP – Joint ordering Focussed on delivery
process
Focus on location, real
estate, dine in exp, Process control with Integrated with
novelty tech platforms
Chaos (in kitchen Menu redesign to
operations) reduce waste
What other opportunities Kitopi can
pursue
Become and aggregator:
The decision to do delivery will enable Kitopi more control of the value chain. However it could also
threaten Kitopi’s core business by antagonizing existing business partners. Margins of delivery
platforms are very narrow. To compete Kitopi will have to invest heavily and provide focus to acquire
enough customers, drivers, and restaurant partners to catalyse the network effects critical to
platform growth and competitiveness.

Launch new B2C Offerings:


Limited success with virtual B2C offering of Mix N Match, but due to Covid Eatopi failed to launch.
Although B2C offerings, physical offerings will require new capabilities. If done correctly it can enable
Kitopi to become omni channel and interface with the customer directly without threatening the core
business.

Acquire Brands:
To avoid developing new capabilities, consider investing in restaurants or virtual brands. Altough
likely to require heavy expenditures and add operating complexities for Kitopi, this approach would
help the company capture more value as well as afford more end to end control, enabling the brand
to control, enabling the brand to create and evolve compelling menus.
What other opportunities Kitopi can
pursue
Pros Cons
Become Control customer & data Threaten existing partners;
aggregator/Provide More value hard to make margins,
delivery More revenue
Control customer streams
& data strong competition, hard to
More value scale
Launch new B2C More revenue
Controlstreams
customer & data Asset heavy
concepts More value Can antogonize brands and
More revenue streams partners
Leverage existing core
capabilities
Become omni channel
Acquire brands Control over menu Capital intensive
Evolve menu Added complexity
Build brand awareness New capabilities required
Reduces flexibility
What other opportunities Kitopi can
pursue

Expanding to new geographies

Experimenting with other cloud kitchen models – Own brand with brand builder model

Moving Downstream – resell raw materials or services to the restaurants

Licensing tech products/tech stack

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