Competition among food processing industries has been on the rise intensifying the heat among the companies. The companies such as Talabat, foodonclick, and hellofood are rivaling on price, quality, taste and health factors. As an online food processing industry Talabat faces extreme competition from the market share internationally, nationally and locally because the other companies are producing the same type of foods and with good quality, therefore, it is up to the customer to choose their preferences. However, the other companies sell their food products at a lower price than Talabat thus raising a competitive pressure. Thus, Talabat has been able to maintain its food products at a lower price and also made sure that its production cost is low, therefore, weakening the competition (Fleisher & Bensoussan, 2015).
The threat of substitute products
Stiff competition from rivalry counterparts that have made a point of producing substitute products is intense since they are making close to the same type of food products that Talabat is producing and supplying them to the market.
Bargaining power from buyers
The clients and consumers are affecting Talabat through a force they are applying when bargaining to bring the original prices down; also they are requesting for high-quality products with low prices, therefore, making sure that they are playing Talabat with its competitors. The bargaining power among consumers is very high because there are also new companies joining the race and coming along with new types of a variety of products. However, the earning that Talabat makes depends largely on the consumers that show up in the shop online (Fleisher & Bensoussan, 2015).
Talabat has been at the forefront of coming up with innovative strategies to run the business. At Talabat they use innovative strategies in treating wastewater. Talabat has not been left out when it comes to the introduction of new products into the market.
Declining market share
Talabat's market share has been reducing over the years due to its competitor's hard fight to take over to the market. Other small companies are also entering the market and are selling their products at a cheaper rate but quality products.
A health concern about being healthy has come up in recent time where people of a younger generation are demanding low-calorie content while at the same time demanding "on the go" meals. However, for the elderly persons, they are in dire need of healthy foods that limit sodium intake since they have a high risk of getting sick.
Talabat has been on the lime light of competition from its rivalry companies who are producing the very same products. Talabat has also been losing its market share to companies like Hellofood and foodonclick.
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: Effective application of new and classic methods.
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