Abstract

The case “Swiggy at Strategic Crossroads: Core Focus or New Verticals?” explores the strategic dilemma faced by Swiggy Ltd. (Swiggy) – one of India’s leading food delivery platforms – on whether to strengthen its core food/grocery delivery businesses or expand into new verticals. Founded in 2014, Swiggy had quickly become one of the pioneers in the Indian food delivery industry through a strong technology platform, an extensive logistics network, and a robust customer base. The case documents the various diversification initiatives Swiggy had taken over the years with the intent of expanding its operations, realizing certain business synergies, and developing new revenue streams. The case touches briefly on the merits and demerits of Swiggy’s various diversification ventures. The dilemma of the case revolves around a critical strategic choice: should Swiggy’s CEO Sriharsha Majety (Majety) double down on Swiggy’s core delivery business where it has competitive strength, or should he continue investing in diversified verticals to capture future growth opportunities?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the reasons that drive businesses to seek business diversification.
• Evaluate the strategic trade-offs between diversifying into new verticals and focusing on core delivery services using relevant strategic frameworks.
• Examine related and unrelated diversification, strategic fit, and economies of scope.
• Analyze the reasons that drive businesses to seek business diversification.

Keywords

Strategic Fit; Related/Unrelated Business Diversification; Synergy; Core Competencies; Economies of Scope; Hyperlocal Delivery; Brand Extension; Brand Differentiation; Customer Engagement; Cross-Vertical Integration; Market Expansion; Competitive Advantage; App Stickiness; Customer Retention, and Value Addition,Swiggy; Platform Business; Food Delivery; Revenue Sources; Entrepreneurship; Financial Stability; Unicorn; Professional Services Marketplace; Brand Engagement Tool; Brand Loyalty