Abstract

The case is about India’s mobile app-based ride sharing firm Ola’s attempt to make a re-entry into the fast-growing food delivery space, which it had earlier exited. It starts out by mentioning the reasons that had driven Ola to make an exit from the Indian food delivery space. Ola’s re-entry through the acquisition of the fast-growing Indian food delivery company, Foodpanda, is then described. The caselet touches upon the advantages that Ola expected to gain through the re-entry. It concludes with a look at the future prospects of Ola’s food delivery business.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• To analyze the reasons that drive a company to make a market exit and a subsequent market re-entry.
• To examine the chances of a company finding success in a new and emerging market space.
• To scrutinize the strategies to be undertaken by a company to make a mark in a growing but highly competitive market.

Keywords

Service Marketing; Strategic marketing; Market exit and re-entry; Food delivery; Emerging market; Competition; Business Strategy; Diversification; Related diversification; Unrelated diversification