SOLUTION: ASSE 3211 Prince Mohammad Bin Fahd University Global Expansion Strategy Paper

This Project is based on the Global Expansion Strategy followed for Jahez, a food delivery
startup from Saudi Arabia, founded in 2016
Name of the Company
Place of Expansion
Host Country
Industry
Team Member 1
Team Member 2
Team Member 3
Subject
Submission Date
pg. 1
Jahez
Malaysia
Saudi Arabia
Platform to Consumer Delivery
31st January 2021
Tables of Content
Sr No.
pg. 2
Description
Page
1
About the Company
3
2
Services they offer
3
3
Funding and Growth of the company
3
4
Services to Expand
4
4.1
Food Delivery Services
4
4.2
Hyperlocal (Groceries)
4
4.3
Non-Food Items
4
5
Places of Expansion
4
6
Justification of Market Expansion
4
6.1
Market Growth
5
6.2
Market Competition
5
6.3
User Base
6
6.4
Internet/Mobile Penetration in the country
6
6.5
Buying Behavior of Consumers
7
6.6
Demographic of our target audience
7
7
SWOT Analysis
8
8
Conclusion
8
9
Consent from the Organization
9
10
References
10
1. About the company:
Jahez, a company founded in 2016 and currently run by CEO and Co-Founder Eng. Ghassab AlMandil, offers an advantage for the people to order food from their own comfort. This food delivery
startup currently serves 3 million plus users with their fleet of 15000+ freelance courier partners.
Jahez operates in 20+ cities across the Kingdom including Riyadh, Jeddah, Dammam. They are more
focused towards Food-delivery across the country in all major hubs, but also plans to expand in
cloud kitchen, groceries and additional deliveries including non-food items. The aim is to hit the
target in the hyperlocal market where currently there are very less players across the country. They
host180+ employees from Saudi Arabia which specializes in various streams handling the
technological and digital part for the company.
During the COVID-19 outbreak, the company very efficiently managed the situation and extended
support to small local businesses by catering to online food ordering which gave them an alternate
for their declining dine in services. They managed to score more than 20 million orders across the
country from big and small players like 32grimp, McDonald’s, Hardees, House of Donuts, Burger
King, Nandos, Baskin Robbins, KFC, Arepas, Al Tazaj etc.
2. Services they Offer:
Jahez offers to build a platform for users to order food online and
at the same time allow local businesses and offline retailers to
use the power of digital technology and electronic medium.
They help restaurants, pharmacies, supermarkets, and other
retailers to sell via Jahez and add up to their revenue by reaching
the customers who are unable to shop offline. They automate the
inbound flow of orders by their app which is available on both
Android and iOS, and then provide last mile delivery solution at
their doorstep.
3. Funding and Growth of the Company:
Jahez has raised a total of $36.5M (SAR 137 Million) in funding
over 1 round. This was a Series A round raised on Jun 3, 2020,
led by VC Impact46.This is done via sales of both primary and
secondary shares of the company. The invested funds and the
fresh funding will be used to support the tech and digital base of
the company, leading to expansion in an overall last mile delivery of food and non-food items,
which will be done by adding more cities to the existing list of 20 in the Kingdom.
The management also believes that they have set up a very stable base in around 4 years are looking
forward to expanding the same for better avenues in space of cloud kitchen, hyperlocal market, and
groceries across the Kingdom and eventually the globe.
pg. 3
4. Services to Expand:
4.1) Food Delivery Services: Considering the current scenario where the country is still under major
impact of the virus and the world is trying to cope up with the same, it becomes very important that
we not only deliver with full efficiency, but also maintain the trust of our customers by delivering
with safety and utmost precautions. Since the main operations of Jahez is into Online Food
Ordering, it must expand to other countries under this service for sure.
4.2) Hyperlocal (Groceries): This is something that the company must look up to when expanding
in the foreign market. This would allow them to tap a bigger market and make touchpoints with a
higher number of customers. Also, when they are expanding, they can have more offerings as
compared to the existing players in the market.
4.3) Non-Food Item: This is the final goal which will allow them to become a trusted partner for the
last mile operations for individuals and businesses alike. Also, I think they must keep this into
perspective but not eventually start with this. Since they are in the niche of online food ordering
and doorstep delivery, they must build trust in that domain, attract customers, and create retention,
then launch this to serve them better and build on that trust factor.
5. Place of Expansion:
After understanding various factors and variables, I would like to take Malaysia as the host country
where I would like to expand Jahez with their food delivery and hyperlocal services in the country.
Also, we would consider the market in detail, however I would like to start serving in 10 of the most
populated cities of Malaysia to tap a larger market and create better customers. Cities of Expansion:
CITY NAME
Kota Bharu
Kuala Lumpur
Klang
Kampung Baru Subang
Johor Bahru
Subang Jaya
Ipoh
Kuching
Petaling Jaya
Shah Alam
POPULATION
1459994
1453975
879867
833571
802489
708296
673318
570407
520698
481654
6. Justifications of Market Expansion:
In choosing the market of expansion for Jahez, we have tried to understand what their true offerings
are and what are the aggregators that enable their success in any given market. After a thorough
considerations, we have decided on the given parameters that will suit this industry and in
particularly Jahez in expanding overseas. These factors are:
pg. 4






Market Growth
Market Competition
User Base
Internet/Mobile Penetration in the country
Buying Behavior of Consumers
Demographic of our target audience
6.1) Market Growth:
The revenue in the online food ordering segment is expected to increase to USD $267 million in
2021, with an annual CAGR of 15.4% leading to a market revenue of USD $410 million by 2024 (data
by Statista). Along with this, the Malaysian GDP currently stands at USD $336.33 Billion which has
declined by 6% over 2019 but is expected to take a big leap in the coming years are the country is
moving towards a better industrial and technological infrastructure. Specifically, at the online food
delivery segment, the market is divided into Platform to consumer delivery and Restaurant to
consumer delivery. Though the current penetration of Platform to consumer delivery stands at one
third of the overall market but is expected to grow double in the coming years. Below table gives a
pictorial representation of the same in the Malaysian market.
6.2) Market Competition:
COMPETITOR
GrabFood
OFFERINGS
It utilizes its network of logistics and food partners to serve from a list of restaurants
where the users can use various promotional discounts and deals along with Grab
Reward food stamps for online ordering.
Food Panda
Largest online food ordering platform in Malaysia with over 100,000 partnering
outlets.
Bungkusit
App allows the users to order anything from anywhere, in exchange of just the
delivery fees and no surcharge.
Hometaste
Hosts the menu of various home-chefs leading serving Malaysian and foreign
cuisine. They also provide catering services on need basis.
pg. 5
Pop Meals
Dietmonsta
Squeeze Me Baby
Transparent and user-friendly platform where they list everything, they use in
making a dish. They also provide food plans at affordable prices.
Specifically catering to people who want to build muscle, lose weight, or just live a
healthy lifestyle. They also offer certified dieticians to help their end consumers
with proper food plans.
They provide 100% natural food items fit for toddlers and children till a specific age.
Petchef
Personalized meals to suit the requirement of your pets as per their breed and
health conditions. They also serve monthly meal plans on the same.
The Naked Lunchbox
Designed with multiple choices and specially catering to the food requirements of
vegans which are low in sodium and sugar-free.
Epic Fit Meals.co
They majorly support the health and nutritional requirements of the customers
such as Keto diets etc. They also have offline stores to support the same.
Savor of Life
Plant based and nutritional diets ranging from local to western cuisines which can
be chosen from a 5-day to 20-day subscription plan.
6.3) User Base:
The current user base of online food ordering stands at 7.6 million in Malaysia, however it is
expected to rise exponentially in the coming years leading to 13.5 million by 2024. The same has
been portrayed in the figure below, and it explains that the market for Platform to consumer
delivery will see a 200%+ increase in the coming 4 years giving Malaysia a huge potential for Jahez
to expand and diversify in this region.
6.4) Internet/Mobile Penetration in the country:
Despite having a very high mobile penetration, Malaysia still holds huge scope for expansion in
digital space. With high level of connectivity, Malaysia is already driving the growth for ecommerce in the country leading to more numbers of companies rising in the digital space in various
industries. The current base of organizations is also utilizing, and people and processes are easier
to manage. Jahez can also use the same and build proper connectivity within the region. This can
also help us in using the social media and digital marketing techniques to reach a higher number of
consumers. The current internet penetration and growth is given as per the report by Accenture:
pg. 6
6.5) Buying Behavior of Consumers:
As per the study by Accenture, 57% Malaysian consumers are more likely to order from a place
where they get a higher coupon discount and better deals, irrespective of their brand liking, and
66% of the Malaysian consumers use Mobile phone to order online giving us a good base to create
better touchpoints. As per the Journal of Marketing advances and practices, Time saving orientation
and convenience motivations are one of the major factors that allows a consumer to order online.
This convenience can either be while selecting a restaurant or which putting food items in the cart
or even while paying. General consumers habits while online ordering (food and non-food) is
mentioned below:
6.6) Demographics of our target audience:
As per the data published by Statista, 51.9% of online food was ordered by Males in Malaysia, where
the overall income groups belonged to 29.3% in low income, 33.7% in middle income and 37.1% in
high income group. Apart from this, the age brackets of users in 2020 is also given below:
pg. 7
7. SWOT Analysis of Malaysia:
Strengths









Alliance with leading economies across
the world
Low Unemployment rate (3% in 2019)
Multi – Cultural and Diverse Population
Facilitating Business Policies
Transportation and ease of movement
between places
Inclination towards variety of food
consumption
Opportunities
Major shift from Product based to servicebased industry
Technological
expansion
and
connectivity within the country
Fast food trends and growing demands
for the same
Weaknesses








Political Corruption
Limited Public Welfare
Relying heavily on export of oil,
gas, and diesel
Lower Profit Margins for local
businesses
Threats
Deforestation
Security Issues and terrorist
influence
Government intervention
High level of bureaucracy
8. Conclusion:
Based on the overall analysis of Jahez’s business model and they offerings to the end consumer, I
suggest that we must expand in Malaysia starting with 10 cities based on their respective
population.
Also, as per the reports mentioned by Statista and Accenture and other reliable sources, we can
easily conclude that the country is technologically advanced and has a growing base of consumers
who can spend and who have the required habit to help our business, however we also highlight
certain drawbacks under the SWOT Analysis. We get to understand that the political intervention
is quite high and that there are very less sustainable practices that are followed across the country.
pg. 8
Hence, this can be an opportunity for us to introduce certain new measures and create a space for
other corporates to work upon.
We also understand that the market is expanding for fast food and this can give a high rise to the
online food ordering industry, which can also be facilitated by the current pandemic leading to
reduced dine in and offline gatherings. Overall, I believe Jahez would be able to give a good fight
to the current players and with its offerings under Hyperlocal and food delivers, we can tap a larger
market in the years to come.
9. Consent from the Organization
pg. 9
10. References:

Crunchbase.
2021. Jahez:
Funding
Rounds.
[online]
Available

[Accessed
January 2021].

Paracha, Z., 2021. Saudi food delivery startup Jahez raises $36 million in country’s largest VC deal.
[online] MENAbytes. Available at: [Accessed
31 January 2021].

Wamda.com. 2021. Jahez raises $36 million in Series A – Wamda. [online] Available at:
[Accessed 31 January 2021].

Impact46.sa. 2021. impact 46. [online] Available at: [Accessed 31 January
2021].

Statista. 2021. Online Food Delivery – Malaysia | Statista Market Forecast. [online] Available at:

[Accessed 31 January 2021].

Accenture.com. 2021. MALAYSIA A SOLID SCORE AND A STEADY FUTURE. [online]
Available at: [Accessed 31 January 2021].

Jodee, T., 2021. 11 Best Food Delivery Services You Must Try in Malaysia 2021. [online] Malaysia
(EN).
Available
at:
[Accessed 31 January 2021].

Statisticstimes.com. 2020. World GDP Ranking 2020 – StatisticsTimes.com. [online] Available at:

[Accessed
31
January 2021].
pg. 10
at:
31

Worldometers.info. 2021. Malaysia Demographics 2020 (Population, Age, Sex, Trends) – Worldometer.
[online]
Available
at:
[Accessed 31 January 2021].

Teck Chai1, L. and Ng Ching Yat, D., 2019. Online Food Delivery Services: Making Food Delivery the
New
Normal.
[online]
Jmaap.org.
Available
at:
[Accessed 31 January 2021].

Shaw, A., 2021. SWOT Analysis of Malaysia Exaplained | Marketing Tutor. [online] Marketing
Tutor. Available at: [Accessed
31 January 2021].
pg. 11
ASSE 3211: Learning Outcome Assessment 2
Assignment: ePortfolio Artifacts
Student Name:
Student ID:
Semester and Year:
FINAL YEAR PROJECT / ANY PROJECT UNDER MAJOR
COURSE.
Project Title: ……………………………….
Introduction:
—–write an introduction paragraph of your project.
Reflection:
Write a reflection paragraph of your project —–
… Purchase answer to see full
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