Business Strategy Consulting Flink Expansion to the US

Project Introduction

The purpose of this strategic consulting case is to provide a hands-on comprehensive understanding of strategic concepts and analytical tools. My team collaborated to producea video case that sheds light on a strategic concern faced by Flink. Our approach involved conducting an in-depth analysis, pinpointing the most critical strategic issue, and providing a strategic recommendation for the company.

Flink Introduction

Flink is a German-based e-commerce company specializing in the provision of food and grocery items at competitive market prices, delivered within a 10-minute timeframe. With a presence spanning across 60 cities in four countries including Germany, France, Netherleands and Austria, Flink faces intense competition from rival companies such as Gorillaz, Deliveroo, Getir and others. As per industry estimates, Flink boasts a current valuation of approximately $5 billion as recorded on Dealroom.co, thereby establishing its status as a unicorn in the industry.

How Does Flink Operate?

The company utilizes dark warehouses and stores. a team of dedicated warehouse personnel, who are full-time employees of Flink, are responsible for picking the ordered items and handing them over to the delivery riders for transportation. To support the delivery process, Flink provides e-bikes to its riders, as opposed to utilizing contract-based personnel like its competitors Deliveroo or Instacart.

Strategic Issue

The primary challenge facing Flink and the industry of on-demand grocery delivery services is the saturation of the market with numerous, similar service providers. The rapidly evolving market results in heightened price sensitivity among customers, who can easily switch between companies based on the cost of the items. To maintain their market share, Flink and their competitors must engage in intense competition.

Strategic Recommendation

The primary challenge facing Flink is the potential decline in market participants due to market saturation. This could lead to reduced competition, which could result in consolidation among market players. To mitigate this risk, it is recommended that Flink expan its operations into new international markets, specifically the United States, thereby increasing its market presence and promoting competition.

Expanding into the United States is strategic for Flink as it offers one of the most promising markets with significant market potential, cultural similarities, and favorable infrastructure. Other regions, such as the southern hemisphere and the Middle East, pose significant cultural barriers, while countries in the Nordic region and Canada face unfavorable weather conditions that could impact delivery services year-round. Among the few remaining options, the United States stands out as the most suitable and attractive market for Flink's overseas expansion.

Our final report document can be viewed below.