Strategy question
How would you approach launching Zomato in a new country?
- Zomato
- Strategy
- Medium
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What this question tests
Market entry strategy, weighing local competition, supply-side logistics, and demand validation.
How to approach it
- Pick a target country and justify it briefly, like a Southeast Asian market with growing food delivery demand and less saturated competition.
- Assess the competitive landscape: identify the dominant local player and their strengths, like an entrenched logistics network.
- Assess demand: urbanization rate, smartphone penetration, and existing habits around food delivery or cash on delivery preference.
- Plan supply side first: recruit restaurant partners and delivery riders in one city before expanding, since supply drives the marketplace.
- Decide on localization needs: payment methods, language, and menu curation suited to local tastes.
- Define success as order frequency and restaurant retention in the pilot city within the first two quarters.
What a strong answer includes
- Picks a specific country and gives a concrete reason, like high urbanization and a fragmented, winnable competitive landscape.
- Sequences supply before demand, correctly prioritizing restaurant and rider recruitment before marketing spend.
- Names a real localization need, like cash on delivery support, relevant to many emerging markets.
- Picks a pilot city approach with a clear metric, order frequency, rather than a broad simultaneous national launch.
Common mistakes
- Choosing a country with no stated reasoning or market sizing logic.
- Leading with marketing spend before securing restaurant supply, which usually fails in delivery marketplaces.
Likely follow-up questions
- How would you compete against an entrenched local incumbent?
- How would you decide which city to launch in first?
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More questions from Zomato
Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop