DABBAWALLA CASE
STUDY
SHUBHAM ANIL BHOIR
FYPGDM
DIV-B
INTRODUCTION
A Dabbawallah is a is a person in India, most commonly in
Mumbai, who collects freshly cooked food in lunch boxes
from the residences of mostly-suburban office workers,
delivering it to their respective workplaces by using various
modes of transport.
The efficiency of their supply chain management has achieved
six sigma performance rating, (because failure rate is one in 15
million deliveries i.e., 99.99% is their success rate).
SWOT Analysis
STRENGTH WEAKNESS
I. Strong supply chain • Highly dependent on local trains.
management • Funds are limited.
II. Customer satisfaction
III. Time management
IV. Geographical area
V. Co-ordination
VI. Simple organization
SWOT Analysis
OPPURTUNITY THREATH
• Publicity in other areas or city • Office canteens
• Provide Catering service. • Change in the taste of the youth
• Join new market of fast-food • Delivery services like swiggy,
• Wide range of publicity zomato
Competitive Advantage
• Homemade food is good for health.
• Costing is much lower compared to fast food.
• Unity between all the dabbawalla’s.
• Strong service
• Threat of new entrant: low; to perfect the supply chain of Dabbawallah one
required large numbers of employees which now a days not possible.
• Bargaining power of buyers: low; delivery rates are so minimal that one
simply wouldn’t bargain any further.
• Bargaining power of supplier: low; they barely use any infrastructure and
they does not use any technology so they are not really dependent on any
supplier.
• Competition: It’s difficult to replicate their supply chain system with six
sigma factor.
• Threats of new substitute: low; there are no substitute available for home
cook food
Porter’s Five Forces Model
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Q.1) What factors need to be in place for a
service like the Dabbawallah to work effectively?
Fantasy of people having home made food must never end as this
business is depended upon this factor.
Unity of the people among dabbawallas is the biggest asset of this
business.
Mumbai local train is major aspect to run this business efficiently & as
the cost of tickets should not increase.
Environmental factors also plays huge roll in this business as covid
pandemic affected this business a lot.
Q.2) What are the economics of the Dabbawallah meal
distribution network (i.e. what is the business model) is this
business model scalable?
• Business model
The business model of dabbawallas is to deliver home cooked tiffin from point A to point B and then
returning it back on the same day. It is a actually a system where a dabbawalla collects lunch box from
particular place and deliver it to his costumer's workplace and again return it back on the same day. T work
on a coding system that helps them to avoid any mistakes. It is a unique organization where a da changes
hands nearly six times and till there is no error. This service is carried within a specific time frame nearly
six hours every day, six days every week and for fifty-one weeks every year on a regular basis completing
nearly 260,000 transactions including up and down services.
• Is this business model scalable?
Yes this business model is scalable because the desire of public having homemade food is fulfilled by
the dabbawallas. Dabbawallas can expand their business in different states with the help of public transport
which is low in cost and can be efficient. Also the services they providing is error free. They can start up
with their own kitchen providing home made food which can help people who have both people working.
They can start hiring more employees to expand their business through online platforms.They can make
More payments options available.
Q.3) Is the Dabbawallah meal distribution network an example of a world-class
service? If yes, why hasn’t their model been successfully replicated elsewhere? If
not, what changes to the business model is required to achieve world-class status?
Yes the dabbawalla meal distribution networks an example of world class
service.
Colouring system: The dabbawallas utilize colouring system to utilize
their dabbas.
Technologies used: Dabbawallas are illerate so they don’t use any
technology does their business in a simple way.
The delivery of food is done on the employees
skills.Identification,packaging on boarding,and distribution to customer is
very accurate. Lunch boxes are delivered 99 percent to the right address.
The delivery system of dabbawallas is flexible an reliable.Cost they charge
for delivery of food is also which create a monopoly for them cause no
other business can manage the accuracy of delivery in such low cost.
Q.4) Do you agree with Raghunath medge;s assessment of the future of the
Dabbawallahs? If so, why? If not, what are the major risks and challenges for the
Dabbawallah going forward?
• Yes I agree with raghunath medgs assessment because
• Now a days everyone wants food to their doorsteps right now in
Mumbai many houses both husband and wife are going for jobs.
• For dabba wallas will make easy for wives to give their tiffin to their
husbands.
• They would need to look for new areas such in house kitchen going in
online and adapting online mode of payment.
• Right now most of Mumbaikars are attracted towards fast food but
slowly slowly they are getting aware about healthy food and now a
days everyone wants healthy and muscular body.
Thank you
