Harvard Business Review released an article on Mar. 18 examining why companies often avoid competing in the middle market. The article uses Dunzo, an Indian e-commerce company, as a case study to illustrate this trend.
The topic is important because understanding competition dynamics in the middle market can help businesses and investors make informed decisions about growth strategies and market entry.
Dunzo launched in 2014 with a promise to deliver anything within 60 minutes or less. By 2019, it was operating in eight major Indian cities. In August 2021, Dunzo expanded into quick commerce by launching Dunzo Daily, which offered delivery of essentials in just 19 minutes or less. The service quickly gained popularity among customers for its convenience, while investors were attracted by its rapid growth. The phrase “Dunzo it” became widely used in India, similar to how “Google it” is used in the United States.
The article explores how companies like Dunzo navigate challenges and opportunities when entering new markets and scaling their operations. It also considers why some firms choose not to compete directly in the middle segment of the market.
As more companies consider expansion strategies, insights from cases like Dunzo may influence future business decisions regarding where and how to compete.
