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Eat2Eat case study
This document provides a case study and strategic analysis of Eat2Eat.com, an online restaurant booking company. It discusses Eat2Eat's strategy of expanding its geographic coverage to grow revenues and customer base. A SWOT analysis identifies strengths in its strategy development and production processes, but also weaknesses in inadequate resources and threats from increased competition. Recommendations include strategic alliances, continued geographical expansion, hiring more staff, changing the logo, and investing in advertising.
Eat2Eat case study
- 1. STRATEGIC MANAGEMENT Eat2Eat.com Case Study
- 2.
- 3. INDEX 1.What are thekey success factors for competing in the online restaurant booking industry? 2. What is Eat2Eat's corporate strategy? 3. What are the fundamental aspects of Eat2Eat’’s strategy? Which of the 5 generic strategies do you believe Eat2Eat is pursuing? 4. Perform a SWOT analysis for Eat2Eat. 5. Provide recommendations concerning Eat2Eat’s future strategy.
- 4. Growth strategy • Internal:expand Eat2Eat geographic coverage Eat2Eat.com 900 800 700 600 500 400 Restaurants 300 200 100 0 1/1/2000 1/1/2001 1/1/2002 1/1/2003 1/1/2004 1/1/2005
- 5. Growth strategy… • Increase Eat2Eat revenues US$478,000.00 in 2005 • Increase in firm value • Increase the number of new customer registrations • Increase the number of participating restaurants
- 6. Growth strategy External Strategies alliances: •Corporate employees as a customers • Partnership with newspapers
- 7. TYPES OF BROAD FEATURES DIFFERENTIATION EAT2EAT CASE • A broad cross-section of • Both dinner, corporate and Strategic the market personal target • 823 restaurants which participated in their projects and 11859 customer registrations, in 10 different cities. • An ability to offer buyers • For diners: “the possibility to Basis of somthing different from book a table online and to receive competitive competitors loyalty points or discounts”. • For restaurants: “the possibility to advantage have a presence on Internet”. • Eat2Eat.com offered regional coverage instead of city-specific. • Many product variations, • Customers could search Product line wide selection, strong restaurant by different criteria emphasis on (location, ambiance etc). • Restaurant reviews, recipes, differentiating features. interview with chefs and lists of top establishments in various
- 8. By Helena Gamboa TYPESOF BROAD FEATURES DIFFERENTIATION EAT2EAT CASE • Creation of value for buyers • The superiority of restaurant Product strive for product superiority. created value for diners. emphasis • Easy to make a meal reservation to select a great restaurant, date and time and party size. • Buid in whatever features • Dealt exclusively with first-tier Marketing buyers are willing to pay for. restaurant (reservations ,very emphasis • Charge a premium price to popular, busy, expensive) • Service easy, clients can find, cover the extra costs of preview and reserve at good differentiating features. restaurants • Communicate the points of • Eat2Eat partnered with leading Sustaining difference in credible ways. regional newspaper, The Asian the • Stress constant improvement, Wall Street Journal. • Enabled the reservations for use innovation to stay ahead strategy of competitors. restaurant´s Web sites /Booking function accessible through • Concentrate on a few key WAP-enable mobiles. differentiating features. • Special set menus . (the best
- 9. Strengths • Well developed strategy • Improving production processes • Broad market coverage
- 10. Weaknesses • Growth without direction • Inadequate human resources • Personal market segment
- 11. Opportunities • Foreign markets •Strong alliances • Exploitation of technology
- 12. Threats • Increase inforeign and domestic competition • Loss of sales • Growth of bargaining power of the customer
- 13. SUGGESTIONS • Strategic alliancewith Booking.com • Focus geographical expansion • Hire help • Change logo • Invest in advertising
- 14. Geographic Expansion 1. Opennew markets in 1. outputs. Liquidationcities) and, if profitable 2. LATAM 2. Eliminate unprofitable North America (big of markets with language and (capital cities) barrier. Bagkok and Shanghai. technological
- 15. Nowadays Management Mr. Aggarwal,CEO Eat2Eat • Bachelor Degree Ecommerce (University of calcuta) • MBA (London Business School) +8 employees.
- 16. Hire Help Advertising Legal Mr. Aggarwal agency advisor Asia Oceania North America Design negotiator negotiator negotiator department subcontractor CEO Employees
- 17. Design CHANGE LOGO INVESTMENT IN ADVERTISING
- 18.
Editor's Notes
- #11 Mr Aggarwal admits that ‘the company would have to significantly expand its user base in 2006 and beyond’. He may find it relatively difficult to do this with the limited time and financial capital. As well as these two influencing factors- he is unsure as to what exactly he will do next. For the time being it has come to a halt until he can figure out what to do next. This is definitely a weakness as it is wasting valuable time and money. Mr Aggarwal also only has eight staff to help him run the business in over 800 locations, to market the business and make sure there are no problems on the website. It is not very much and could be a reason as to why he is losing money and considered debt financing. Successfully tapped into the corporate market- but that target was easy. He now wants to expand into the personal market. He needed to run promotions and make deals with other companies e.g. the credit card company to get additional coverage. He had been making deals and arrangements for five years without securing anything at all. Again it was wasting time and he was not advancing with his business.
- #12 Mr Aggarwal started by entering Eat2Eat.com in the Asian market only. He had quite successfully done that as discussed above but also was in the process of entering the Australian market; Sydney and Melbourne. This opportunity could lead to more exposure in New Zealand or even some coverage in the neighbouring islands such as Mauritius and Reunion Island.Hemade alliances through many regional Asian newspapers, credit card companies and the negotiation of deals with restaurants all in order to boost the coverage for Eat2Eat.com. The relationship he is building up is very crucial to the survival of his business and if he can continue to strengthen and take advantage of these relationships- even bigger opportunities will be presented to him. The exploitation of new technology include Eat2Eats.com’s content accessible through WAP-enabled mobile phones. This is a great opportunity considering ‘the high penetration of mobile phones in the region’.
- #13 If there is an increase in domestic competition- and another rival comes with the same proposition for the Asian market then the bargaining power of the customer will rise. Once the customer knows they have more options and selection they will stop relying on Eat2Eat.com. Mr Aggarwal needs to address this issue before its too late and try to raise his own barriers to entry. Mr Aggarwal is a foreigner himself to the Asian market, and it is stated in the case that in every Asian city there are language issues. If an Asian business man comes and takes over the market because of this, Mr Aggarwal faces a huge loss with his business. It is worth Mr Aggarwal investing in some native Asian speakers who can deal with the customer base. All of these threats could result in loss of sales