Eat2Eat Strategy

Eat2Eat. com 27th of November 2012 Strategic steering Questions 1. What argon the differentiate mastery factors for competing in the online eatery battle diligence ? 2. What ar the fundamental aspects of Eat2Eats dodging ? Which of the 5 generic wine wine strategies do you believe Eat2Eat is pursuing ? Has the dodging evolved since the comp some(prenominal)s institution ? 3. Perform a trick up analysis for Eat2Eat. 4. What role allow strategicalal alliances contend in Eat2Eats succeeder ? What show results of partners argon most(prenominal) expensive to Eat2Eat ?Which partners does Eat2Eat make it wind the superior say-so to clear ? Which confederations should Eat2Eat concentratesing on forming in the spry afterlife ? 5. set up recommendations concerning Eat2Eats future(a) dodge. 1. What argon the key success factors for competing in the online eating house booking industry? * Quality of eating places contracted * A Brobdingnagian network of restaurants in strategic places * wide interface with relevant criteria (Place, prison term, ambiance, cuisine price, rating,) * adroit communication * Favorable reputation * safe k like a shotledge of the market Ability to reply quickly to shifting market conditions * keen faculty to make innovative improvements * Fast, accurate, practiced assistance * Superior information dodge * Access to financial detonator 2. What be the fundamental aspects of Eat2Eats dodging? Which of the 5 generic strategies do you believe Eat2Eat is pursuing? Has the scheme evolved since the caller-outs conception? First lets evidence that Eat2Eat. com is an internet based restaurant portal, promoting fine dining in Asia pacific region, through twelve cities.The website is a require to the regions best(p) restaurants with an online engagement receipts. The founder of this website believed that thither was a grade proposition in connecting dinners both merged and own(prenominal) wit h restaurants, with the help of a exceedingly automatic process like the air passage bookings, hotel makes or car rentals. He as well believed that restaurants could wellbeing by having a carriage on the internet. And we pretend it is important to small excessively that the revenue generated by Eat2Eat is polar from former(a) restaurants portal on the internet. 0% of their total revenue came from their commissions on the restaurants (between 7% to 10% of the guests bill) 20% of the political party total revenue be from banner announce on the website, and the pull round 40% came from the preferred arrangements between ac identification teases companies and restaurants. Whereas most of separate portals pull in revenues from advertising al unity. in that respectfore one of the major(ip) clients for Eat2Eat remains the restaurants admiters (through the commission and the campaignments), Eat2Eat signed them up as suppliers, further also there kindlet be any com mission without any bookings. Corporate outline Looking at Eat2Eat present in corporate strategy, it is following a growth strategy and to a keener extent(prenominal) detailally an internal growth. Eat2Eat strategy is to capitalise on its core competencies, embellishing its live resources. We perplex the exercising in the campaign when the guild wants to sum up its geographic reporting, entree in Kyoto, Melbourne and Phuket. We tail assembly also affix that this choice of strategy follows Aggarwals proclivity to conserve full ownership and verify on his telephoner. * Generic strategyThe footing wherefore we think Eat2Eat is following a giving divers(prenominal)iation strategy is the augmented go and their high fiber. First, lets say that comparability to other websites Eat2Eat is offering a wealth of escorting information, these extra features complicate restaurants reviews, recipes, interviews with leading primary(prenominal) and list of exceed establis hments in various categories. To propose this good in a more agreeable means, the restaurant can be anticipate according to various criteria including location, ambiance and availability for disabled diners, smoking preference, cuisine, price range, quality rating and hotel affiliation.The launch of the case and the booking function through the WAP system change also the advanceibility of the service for the user. * drawing card offensive strategy Eat2Eat can be considered as a leader because comparing to the other Asian pacific portals which are only city specific, Eat2Eat. com is offering regional coverage. Google and Yahoo , search engines consistently graded Eat2Eat. com low gear in search results for Asian restaurant reviews and bookings. And also the Smart Diners boldness in the United-States has rated Eat2Eat. om as the top restaurant information and reservation site in the world. * A transnational strategy Because Eat2Eat is transaction with cross-country variati ons in buyer preferences and market conditions, it is very important to nonice the differences between those markets (as market observations in exhibit 4) . Eat2Eat occupied a combination of global topical anaesthetic strategy. Eat2Eat has the same basic competitive strategy in all country market, except it is also able to develop the capability to customise service offerings in different countries.To illustrate this point, the launch of equivalent sites in Japanese and Korean to cover the restaurants in Tokyo and Seoul is an example of this think global, act local anesthetic strategy. Focusing on Tokyo again, another example could set off this strategy when Japanese corporations were reluctant to advocate their employee to sign up for the service and also because many scratch line-tier restaurants in Japan had their own website yet not the technology to support on-line reservations, Eat2Eat. com enabled the reservation for the restaurants website. This is clearly an example of a small ad andment for a specific market. Has the strategy evolved since the party conception? In a management, we could say, yes the strategy evolved, because premier Eat2Eat was focusing its promotional efforts on corporate customers. It seems at the beginning the best way to gain ground customers, and this strategy worked well because both the corporation and Eat2Eat were wining (except in Japan as we observed previously, and the cultural adjustment were the premier step to an increase in personal dinners booking in Tokyo). The strategy growth from corporate customers to individual customers probably occurred with the success of the adaptation of Eat2Eat. om for mobile surrounds for Japanese and Korean customers. In order to reach its potential, Eat2Eat had to do all it can to increase the customer base in the personal market. The partnership with The Asian Wall track ledger seemed the best way to reach the customer base. And even if the Eat had little immediate jol t on Eat2Eat. com reservations and revenue, it allowed the company to expand its restaurant base in electric current cities and established the production line in untested cities. With the same conceit to reach more individual customers, Aggarwal thought of an agreement with credit card companies.We can also increase that due to the lack of magazine and resources it may appear now to Aggarwals mind, that an immaterial strategic alliances might be taken into consideration and may be the best way to improve Eat2Eat efficiency. 3. Perform a SWOT Analysis. * * Strengths * Highly rated Eat2Eat. com was the most extremely rated meshwork based restaurant reservation service covering major cities in the Asia Pacific region. * Airline booking The flight path booking is highly automated process. * 12. 000 customers afterward only five years of operations, the company already has 12. 00 customers from differents countries. Eat2Eat. com covered 823 restaurants in Bangkok, Hong Kong etc. * Team members Vikram Aggarwal hired 1 chief officer, 1 programmer, 2 other masses in order to help with the workload. It was a little company, with competent personal and lax to manage. Moreover, the personnel termss should not be high. * Revenues The company makes 40% of total revenues with 7-10% of bills customer. Then, in 2005, advertisements on the website contributed an superfluous 20% of the revenues. * course credit The company had received considerable recognition.A public opinion poll taken by the Smart Diners presidency in the United Staes had rated the company as the top restaurant information and reservation site the world. Moreover, Google and Yahoo ranked Eat2Eat. com first in search results for Asian restaurant reviews and reservations. * On mobile phone In 2004, the company was adapted to make its content and booking function accessible on mobile phones. This added accessibility would significantly post the companys reach and utilization, considering the high penetrationof mobile phone in the region. * Weaknesses * Enable on genuine cities The service became favorite but lagged elsewhere.The service had not found greater acceptation in cities like Hong-Kong or Singapore. * near customers Vikram Aggarwal approached himself their customers but this technique is much alike prospicient. May be he can ask to professionals to make it A SA PLACE. * No time As we engage just said before, Vikram Aggarwal had no time to influence all partners. * Second-tier restaurants Eat2Eat. com dealt exclusively for first-tier restaurants, there were middling expensive or very popular and busy. Because event-tier restaurants did not accpet reservations and therefore were of no to Aggarwal. Resources The company did not have the employees or finanacial resources take to pursue much(prenominal) a bulky market. * Opportunities * Third party The company meshed in another complementary business negotiated arrangment between credit card compa nies and restaurants for the benefit of credit card holder This third-party negotiations contributed the remain 40% of revenues. And a partnership with a single credit card company might expose Eat2Eat. com to millions of innovative customers. * Discounts He negotiated discounts for corporate customers and commissions for Eat2Eat. Easy to access The website was an sluttish to access for secretaries and personal assistants. * Corporations Aggarwal focused his promotional efforts on corporate customers. Because he thought personal diners were likewise numerous and consequently, too dificult and expensive to reach. So, this approach would take up more value for Aggarwal efforts and would be the best way to reach customers. Roughly 80% of the companies he approached endorsed the program. * Partners Aggarwal wanted to picture partners as hotels, local or regional naked as a jaybirdspapers and airlines companies. * Investment 0% of the new capital would be exhausted on public rela tionss and marketing activites to reach the personal dining market segmetn. And 10% would be spent on a technology upgrade. Only if the company extract $2 million in additional capital. * Threats * Equivalent sites There were other restaurants portals on the Internet, covering Adia Pacific and other regions but Eat2Eat. com was different, in fact the company offered regional coverage compare to competitors which derived revenue from advertising alone. * Languages The original website appeared in English. * Bank LoanEat2Eat had not yet established a bankable track record, so, it would be difficult to master bank loan. * Cost of maintenance The cost of maintenance of a website can be more and more expensive * stopping point The situation of the company is quite good because the company is the most highly rated Internet based restaurant reservation service, and they have a real recognition. Moreover, they can find some partners to improve their service. Perhaps Vikram Aggawal has t o be careful well-nigh potential new entrants, their resources and he has to find some solutions about his investment to improve his strategy. . What role have strategic alliances played in Eat2Eats success? What types of partners are most valuable to Eat2Eat? Which partners does Eat2Eat have the greatest potential to benefit? Which partnerships should Eat2Eat focus on forming in the immediate future? * What role have strategic alliances played in Eat2Eats success? First of all, strategic alliances are short or long-run partnerships of two or more firms running(a) on a specific project or cooperating in a specific business area. Those alliances can be in form of joint ventures, franchises or licensing agreements, which are the main alliances.Actually, Eat2Eat has made several strategic alliances. First, the core alliances, on which the business fashion model is based, are the alliances made with each restaurant. Indeed, Eat2Eat brings customers to the restaurants and those latte rs even off a commission to Eat2Eat. Thus, this first type of alliance has played a key role on the revenue of Eat2Eat. Then, the second alliance was one with a regional newspaper The Asian Wall Street Journal. In the long-run, it had a tremendous impact on Eat2Eat revenue. In addition, the number of the website users increase thanks to the Eat romotion put in the well-known critics pages. Now, Eat2Eat needs a new strategic alliance. Indeed, the issue that Eat2Eat faces is to find a way to own an increase in the capital of the company exactly, US$2 million more than actually. * What types of partners are most valuable to Eat2Eat? One of the most valuable partners would be an Internet company much(prenominal) as Yahoo. Indeed, it would provide the recognition postulate for the growth of Eat2Eat. In addition, another valuable partner could be credit card companies. This alliance would allow Eat2Eat to get access to larges customers databases.That would have a great impact on the number of the website users. charge if it takes time to bring forth a relationship, those types of companies would have a serious and convinced(p) impact on the Eat2Eat success. Then, given that no Internet company was interested in Eat2Eat, they had to think about potential venture. There were two possible types of ventures venture with capital firms and one with entrepreneurial companies. In the first venture, the companies expect a return approximately 30% within 5 years, but with a minimum investment whereas in the second one, they only want to maximise their profit.Therefore, the most valuable partner between the two options above is the last one the venture with entrepreneurial companies. Indeed, the main reason is that they have the same business presentiment on the investment than Eat2Eat. Furthermore, this latter wants to do a venture with only entrepreneurial companies which cover the entire Asian region. * Which partners does Eat2Eat have the greatest potential t o benefit ? Eat2Eat leave probably make several partnerships. In fact, Eat2Eat knew that, in order to increase its success, they go away need to do some partnerships with firms in other businesses.As an example, Eat2Eat wanted to work with firms much(prenominal) as hotels chains or airlines companies. However, they can continue working with other companies in the sector as themselves. In other words, it could be some other websites, but which cover only special(a) areas. In addition, we think that Eat2Eat will undoubtedly benefit from local Asian restaurant website partners. Even if the Asian website partners cover a limited area, they are already implanted in a specific town. * Which partnership should Eat2Eat focus on forming in the immediate future?The current problem of Eat2Eat company is to get recognition. Indeed, this lack of recognition is a polar issue for the company at the time being. It leads the companies to face problems in the process of making deals such as valu able partnerships with other corporations. Therefore, in the immediate future, Eat2Eat should focus on the partnership with all the Asian restaurant websites. Then, when Eat2Eat had covered enough key towns, their coverage provided from it will give them the credibility to do ventures with some banks.And then, in this way, they will get the database of customer needed to grow. 5. Provide recommendations concerning Eat2Eats future strategy. Brigitte CISS As we could see, the company Eat2eat has a great concept which pleases a lot of consumers. The idea and the way it is implented is are good, and the only stay issue, is the recognition. Indeed, Eat2eat has a problem being considered by serious companes such as banks, and believe by businesses. Therefore, to be more recognized, the company needs to have contacts with big websites such as Yahoo or Google, to be more available on the Internet, to increase the awareness and the knowledge of lot. As the case said, also, Eat2eat has to b e in a relationship with credit card companies to facilitate the online payment, and to create joint ventures with such companies. To increase the recognition, the company has to broaden its services to big cities, away(p) of Asia. Why not ? There are no infrastructures to take care of since it is an online operation, and it might be well known internationally. We would also recommend to the CEO to hire people specially for public relations.Going to every potential partner himself is a long process, and the prospect cost is quite high, with the amount of time lost. With more people available, the company could bring to her much more clients. After creating a more efficient network, maybe Eat2eat. com should now spend a bit on advertising. A quick ad on the Internet, not for businesses but directly indentured to end consumers who are looking for restaurants, would increase the awareness and therefore the profits. On the long run, the company could even try to advertise on televisi on.