27th of November 2012
Strategic Management -
1. What are the key success factors for competing in the online restaurant booking industry ?
2. What are the fundamental aspects of Eat2Eat's strategy ? Which of the 5 generic strategies do you believe Eat2Eat is pursuing ? Has the strategy evolved since the company's conception ?
3. Perform a SWOT analysis for Eat2Eat.
4. What role have strategic alliances played in Eat2Eat's 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 ?
5. Provide recommendations concerning Eat2Eat's future strategy.
1. What are the key success factors for competing in the online restaurant booking industry? * Quality of restaurants contracted
* A large network of restaurants in strategic places
* Good interface with relevant criteria (Place, time, ambiance, cuisine price, rating,…) * Clever communication
* Favorable reputation
* Good knowledge of the market
* Ability to respond quickly to shifting market conditions * Technical capability to make innovative improvements
* Fast, accurate, technical assistance
* Superior information system
* Access to financial capital
2. What are the fundamental aspects of Eat2Eat's strategy? Which of the 5 generic strategies do you believe Eat2Eat is pursuing? Has the strategy evolved since the company's conception? First let’s say that Eat2Eat.com is an internet based restaurant portal, promoting fine dining in Asia pacific region, through twelve cities. The website is a guide to the region’s best restaurants with an online reservation service. The founder of this website believed that there was a value proposition in connecting dinners both corporate and personal with restaurants, with the help of a highly automatic process like the airline bookings, hotel reservations or car rentals. He also believed that restaurants could benefit by having a presence on the internet. And we think it is important to precise also that the revenue generated by Eat2Eat is different from other restaurants portal on the internet. 40% of their total revenue came from their commissions on the restaurants (between 7% to 10% of the customer’s bill); 20% of the company total revenue are from banner advertising on the website, and the last 40% came from the preferred arrangements between credit cards companies and restaurants. Whereas most of other portals derive revenues from advertising alone. Therefore one of the major customers for Eat2Eat remains the restaurants’ owners (through the commission and the advertisements), Eat2Eat signed them up as suppliers, but also there can’t be any commission without any bookings.
* Corporate strategy
Looking at Eat2Eat present corporate strategy, it is following a growth strategy and more specifically an internal growth. Eat2Eat strategy is to capitalise on its core competencies, expanding its existing resources. We have the example in the case when the company wants to increase its geographic coverage, launching in Kyoto, Melbourne and Phuket. We can also add that this choice of strategy follows Aggarwal’s desire to conserve full ownership and control on his company.
* Generic strategy
The reason why we think Eat2Eat is following a broad differentiation strategy is the augmented services and their high quality. First, let’s say that comparing to other websites Eat2Eat is offering a wealth of supporting information, these extra features include: restaurants reviews, recipes, interviews with leading chief and list of tops establishments in various categories. To propose this service in a more convenient way, the restaurant can be search according to various criteria including location, ambiance and accessibility for disabled diners, smoking preference, cuisine,...