Case Study Questions 

 

1. What characteristics of the restaurant market made it difficult for a reservation system to work? 

 

Ans: The Restaurant market is an ever-growing business in the food industry. Any Restaurant can be famous and have the right needs for customer to stand a chance of long-lasting business with proper restaurant business strategy, food, offers and location. 

The characteristics of restaurants are many, but in the end, it is still difficult for a reservation system to work are because: 

1.    Restaurants comes in different sizes and most of them are not computerized, because of that the business model of the restaurant is very versatile and hard to carry reservation system or implement it. 

2.    Reservation time are booked for a limited timeframe and there is always customer wanting to get a seat for some food which can cause insufficient seats because empty seats are booked. 

3.    Guest who booked won’t show up in the restaurant or come in time and that causes the restaurant to lose money as walk in guests might not get a seat because of the reservation and may leave. 

4.    Walk in customers are more valuable than the ones who reserve spots in restaurants. 

5.    Industry fragmentation.

 

2. How did OpenTable change its marketing strategy to succeed? 

 

Ans: OpenTable is the leading supplier of reservation, table management, and guest management software for restaurants. The OpenTable Web site, mobile site, and mobile app provides a fast, efficient way for diners to find available tables in real time. The management is fantastic between customer, restaurant and the software which delivers great results. It is easy to use (user friendly) and has a high number of market shares. 

 

3. Why would restaurants find the Saas model very attractive?

 

Ans: The reasons are: 

A.            The Saas model allows customers to avoid any kind of needing expertise in managing a hardware or software infrastructure. 

B.            Saas also allows the customer to directly pay for what they want and avoid overpaying.

C.           Size of the business doesn't matter so; any size of the business/restaurant can use Saas model because expenses change from capital to operational primarily on consumer use. 

 

 4. What challenges does OpenTable face?

 

Ans: Here's why it's challenging: fraud and misuse are extremely costly. Plus, penalties for non-compliance are steep enough to put an independent restaurant out of business. This is especially difficult because few restaurants and small businesses can afford the cost and time required to build their own PCI compliant solutions.



PROJECTS

 

2. Find an example not mentioned in the text of each of the four types of online retailing business models. Prepare a short report describing each firm and why it is an example of the business model.

Ans:

  1. Bricks-and-clicks: Macys.com—Macy’s (formerly called Federated Department Stores) is a successful department store with stores around the country.
  2. Virtual merchant: Bluefly.com—This is an online outlet store with no physical outlets. They provide brands found in upscale department stores at discounts by buying from resellers (rather than the designers) on the wholesale prices. They pass the savings on to the customer. However, they must buy what is available to them at a deep discount, so not all sizes of a item will always be in stock. Bluefly.com is a NASDAQ public company (ticker symbol BFLY).
  3. Catalog merchant: Fingerhut.com—Fingerhut was already a successful catalog business and has now leveraged that success to an online presence. They offer a broad range of products in a variety of categories. 
  4. Manufacturer direct: FortinIronWorks.com, Fortin Iron Works has always been a manufacturer direct merchant of ornamental ironwork. This metal fabrication company based in Columbus, Ohio and founded in 1946, employs skilled craftsmen, artisans, estimators, salesmen, and installers. They sell ornamental iron products such as driveway gates, walkway gates, fence, rail, curtain rods, production components, and several lines of outdoor and indoor furniture with accessories. They also carry a line of sporting equipment including complete basketball units, soccer goals, and lacrosse goals. Most products can now be purchased online including fencing, gates, planters, and accessories such as pot rings, brackets, trellises, lamps, and tables.




5. Together with a teammate, investigate the use of mobile apps in the online retail or financial services industries. Prepare a short joint presentation on your findings.

 

Ans: In the highly competitive financial services industries in which the value proposition for customers is convenience, that banks and financial institutions have some of the most advanced wireless and mobile applications. Smartphones have suddenly increased the demand for mobile financial services. Analysts and industry experts believe this is so because wireless is a natural fit for the financial services industries, which are high-demand and high-value and must be conducted in real-time. The security issues involved with the use of wireless applications in the financial services industries, how wireless safeguards will be integrated with security processes, technologies that are already in place, and what new security threats exist. The limitations facing developers due to the limited screen size of smartphones (requiring a reformatted Web page), how strong authentication and encryption will play a part, and whether security concerns might put a damper on the market for mobile financial services.

 

Fidelity Investments offers a variety of mobile services and apps that lets users access their accounts whenever and wherever they want. Fidelity offers a tablet app for the iPad, smartphone apps for the iPhone and Android, and mobile browsing via its mobile Web site, Fidelity.mobi. The apps allow users to track their portfolio, pay bills, trade, review the details of their Fidelity brokerage accounts, deposit checks remotely, get news and research, and more.