Junsang Lee

Professor Shin-Ping

ITS 380


Chapter 9 Online Retail and Services

Case Study

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

-          The restaurant system is easily be separated and fragmented. It is easily localized and settled down in many different places. Moreover, those businesses are small and widespread. It is harder to use reservation system to work

How did OpenTable change its marketing strategy to succeed?

-          The strategy of OpenTable includes payment for online restaurant reviewers for links to the OpenTable web site and targeting national chains for fast expansion. They evaluate and develop their software and hardware to create friendly Electronic Reservation Book (ERB) for the users. OpenTable also use effectively door-to-door sales force to gather subscription from famous restaurants; this combination of e-commerce is useful and familiar technology to work for them. The company was able to grow based on customers. Openable developed many programs to help publicize the service through service called í░e-invitesí▒, satisfied customers, and social media. This lead for company to be successful in terms of what there are doing; this is much effective and stronger marketing way than relying on online restaurant reviewers. Openable ask diners to seat as reviewers then, ask them to follow up with each reservation through e-mail to ask the diners to review the restaurant for other diners. Moreover, Openable asks mobile support via a mobile web site and application to help users find restaurants with map based on GSP book reservations as well.

Why would restaurants find the SaaS model very attractive?

-          Restaurants such as SaaS models are attractive because customers do not buy software and install it on their computers. However, they get the software through subscriptions online; which is effective and fast than go to shop and buy the software. They also doní»t sell goods or anything but, they allow diners to make reservations such as social networking sites that provide services. The SaaS model can be efficient and cheaper in terms of the vendor and customers. Customers can save time and money due to the fact that they do not have to install and maintain programs. Furthermore, they do not have to hire someone or ask staff to maintain the software. They also do not have to buy any new hardware. This allows customers to focus on more resources that grows the business.




What challenges does OpenTable face?

-          OpenTable is using customer friendly strategy. It is a good strategy that they can gather so many people moreover, they will be able to build fandom under the condition that they successfully satisfy customersí» expectation. However, this can be harmful for them. If OpenTable is not able to keep their fame or satisfaction or expectation, it will be short-term business. They need to be aware and be careful about how to keep their expectation generated by consumers



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

-          Manufacturer direct model, Fortin Iron Works

: Fortin Iron Works has been a manufacturer direct of ornamental iron works. This metal fabrication company located in Ohio and Columbus established in 1946, employees are learned to be craftsmen, salesmen, artisans, and installers. They sell ornamental iron products; for example, driveway gates, fence, rail, walkway gates. Furthermore, they take care of sporting equipment such as soccer goals, basketball units, and so on. They sell the products online so that we can spend less time such as gates, brackets, pot rings.


-          Multi-channel model

: Companies which choose to do Multi-channel model sell products as brick to mortar stores and wholesaler. Most of their products are sold in bulk a large portion. They also sell their products in retail too. One of the most famous examples is Walmart. Walmart sells products via online and mortar stores.  


-          Virtual Merchant

: Virtual Merchant is an online outlet store without physical outlets. They provide various brands to wholesale prices. They count on saving on their consumers. One the other hands, they have to buy whatever is available for them especially discount products. In other word, consumer should be lucky to get something they want to buy.  


-          Dropship or selling through private labels

: This business uses private label who has an established market base, or they sell their products online; which is called drop shipping. For example, YouTube streamer can be good example of this business. They usually support othersí» products in an attempt to sell their products online by uploading or streaming on YouTube channel. For instance, ArsenalFanTV asks people to sign up and use particular application.


3.Drawing on material in the chapter and your own research, prepare a short paper describing your views on the major social and legal issues facing online retailers.

- Since we do online shopping, there are some problems that we are likely to face. For instance, protecting consumersí» personal information from cyber-attacks, misuse and following the online policies. Not only protection but also taking care the mobile version market is getting important due to frequent usage of smartphone. All these issues can scare us because we put our information every day more and more whenever we use internet. For this reason, the protection or securities online are one of the most important things that they need to keep on eyes on it. Furthermore, 1 click buy system in Amazon, it allows us to face another problem. Technically, the technology allows us to be better and more convenient life. In other word, we happed to give more private information to them. As we all know that all our private and personal information can be exposed and spread out.