Kohlton White

ITS 380

Chapter 9

 

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

Simple answer, they lack the proper infrastructure and training to manage a reservation system. A decent connection to the internet, say like 20Mbps, in some rural locations is hard to come by. Computers are another issue for many businesses. Lack of research and experience can and has caused owners to buy lackluster systems or system that arenít and/or wonít optimize for exactly what they need it to do. Education and training are another big part, aka user error.

2. How did Open Table change its marketing strategy to succeed?

Open Table pulled a Target and expanded too quickly, which the rapid expansion resulted in a net loss of $900,000 per month. So, they decided to scale back their operations and focus on Chicago, New York, San Francisco, and D.C. Then they opted to go door-to-door and sell their services to the neighboring restaurants via salesmen.

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

SaaS is more convenient for booking and making reservations for both the restaurant and customers. The SaaS system gives the customers the ability to choose where they would like to be seated immediately, adding the booking to the restaurantís registry making it harder to overbook or have multiple parties book the same table.

4. What challenges does Open Table face?

Their success has spawned many new competitors that want a piece of the market share. As long as Open Table isnít complacent with their position in the market, they will have to change up their business strategy in order to maintain their hold over their competitors.

Projects

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.

Mobile has become most peopleís go to method when it comes to shopping online because retailers tailor their apps to their customer base, giving them a more personal experience. Recently, Target merged a couple of their apps into one and completely overhauled the user experience by adding new convenient and quality of life features that their previous apps didnít offer. As mobile continues to grow and take over the e-commerce industry, more companies will opt for similar functionality with their own apps.

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

The social aspect of shopping online has evolved the way people shop in general. Social shopping today is basically you and your Friday sitting in your living room and shopping on Amazon. As much as this might sound like a joke, itís not. Social shopping is a real thing and it has evolved from the traditional means to the example mentioned above. The legal aspect comes from the grey market, thatís when people sell products that are fake or are not meant to be resold.