Louis Gouge

ITS 380

Chapter 9

Case Study Questions

1. OpenTable has more than 32,000 restaurants using their program and it is available in the United States, Canada, Mexico, United Kingdom, Germany, and Japan. It is available for use on their website, a mobile site, and they even have a mobile app which allows diners to use the app in real time.  They can allow the dining facilities to build up databases for their customers which can lead to better customer relations.

2. The food industry was slow to utilize the power of the internet, and it was due to being highly fragmented and local. It was made up of more than 30,000 small independent mom and pop types of restaurants.

3. The company redesigned its hardware and software to make it more user friendly, and they utilized a door to door sales force to gain subscriptions from higher end restaurants.  They also shifted their focus on only four major cities: Chicago, New York, San Francisco, and Washington D.C.

4. The customers do not have to purchase the software and install it on their computers, but can access it online. It also encourages diners to assist in viral marketing by allowing users to provide feedback for other users to make decisions about where to eat at next time.

Questions

1. They were drawn to it because it was one of the largest market opportunities in the United States economy, and it seemed like it would be an easy way to make some fast cash.

5. The first assumption was that online retail sales would be revolutionized because it would reduce search costs and transportation costs. Consumers would use the web to find the lowest cost products, and not be driven by value or brand or both.

The second assumption was that the entry costs to the online retail market were less than those needed to establish brick and mortar stores.

10. The net margin gives a better picture of a firm's financial health because that figure comes from by subtracting the expenses from the gross margin. So, that would let owners know exactly where the firm stands financially.

15. The most common use of a real estate web site is to search for a home with half of those people using a mobile device app. When they go to the sites the also go to related links and use some of these: mortgage lenders, credit reporting agencies, house inspectors, surveyors, prices of similar homes in the area, school information, and local neighborhood crime statistics.

20. In the example, property renters do not have the regulatory or tax burdens that the commercial hotels, and motels must pay. That could force the businesses to close or shut down because people will be more than happy to stay at another location for less than half the price.

Projects

2. Omni-channel merchants: Best Buy is a omni-channel merchant that has many stores and they also have an online presence as well. Best buy started closing some of their physical stores in the past but have since put a hold on that because people like to physically examine the electronics they are considering purchasing.

Virtual merchants: Grunt.com is an online only specialty store and only sells merchandise focused towards Marines, and Marine veterans. This online store sells everything that can be related to or printed on that proudly displays a U.S. Marine Corps theme.

Catalog merchants: Before the internet Summit Racing used to be a catalog only company that sells automotive parts directed towards racing parts, supplies, and tools. Now, Summit Racing is one of the largest suppliers of those parts online.

Manufacturer direct: Ford Performance Parts is a factory parts supplier that can sell parts directly to the customer or can sell through an authorized dealer. Not all Ford dealers are an authorized dealer for these types of parts, and only a select few dealers can install these parts on a new Ford vehicle.