Shaye Trenda

ITS 380

Submitted on 2/26/18

Chapter 9 – Online Retail & Services

C A S E    S T U D Y    Q U E S T I O N S

1.      Why have OpenTable competitors had a difficult time competing against OpenTable?

OpenTable has a large number of restaurants available and a larger consumer database than competitors. Also, its software is consumer friendly, so it makes it easier to use for both consumers and diners. OpenTable has more options than competitors and that is why the competition is having difficulties competing against them. I have never heard of OpenTable but I think that if it became popular in the twin ports, it would be hard for restaurants that don’t have it to compete with those that do.

 

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

It is complicated because they are many different categories of food services, and because it is not easy to control or have access to small local restaurants.

 

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

They paid to online reviewers to include links to OpenTable as well as software that was user-friendly for the consumer. These two factors, plus the convenience of the service, helped to expand their business rapidly.

 

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

Because customers would not need to pay for software or an application, they just need to go online and make a reservation. It also saves time and money for both restaurants and clients.

 

P R O J E C T S

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 particular business model.

 

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.

Some of the major social legal issues that online retailers face include:

·         Protection of intellectual property and mechanisms to protect their rights

·         Consumer’s privacy data storage and use policies

·         Security and information protection against cyber piracy, cyber-attacks, and other similar attacks from cyber criminals

·         Mobile Experience and Engagement. Mobile devices are increasing they share among consumers and it is important to properly reach that market.

·         Acquisition & retention of consumers. Customer loyalty and customer experience are among the main goals of modern corporations.

All these issues threat the way online retailers operate. Every day more information that is personal is storage on their server, and a security attack will really affect their popularity on the web and among users. For that reason, security and protection mechanisms are one of the most important thing to apply to their web sites.

In addition, new inventions, such as the 1-click buy from Amazon, can provide a competitive advantage. Intellectual property, protection of patents and copyright rights are sometime difficult to establish. As shown in class, Internet provides access to many documents and information that can be copied or duplicated. So many cases have already be taken to the courts, and since a higher volume of activity happens on the web, this number is expected to increase.

Convenience and innovation are changes today’s industries. Mobile devices are expected to change online selling activities during the following years. Therefore, online retailers must adapt their strategy to this market opportunity/trend.