Eat2Eat Case Analysis

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Submitted by to the category Business and Industry on 03/28/2009 02:57 AM

1. How to increase the profitability of the company

Cause: Eat2Eat.com has more expenses than revenues in the past five years

Consequence: Eat2Eat.com will incur losses year after year and eventually shut down

Important and urgent: It is losing money under the current business model

2. How to raise additional capital

Cause: Eat2Eat.com has incurred losses more than the initial investment and need capital to keep the business running

Consequence: Eat2Eat.com may have to be shut down soon if there is no additional capital

Important and very urgent: It needs money as soon as possible to keep the business running

3. How to better manage time

Cause: lack of employees to manage day-to-day operations

Consequence: no time to make decision on strategic development and promotional activities to make Eat2Eat more efficient and stop the business from expanding.

Important and urgent: The company structure will strongly affect the profitability of the company

4. How to promote the website

Cause: Aggarwal cannot decide which alternative marketing events to focus in

Consequence: Eat2Eat.com will waste money on ineffective marketing actions, which cannot help increasing revenue

Important and less urgent: It is an opportunity to increase sales

SITUATION ANALYSIS

As a online reservation website and program, Eat2Eat.com is currently facing stagnant growth after five years of operations in their target region. Although the company is operating at a net loss of $207,000 (Appendix F) throughout five years, Eat2Eat.com has created much positive publicity from well known communication channels. Presently, Eat2Eat.com’s main concern is figuring out a way to gain initial capital to continue with their operation and increase its database of suppliers and buyers within its target market.

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