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Category: Business and Industry

Date Submitted: 11/16/2013 06:33 PM

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Eat2Eat Case Memo

Eat2Eat is an e-market platform that will facilitate the selection of restaurants and especially the process to reserve a table. Within 5 years, Eat2Eat has greatly developed and is now looking for new opportunities. Eat2Eat has created an e-market where restaurants as well as their visitors receive benefits. Due to the efficient design of the reservation process the transaction costs can be reduced for both parties. On the one hands visitors reduce transaction costs for calling the restaurant. On the other hand visitors save a lot of time. This is a non-financial transaction cost. The corresponding restaurant can reduce transaction costs by the online reservation that the employee, who is responsible to organize reservations, can take care of other important tasks. Another 1st order effect is, that users earn points, if they use Eat2Eat. These points can be used for any other restaurant visits and thus reduce costs. Restaurants can save money by using Eat2Eat. The community is a new cheaper way to create advertisement for the restaurants. Through the easy and quick access to the website of Eat2Eat shows a further 1st order effect. In addition, the users get the opportunity to receive direct information from the restaurant. This kind of e-market is a new business model and can be described as a 2nd order. The users will receive an overview of wide range of different restaurants. Restaurants can use this path to improve their market position and to get new customers. When considering the business of Eat2Eat there are especially two problem areas marketing and finance. Eat2Eat currently covers only the Asian region and Australia. After 5 years the business growth is not as strong as in the beginning and it is necessary to find new opportunities. Aggarwal said that he has tried to gain new users through a mobile application, but this did not work completely. Only in Tokyo the application has been well used by the community. Another problem I see is...