EAT2EAT.com Case Eat2Eat.com is an internet based restaurant reservation services covering major Asia Pacific cities. Moreover, the website also provides restaurant reviews, recipes, interviews with leading chefs and lists of top establishments in various categories.
Issues: 1. Promotion strategies: In market target aspect, EAT2EAT mainly focused on company secretaries and personal assistants who typically tasked with arranging business diner and there are only 43 percent individual users.
2. Raising additional capital: EAT2EAT only have one investment from its owner Aggarwal. Although EAT2EAT had established a strong presence, additional investment is expected for market exploring, public relations and technology upgrade.
3. Market lag: The service is popular in Tokyo and Seoul but did not have a great acceptance in Hong Kong and Singapore.
Analysis: Eat2Eat’s users can be divided into two categories: Personal Use (43%) and Corporate Use (57%). The average revenue per user is calculated to be $40.31 in 2005. However, the average cost of acquiring each user was calculated at $45.03. This implies inefficiencies within the current business model. EAT2EAT need to raise 2 million dollars in additional capital. Fifty percent of capital is for hiring more customer representatives, fourty percent of capital would be spent on public relations and personal market expanding. The rest would be used as technology upgrade.
Recommendations: 1. Eat2Eat should more focus on individual users who have large potentials of generating more revenues. In order to reach these customers, EAT2EAT can provide large discount to its customer by using online group dine reservation.
2. In order to raise more funds for future expanding, Aggarwal should join more venture capital conferences to seek financial help.
3. EAT2EAT should improve its website base on different cultures and languages to carry its success in Hong Kong and Singapre.
4. To promote its brand awareness, EAT2EAT should have advertisement such as tag in its partner restaurant.
5. EAT2EAT should also expand its business in other large cities in Asian Pacific region such as Beijing and Shang hai. 