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Open Table

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Submitted By brnickum
Words 373
Pages 2
Running head: OPEN TABLE

E-Commerce for Small Business

Bryan Nickum

Prof. Richard Swersey

December 7, 2013
Case Study: Open Table 1. Why will OpenTable competitors have a difficult time competing against OpenTable? Competitors will have a difficult time competing against OpenTable for a few different reasons. They are well established with having OpenTable.com which is a popular web site for making restaurant reservations and they also operate TopTable.com, a leading restaurant site in the United Kingdom. In just 13 years, they now have around two-thirds of the nation’s reservation-taking restaurants as clients. It is also relatively easy for people seeking a reservation to make one with their easy to use web site, mobile web site and mobile app. With all this said, it is extremely difficult for competitors to compete. 2. What characteristics of the restaurant market make it difficult for a national reservation system to work? The restaurant industry was slow to leverage the power of the internet. This was because the market was slow and still is, with only about 30,000 small, independent restaurants or local restaurant-owning groups. 3. How did OpenTable change its marketing strategy to succeed? The company changed its hardware and software to make it more user-friendly and they organized and implemented a door-to-door sales approach to solicit subscriptions from high-end restaurants. Using the four ways to market (e-commerce, useful, user-friendly technology, and hands-on techniques) worked well and they continued to grow. Then when Jeffrey Jordon, former president of PayPal, took over as CEO in 2007, he took a more aggressive approach with an initial public offering (IPO) despite the bad economy. It worked, and shares climbed 59% on the

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