Strategic Management

Nazia Sheikh
Shreya Porwal
Chrisann Fernandes
Pradish Nair
Shruti Naik
Manish RY
About the founder: Mr Vikram Aggarwal

Mr Aggarwal qualified as a CA in India.

The subsequent year he moved to
London, working first as Financial
Accountant for ICI plc.
While in London completed his masters
from London Business School in Business
Administration; majored in Strategic
Management.
Post which he worked for Chase
Manhattan in Tokyo as an investment
banker.
About the Co.

Eat2Eat Pte Ltd is an internet based restaurant portal that acts like
a guide to regions best restaurants with online reservation system.
Based in Singapore.
Its services are more popular in Asia Pacific, is currently expanding
into the Middle East and Europe with operations in more than 30
countries.
Hosted F*B bookings (MaRc Lite and MaRc Lite Plus) for over 10,500
restaurants.
The top restaurant information & reservation site in the world.
 Moved to London to work as
an accountant at ICI PLC. &
2000
then as international Accepted exit package from
treasurer for JP Morgan post merger.
GlaxoSmithKline Registered EAT2EAT Pte
Ltd.
Hired Chief Technology
Officer & Programmer from
1986
India
Launched English version of
the website.
2006
Hired two people, one in Covered more than 800
Singapore & one in Sydney. restaurants
Launched its website
Japanese & Korean.
2001
 Participating restaurants

Kuala
Bangkok Hong Kong Lumpur Shanghai Singapore Seoul Sydney Taipei Tokyo Total

2000 0 0 0 0 0 0 0 0 0 0

2001 0 18 6 0 24 0 30 0 0 78

2002 12 42 30 6 84 0 66 0 6 246

2003 32 84 54 48 102 4 94 0 14 432

2004 58 97 66 60 120 18 98 0 44 561

2005 98 112 72 62 174 72 137 23 73 823

Total 200 353 228 176 504 94 425 23 137 2140

Registered users

Kuala
Bangkok Hong Kong Lumpur Shanghai Singapore Seoul Sydney Taipei Tokyo Total

2000 0 0 0 0 0 0 0 0 0 0

2001 0 300 60 30 126 0 48 0 152 716

2002 30 324 126 65 204 0 222 0 466 1437

2003 18 94 30 14 42 84 90 0 694 1066

2004 48 576 324 54 391 204 120 0 1176 2893

2005 100 804 509 70 778 402 204 300 2580 5747

Total 196 2098 1049 233 1541 690 684 300 5068 11859
What grade would you give Vikram Aggarwal
for the job he has done as CEO? Justify
 Business Model

Enters System
Diner Views Selects the information confirms
accesses the information restaurant like name, availability of
site on the on the based on the date, time, no the
internet restaurant criteria chosen of diners restaurant

Restaurant receives
Commission Diner Arrives confirmed booking Immediate
received (Details like food, by fax/email along confirmation
Eat2Eat 7 to money spent may with relevant to the
10 % of be recorded in the customer customer is
customers bill system) information at the sent via email
time of reservation
What are the chief elements of the business
model?
Online Reservation

Product Line

Technology

IT Infrastructure

Market Observation

Promotional
Strategies
How does the company generate revenue?
 Revenue (%) in 2005

Credit Card Co.; 40% Reservation Commission; 40%

Advertisement Banners; 20%

What are the primary cost drivers?
 Setup Cost
Website Development Cost
Human Resource
SEO & SEM
Technology Upgradation
Travelling Cost
Accountant and Financial Institution Fees
Rent and Utilities
PR & Marketing Activities
Opportunity Cost
What factors do you see as critical to competitive
success in the online restaurant booking industry?
 User friendly

Up to date knowledge of market

Social presence

Customer service

Additional facilities to customers

Availability on mobile apps

PESTEL Analysis
(2002-2005)
Political/Legal Government initiatives to support Internet business(Singapore).

Economic Rapidly Growing Local Markets(Shanghai)

Higher margins for Eat2eat.com(Sydney)
Strong business Overseas(Shanghai)
Visitors willing to book tables in advances
Social-cultural Huge Cities with established dining culture and countless restaurants
Language issues(Bangkok, Shanghai, Bangkok, Seoul

Technological High Internet Penetration(Taipei, Tokyo)

Widespread WAP use, and marketing on the mobile phones widely practiced and
accepted(Tokyo)
Low Internet penetration (Bangkok, Kuala Lumpur, Shanghai)
High Internet Penetration with low transaction volume(Hong kong).
Customers willing to try new technology.
Web Based reservation new and considered trendy

Environment High Restaurant turnover, which encouraged marketing innovations(Kuala Lumpur)

SWOT Analysis (2002-05)
Strength
1. Most highly rated internet based restaurant
reservation service.
2. Relatively strong and Large registered user
base(1,200 users as of Jan 2006) covering more
than 800 restaurants across the Asia pacific region.
3. Effective SEO and SEM marketing (Google, Yahoo)
4. No obliged debt.
5. Business can be accessed anywhere by anyone due
to technological advancements.
Weakness
1. Limited resources in expansion
2. Language barriers (only available in English)
3. Time consumption sales approach considering the
time taken to travel across cities and meeting with
restaurant managers.
4. Dealt exclusively with first-tier restaurants.
5. Traditional way of booking process cant be
eliminated in the minds of the people.
6. Higher work load on employees too much
responsibility on few employees
7. Low market penetration.
Opportunities Threats
1. Potential business expansion via additional
capital investment.
1. Uneven internet establishments in various
2. Internet was becoming an increasingly
popular medium for all line reservations of markets
all kinds.
2. Entry of similar websites
3. Ability to establish a large client base in
existing markets. 3. Existence of phone booking process.
4. Expansion to other uncovered regions.
4. Internet security was questionable
5. Generate revenues by different avenues
like advertising 5. Language barriers in foreign countries
6. Collaborate with credit card companies for
6. Different consumer behavior in different
a wider base
7. Utilize its effective SEO and SEM marketing countries due to varied culture
tactics in increasing brand awareness
Recommendations to Vikram Aggarwal what should
be key elements of strategic plan for next 3 yrs?
Recommendations

The recommendations are based on the following objectives

Increase subscriber base by 25% by the year end 2006
Achieve a 5% Return on Investment Within 2 years
Breakeven by the year end 2006
1. Continue with the Natural sales growth
2. Probationary period in selected cities- Shanghai and Singapore
3. Official Language Interfaces & Hiring New Sales Staff
4. Venture capital funding
Visit www.eat2eat.com and find their latest
situation
Current Website
APP
Products Offered
Clients
Latest Situation

Eat2Eat is currently the top rated portal for fine dining in Asia Pacific
Leading dining software program
MaRc Lite and MaRc Lite Plus helped in bookings for over 10,500
restaurants
Launched iPhone and Android App
Hired experienced leaders from Japan , China, Malaysia, Australia
Receives $4 m investments in 2011
Appointment of Verve MPR Ltd.
Currently operating in more than 30 countries
Compare performance of eat2eat with
Zomato
Eat2Eat Zomato

Till 2005 - 3 Persons More than 2600 Employees

Own Capital VC investments

Revenue through Advertising and Commission 95 % From search & Discovery , 5% food
and credit card ordering

Own reviews User Reviews

Focused mainly on Tier 1 restaurants All types of restaurants

4M $ Funds As on 2011 223M $ funds As on 2015

Zomato PESTLE(2016)

Political/Legal
Rs. 10000 crores approved by SIDBI for promoting growth of Startups
Startup India Plan launched by Narendra Modi

Economical
Significant increase in funding from venture capitals and Private Equity
Increase in the Purchasing Power of Individual

Sociocultural
Diversity in languages

Technological
Many payment gateways coming up like Paytm, PayUmoney etc
Emergence of Social, Mobile , Analytics and Cloud concept

Environmental
Many types of restaurants have started offering different products than others
Zomato Revenue Model

Advertisements: The ads which are placed on their website generate

the majority of the revenue for the company.

Consulting: Owing to the huge database of restaurants, users and their

preferences, Zomato also provides business consulting and data
analytics services to their clients.

Zomato Events: Zomato also sells tickets for various events and earns a
commission through these sales.
 Online Ordering: Zomato started their online delivery service.

Zomato Whitelabel: The Zomato Whitelabel is platform that lets

restaurants create their own custom native apps that are plug and play.

Zomato Book: Zomato book is the table and reservation management

service for restaurants.

Zomato Base: Zomato base is a service for restaurants that help them
manage their POS systems.