CASE PRESENTATION

Opentable: Your Order Is Waiting

 CONTENTS

1 CASE SUMMARY
Business Model of Opentable

2 CASE analysis
SWOT Analysis of Opentable

3 Case solutions
Answers to Four Questions
 ABOUT US
1. Ngo Thi Hai Ha – 1611140024
2. Vu Thu Hang – 1611140029
3. Hoang Quoc Hieu – 1611140033
4. Nguyen Phuong Linh – 1611140046
5. Le Bao Linh - 1611140047
 CASE
SUMMARY
 CASE SUMMARY
Business Model of Opentable

CUSTOMER VALUE PROPOSITION

REVENUE MODEL
 Connectivity
 Subscription Fees
 Convenience
 Reservation Revenues (Per-
 Information Density
transaction Charges)
 Updating

“ OpenTable is the US’ largest online restaurant reservation booking service,

allowing customers to instantly find open tables at restaurants and to book them
 Opentable
MAIN COMPETITORS
 Menupages: access to restaurant menus and
reviews without reservation in only 8 US cities.
 Restalo: in Spain and Italy
 Nowait: in markets like casual dining
 Reserve: has undercut Opentable on price but has
less than 2%
 Yelp’s SeatMe: its reviewing capability shows a
desire to enter the reservation business.
Opentable
COMPETITIVE ADVANTAGE
• The continuingly upgraded service
• First-mover advantage
• High customer satisfaction and high retention rates
• Network effects: the more people use it, the more
utility the system delivers
• Available on multiple platforms
 CASE
ANALYSIS
 Considerably appreciated stock since IPO, making
takeovers expensive
 Well-established reputation
 Wide coverage
 Mobile service
 User feedback feature
 User-friendly & efficient system
 Independent of advertising revenues
 Viral marketing growth: diner recommendation
No grading system
Relatively costly for smaller restaurants
where profit margins are traditionally slim
(5-7%)
Overestimated US growth opportunity
Not always accurate & dependent on correct
restaurant maintenance.
 OPPORTUNITY

 Expansion through applications for tablets and mobiles:

Palm, Blackberry, iPhone.
 Exportation of a successful model to other countries.

THREATS
 Many sites can assess restaurants more usefully restaurants
(food, service, value for money, etc.)
 Competition from similar services, e.g. Menupage, Urbanspoon
and SavvyDiner.
 Competition form search engines, online yellow pages and
travel agencies.
 CASE
Solutions
 Why have OpenTable competitors had a difficult time competing
against OpenTable?

Continuingly developed Network effects of the Quickly built scale on

service
Opentable’s hardware and
software could combine
ecommerce, user-friendly
technology, and the
personal touch
First-mover
Opentable is the first and
the largest company in its
area & can successfully
address the needs of both
restaurants and diners
multiple platform
Opentable has a mobile
website, mobile applications
working on major smartphone
platforms fully integrating with
its ERB software.
 What characteristics of the restaurant market make it difficult
The restaurant industry
was slow to leverage the
power of Internet. The
industry was and
continues to be highly
fragmented and local.
Each restaurant managing
a different system for their
operation so it is arduous
to centralize the system
for a reservation system to work?
Most restaurant websites
are not advanced enough
to be able to take
reservations for a
particular day and time. As
a result, the restaurant
reservation system is
limited by times that
restaurants are opened
Each restaurant provides
consumers only a small
portal, so there is not a lot
of visibility for restaurants
without also publicizing
one’s competitors
Most restaurants are
founded and run by those
who specialize in cooking
not in marketing so the
restaurant are not run
effectively
 Marketing Strategy
Target customer: high-end restaurants

GOAL: “Experiential” relationship with both restaurants & diners,

which focuses on the experience of dining & customer’s
satisfaction .

TARGET MARKET: Narrowed focus to four cities including

Chicago, New York, San Francisco, and Washington.
 MARKETING MIX #2 MARKETING MIX #4

PRICE: Subscription Fee, One-time PROMOTION: Word of Mouth

Installation Fee, Reservation fee Marketing
and Featuring fee

MARKETING MIX #1 MARKETING MIX #3

PLACE: USA (San Francisco,
PRODUCT: Restaurants tools to
Chicago, Denver, L.A, New York),
manage reservations & Online UK, Japan, India, Australia, Mexico
reservation service
 Why would restaurants find the SaaS model very attractive?

SaaS (software as a Service) model works on the basis that customers “get the software functionality through
subscriptions”. For the OpenTable, customers are restaurants who subscribe to a monthly payment for software and
hardware assisting in the reservation service.

This system is very easy to use, especially with OpenTable.

Restaurants highlight benefits of better managing their business
when using the software
=> Higher customer satisfaction and higher retention rates which
provides a concrete return on investment

It creates an active and local network of customer and diners that

addresses the need of restaurants in seeking suitable group of
customers, increasing sales or boosting reputation
 REFERENCES
1. Laudon, K. and Traver, C. (n.d.). E-
commerce, page 792-796
2. Medium. (2017). Intensive SWOT
Analysis of OpenTable as a Business –
TRoo Blog – Medium,
https://medium.com/troo-
blog/intensive-swot-analysis-of-
opentable-as-a-business-a85ef48943c4
3. Ecommerce-digest.com (2018), Open
Table Case Study Analysis,
http://www.ecommerce-
digest.com/open-table-case-study.html

Link Video:
https://www.youtube.com/watch?v=b1EGhHChzU4&feature=youtu.be
THANKS FOR YOUR ATTENTION
Opentable: Your Order Is Waiting