1. Evaluate Zagat using the competitive forces and value chain models. Using the competitive forces model we can analyze Zagat by saying the tread of new entrants into the main market was pressure for the coporation to change its information systems. Many competitors coming into the market were competitive because of internet use to gain more customers. Zagat was behind with this technology. Bargaining power of the costumer was in its high because Zagat’s locations had different prices and discounts. Using the value chain model to analyze Zagat they decided they wanted to become a low cost producer. They needed competitive strategies to be applied and they decided that information systems was the most likely strategic impact. Using technology the company would most be effective in a competitive position. Zagat made user generated data popular and this was part of their success.
2. Compare Zagat’s and Yelp’s e-commerce business models. How have those models affected each company’s Web strategy? In the end Zagat failed, Yelp surpassed them in the free market for information. To go on Yelp’s site there is much more detailed information then Zagats. Zagat has limited locations such as the bigger cities, while Yelp targets any city now matter what the size. This has helped Yelp in becoming the larger food critic site. Also, Mainly Zagat one interest is Restuarants where Yelp has expanded and maintains only 25% of its market is restaurants, smart move. However, Yelp is more geared for selling advertising to businesses that is their business model. While Zagat’s business model is more consumers and corporations. 3. Why was Zagat’s content well suited for the Web and for the mobile digital platform? Because the Zagat name was popular and well known for Restaurant review and traveling alike.
4. Do you think Zagat’s decision to use a pay wall for its Web site was a mistake? Why or why not? Definitely yes, they should of always kept it free then they would have kept the visitors on their site instead of loosing them to Yelp. Which by the way was always free.
5. Why has Zagat’s focused on adding social features to their Android app? Pictures, to spot the restaurant this business model Zagat thinks they will gain back the edge on being the number one again.