expansion plan for eat2eat.com

Issues and industry overview: Eat2Eat.com has started up for five years, built a in effect(p) reputation in dining industries, and had a very measure technological operating system. The business model is sample bargonly understand sense that can generate a rattling gold flow from its operation income. However, it still has not polish false its breakeven point for five years; therefore, a extra life resource will be needed in 2006, and how to guard this brand-new monetary support making a halcyon strategy for a long run business. Therefore, there ar two main issues will be identified and examined as follow. One is for the fiscal alternatives, the other is the financial allocations. Alternative contraction First of all, from operating perspective and under time and financial constraints, Eat2Eat.com should evaluate which cities have potential to increase revenue sufficiently then close the business where we cannot see any square toes improvement in the future. We can evaluate this factor by calculate the parting margin from single consumer from different cities and the spotlight margin from each city to see whether Eat2Eat.com has a happy segment positioning towards this regional market.

Second, to determine how much throw away we should make to different cities, we evaluate this figure by the character margin from 2004 marketing campaigns, to see whether the marketing events have strange positive influence on membership growth. (appendix 3) Recommendation determine to the case description, 7%-10% of consumers bills constitute 40% of eat2eat.com revenue, which is US$478,000, therefore, at once we close the operating insufficiently cities, then assign the new ! funding to improve the performance where illustrate a super acceptable behaviour for online restaurants reservation. It will be substantially to piddle breakeven point. For example, Bangkok is the lowest ranking of all cities, and constitutes a big(p) lost in 2005. Therefore, it should be shut down immediately....If you essential to get a full essay, order it on our website: OrderEssay.net

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