This website uses cookies to ensure you have the best experience. Learn more

Zagat's Dilemma Essay

1893 words - 8 pages

To Pay or Not To Pay: Zagat’s Dilemma
Source: Laudon, KC & Laudon, JP 2013, Essentials of Management Information Systems, 10th Edition, Prentice Hall, New Jersey
Founded by Tim and Nina Zagat, the Zagat Survey has collected and published ratings of restaurants by diners since 1979. Zagat publishes surveys for restaurants, hotels and nightlife in 70 major cities. Today, as more people use their smartphones for information on the go, Zagat is moving its content online and onto the mobile platform. It has been a struggle.
Zagat has come a long way from its roots in the early 1980s when the food loving Zagats started compiling lists of their favourite restaurants for personal use and ...view middle of the document...

Venture capitalists saw that Zagat had a golden opportunity to migrate its content from offline to online, Web and mobile.
Of the many decisions the Zagats faced in bringing their content to the Web, perhaps the most important was how much to charge for various types of content. They ultimately decided to place all of their content behind a pay wall, relying on the Zagat brand to entice customers to purchase full online access. One of the most prominent members of the investment group was Nathan Myhrvold, formerly the chief technology officer at Microsoft. Myhrvold supported the Zagats’ decision to use a pay wall for their content and maintained that putting all of their content online for free would have undermined their book sales.
Although Myhrvold and the Zagats themselves favoured the pay wall, other Zagat investors argued that placing content online for free allows companies like Yelp to get its results on the first page of Google search results, which is critical for maintaining the strength of a brand in today’s advertising environment. By not taking this approach, Zagat left itself open to be surpassed by Yelp, Groupon, Google Places and other similar services offering free content supported by advertising from local businesses.
In 2008, the Zagats tried to sell their company. They failed to do so, partially due to Yelp’s growing popularity. The Zagats’ failure to sell the company in 2008 highlighted their failure to effectively go digital. Food blogs and similar sites abound on the Web, but Zagat was in a unique position to get there first and establish itself as a market leader, and it failed to do so.
For much of 2011, Zagat trailed Yelp and other free review sites in the battle for eyeballs. Yelp drew much greater traffic than Zagat.com. In January 2011, according to comScore, Zagat.com had only 269,000 visitors, while Yelp had 26 million. The Zagat Web site claims it has more users, but the disparity is still significant.
A quick visit to the two sites highlights some of the differences. Zagat.com’s home page is streamlined with a minimal number of search boxes and links immediately available. Restaurant reviews are organised by several major “hub” cities as well as popular lists of the top restaurants of a certain type. Clicking on a restaurant shows visitors only a portion of the data Zagat maintains on that restaurant. For example, the site now shows the percentage of users that “like” the restaurant and several featured reviews. However, individual ratings for food, décor, service and cost are all behind the pay wall. The site also features a store where users can buy any of the Zagat surveys, Zagat-rated wine and even Zagat t-shirts.
Yelp’s front page is much busier and less streamlined than Zagat’s, but has a great deal more content available immediately. The front page has lists of the most popular restaurants, retail outlets, bars and clubs and many other categories, all free to the user. Looking for...

Other Papers Like Zagat's Dilemma

A Heart Of Darkness Essay

1748 words - 7 pages In this short story, there are frequent significant subject and ideas that make the story, "A Heart of Darkness," by Joseph Conrad, and haunting novel. The main theme is absolute white power over the natives. The theme validates the corruption, and the dependence caused by the white people as they took over the Congo. White men were giving all the power; they had no self-control, and in the end they did not use wisely. The white men became

The Aspects Of Vulnerability Among The Exploited In Medical Research

2287 words - 10 pages not have health insurance they lack the necessary means for treatment. Even those with health insurance do no always have a provider that covers the cost of certain procedures. Due to the economic downfall and decline in employment many are left without jobs and insurance benefits. Even if everyone were to have access to insurance, another dilemma arises. In Canada, health insurance is a universal good, in which everyone has access. The

The Hitchhiker’S Guide To The Galaxy

1171 words - 5 pages The Hitchhiker’s Guide to the Galaxy As the human race makes life-changing discoveries, it is made apparent that there is always more to learn as the universe, instead of becoming familiar, is becoming absurd. The Hitchhiker’s Guide to the Galaxy, written by Douglas Adams, as well as the 2005 film adaption, portrays absurdity to be an all-encompassing system in the universe. Through the introduction and attempt to understand lack of reason, the

The Ford Motor Company Wage Increase Of 1914 And The Theory Of Incentives And Efficiency Wages

1252 words - 6 pages ‘It’s not the employer who pays the wages. Employers only handle the money. It is the customer who pays the wages’ (Henry Ford, cited in Johnson and Weinstein 2004, p. 2). When the Ford Motor Company announced that it would more than double the wages of its workers in January 1914 to a ‘five-dollar day’ minimum, was this a contradiction to Henry Ford’s statement? If customers are actually the ultimate payers of wages, then more than

Historical Analysis Of The Economical Breakthroughs Of The Industrial Revolution

1396 words - 6 pages A Historical Analysis of the Economical Breakthroughs of the Industrial Revolution During the Industrial Revolution, many elements of society experienced huge breakthroughs that would change the way they functioned forever. Economics were definitely one of them. With many new inventions and many factories appearing, many, many, more resources were being created than ever before. Also, all of the revenue from these resources was being given to

Leadership Portrayed in Monologue from Shakespeare’s Henry V

1214 words - 5 pages Leadership is defined as a socially constructed process and which also affect organizational future outcomes. Leader is someone at high position who have overall duty for an organization, she or he decide what to do and the way how to achieve it. (Carter and Greer, 2013)The role of leader is extremely important for an organization, leader use their own power to influence the followers though many different ways such as motivation in order to

Cuba Civil Rights

1906 words - 8 pages Picture a country that has limits on how much you can make random government imprisonments and more what do you do. That is the situation for the eleven million seventy-five thousand two hundred forty-four people of Cuba since the takeover of Fidel Castro. The US is opposed to Castro taking control of Cuba. Castro managed to ease the United States nerves when he said that Cuba was against all forms of communism. According to Lana Wylie the Union

US Freight System

1273 words - 6 pages General Environment Each American requires the movement of approximately 40 tons of freight per year across the freight network. This includes everything from shirts to lawn mower to orange juice. • As the U.S. population expands, the U.S. freight system will be called upon to meet the demands of a larger population • Between 2010 and 2035, the system will experience a 22 percent increase in the total amount of tonnage it moves • By 2050, with

Democratic Peace Theory

1852 words - 8 pages Intro: US Presidents have made it a goal during their term(s) in office to establish a good relationship with foreign countries and even try to improve upon existing connections with our allies. Some believe it is to prevent conflicts between the countries while others dispute that it is a threat assessment by the United States to pick and choose their friends and enemies. Preventing conflict between two democracies or countries that practice

Booker T. Washington

1621 words - 7 pages “Success is to be measured not so much by the position that one has reached in life as by the obstacles which he has overcome” –Booker T. Washing. Booker Taliaferro Washington was born in Hale’s Ford, Virginia on April 5th, 1856 to Jane Burroughs and an unknown White man. Washington was married three times. His first wife was Fannie N. Smith from Malden, West Virginia. Booker and Fannie were married in the summer of 1882 and had one child

Corn, Broccoli, Grass Or Balanced

2611 words - 11 pages About a century ago, there was not an epidemic of diet-related illness, a bizarre account of destroyed farmland, dead zones in our oceans created by chemical run-off spilling into the waterways, and there sure was not millions of people questioning the moral ethics of their diet. In the Omnivore’s Dilemma: A Natural History of Four Meals, the author Michael Pollan goes on a journey to investigate the sources of the nation’s food supply, for

Related Essays

Freedom And Responsibility Essay

2141 words - 9 pages Built within the Constitution of the United States are specifically defined freedoms that are guaranteed to all citizens. Conversely, with every constitutional freedom there comes a corresponding responsibility. On September 25, 1789, the state legislature’s twelve proposed amendments were transmitted by congress, the first two dealing with congressional representation and congressional pay. The following numbers three through twelve were

Hate Crime Laws Essay

2348 words - 10 pages repeatedly beat him with they’re sticks. A man named George Holliday videotaped the whole thing from his balcony, andthe video got out other officers saw it. One of the officers only got suspended for 66 days in 1987 and the others got charged for filing false report, a mere misdemeanor. Unfortunately, North Carolina has already faced a similar dilemma that ended with the same kind of lax punishments. Laura Schneider, Michelle Smith, Loren Hyman

Rational Emotional Behavior Therapy Case Study Conceptualization And Treatment Plan

2140 words - 9 pages Rational Emotional Behavior Therapy Case Study of Sarah: A Conceptualization and Treatment Plan Rational emotive behavior therapy, REBT, was developed by Albert Ellis and holds the central belief that the events in our lives do not cause our disturbances but that they are instead caused by our view of the events (Murdock, 2009). Murdock (2009) states that “people are seen as responsible for their behavior” (p. 279) but, because they are

Holidays In Albania Essay

1636 words - 7 pages Have you ever thought about having exciting and incredibly cheap vacations? Albania might be the right choice. According to My Travel Guide, Albania is ranked the fourth among ten places worth visiting in Eastern Europe (“Top 10 Eastern European Destinations”). One can encounter three kinds of vacations in this Mediterranean country: winter, summer, and cultural. The ideal places to spend your winter vacations are the Albanian Alps. They are