Guides and Reviews

• 1. Sector analysis of web2.0 based websites forGuides and ReviewsGroup GeekFreak- Sushant Kumar (09BM8052) - Pritesh Gehlot (09BM8072) - Vaibhav Shrimani (09BM8058) - Nidhi Bansal (09BM8028)VGSOM, IIT Kharagpur

2. The Idea! As statedbyan online news website, atnewyork.com: People spend most of their money within a few miles of home and care most deeply about what happens around the corner. Entertainment dollars--for movies, dining out--is entirely a local phenomenon. And in a city like New York, where tourists are everywhere, the potential market for local information is exponentially larger than just the locals. Local advertising, that's the ticket.VGSOM, IIT Kharagpur 3. HistoryZagat Survey-in 1979 a way to collect andcorrelate the ratings of restaurants by diners.Web 2.0 based sites citysearch.com(1995) , yelp.com(2004),zagat.com Indian counterparts burrp.com(2006), mouthshut.com,whereincity.comVGSOM, IITKharagpur 4. Nature of services Eat/Drinks location menu cards, reviews,ratings, Beauty & Spa Information Shopping outlets, entertainment centers. Advertisements posted by local businesses Classified s Hospitals, chemist shops, Doctors, diagnostic Health & centres Emergen Active life gym, yoga centers,cy VGSOM, IITKharagpur 5. Nature of services Online booking of movie ticketsBookings Users can share their experiences by and reviews providing reviews Platform to showcase the talent by local artists- post pictures, articles. Events Can post event details on website Provides maps to reach a particular location Direction &MapsVGSOM, IIT Kharagpur 6. Advantages One stop shop for all information.Online search, saves time & One can view images and videos before making a decision.Option of filter search helps in comparative analysis of available options.Provides employment opportunities to people who want to utilize their spare time.People can feel more connected to and updated about their neighborhood through discussion forums.VGSOM, IITKharagpur 7. VGSOM, IIT Kharagpur 8. Major playersin the market VGSOM, IIT Kharagpur 9. Major Global Playershttp://www.city-data.com/ http://www.citysearch.com/ http://www.worldtravelguide.net/ www.worldweb.com/ www.travelmalaysiaguide.com/ www.tourtravelguide.com/ www.travel-directory.org/ http://www.bcglocations.com http://cityguides.msn.com/ http://www.luxecityguides.com http://www.whereincity.com/ www.gocityguides.com/ http://www.unwto.org/index.phpVGSOM, IITKharagpur 10. Major Indian Playershttp://www.burrp.com http://mouthshut.com http://whereincity.com http://www.timescity.indiatimes.com http://www.travelocity.co.in/ http://travelindia.com/ http://asklaila.com http://www.ecoindia.com/ www.mapmyindia.com/ www.justdial.com/VGSOM, IIT Kharagpur 11. Business modelThe business model of information and review websites is to provide information to the consumers of services and earn revenues from providers of services for advertising their businesses to the consumers. 12. Inception to Establishment Build databaseExpand the database Attract user communitySet up sustainable source of revenueLook for new business opportunitiesVGSOM, IITKharagpur 13. Target Users People travelling to new and unfamiliar cities for personal, business reasons.Internet savvy people who prefer to seek most information and book services or buy products online.Local people who want to be updated of new businesses and services coming up in neighborhood.Business owners who want to advertise and promote their businessMarketing agencies VGSOM, IITKharagpur 14. Sources of revenue Google AdSense enables online businesses toearn revenue from serving ads precisely Ads by googletargeted to specific web content and searchpages. Ads by local Local businesses post their ads on informationand review websites and are major source ofbusinessesrevenue.Commission The websites often earn a percentage of from monetarymonetary transactions facilitated from thewebsite. transactionsVGSOM, IITKharagpur 15. Sources of revenue Some specialized search for premium Paid premium information can be charged to the user.However this forms a small percentage of services revenues.Revenues Marketing agencies and market research firmsreadily pay the websites for gaining information- from marketing rich data and first hand experiences and reviewagenciesfrom user community.VGSOM, IITKharagpur 16. Marketing StrategySocial networking Allow users to form communities and connect on facebook, tweeter, etc.Web2.0 technology User entered and reviewed data increases trustworthiness of the dataAdd new services and businesses Data attracts data Let users create their own websites and pages. This attracts hightraffic generating users.User connect By sending monthly newsletters, updates SMSs, etc. VGSOM, IITKharagpur 17. Value estimation Estimate Advertisi Use of d traffic ng domain revenues name. VGSOM, IIT Kharagpur 18. Comparative analysis Citysearch.comZagat.com Burrp.com 31,472,099 2,135,156 4,462,388 pageviews/ pageviews/pageviews/ monthmonth month worth: $ worth: $ worth: $ 2,372,940.69 160,986.83336,455.84Data as per www.peekstats.comVGSOM, IITKharagpur 19. Porters 5 ForcesVGSOM, IIT Kharagpur 20. The threat of substitute productsor services The threat of the entry of newcompetitors.The intensity of competitive rivalry.The bargaining power of customers (buyers)The bargaining power ofsuppliersVGSOM, IIT Kharagpur 21. 1. The threat of substitute products or services Buyers propensity to substitute.Relative price performance of substitutePerceived level of product differentiationNumber of substitute products availablein the market.Ease of substitution.Substandard Information.Quality depreciation. VGSOM, IITKharagpur 22. 2. The threat of the entry of new competitors.The existence of barriers to entry (patents, rights,etc.).Switching costs or sunk costs.Capital requirements.Access to distributionCustomer loyalty to established brands.Absolute cost advantagesLearning curve advantages.Government policies.Industry profitability VGSOM, IIT Kharagpur 23. 3. The intensity of competitive rivalrySustainable competitiveadvantage through innovation. Competition between onlineand offline companies.Level of advertising expense.Powerful competitive strategyVGSOM, IITKharagpur 24. 4. The bargaining power of customers Buyer concentration to firm concentration ratio. Degree of dependency upon existing channels of distribution Buyer volume Buyer switching costs relative to firm switching costs Buyer information availability. Ability to backward integrate. Availability of existing substitute products. Buyer price sensitivity. Differential advantage (uniqueness) of industry products. VGSOM, IITKharagpur 25. 5. The bargaining power of suppliersSupplier switching costs relative to firm switching costs. Degree of differentiation of inputs Impact of inputs on cost or differentiation Presence of substitute inputs Supplier concentration to firm concentration ratio Employee solidarity VGSOM, IITKharagpur 26. Thank you!