A New Competitor Successfully Entering The Market Essay

The ERI naturally tends towards a dominance of large platforms due to strong cross-side network effects. Thus, the following strategic challenges impact the viability of a new competitor successfully entering the market. The ERI currently has significant barriers to entry due to customer switching costs, brand identity, customer loyalty and intellectual property. New competitors would need a solution with enough value to justify a switch from the current leading platform for both restaurants and diners. A new competitor in online reservations must face the challenge of building both sides of its ecosystem: not enough restaurants on one side of the network leaves little incentive for diners to sign up, and vice versa. Essentially, the RRI is winner-take-all market and competitors need consider their chances of success before competing. However, advancements in information technology (IT), specifically the internet and the cloud, have highlighted the profitable concept of OpenTable’s model and thus the threat of increased competition is extremely high. The ERI is evolving rapidly and now is rich in enveloping opportunities. The restaurant-reservation industry is now primarily a technology based business which means barriers to innovative disruption are high (May, 2015). A proliferation of competition from other online booking platforms are now more easily able to incorporate similar features into their own service, and these rapid technological changes may soon render OpenShow MoreRelatedEssay Dell case1213 Words   |  5 Pagesstandards, and was therefore taken off the market again. Dell had to solve the problem of balancing the production of laptops, desktops and servers. On the laptop market, which Dell was committed to re-enter due to its growing customer base, there were a number of technological problems. 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