case study on Business Policies of Zagat

1. Zagat was founded in the form of one kind of survey by Tim and Nina Zagat in 1979. Zagat uses the reviews of the people who have visited a specific restaurant and they would like to share that with their friends, relatives, their contacts and network and also with the world. They have been committed in providing the users with a genuine set of reviews after filtering them and then providing the most informative ones on their site. They have utilized the web forces for reaching the mass by providing them with limited accessibility of its content on the website as free. The web connects the users to the links and entire version of the surveys, reviews and locations behind the paywall which the user has to pay for an entire year’s subscription. They have utilized their genuineness and accurateness as a striving force in attracting quality people unlike Yelp which has large number of visitors but then too makes less profit than Zagat.
The chain of activities that have been adopted by the Zagat in the form of value chain models focusses more on the quality of review and other information provided to the users. They have also modernized themselves with their apps available on Android, Apple, Blackberry and Windows. They have reduced the cost that the users have to pay for its yearly subscription in the mobile version. This helps them to make a niche in the advertising and survey world.

2. Zagat has adopted a quality based specific web strategy that comes under the qualitative model, whereas yelp has developed a quantity based specific web strategy that comes under the quantitative model. Zagat focusses on providing their customers and users with a genuine and trustable information and reviews through them. Yelp focusses on the number and quantity of reviews that they can get to exposure to maximum public and hence it has free content accessibility on its website. However, Zagat has adopted a different strategy to reach its users. They have developed a paywall on the website through which the users who would like to get access to the entire content would have to pay for the website. They would make only a part of the information freely available to the users that would help them to get the link to the entire information that would be useful to them. The information and the models adopted by each of them have in certain way helped them and at the same time affected them adversely. Yelp has large number of users but has less number of quality users who trust them because of easy access to the review option and the reviews can be created artificially or fake for the demotion of particular business.

On the other hand, the Zagat has adopted a model that gives them less number of visitors and users. However, among these fewer number of visitors the percentage of people that trust the reviews and surveys posted on it is more because of the genuineness that Zagat provides by filtering the reviews and checking the genuineness of the reviews and opinions of the people for a particular place.

3. Zagat has provided content that is more genuine, secure and informative about the various locations that mostly involve restaurants for the users. The content that Zagat provided is trusted more and hence it was more suitable for the mobile digital platform than the Yelp. This is because of the easy and entire accessibility of information on the mobile app of Zagat that the customers would be viewing and getting at a lower price than the web version. It is therefore more suited for the mobile, due to the large number of data been obtained for the restaurants on the basis of the locations. The data or information that is provided by Zagat would have lesser number of abuses or personal information since it has to undergo filtration and scanning from the Zagat before being posted on the site or app. Zagat is also suitable for web platform because of the quality it provides in terms of information and reviews. The reviewers or the members that provide honest and genuine opinions at regular interval of time get recognition from the website among the members and the quality of their work is also appreciated.

4. Zagat provided a large number of reviews and opinions of the restaurants beginning on a small scale. They then decided to go online and make it available on the web. However, they made only a part of the reviews and opinions available on the web and the rest was kept behind a paywall and the customers had to pay for getting the entire content of the version. According to me, the decision of Zagat to use a pay wall for its website was an appropriate one. But, it came at the wrong time.
The site must initially developed its popularity among the masses and the people by providing free accessibility to the content. This would have helped the users to get the information and

places that they wanted easily with genuine reviews, this would bring large number of users to use Zagat. This would have also helped in creating more trust among the people and promoting this trust in even greater number of people because of its easy accessibility. Hence, they must have developed a paywall to its accessibility on the web after sometime, once they have got the popularity and following among the people. The use of paywall limits Zagat’s accessibility to a large number of first time users as they would initially try to get the information from a site that is free of cost and provides the information and reviews. When the paywall is adopted to the Zagat, it has limited the promotion and advertisement of the site due to its charge and opinions that are kept behind the paywall. However, once the site becomes a great hit among the people, they could have added a paywall to the site that would make people pay for the site. This will ultimately help in increasing the business for the site and ensure satisfaction among the users.

5. Zagat has focussed more on the social feature as it easily promotes them through the network of the people. People are very much active to their social connections and they tend to share information and opinions among them on a daily basis. This can be a very good scope to get greater number of users. This ideology made Zagat create and focus on adding social features on their Android apps. People easily tend to believe the review and suggestion of their closed ones and this helps to develop pa potential domain for the site in the society. The number of users will multiply through the addition of social features to the app. It would also lead to large number of members using the facility and then visiting the restaurants gradually. It helps the site to get large number of profit from the use of services that they provide on their apps.
The feature has also helped the users to share their experiences together among their network and develop an ultimate consumer experience. This would ultimately result in growth of the business and increase in the profit of the site.
Thus, Zagat has focussed on adding social features to the Android app.

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Posted on

March 10, 2018

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