When Chris Jeffery was in college at Penn State in 2003, he noticed that very few restaurants had their menus posted on a Website. Those that did have an Internet presence did not have online ordering for delivery or takeout. Jeffery started OrderUp to help restaurants and customers connect through its online platform. After college, Jeffery proved the concept by licensing it to a small number of people. Once he had proof of concept, Jeffery was ready to scale and expand into other markets. He looked into raising venture capital but came away convinced that he would rather find a way to grow the business in a way that he could maintain control of the company. After operating as Lions Menu while Jeffery was in college and LocalUp when he was first testing the concept, he eventually chose the name OrderUp for his venture. Jeffery was able to raise seed money from an angel investor but relied mostly on bootstrapping to establish a franchising model to grow the concept. However, Jeffery faced the challenge that no one had ever franchised an online business before. OrderUp offers its franchises for an up-front cost of $42,000, which covers the software system, training, and territorial rights to a specific area defined by phone number area codes. OrderUp handles all of the order processing and customer support via online chat or telephone. OrderUp pays the restaurant for each order, after keeping 5 percent for the company and 5 to 9 percent for its franchisee. Customers have the convenience of viewing a wide variety of menu items from several restaurants on one online location. The franchisees are responsible for selling the service to local restaurants and for connecting OrderUp with the local community.
Social media also is an important tool for expanding the sales for each territory. Quick service restaurants are the most receptive to the OrderUp model. In many markets, franchisees are forging partnerships with restaurants to create special promotions, featured menu items, and even new products. Franchisees who are able to meet sales targets can earn more than $100,000 a year. Bill Proferes, a veteran restaurateur, is an example of a successful OrderUp franchisee. After one year as owner of the Norfolk, Virginia, franchise, Proferes bought additional franchise rights in Norfolk. Proferes has signed up dozens of local restaurants to be partners with his OrderUp franchise. By its 10th year in business, OrderUp had grown to 32 markets in 18 states, had more than 1,000 restaurants signed up to participate in its program, and had more than 400,000 registered users. The company plans to continue this growth into mid-sized markets across the country, but faces competition from other companies developing online restaurant ordering Web sites and mobile applications.
1. Identify the company’s strengths and weaknesses.
2. What opportunities and threats does OrderUp face?
3. Identify OrderUp’s major competitors. What are their strengths and weaknesses?
4. Write a short memo (two pages maximum) to Chris Jeffery and his management team describing your strategic recommendations for helping OrderUp gain and maintain a competitive advantage in their industry and realize their goals grow the company to become a national industry leader
************Instruction: Answer the 4 case questions. If you are unable to answer, please didnt answer this.
Solution:- 1. The company’s strengths and weaknesses are as follows:- Strengths:- (i) It’s a very new concept in the market. (ii) Gai…View the full answer
