23% internet users with a growth rate of 16.3% 384 million 1,500% revenue growth of sector growth...
TRANSCRIPT
23%
internet users
with a growth rate of
16.3%
384 million1,500%
Revenue growth of
Sector growth
FDI
Provides solutions for restaurant reservations through proprietary Electronic Reservation Book (ERB) software
Three revenue streams – installation, subscription, reservation
Two business segments North America – US, Mexico, and Canada International – UK, Germany, Japan
Withdrew from Spain and France in 2007
Key success factors for expansion High usage of internet Greenfield entry in major markets
What is OpenTable?
04/20/23 2
Risks of Entry to China
04/20/23 3
OpenTable Risks to China Entry
Political Risk
controls? corruption?
Market Risk
premature?competition?
Capital Risk
balance sheet?
Currency Risk
appreciation?
INVEST!
04/20/23 4
Political
“Encouraged” sector, low threat to intellectual property
Currency
Very stable, credible currency
Capital
Inputs largely variable, North America subsidizes early losses
Market
Tremendous growth, limited competition, too big to pass up!