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Outline and evaluate the success of Just Eat, highlighting its impact, if any, on the restaurant industry. (60 marks)

Global Hospitality and Tourism Issues

ASSIGNMENT INTRODUCTION

Information and communications technologies (ICTs) have enabled the rise of “Collaborative Consumption” and consequently peer-to-peer-based activity has had profound impacts on many established sectors, economically, socially and environmentally. A recent study (PWC, 2016) conducted for the European Commission shows that the sharing economy activity across Europe has accelerated over the past two years, generating revenues of €3.6bn and facilitating €28bn of transactions in 2015. The UK’s sharing economy has grown the fastest in Europe, with transactions almost doubling to £7.4bn in 2015, and platforms taking home £850m of this total. The rapid growth of peer-to-peer platforms has enabled individuals to collaboratively make use of under-utilized inventory via fee-based sharing. This innovative approach was seen as an opportunity to enable consumers to order restaurant food deliveries through an app. The facility of an app is provided by an intermediary that connects users and end suppliers for a service fee, thus Just Eat was founded in 2001. Growing demand for convenience food delivered to the door has seen the takeaway delivery market grow from £2.4bn to £4.2bn in a decade (Independent, 2018). The Just Eat vision is to deliver more choice and convenience to create the world’s greatest food community (Just Eat Holding Limited, 2019). Just Eat has over 82,000 restaurant partners and over 21.5 million active customers worldwide and in 2017 was valued at £5.5billion (Guardian, 2017).

Using one briefing document, answer the following two tasks:

TASK 1: ASSIGNMENT QUESTION Outline and evaluate the success of Just Eat, highlighting its impact, if any, on the restaurant industry. (60 marks)

Knowledge and understanding of global issues relating to the Hospitality.

Ability to outline and evaluate theory and practice relating to global issues.

TASK 2: ASSIGNMENT QUESTION Recommend whether the restaurant industry should strategize to minimise the actual or potential impact of Just Eat. (40 marks) TASK 2: ASSESSMENT CRITERIA TASK 2: POINTS TO CONSIDER

Effective use of technology and innovation Digital connectivity and strategic drift Concept to assist with the strategic decisions making: TOWS Strategic Matrix

Knowledge and understanding of the impact of global issues. Ability to assess and make recommendations for short- and long-term strategies in order to minimise the impact of the issue.

Global Hospitality and Tourism Issues – Interim Assessment Briefing Document Tips Task 1: Outline and evaluate the success of Just Eat, highlighting its impact, if any, on the restaurant industry. (60 Marks)

You should address at least 3 areas, and apply to impact of Just Eat. Areas to consider are below (but are not limited to these ideas):

● Data to demonstrate growth of Just Eat

● The Concept of Just Eat (use of sharing economy)

● Scale Supply

● Consumer demographics i.e. age

● Disruptive innovation

● Current trends in food and beverage sector

Task 2: Recommend whether the restaurant industry should strategize to minimise the actual or potential impact of Just Eat (40 marks)

You should address at least 2 strategies the restaurant industry could implement. Areas to consider are below (but are not limited to these ideas): ● Effective use of technology ● Innovative marketing ● Digital connectivity – Social Media ● Product differentiation / differentiation strategy ● Customer Relationship Management ● Concepts to help with strategy: Strategic Drift; TOWS strategic Matrix


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