Background: Founded by Nina and Tim Zagat, Zagat is a firm that collects and compares the ratings

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Background:
Founded by Nina and Tim Zagat, Zagat is a firm that collects and compares the ratings and reviews of restaurants, hotels, nightlife, movies, shopping and much more categories by individuals. Zagat believes that opinions of a number of consumers is much more efficient then the reviewer of few critics. In 1979, Nina and Tim Zagat started the idea among their friends collecting reviews and surveys; started at reviewing 100 top restaurants that were distributed as printed copies. Later with the rise of technology such as Internet, e-commerce and mobile application, Zagat started struggling to find the appropriate business model. Fearing competitors in the new technology world and falling behind the shadows of new opponents such as
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This gave Zagat a competitive edge compared to other firms operating. But, in the dot com bubble age, Zagat did not carry out their activities efficiently and effectively which affected the overall growth of the company, And due to their battle to find a business model that stayed true to the company origin, companies like yelp were able to successfully take over Zagat. In a market like the one in which Zagat operates, it is easy to enter and start a new business. It requires only a small start – up cost, effective and highly synchronized business model and there are no barriers to entry. This enabled a new company like Yelp to outperform Zagat and grow rapidly in a short period of time.
2. Bargaining power of buyers:
The bargaining power of buyers in this industry is high. In the beginning of the business, Zagat was capable of acquiring many followers and customers. But, this changed in the dot com bubble age. This is because a user can shift from one website to another if they are displeased with the services provided. In the case of Zagat.com, they did not take advantage of the opportunity presented to them of being the first to provide good reviews online. In fact, better services were offered by other websites which drained Zagat’s customer population, and it's also due to the pay wall they set up after going online, by the time yelp had almost the same information as Zagat but instead of charging money they had everything up on free and that’s

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