1. Based on the information I have learned from reading Baltzan Chapter 1 and my coffee shop visit I have decided on a business strategy for building loyalty among my customers.
• I will need to update the coffee shop technology wise. This is going to include getting computers to use for orders/sales, inventory, payroll, and also keeping track of our customers. The new computers will help me keep track of each customer that comes in and also how often, helping us to recognize them. This will let our customers know that we care about them and we realize how much they help our business.
• Since the Broadway Cage has been in the neighborhood the longest I have a first-mover advantage with the local customers. They knew my grandfather and they trust the coffee shop. A new competitive advantage I can gain over my competitors is decreasing the wait time for my customers. Observing the time it takes to make certain drinks and food and then removing the problems to
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I will visit a few star bucks and see what kind of drinks they offer, what kind of specials they offer for loyal customers. I also will interview lovers of star bucks to find out what they like so much about it, why it’s their favorite to see what I can do to help bring the Broadway Café up to date in the modern world.
2. By using Porter’s Five Forces I can reduce the threat of substitute products by making sure the quality of my drinks and food are top notch. If I lower my switching costs, customers are going to be less likely to switch to a different sandwich if they are not as good quality. Customers place a higher value on fresh food, thus giving the Broadway Café the competitive advantage.
An entry barrier the Broadway Café possesses is that of the Café type environment we offer. The new trend nowadays is healthiness. We can give our customers the Café environment, instead of the fast food feel that other competitors in this market struggle
Rivalry- Grocery Checkout’s main competitors are Loblaw’s and Valu-Mart. Their proximity to the University of Western Ontario makes them accessible to the students, but by public transportation or their own cars. The
Use the following sections to guide your development of your integrated IT plan for your chosen business strategy. Part 2 IT Enablers Opportunity You are interested in introducing several information technology solutions as enablers to deal with some of your new coffee shop issues. Background Given your new strategic focus for your grandfathers coffee shop, what specific IT Enablers will help you with your business strategy implementation and thereby realize your value proposition for the future Example IT Enabler opportunities may include, but are not limited to, the areas of order management, inventory management, marketing and customer outreach, web site implementation and wi-fi. Be certain that you are creative in choosing your IT Enablers so your IT Enabler Opportunity is a very strong value proposition for your new coffee shop and customers. Your value proposition should include value creation activities to enhance productivity, maximize convenience, and improve communications. Task Document the IT Enablers investment which your grandfathers coffee shop could use to increase revenue, reduce costs, and thereby create value. A few questions you might want to address in your documentation for your team report include What IT Enablers would you deploy at your coffee shop and how will your business strategy benefit from the
Hold on to his savings and look for investing in a more secure and stable business than The Leeds Livery
Broadway Cafe’ since its inception in the neighborhood in 1952 has outgrown its place in terms of antiquated ways of doing business. It is in dire need of a face life and an extreme makeover, to say the least.
Positioning strategy helps a company in creating its identity and its products/service it provides (Anderson, 2011). Café Bijoux offers a relatively low price for a cup of soup and a sandwich, while offering healthy and tasty meals to their targeted market (primarily workers at the City Hall). To keep the cost low, the management did not printed a menu instead it was written on a chalkboard and was updated daily. In addition, the condiments were handed out to the customers as they picked up their orders. Business operations were from 10 am till 3 pm, mainly attracting customers from local surrounding business for lunch,
Partners David Greig and Angela Peck are considering opening a new business in London, Ontario named Beyond the Bean (House, 2013). Beyond the Bean would be a unique cafe where users could eat and drink while playing a variety of sit-down games and was inspired by a visit Greig made to a wildly popular location called Snake and Lattes in Toronto, Ontario (House, 2013). Greig’s vision for the new business was a place where people could get out and have some fun in a fairly unique way without having to spend too much money (House, 2013). However, various factors of this concept must be analyzed in order to determine how to best execute Greig’s vision.
Porter 's five forces framework assesses the competitive pressures a company faces within the industry. The five forces of competitive pressure include: competition from rival sellers, competition from potential new entrants to the industry, competition from producers of substitute products, supplier bargaining power and customer bargaining power. The model helps us determine the strength of competitive pressures and profitability of an industry. [3]
Porter's Five Forces is a simple but powerful tool that consist of 5 different forces to understand the competitiveness of your business environment, and for identifying your strategy's potential profitability. The five forces are degree of rivalry, threat of entry, threat of substitutions, buyer power, and supplier power. Each force is helpful in their own way to get to know your rivals a lot better and get to know what can happen in your market.
Porter 's Five Forces Model is a critical instrument to break down an outer aggressive environment of the business. The model incorporates threat of entry, the threat of rivalry, the threat of suppliers, the threat of purchasers and threat of substitutes.
In conclusion, the Broadway Café faces a strong buying power and rivalry among competitors due to the large volume of shops offering the same products and services. The threat of new substitute products and alternatives is also high for the same reasons for buyer power. The Café also faces the threat of new entrants due to the lack of insignificant entry barriers. One upside is the relatively weak supplier power. The coffee industry is huge as stated above and vendors are more than ample. With this information we can conceive our business focus. The Broadway Café is best suit for a focused differentiation strategy. We plan to achieve
The Porter Five forces analysis helps the marketer to contrast a competitive environment. Porter’s five forces model is comprised of following five completive forces:
In the premium foods and coffees industry, there are substitute products. According to Mary Coulter, the best way to evaluate this threat is to ask whether other industries can satisfy the customer need that this industry is satisfying (Coulter). Other beverage industries can satisfy the customer's need for a drink, and other food industries can satisfy the customer's need to eat. There are obviously good substitutes to Broadway products and the threat is high. This is why it is very important for Broadway Cafe, to innovate and differentiate. By providing free Wi-Fi in the Cafe and marketing signature food products from the famous old recipes of Grandfather, Broadway Cafe can create different image than its competitors.
Starbucks faces a difficult and controversial management challenge. The company’s most recent market research has revealed unexpected findings implicating that Starbuck is not always meeting customer’s expectations in the area of customer satisfaction. The purpose of this memo is to analyze and provide recommendation on whether or not the company should go forth with a $40 million investment in additional labor in the stores. This $40 million investment is necessary in order to bring service time down to a three-minute interval and ultimately increase customer satisfaction. A marketing strategy and corresponding recommendation will be provided for your approval.
Porter’s Five Competitive Forces Analysis is a framework developed by Michael E. Porter of Harvard Business School for study of industry analysis by analyzing five competitive forces which define industry and its business strategy. These five competitive forces determine the competitive advantages, disadvantages and attractiveness or profitability of industry.
The Porter`s five forces are threats of new entrants, the bargaining power of buyers ,product substitution and intensity of rival of rival among competitors .These forces measure the competitiveness of the market and also helps the company to identify strategies to use to penetrate such and gain market share.