Cohesion Case Study for the Broadway Cafe

The Starbucks business commerce is trade, and the products include coffee drinks and coffee related products. Since the company has thousands of branches throughout the world, it is very convenient to “run in and out” and grab a coffee. Starbucks has a very loyal customer base and high profit margins. Through the loyal customer base and always being

Having a low supplier power to begin with brings a high threat of new entrants to the café in that it is easy for the new entrants to come across what they will need to launch a business in this industry. However, it is tough to come into the restaurant industry and at the same time hard to establish a distinct brand name (McDonald, 2010). Large, well established coffee/tea businesses such as Starbucks have well-built brand identities. This being it does make it a lot harder for competitors like the Broadway café to enter and succeed within the industry. Also, “new entrants find that they are faced with price competition from existing chain restaurants (McDonald, 2010)”. But, the Broadway Café will keep its prices “artificially low as a strategy to prevent potential entrants from entering the market,

The industry’s saturation is moderately high with a monopolistic competition structure. For new entrants, the initial investment is not significant as they can lease stores, equipment etc. at a moderate level of investment. At a localized level, small coffee shops can compete with the likes of Starbucks and Dunkin Brands because there are no switching costs for the consumers. Even though it’s a competitive industry, the possibility of new entrants to be successful in the industry is moderate. But this relatively easy entry into the market is usually countered by large incumbent brands identities like Starbucks who have achieved economies of scale by lowering cost, improved efficiency with a huge market share. There is a moderately high barrier for the new entrants as they differentiate themselves from Starbuck’s product quality, its prime real estate locations, and its store ecosystem ‘experience’. The incumbent firms like Starbucks have a larger scale and scope, yielding them a learning curve advantage and favourable access to raw material with the relationship they build with their suppliers. The expected retaliation from well-established companies for brand equity, resources, prime real estate locations and price competition are moderately high, which creates a moderate barrier to

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

Location. There are few coffee shops in the neighborhood, and a lot of students and people live there and work nearby.( they can grab a cup of coffee when driving to work or to school).

“Thanks for your time and we appreciate you for bringing your concern to our attention. We understand your concern expressed in your post and we truly apologize for any inconvenience caused. However, you need to understand that ours is a family business and we strive to serve our community better and so we encourage our customers to bring their children, grandchildren to our children’s story hour. Regarding the concern, you have raised, we are currently evaluating various options and we may consider introducing a separate lounge area with pleasant ambience while keeping it away from the children play area while children can play and enjoy their story telling hour. We hope you as our valuable customer will understand. Thank you for your cooperation and patience for allowing us to serve our customers better.”

Starbucks have shown in the past that they are very good at taking advantage of opportunities. In an strategy alliance with Hewlett Packard, customers could create their own music CD within a Starbucks coffee shop. Thus the company could look for these kind of opportunities to seize. In addition, new markets for coffee are emerging such as India and the Pacific Rim nations, also Europe which is getting more and more accustomed with the brand name “Starbucks”. Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential.

Starbucks is undoubtedly dominating the coffee industry, however that does not exclude the entry of new rivals. For example, McDonald’s, Burger

It’s a known fact that Starbucks is one of the leading brand in the market.When we analyse the market we find that Mcdonald 's and Dunkin are the competitors in the same product segment. So comparing Starbucks with these competitors will throw light on its grey areas, process and competitive edge in the market.

As a well-established coffee retailer and over 35 years of success, Starbucks is at the maturity stage in the product life cycle. It is in this stage that Starbucks needs to shift gears and focus on marketing program modifications by increasing the number of customers and customer visits (Kotler, 2009, pg. 185). While improving service will attract first-time customers and retain current ones, further marketing modifications will need to be made if it wants to continue to grow. More advertising, distribution, sales promotions, and personal selling are a few of the ways to modify the marketing program.

Conduct customer surveys and have a customer focus group in an attempt to get customer input on the competitive products, services, industry prices, and any other areas that require improvement.

Describe the strategies employed by the coffee majors and by Starbucks. Describe main differences in their assumptions, mission, product/market scope, and sources of differentiation.

Moreover, most of the people know the brand Starbucks as the leader of the coffee industry. It is enormously successful and it comes out with no surprise that this will be used as benchmarking against the study of Dunkin’ Donuts.

To be more customer oriented and focused, they can accomplish something else from their rivals. The organisation can incorporate e-commerce in their café business. They can begin taking online orders and this will make effect on the customer's mind that their cafe is substantially more helpful and effective than others. This may likewise enable them to expand their sales as these days significantly more individuals are constantly using internet to ease their lifestyle by saving massive time ordering online rather than standing and waiting in the queue.

Well-known in good services approached to customer resulting into long term profit regenerate. When your service is good, and the word of mouth and references are good, you will acquire new customers at a fraction of the cost you were supposed to. Not like the other products, they have to some millions of dollar just to market it. Unlikely the Unicorn Frappuccino, Starbucks using a great nature approach and all of the promotion regarding the products will be perform by existing customers. This ensures fantastic profitability as you are getting maximum returns on the investment already