Broadway Cafe Essay

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BROADWAY CAFÉ: Parts 1 & 2 Tanya Niessen Strayer University CIS500 Information Systems for Decision-Making Evaluating Broadway Café using Porter’s Five Forces Porter’s Five Forces Model helps organizations entering into the business world for the first time and helps determine if the business will be attractive within an industry. The first of Porter’s Five Forces is buying power, which is high for the Broadway Café because there are many choices that consumers choose from to purchase their morning coffee and/or lunch each day. The Broadway Café really has no competitive edge over other businesses, as there are no incentives to keep customers coming back day after day. One of the first things I need to do is implement a loyalty program. Having a loyalty program would ensure that customers would keep coming back to the café for the incentives. The loyalty program would entail customers earning points to receive a free cup of coffee after earning ten points or bakery item after earning 20 points. In addition to the loyalty program, I would have cards for customers to sign up to be added into our customer database to include their name, mailing address, and e-mail address. This information would allow me to send coupons and alert customers of monthly specials in hopes that the customers would return to the café. Implementing the loyalty program and creating a database with our customers would allow us to be competitive with other cafes and coffee shops. Supplier power, the second of the Five Forces Model, is also high for the Broadway Café as there is no competition in the area and has not been since the café opened in 1952. With talk of a new, popular café opening up in the area, our supplier power will decrease so we have to come up with ideas, such as a coffee or tea of the month, to keep our customers coming back to the café. In

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