Buyer Power Broadway Café is no longer unique commodity. With the Starbucks being on just about every corner and McDonald’s even offering specialty coffees; the buyer is overload with choices and availability. In order to save my business, I must create a competitive advantage by developing a loyalty system. My loyalty system will need to attract the buyer to my business more often that my competitors. Since I am small business, my loyalty program cannot be large scale.
Employees have heard a rumor that Starbucks might be opening a store in the area. Right now we have competitive advantage, because we are only café which is specialized in coffee products. The situation will change when Starbuck will open a new shop. As Baltzan & Phillips (2009) have stated in their book that, “competitive advantages are typically temporary because competitors often seek ways to duplicate the competitive advantage” (p. 22). The café have first mover advantage to be first in business but Starbucks are technologically advanced and have wholesale coffee business in the market.
• Customized and Seasonal Products: Consumers have the choice of extra whipped cream, caramel syrup, etc. Starbucks also has various seasonal products to serve the customers; this gives them a positive edge over its competitors. • Service at a faster speed: One doesn’t need to wait long times in queue to have a cup of coffee at Starbucks, we can attribute this to the • Convenience through Location: Starbucks' store-site strategy is to have high visibility, high traffic and convenient location, so a daily commuter will be delighted to stop everyday at the store for his cup of cappuccino. The stores’ high visibility, convenience and accessibility in terms of its locations and amenities provided
Coffee Roasters operates in the niche market of Fair Trade Coffees. Just Us! Coffee Roasters is wishing to expand their company, thus profits, which means that they face more competition from outside their niche market. As a result, Just Us! Coffee Roasters now must compete on a large scale against strong mainstream competition and well established local and international brands.
Channels of distributions are another. The new variation of latte and espresso sold as a ready to drink beverage sold in convenient stores is different from the traditional cup of coffee at a Starbucks store. This is management controlling the distribution channel in which the coffee is sold. Price is another element. Starbucks is known to have a more expensive product.
It also sold coffee products through non-company-operated retail channels. - “Partners:” All Starbucks employees were called “partners.” Starbucks believed a partner satisfaction leads to customer satisfaction so it had a generous policy of giving health insurance and stock options to even the most entry-level partners. As a result, the company had the lowest employee turnover so the training process was reduced as much as possible to lower resources’ waste for the process. ! 2) Were there any changes in customer satisfaction levels and company’s ability to provide outstanding customer experience (2002 compared to 1992)?
Purchasers of Ikea, for example, use their contacts with suppliers all over the world via Ikea Trading Offices, in finding those who can make their products at the best quality for the right place and the right time. - They also take in to account materials, colors and design. For example, their mug is made in green, yellow, blue or white as these pigments cost less than other shades - Design is also one of the key factors in decreasing cost. In the case of their mugs, they redesigned the product three times simply to maximize the number of mugs that can be stored in pallet. They were also able to lower their shipping cost of bulky items such as furniture by having it disassembled to maximize the use of space inside their shipping containers.
Serving thousands of coffee shops and home consumers across the U.S., Coffee Bean Direct is among the fastest growing coffee companies on the web. Approach When Marketing Associate Floyd Wallace heard the buzz about Google Checkout, he was intrigued for several reasons. Checkout promised reduced credit card transaction fees, Google promotions, the Checkout icon on every Google AdWords™ ad, and easier transactions for customers. Since the beginning, AdWords has been a big component of Coffee Bean Direct’s advertising and marketing strategy; Checkout seemed like a natural complement. “We are always excited to offer convenient choices for our customers,” explains Wallace.