Monday, July 16, 2012

Competitive Strategy

     Don’t Have a Cow operates in a highly competitive market: big chain coffee shops as well as small cafes have specialized in customized coffee and non-coffee options and our company has to keep up with the market speed. New entrants like coffee trucks can enter the market easily while the threat of a competitor coffee chain is not as high due to the high capital investment such a form of enterprise entails. Our team has nevertheless identified that the bargaining power of suppliers in this industry is low to medium due to the fact that the supplier industry is fragmented and many local coffee producers are not organized.

      Therefore, Don’t Have a Cow will pursue a low-cost competitive strategy within a specific market segment: we will offer quality coffee for reasonable prices while focusing on local family customers. The unique 1950s atmosphere will help us attract this segment specifically. Our coffee as well as our dairy products will be highly customizable which will set us apart from regular cafes and help us compete with established coffee chains. 

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