The Broadway café located in downtown is a coffee shop inherited from the owner’s grandfather. Although grandfather who gained wealthy business knowledge was an expert to run his coffee shop, the business still declined after his passed away. As we know from the history of Café, it had no Website and used little marketing with effective operations. Furthermore, the information of client names and family receipts are stored in grandfather’s memory only. Recently, as the risk of competition arises, Café needs to make some changes in strategy by building loyalty and remaining competitive advantages in a changing market.
A competitive advantage is product or service that an organization’s customers place a greater value on than similar offerings from a competitor. Unfortunately, competitive advantages are typically temporary because they are often duplicated by competitors in many ways. (Baltzan &Phillips,2010). Consequently, Broad Café must develop strategies for continuous improvements such as environmental scanning, Porter’s Five Forces Model, and first-mover advantage.
Since 1952, the Broadway Café has never met competitors in its location. In these days, one of employees heard a rumor that Starbucks might be opening a store nearby and concerned about the future affection of business. What we can do first to improve this situation is paying close attention to the competition through environmental scanning. It is the acquisition and analysis of events and trends in the environment external to an organization. Practically, we should first search and find out business advantages of competitors. For example, as a competitor, Starbucks did very well in its business from various ways shown on its website. So, firstly, Broad Cafe needs to set up an advanced computer system as what Starbucks does. And the system should be able to record and store every transaction, clients’ information accurately and in details. Secondly,...
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