Broadway Cafe

Introduction

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.

Competitive Advantage

A competitive advantage is product or service that an organization’s customers place
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, membership card and VIP card can be applied to stimulate the sale and build loyalty among customers. In addition, reward yourself is another way for enhancing business development by offering gifts for holidays, birthdays. The last but the most important is the design of the menu which can contain special for certain periods. Café can also provide advertisements, free samples and new types of taste to meet the customers
To reduce this threat, Café will try to minimize its cost and remain its loyalty. Providing customers with a card for a free coffee after several times of purchase is a considerable way to reduce the risk that customers go to consume from competitors. Threat of new entrants is also high for Broadway Café. So far, there are many places sell coffee or tea. Since people nowadays understand customers’ desire, they required their own restaurant, fast food shop, desert shop offering coffee as a part of their