Mistic Monk Coffee Case
1. Does Mystic Monk Coffee have a competitive advantage? If so, what is it and is it sustainable? Throughout what Mystic Monk Coffee has done, I believe it has the ability to build a competitive advantage. According to the case, the Mystic Monk Coffee was produced by using the high quality fair trade Arabica and fair trade/organic Arabica beans with variety of blends and flavors. They also produce T-shirts, gift cards, CDs featuring the monastery’s Gregorian chants, and coffee mugs that give different choices for the consumers. Mystic Monk Coffee might create less sustainable compare with other competitors in the industry due to the quality of the coffee. However, Mystic Monk Coffee’s target market was on 69 million members of the Catholic Church in the United State that generate enough profits for them to be sustainable. 2. Evaluate Father Mary’s strategy using the “three tests of a winning strategy” from the text. * The Fit test: The strategy fits the company’s situation since the products were made in high quality and differentiate with others’ products. The case states that the specialty coffees had grown dramatically with retail sales increasing from $8.3 billion to $13.5 billion in the last seven years and the retail sale of organic coffee has grown for $1 billion. The company also focuses on U.S. Catholic customers and using their loyalty to advertise to the others. They also make sales through website, telephone, etc. * The competitive advantage test: the strategy might bring a sustainable competitive advantage for the company. It’s proved that Mystic Monk Coffee’s sales of coffee and coffee accessories average about $56,500 per month. The company can focus on building a strong loyalty with customers. * The performance test: be able to generate $56,500 per month is an impressive number for Mystic Monk Coffee since none of them have certain experience to manage an operation. I believe the strategy producing good...
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