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External Analysis In order to develop effective strategies Just Us Cafeg’s are required to examine the external environment in which they operate. I have carried out the following analyses: 0 Specific Competitor: Kicking Horse Competitor Channels Locations No. Shops Kicking Horse West Coast, Canada Quebec & Ontario United States Canada & United States Canada Nova Scotia, Quebec & Ontario Trident Bookseller & Cafe Coffee Shops, Gourmet Stores, Restaurants Stores, Universities Mainstream Coffee Shops, Universities, Gourmet Stores, Supermarkets Coffee Shop Halifax, Nova Scotia
Java Factory Nova Scotia-Halifax, Dartmouth, Upper Atonally 3 Coffee Shops Tim Hornets Restaurant 170 Second Cup Coffee Shop & Retailer Nova Scotia Generalization(2), Halifax(21) Canada General, Nova Scotia(6)-Halifax(5) Kraft Foods Millstone Nestle Lowbrows Private Label Just Us! 4 Coffee Shops & On The As we can see from the above table, JUJU have several competitors across the line in the local market, Nova Scotia, and the wider market, Canada and US.
Bergen and Apteral (2002) suggest a two step competitor analysis framework when comparing competitors. Within their framework they suggest that from the outset a company must recognize and classify all competitors. By doing this JUJU can actually identify both direct and future potential threats to their company. See Appendix A. This in turn will alert them to the most immediate threats short term and long term as well assist formulating a strategy.
The second stage of the framework model is concerned with the evaluation of the competition’s resources and the prediction of rivalry. They discuss how by understanding your 31 P a GE competitor’s resources you can predict the scale of future threats. Therefore for JOE, they need to understand who they are competing with within the local market and big players entering that market, I. E. Trident only have one shop so JUJU could in turn be a threat to them whereas Java factory could be a threat to JOE.
Bergen and Apteral (2002) also note that if two firms within the one market have similar resources, which would appear to be the case for JUS local market of Nova Scotia, then this should in turn allow them to satisfy the same customer needs, therefore making the need for strong branding and differentiation essential. Specific Competitor: Kicking Horse Another important form of analysis is to examine other company’s strategies to see what has worked and what hasn’t and the risks/results involved. For JOE, I feel looking at Kicking Horse is a very good way to test out future strategies.
As stated within the case, Kicking Horse is a major competitor in the Canadian market. They are based however on the West coast of Canada, British Columbia. As a method of differentiation, the company leveraged the heritage and local aspect of the product in order to expand I. E. Using the local names and culture to differentiate their product. They also used endorsements with No’s and an commerce site to further promote their brand. Through these tactics, it provided Kicking Horse an established platform within their local market and an opportunity to expand globally into the US and Europe.
This strategy proved very effective and JUJU should examine it carefully. PEST Analysts See Appendix B 1. 4 The most powerful and widely used tool for systematically diagnosing the principal competitive pressures in a market, and assessing the strength and importance of each, is the Five Forces Model (Porter 1979). See Appendix C page JUJU must not only understand the industry and market they are operating in but also their own internal capabilities and strengths/weaknesses. Therefore we must conduct an internal analysis of JOE.
I have carried out the following analyses: 0 Concentration Examination See Appendix D As JUJU provide various organic products it is important to examine the more profitable ones and not so profitable in order to either focus marketing effort on weaker products or discontinue them. After careful examination of Jog’s product offering and Appendix 1 of the case study I believe that they have: Stars: Coffee & Tea Cash Cows: Cocoa Coffee and Tea appear to be the largest growers in the trade figures with significant growth rates in volume averaging approximately across both categories over a four year period.
It is clear from the table that IQ is the weakest time of year and perhaps some new innovative strategies could help increase sales here. SQ is the strongest period of the year and I believe that this is accountable to the summer tourists. Geographical examination Another analysis I conducted was to look at the concentration of the JUJU coffee shops and the potential markets available to them. The illustrations below show the concentration of the shop locations.
It is obvious to locate n the more densely populated areas; however the company could be missing out on further opportunities. Both shops in Wellsville are within a mile radius of each other and in Halifax they are within 10 minutes walking distance of each other. JUJU must consider this when planning growth or expansion as they are reaching a limited audience when so clumped together. Page See Appendix E Increase Marketing Spend Targeting new markets or new buyers? How can JUJU build on the assets they have in place already Product Line and profitability Need for clear MARCO’S
Increase volumes purchased in existing channels Maintain/defend market share or attempt to grow Assess Retail Channels and feasibility of Long term “Joint Venture/Strategic Alliance” The first strategic alternative I propose is to attempt a Joint venture/ strategic alliance with a fellow competitor with similar values. This strategy could help JUJU with resources and in increasing market share in the local market as well as providing a platform for expansion outside the maritime states. Sherman (2003) states that one of the possible reasons for a Joint venture or strategic