It also highlights ethical trading issues that have faced the company and it postulates some of the remedies that the Industry should adopt to eliminate unethical practices and ensure that all the impasses in the Industry are operating on the same playing ground. In section 2. 0, the report also uses the BCC matrix to classify and analysis the competitiveness of Just Us cafe products and at the same time alluding some of the strengths and limitations of the matrix.
John Wiley and Sons, Inc. , An overview 2005, identify the 4 CSS as Customer Analysis, Competitor Analysis, Climate(Context) Analysis, Company Analysis and some marketers added the 5th C of Collaborators. 1 . 1 (a) Customer Analysis. Type of Customer Community based Served by Small independent cafes Location of Customers Canada Labials Supermarket and Sober Kicking Horse and Just Us Cafe E-commerce Struck Canada, Europe and United States Universities Just Us Cafes Existing customers College Students Kraft Food Services Preferences Consumer coffee and Premium quality New fair trade and Mainstreams brands
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Numerous tastes Organic food and Certified trade products Certified fair trade products Social Conscious (Buybacks, Coattails, Macaroni, 2008) insists that the analysis of value for the customer is critical in the management of cross-industry competition from both a defensive and offensive position. From a defensive position that’s prevention of entrance into one’s area of activity) to adopt mobile defense strategies that build on the early coverage of value gaps is fundamental. This implies a systematic monitoring of the consonance between the perceived performance of existing products and customer’s expectation.
Page 5 From the above analyzed table, we see that the University market sector is lucrative and prefers what Just us Cafe has to offer. Therefore they should defend their position so as not to lose some customers to small independent customers are mainly in the community and that could easier extend to include the Universities. And from an offensive position (exploitation of various forms of synergy in order to gain entrance into new markets), to establish critical interactions between different areas of activity by seeking a comprehensive answer to purchase and consumption acquirement is very important.
Again, a constant focus on the customer is critical to strengthen and supplement the value proposition. Just Us Cafe could Joint venture with Proctor and Gamble as they are an International company, giving instant access to the U. S. A market and they would share the same ideology. Just Us Cafe could also consider having a strategic alliance with Kicking Horse as they are likely to have the qualified personnel to assist Just Us cafe to tap the e-based clients and more clients across the globe. But on a closer look Kicking Horse already has a shop in Halifax and s in direct competition with Just Us Cafe.
Moreover they don’t promote the idea of certified fair products and they could be a conflict of management in future. Page 6 (Kettle and Armstrong, 2010) opine that “A useful tool for assessing competitor strengths and weaknesses is customer value analysis. The aim of customer value analysis is to determine the benefits that target customers value and how customers rate the relative value of various competitors’ offers. In conducting a customer value analysis, the company first identifies the major attributes that customers value and the importance customers place on these attributes.
Next, it assesses the company’s and competitor’s performance on the valued attributes”. “The key to gain competitive advantage is to take each customer segment and examine how the company’s offer compares to that of its major competitors. As shown in Figure 18. 2, the company wants to find the “strategic sweet spot”- the place where it meets customers needs in a way that rivals can’t. If the company’s offer delivers greater value by exceeding the competitor’s offer on important attributes, the company can charge a higher price and earn higher profits, or it can charge the same rice and gain more market share.
But if the company is seen as performing at a lower level than its major competitor on some important attributes, it must invest in strengthening those attributes or finding other important attributes where it can build a lead on the competitor. ” Therefore when Just Us Cafe is selecting competitors, it should find the “sweet spot” where it meets customers’ needs in a way that rivals can’t. Page 7 1 . 2(a) Competitor Analysis Competitor Products Sold Second Cup Coffee Tim Horton Fresh coffee, pastries, lunches Brewed coffee, hot chocolates, espresso, teas and other facilities Fair Customer Locations & No Trade Base of Stores certified or not?
Retailer 6 in Nova Scotia (360 in total) No Restaurant 2 in Wolf Vile and 21 in Halifax (170 in total) Coffee Shop 5 in Halifax and Nova Scotia. (Various across the Globe) Bookshop and Coffee Shop 1 in Halifax. (1 in total) Trident Bookseller and Cafe Organic Coffee Java factory and fair-trade Certified Coffee Coffee shops Coffee and tea Cafes and University outlets and grocery chains Coffee and food Shops, food stores, chain and restaurants Kicking Horse 1 each in Halifax, Dartmouth and Upper Atonally (3 in total) cafes in Nova Scotia and 2 in Halifax and 3 university outlets (9 in total) Various shops in Quebec, Ontario, 1 in Halifax.
Proctor & Gamble Direct Sales Kraft food Stores and Nestle Cobber Small Independent Cafes Specialty and Premium Coffees Coffee house globe) United States and Yes Page 8 From the above analyzed table, it is clear cut evident that Just Cafe has several competitors and some of them are International companies with shops across the globe like Proctor Gamble, Struck and Kicking Horse among others. (Bergen and Apteral, 2002), favor a two-step approach to consider competitor analysis.
The first step is listing all the competitors, the products they sell and their location. Just Us Cafe can identify all the direct and potential threats. It can strategies to cope with the new entrants. I would suggest that Just Us Cafe go into Joint Venture with Proctor gamble as they are in United States and Canada and better still they promote the same ideology of certified fair trade products like Just Us Cafe. The second step is evaluation of the competitor’s resources and predicting their next course of action.
By looking at how big the competitors are, their financial base and heir global trading. Just Us Cafe can be able strategies, for instance Struck has 5 stores in Halifax compared to Just Us Cafe only 2 stores in Halifax, therefore Struck pose a significant threat to Just Us Cafe, as they have the financial muscle as well. Page 9 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 competitor’s resources you can predict the scale of future threats. Therefore for Just Us cafe they need to understand who they are competing tit within the local market and big players entering that market, I. E. Trident only have one shop so Just Us Cafe could in turn be a threat to them, Java factory has one cafe in Halifax has not a threat to Just Us Cafes but they need to watch them closely.
Just Us Cafes should also watch out on Second Cup which has 6 cafes in Nova Scotia compared to its 4 cafes, it should likewise be worried by the competition posed by Kicking Horse which has cafes across the Globe. Moreover, Second Cup, Kicking Horse and Struck have the financial muscle which Just Us Cafe should strategies itself and deal with the situation. . 3(a). Climate (Context) Climate has all to do with the external environment influences and how Just Us Cafe has to adapt to them.
I have used the Pestle framework that was designed by M. E Porter and they stand for: P-Political issues, E-Economical issues, Social issues, T- Technological issues, E-Environmental issues, L-legal issues. (a) Political issues: At the moment Just Us Cafe operates only in Canada which is politically stable and has minimum trade restrictions to foreign competitors like Struck and Kicking Horse. Another factor is that the government recognizes certified fair trade products ND the importance of equality and fairness in the community. B) Economic issues: Canada is experiencing recession and some consumers have budgeted incomes, they could consider Just us products as mere substitutes despite their premium quality so that they can save some pennies. However, in the long-term there seem to be a good chance of the economy stabilizing and providing Just us with an opportunity to grow and serve more customers and market. Page 10 (c) Social issues: Just Us mission to inspire and nurture the human spirits and souls by promoting the community to participate and interact with the company while telling their stories.