It also mentioned that the gassing of strong competition of MAC, who provide much cheaper price of coffee. The heavy pricing completion from competitor and slowing economic drives Cataracts’ market fluctuation. Moreover, the article also stated that since financial crisis, it has result Starboard’s market stock price dropped 50% of its value in 2008, which is not a positive sign of a company. Nevertheless, It does have better performance In some Asian countries, especially In china; It has experience rapid expansion even though during the world economic downturn, Struck Case Study reports.
From all these facts, we conclude that Cataracts should (1 ) lower the cost of operation fee to provide a more competitive price of coffee to gain and maintain the market;(2) start to prepare and adjust a strategy to maintain domestic market and global more sustainable and avoid closing more stores to lose revenue and company’s resources ; (3) if the company looking for expansion, Cataracts should reposition its focus to Asian developing countries because these countries relative have high potential to grow than developed nationals.
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I believe Struck should follow above here primary goals to maintain company currently owned number of stores to keep long term sustainability for the company instead of reach the goal of opening 40000 stores. What market strategies has worked for Struck and what has not worked ? Since with 20 years progress Struck from little tiny shop in a small Settle to multiple billions corporation accomplishment, the fact is more than enough to prove that Struck has great marketing strategy even though they also made some mistakes during the development.
Cataracts has done impressive marketing geographic election, where most stores locations surround business area and allows people to be very convenient to socialized together, as well as provide high quality coffee bean direct purchase from local farmer, report from Struck Case Study- Struck – Growth Strategy. Furthermore, one of the key to Struck success would be their employees motivate program, which made sure all clients can receive satisfied service by Provide Incentive health benefit and the company stock option to all the employees, applying from the same case study.
Although Cataracts has been done most things right, which result it has today’s 005, Starboard’s adventures in media bar by selling music CD in some Cataracts locations, but they did not turn out the good result because at a time people more favor ump download instead purchase CD music, report from article of “Strong Lattes, Sour Notes “, Businesslike. With an ambitious Cataracts, they also adventure in creating its glossy magazine, call Joe , unfortunately it failed in 2000, from the same article of the “Strong Lattes, Sour Notes”.
Again, from all the research facts, it formed a couple of key directions for Cataracts to grow forward: (1) continue some original Positive marketing strategies, such as offer high – quality produce, service, connecting with employee with sharing the profit and selection the good geographic location to target its core clients; (2) Position well company’s products to customer by cautiously exploring new products or service to avoid negative investment ;(3) bundle business- to -business , as well as bundle similar vision products, such as group a few similar product too total order as MAC, 6 Tips to Be- communication.
Under graph is from the executive summary section of Cataracts. Com, the Document f Webmaster and Presentation report. It shows that Cataracts own 32. 6% share in coffee and Snack Shops in US 2011. The 32. 6% market share of Cataracts in snack and coffee industry is couple the market share of its competitor – Dunking Corp… Moreover, I believe its market share still has room to grow in the future to reach 40 percent of market share in the world, as -worldwide coffee empire -Cataracts.
Q(3) From the overall graph, it demonstrates that Cataracts is recovering now, but it hit badly during the financial crisis from 2008 20th. Although the average store’s net refit is very positive, the number is clearly fluctuating, especially recently year between 2008 and 2012. As result of the history experience, Cataracts should become stronger to prepare the next economic clash hit the market downside as 2008. Lastly, combining all the research above question 1 and 3, we know more about Cataracts and its internal operation strategies and external marketing strategies.
Although they have made huge accomplishment to become the coffee emperor from a tiny coffee shop, the growth of profitability is unstable, especially during the economic downturn period. In short, I believe Cataracts should adjust the plan a little bit by put priority in maintain company long term grow and make it strong to prepare for raining day of another economic depression. If the company looking for grows, they should put more attention in foreign developing market.
At the same time, they should working on providing better quality produce and service, well manage internal cost to compete the price in the market. Why Cataracts charge more money per coffee than other Mac’s coffee and Dunking’ Donuts and , yet , according to survey, their coffee are indifferent taste? From the article of Cataracts Case study, the principle reasons for Struck keeping its dominant are because (1) its superior customer -oriented definitions, which put company in focus on its core value of coffee culture.
Cataracts trains their employee to become personalized salespeople to listen customers and customers’ problems solving, which provide high quality level of satisfaction to its customers . On the other hand, MAC is a well knows fast food company, and it focus one produce- oriented . In addition, Cataracts also has more comfortable environment and unique atmosphere for customers, which means customer not only spend money to buy a cup of coffee but a comfortable place to hang out with friends , they considerate the third home for their customers.
Lastly, as the key success for Cataracts success- convenience geographic locations , the company put most their stores along with the popular business area, which target majority coffee – drinkers . SQ if I were the senior executive of Cataracts, how would I compete with MAC ‘s entry coffee grow? As I mentioned above, MAC is a worldwide fast food firm and coffee is a cent new product and the only advantage is MAC relatively low price coffee than Cataracts coffee, as the article, “paragon of growth and Employee Benefit” states.