IMPROVING BUSINESS COMPETITIVE ADVANTAGE 4
ImprovingBusiness Competitive Advantage
Ourgrandfather’s coffee shop is located in front of a large shoppingmall, a position that passerby can easily see and access it. However,the sales of the shop had been reducing consistently since manypeople prefer taking coffee from upcoming coffee franchises locatedinside the mall. The objective of this essay is setting parametersfor the special competitive advantages that can enhance developmentof the coffee shop and profitability.
Inorder to compete effectively with other businesses, we wouldintroduce Information Technology (IT) Management Systems. The IT isapplicable in many business aspects ranging from marketing,operations and SCM, as well as accounting and finance. The newtechnology would assist the business in gaining cost leadership as amanager can easily get feedback from the customers. In addition, weare planning to gain competitive advantage through differentiation(Barney, 1997). Most of our competitors use coffee that has beengrown using synthetic products such as pesticides and fertilizers.However, we will remain unique through using organic products such asa coffee bean, as well as fruits and raw materials used in preparingdesserts, juice, and cakes. The new products aim at making the coffeefashionable and conspicuous, as a way of attracting new customers. Inaddition, we are planning to rebrand the coffee shop by redecoratingit with organic products. The carpets and ceilings will be replacedwith bamboo products while the plastic flowers will be substitutedwith natural flowers (Barney, 1997).
Inorder to inform clients of the new changes in the coffee, we willcreate a website that will be accessible through both cell phone anddesktop interfaces. The website will contain detailed information onthe new menu and ambience of the coffee shop. On the other hand, thesocial media platforms will enable satisfied clients to review theirexperiences in our store (Barney, 1997). We will have a 24-hoursupport staff, which will ensure the customers are furnished withadequate information regarding the business. The objective of the newstrategy of the business will focus differentiation through targetinga narrow market and high cost market (Barney, 1997).
However,we are expecting to experience challenges such as the supplier poweras there are few organic coffee vendors in the market. The limitedsuppliers often sell the beans at double the cost of a regularcoffee. Nevertheless, we are planning to lease farms that willproduce natural coffee exclusively for our business. Fortunately, noother coffee shop that is presently offering organic coffee hence,we will be able to influence the buyers into purchasing the drink atour preferred price. Besides, the competitive rivalry is low since weare the only coffee shop offering organic coffee drinks, desserts,juice, and cakes in the entire region (Porter, 2008).
Thethreat of entrants in our new business strategy will be low since wewill ensure to sign contracts with local coffee farmers and vendorsthat they will exclusively supply all the organic coffee to us forthe next ten years. Competitors will have to import organic coffeefrom far countries that are often low quality and expensive. Thiswould force them to sell their products at higher cost than us whileproviding customers with low quality products. In summary, we willnot have to worry on the threat of substitution, as our rivals willhave difficulty acquiring high quality and affordable coffee theywould need to compete efficiently with us (Barney, 1997). On the samenote, our online platform will enable clients to review our servicesand refer new customers, a strategy that would enhance ourprofitability.
Porter,M. E. (2008). Thefive competitive forces that shape strategy.Boston, MA: Harvard Business School Publishing.
Barney,J. B. (1997). Gainingand sustaining competitive advantage.Reading, Mass [u.a.: Addison-Wesley Pub. Co.