Broadway Cafe Case Study

* Porter’s Five Forces & Generic Strategy

* potential entrants (High):

A Lot of cafés closes to each other – high number of new entrants.

* supplier power (High) :

Many suppliers available - with many options.

* rivalry among the café shops (Low) :

Improved customer services and introduce new services.

* buyer power (High) :

A lot café in the area, big choose consider in comfort and price.

* substitute products (Low) :

Not enough much different substitutes for coffee

To entry the barriers we will need to make the excellent service and lowest price. Also we can send our employer to study coffee art.

To switch the cost we will make good discount system, make some flyers and coupons, for everyday customers make membership card with discount, also provide system of “Caffè sospeso”, when the customer will buying two cup of coffee and one will left in café for poor people.

The bad think that in general no substitute products for coffee, but tea and different kind of soda can help in this case.

The Café will use a combination of two of Porter’s Three Generic Strategies: Cost Leadership and Differentiation. Every strategy will use in different areas of Café and combination will help to get the good result in business.

The café will start focus in:

1. Consistently serving the finest espresso – buy the best espresso coffee machine and make sure every cup is made by a fully trained barista.

2. Ergonomics is important – to make work space in café comfortable for work, to be sure that employs will save time in different moves when will make coffee, make work easier for them.

3. Use coupons – make the customer feel that they are important for you, give coupons for new customers to be sure that they will come back for free coffee.

4. Counter service – you will be okay in busy time and will not confuse with a lot of orders.

5. Target takeaways – to make just few tables and cheers comfortable because we...