Second Cup Business Analysis Cegep Year 1
Christine Bergeron,
Daniela Agudelo Sarcos
Anne Laganière
401-101-LW
February 28, 2014
Second Cup
Description of the Franchise:
Second Cup Ltd started off in 1975 as a small commercial chain selling only whole bean coffee. Today, Second Cup is one of the top coffee chains in Canada, selling fair-trade and organic coffee and tea while providing humanitarian support in less developed countries. Second Cup has 350 cafés all across Canada as seen on Secondcup.com and is the second largest chain to this date.
Competitive Environment:
Second Cup is often in competition with brands such as Starbucks and Tim Horton’s. While these two brand names are extremely well known, Second Cup Ltd separates themselves from other retailers by producing coffee that is completely equitable and according to Second Cup’s website Secondcup.com, the company’s coffees are also Rainforest Alliance Certified, Fair Trade Certified and OCIA Certified Organic. Second cup is part of a monopolistic competition, because there are many different brands/sellers that offer the same product, but there is a level of differentiation in the products.
External Environment:
Second Cup partners with many humanitarian organizations, such as the Rainforest Alliance, Ethical Tea Partnership, and Free the Children; these organizations permit Second Cup Ltd to serve coffee and tea that is organic and fair-trade. With the growing concerns that the food industry has created, consumers are demanding to know where and how the food and drinks they consume are created. Therefore, Second Cup responds to the communities’ socio-cultural interests by valuing where their ingredients come from, even if it is more expensive for them. The company is involved in the community by doing more than what is needed.
Benefits Offered by the Franchisor:
When consulting Secondcup.com, one benefit that the franchisor offers the franchisee is that the company requires that all future franchisees complete a mandatory training that lasts 6
Daniela Agudelo Sarcos
Anne Laganière
401-101-LW
February 28, 2014
Second Cup
Description of the Franchise:
Second Cup Ltd started off in 1975 as a small commercial chain selling only whole bean coffee. Today, Second Cup is one of the top coffee chains in Canada, selling fair-trade and organic coffee and tea while providing humanitarian support in less developed countries. Second Cup has 350 cafés all across Canada as seen on Secondcup.com and is the second largest chain to this date.
Competitive Environment:
Second Cup is often in competition with brands such as Starbucks and Tim Horton’s. While these two brand names are extremely well known, Second Cup Ltd separates themselves from other retailers by producing coffee that is completely equitable and according to Second Cup’s website Secondcup.com, the company’s coffees are also Rainforest Alliance Certified, Fair Trade Certified and OCIA Certified Organic. Second cup is part of a monopolistic competition, because there are many different brands/sellers that offer the same product, but there is a level of differentiation in the products.
External Environment:
Second Cup partners with many humanitarian organizations, such as the Rainforest Alliance, Ethical Tea Partnership, and Free the Children; these organizations permit Second Cup Ltd to serve coffee and tea that is organic and fair-trade. With the growing concerns that the food industry has created, consumers are demanding to know where and how the food and drinks they consume are created. Therefore, Second Cup responds to the communities’ socio-cultural interests by valuing where their ingredients come from, even if it is more expensive for them. The company is involved in the community by doing more than what is needed.
Benefits Offered by the Franchisor:
When consulting Secondcup.com, one benefit that the franchisor offers the franchisee is that the company requires that all future franchisees complete a mandatory training that lasts 6
Cited: Second Cup. Secondcup.com, Ltd, 2011. Web. 26 Feb. 2014. <http://www.secondcup.com>. Hopkins, Sadie. "Coffeeshops: Knowing Your Market." Knowing the Coffee Shop Market. Dynamis Ltd, n.d. Web. 27 Feb. 2014. <http://uk.businessesforsale.com/uk/search/coffee-shops-for-sale/articles/Knowing-the-coffee-shop-market>. “FAQs About Opening A Coffee Shop.” Opening a Coffee Shop. Bellissimo, Inc, n.d. Web. 26 Feb. 2014. <http://espresso101.com/coffee_faq.html>. Ryding, Daniella. "The speciality coffee shop market: Are today 's consumers demanding more than store ambience and good coffee from their consumption experience?" International Journal of Business and Globalisation 6 (2011): 1-399. 2011. 27 Feb. 2014. <http://www.inderscience.com/link.php?id=39394>.