Levendary Coffee Solved Case
Levendary Café: The China Challenge
Solution No.1
Multi-Unit Restaurant Business
Multi-unit Restaurant (MuR) concept is classified into three industry sections. These are as follows:
Specialty Establishments: It includes Starbucks, Dunkin Donuts and Baskin-Robins, which mainly cover beverages and snacks less than $5.
Quick Service Restaurants: This concept also comes under "fast food" industry. For instance, McDonalds is efficiently and effectively capturing the food industry at global level.
Casual Dining: It refers to the brands like Olive Garden, Outback and Applebee 's that provide the table services for dinner facilities. Porter’s Analysis Porter Analysis is a useful tool in order to analyze an industry. It will be helpful in designing strategies and goals on a long term basis. It sets a direction for the new entrants so as to analyze the industry factors before entering in to the market (Porter, 1980).
Bargaining power of buyer Buying power of a buyer is high because of the low switching cost and there are various other coffee brands available to choose from.
Bargaining power of supplier Bargaining power of a suppler is also high due to the high demand of the coffee at global level. As there are some strong suppliers that are operating in the coffee industry, hence, their bargaining power is high.
Threat of Substitute Threat of substitute is high as various alternatives available in the industry. Other competitors are offering unique kind of coffee and other soft drinks at affordable rates.
Threat of New Entrants Threat of new entrants is very high because there are established competitors operating in the industry like Starbucks, Dunkin Donuts and other coffee brands. Multinational companies are trying to expand in the industry that is one of the major threats for companies, which are currently operating in the industry.
Rivalry among Competitors The competition in the industry is immense because established players are
Solution No.1
Multi-Unit Restaurant Business
Multi-unit Restaurant (MuR) concept is classified into three industry sections. These are as follows:
Specialty Establishments: It includes Starbucks, Dunkin Donuts and Baskin-Robins, which mainly cover beverages and snacks less than $5.
Quick Service Restaurants: This concept also comes under "fast food" industry. For instance, McDonalds is efficiently and effectively capturing the food industry at global level.
Casual Dining: It refers to the brands like Olive Garden, Outback and Applebee 's that provide the table services for dinner facilities. Porter’s Analysis Porter Analysis is a useful tool in order to analyze an industry. It will be helpful in designing strategies and goals on a long term basis. It sets a direction for the new entrants so as to analyze the industry factors before entering in to the market (Porter, 1980).
Bargaining power of buyer Buying power of a buyer is high because of the low switching cost and there are various other coffee brands available to choose from.
Bargaining power of supplier Bargaining power of a suppler is also high due to the high demand of the coffee at global level. As there are some strong suppliers that are operating in the coffee industry, hence, their bargaining power is high.
Threat of Substitute Threat of substitute is high as various alternatives available in the industry. Other competitors are offering unique kind of coffee and other soft drinks at affordable rates.
Threat of New Entrants Threat of new entrants is very high because there are established competitors operating in the industry like Starbucks, Dunkin Donuts and other coffee brands. Multinational companies are trying to expand in the industry that is one of the major threats for companies, which are currently operating in the industry.
Rivalry among Competitors The competition in the industry is immense because established players are
References: Porter, M.E. (1980) Competitive Strategy, Free Press, New York, 1980. Porter, M.E. (2008) The Five Competitive Forces That Shape Strategy, Harvard business Review, January 2008. Wong, S.K.S. and Tong, C. (2012), "The influence of market orientation on new product success", ‘’European Journal of Innovation Management’’, Vol. 15 No. 1, pp.99 - 121 Bhanji, Shaira (2 April 2012). "Price Discrimination in Pharmaceutical Companies: The Method to the “Madness”". Harvard College Global Health Review. Retrieved 15 July 2014. Reicheld, Frederick (1996). The Loyalty Effect: The hidden force behind growth, profits and lasting value. Watertown MA.: Business Harvard Review.