Black Canyon Coffee (BCC) is a Thai-based chain of coffee restaurants at the forefront of its domestic specialty coffee market. This case incorporates content which can be used to illustrate a broad range of strategic analysis, formulation, and implementation concepts. It is specifically about matching the company’s strategic choices with conditions in the environment. The case is set at a juncture in time (2002) when the young company needs to clearly define organizational goals that will guide BCC in an increasingly complex environment.
The case opens with background material on BCC and its founder. It establishes the market conditions, consumption patterns, and competitive atmosphere of the specialty coffee business in …show more content…
The Thai government is friendly to the interests of other Asian nationals, but protective of domestic coffee producers. These policies suggest that regional chains would be welcome in the Thai market, but that continued increases in imports of premium European coffees might be curbed.
As independent coffee shop owners struggle to achieve profitability and seek an exit strategy, BCC should consider how an acquisition strategy could help the company achieve the objectives of its domestic business strategy.
Predictions of industry consolidation imply that BCC cannot safely implement a tepid strategy. It will need to decide if and how to devise a comprehensive international strategy or to retrench into a domestic-dominated strategy with the intent to fortify the home market.
Overall, the world-wide market for coffee is enormous, and it continues to demonstrate an upward growth trend. This provides Black Canyon Coffee with opportunities to expand its business throughout the world. But other, larger coffee specialty companies will also be pursuing these opportunities. Also, rising coffee demand in Asia exceeds growth levels in Western nations – another reason that an increase in foreign interests is expected in the Thai market. Black Canyon Coffee’s Managing Director Pong has recently initiated BCC’s expansion into international territory. In
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According to statistics, Finland is the country with the highest per capita consumption of coffee, and China is the lowest one, but in Finland there are nearly five million residents only, which means Finland will consume a million bags of coffee every year, but the 1.3 billion residents of China will provide approximately 200 million potential coffee consumers, and this will make China becomes a major coffee market. On the other hand, under the same culture background, compare to Japan and Korea, Chinese average annual per capita consumption is only around 20 Cups, but this also means Chinese consumer coffee market has a big room for future growth.
The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.
Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks
As stated above, we learned that Canadians were not only big time coffee drinkers, but they also enjoyed the specialty type of coffee that Biggby provides. According to the Five Tasks of Foreign Market Attractiveness Assessment, we were able to clearly deduce the strengths and weaknesses entering into the Canadian market. Using this, we first screened Canada’s readiness for foreign entry and decided Biggby had a large market potential due to the large coffee consumption and growth rate. Additionally, we evaluated the industry with Porter’s Five Forces and established our competitive advantages between our competitors and new entrants. Based off of these facts, we recommend that Biggby continues to use franchising because it allows the business to emerge themselves into the culture and uses the same business strategy that Biggby currently employs in the United States. Lastly, Biggby has a high sales potential in Canada because of their competitive advantages and industry growth rates. Therefore, we recommend that Biggby enters the Canadian market with a large selection of specialty coffee, green products, and through
The Keurig Green Mountain Coffee Company focuses on the consumer and improving their coffee experience. Keurig has a variety of products including brewing systems and the beverages that are brewed in these systems. In my argument, I will be focusing mainly on the brewing systems alone. Keurig Company has recently began expanding their business in international markets. I will be evaluating Brazil as a possible country for growth. I will then discuss the potential success and failures of the Keurig product entering the Brazilian market. This will be followed by an argument on whether Keurig should or should not pursue expanding into Brazil.
In looking at the history of coffee through the book Uncommon Grounds, we have seen coffee move throughout the world. Coffee originated in Ethiopia and grown wildly that was discovered by a goat name Kaldi. It was first eaten as a berry, then boiled, then roasted and finally, grinded to what we now know drink today and have created new ways to drink it as well. Coffee is the second most traded commodity and is grown in the Southern Hemisphere and consumed in the Northern Hemisphere. Here in the United States, it is evident that Americans love their coffee and drink it many times throughout the day. It can be argued that the “world coffee supply would continue to grow, stimulated in large part by the seemingly bottomless American coffee cup.”
Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.
Cameron’s Coffee was founded in 1978 by Jim Cameron and was later on purchased by Jim Kirkpatrick in 1999. The company specializes in ‘…premium flavored coffees, teas and powdered cocoa and cappuccino mixes (Petersen).’ Even though the coffee market is almost saturated, Cameron is looking to expand its operations not only in the United States, but in Europe and other continents. The company currently has a great advantage in this tight market, due to its dedication to quality. But in order to increase the probability for success, Cameron’s Coffee will need to expand its knowledge and involvement in technology and communication.
A review of the estimated growth in retail sales of coffee over the next four years indicates that while sales of non-specialty coffee products are expected to decline, sales of ground specialty coffee products and whole bean coffee should rise. Further, sales of ready-to-drink products are projected to rise almost 50%.
In conclusion, the Broadway Café faces a strong buying power and rivalry among competitors due to the large volume of shops offering the same products and services. The threat of new substitute products and alternatives is also high for the same reasons for buyer power. The Café also faces the threat of new entrants due to the lack of insignificant entry barriers. One upside is the relatively weak supplier power. The coffee industry is huge as stated above and vendors are more than ample. With this information we can conceive our business focus. The Broadway Café is best suit for a focused differentiation strategy. We plan to achieve
and the purchasing power of the people are the key indicators of Chinese potential market for all coffee
India, like many other Asian countries, has a tea drinking culture, but the coffee market is catching up and growing fast. This case talked about the stories of Café Coffee Day (CCD), the Indian coffee industry market leader, along with its competitor Starbucks from USA. CCD was founded in 1996 and by April 2013 it had around 3,000 stores within the Indian market. CCD had not faced any severe threat up till 2012 when Starbucks made its entry into the Indian market through a joint venture with Tata. As the world’s largest coffee chain company, Starbucks wanted to get a slice of the cake. In 2013, it opened 11 stores in Delhi and Mumbai.