Porters Five Forces Analysis Broadway Cafe

The following analysis of Porter’s 5 Forces Model will help in determining the threats that my be present now or in the future and help determine opportunities and decisions regarding the marketing plan.

Any existing business can be a threat to Spot Café because of its time in service.

We can offer coffee samples to customers and ask them to share their opinions about our products. We can have our customers evaluate what products they like the most and which ones need improvement. For example, we can get our customers trust and loyalty by offering them a rewards program. Which would offer them a 5% discount on the first five purchases, then after ten purchases they

Therefore, by launching an e-business, Broadway Café will have an opportunity to leverage it current assets, its customers. To follow in this opportunity will be the employees, technology infrastructure, and information to gain and maintain market share.

Having a low supplier power to begin with brings a high threat of new entrants to the café in that it is easy for the new entrants to come across what they will need to launch a business in this industry. However, it is tough to come into the restaurant industry and at the same time hard to establish a distinct brand name (McDonald, 2010). Large, well established coffee/tea businesses such as Starbucks have well-built brand identities. This being it does make it a lot harder for competitors like the Broadway café to enter and succeed within the industry. Also, “new entrants find that they are faced with price competition from existing chain restaurants (McDonald, 2010)”. But, the Broadway Café will keep its prices “artificially low as a strategy to prevent potential entrants from entering the market,

The Broadway Cafe emerged in 1952 in Brooklyn, NY. That is specialized in coffee, tea and full service bakery. This café thrived for 59 Years but now faces declining in business from last 5 Years as the new competitors are arriving rapidly tho it had competitive advantage from an established menu and loyal customer base. Now it seeks ambitious approach to realize its goals to bring the café back in the business. To make this vision possible some questions have come forth:

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

nalyze the specialty coffee café industry using Porter’s Five Forces and Macroenvironmental Analysis. What are the key success factors in this industry?

Using the 5 Forces Model, analyze Mrs. Fields’ Cooks. What challenges does Mrs. Fields’ Cookies, Inc. face in the next five

Starbucks can follow some strategies to differentiate their product even more that will lead to vary their menu prices. For example, Starbucks might create “saving menu” by selling some products at a lower prices to attract even more customers. Also, Starbucks might take into consideration the strategies of opening “Starbucks carts” that open in smaller express places that don’t fit for a whole store. Those “Starbucks carts” will attract even more customers because it is easier to get access to. “Starbucks carts” may provide the customers with low cost products to draw larger market base. To be a best cost provider in the market will allow Starbucks to be the most attractive company in the coffee market internationally. Thus, Starbucks will have a competitive advantage over its rivals by fulfilling the needs of a huge customer base in the market, by providing a high quality products and provide products with the best costs.

• Analyze Starbuck’s industry environment using Porter’s Five Forces Model. Is it attractive or unattractive overall? Which of the five forces is the most important threat to Starbucks and why?

If a new franchise an offer the consumer a quality product at a reduced price, then the chances of success are greatly increased. For example, Chanello’s and Little Caesar’s offer discounted pizza prices, and maintain the same quality as other pizza chains. These companies spend less on advertising and more on the actual product. That’s a very important concept in this industry, because their quality product at this discounted price gives them a niche in the market. Once a company establishes a niche, they become more visible to the

The success of Friend-Z 's, a regional based coffee house in the United States, is in its tenth year of business. The small business venture, which began as a cooperative college project, has grown into one of the best coffee houses on the college scene. Friend-Z 's success has sparked the interest of its partners to take their small business to the next level by expanding into the global market. Competing globally would allow Friend-Z 's Coffee House to take advantage of a larger customer base, opportunity to be a stronger competitor, and thrive in diverse environments. Friend-Z 's international business will increase their client base with every new opening. They are not restricted by location or tied a region with failing economics. Therefore, opening Friend-Z 's to the option of an online market. Friend-Z 's will be able to rise as a stronger competitor in the coffee market, especially in countries with fewer competitors. The presentation of the coffee house will be crucial for becoming comparable or communicating its uniqueness. Friend-Z 's existence in the global market opens up their business worldwide. This business move releases dependency on the local or regional market in the United States, reduces growth restraints, and allows movement from potential economic unrest. The advantages of Friend-Z 's beginning a global business are promising, but it would be wise to consider the possible negative factors before going global.

In the premium foods and coffees industry, there are substitute products. According to Mary Coulter, the best way to evaluate this threat is to ask whether other industries can satisfy the customer need that this industry is satisfying (Coulter). Other beverage industries can satisfy the customer's need for a drink, and other food industries can satisfy the customer's need to eat. There are obviously good substitutes to Broadway products and the threat is high. This is why it is very important for Broadway Cafe, to innovate and differentiate. By providing free Wi-Fi in the Cafe and marketing signature food products from the famous old recipes of Grandfather, Broadway Cafe can create different image than its competitors.

Since 2004, the value of Starbucks in the market dropped constantly. Therefore researchers found that the 'designer coffee' market just a fad. Recently, the problem was occurred is how to extent their product life cycle and maintain customer relationship. Although we knew that Starbucks had done a lot of effort on CRM. As we can see the market competitions will become more challenging, especially Dunkin Donuts. Dunkin provides the donuts but also compliment with coffee, the coffee becomes one of competitive products in Starbucks. (Zack, Chen, Calvin, Kevin, & Michelle, 2008) In order to overcome the value decline and the profitable issue of Starbucks, Starbucks should consider strategies that provided at below.