Second Cup Business Analysis Cegep Year 1

1550 Words7 Pages
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
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The website is designed uniquely to represent their brand, and is enjoyable and easy to use. (1)
Weaknesses (Internal):
A weakness that Second Cup has is that their pricing, compared to other competitors, is more expensive than most. Because Second Cup Ltd pledges to buy fair-trade and organic coffee beans and tea, the prices at which these ingredients are acquired is higher, which directly impacts the price of each beverage made. This alone can influence consumers to gravitate towards more “economical” options. Another weakness Second Cup has is that their café card does not offer extras that would make their card more sought after. Some of their competitors offer rewards programs, which are more popular. Starbucks for example, offers customers a rewards card where once a customer registers they receive emails with personalized rewards, such as receiving a free drink on your birthday.
Opportunities (External): An opportunity that Second Cup could pursue would be to advertise more. Second Cup is not as well known as other coffee chains, and the use of marketing on the television, in newspapers, and on the radio could gain interest from potential customers. Another opportunity that Second Cup could look into would be extending their chain by offering more locations throughout Canada, and even opening up franchises in different countries, such as the United States of America. This would create an opportunity

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