1 – Major weakness 2 – Minor weakness 3 – Minor strength 4 – Major strength Key
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Question
1 – Major weakness 2 – Minor weakness 3 – Minor strength 4 – Major strength
Key success factors can be identified for the business. They can include things such as the quality, location, brand recognition, profitability, product, the staff, etc. In the matrix, you will list these factors and rate the strength of each one in Tim’s business as well as his primary competitors. See the example below. Each coffee shop was ranked first, second or third in each of the factors that may or may not affect their competitive advantage. Factor Tim’s Coffee Shoppe Competitor 1 (Enter Name) Competitor 2 (Enter Name) Score Comments Score Comments Score Comments Quality 1 2 3 Location 2 1 3 Brand Recognition 3 1 2 Profitability 2 3 1 Product 1 2 3 Staff 1 3 2 Total Now using competitors researched on the Internet or in your local area, create a CPM for Tim. Other factors you may wish to consider include: Price Selection Service Reliability Expertise Company Reputation Social Responsibility Appearance Credit Policies Advertising You can examine the above data in several ways. While the total score for Tim’s business maybe is higher than his major competitors, Tim’s may have a lower score in another area which means they are not as competitive in those areas. Some of these areas might allow their competitors to create advantages and their customers or potential customers may choose their competitor over Tim’s business. For example, if their products are closely rated but their competitor has a higher score on staff friendliness, might their customers start frequenting their competitor’s business? What would you recommend to increase Tim’s score in this area? For this Assignment, spend some time looking around Tim’s Coffee Shoppe. Look either online or visit two competitors in your area that Tim may compete against and familiarize yourself with their business. You may even be a frequent customer of a coffee shop and already be aware of how you might rate their strengths against Tim’s. Fill in the matrix above with your results from your research. Feel free to change or add any of the other factors listed. Once you have completed your matrix, submit a minimum of 4 pages which includes the CPM, your recommendations for Tim, as well as a title page and a reference page to the Dropbox area of the course.
Case Study
http://extmedia.kaplan.edu/business/Media/AB299/Tims_Coffee_Shop/index.html
Factor Tim's CoffeeShoppe Competitor #1 Enter name Competitor #2 Enter name Score Comments Score Comments Score Comment Quality 1 Location 2 Brand Recognition 3 Profitability 2 Product 1 Staff 1 TotalExplanation / Answer
Factor
Tim's CoffeeShoppe
QUEEQUEGS Coffee
Starbucks
Score
Comments
Score
Comments
Score
Comment
Quality
1
4- Major Strength
3
4- Major strength
2
4-Major Strength
Location
1
4- Major strength
2
4- Major strength
3
3- Minor Strength
Brand Recognition
2
3- Minor Strength
3
1-Major Weakness
1
4-Major Strength
Profitability
2
3 - Minor Strength
3
2-Minor Weakness
1
4-Major Strength
Product
1
3 - Minor Strength
3
2-Minor Weakness
2
4-Major Strength
Staff
3
1-Major Weakness
2
3- Minor Strength
1
3- Minor Strength
Total
18
16
22
Based on the facts given in the case study and secondary research we can arrive at the table below.
Strengths:
As given in the case Location is a Major Strength for this coffee shop as it has a University and a Metro station nearby. And to cater to this strength they keep the shop open form 6 AM to 2 AM. Which means they can cater to the students also and also to the daily commuters.
Also if we look at the feedback given by the Customer. Quality of the Product is a Major Strength for TIM. In all the feedback customer has given them Good to Terrific in Barista which speaks volume of the product and the quality of the product for TIM.
Spread of the Product is another strength for TIM. If we look at the customer survey feedback we can see they have rated from Good to terrific in the Menu Selection. Which mean the customer is happy with the product offerings.
Also Brand recognition and ambience adds to its strength.
Weakness:
The major weakness that we can find out from the case study is the service which is mainly because of the Staff. And it’s a serious concern. Now as days as per research selling coffee is no more a Product offering. It’s a Service and experience in total. If they are able to make the staff friendlier and reduce the lead time to order they have a very good chance to change the perception of the customer.
Opportunity:
If we give a close look at the feedback shared by the customer. For Interior Appearance they have rated Tim as Good but for seating area they have rated Tim as Poor. Which means customer are not satisfied with the ambience. May be to accommodate more customers they are keeping more table per square area. But to make the customer happy and to create a base of brand loyal customers they need to make this change.
Having said that, they need to have a check on how it effects their balance sheet and cash flows. But again though arranging for a better seating area will affect the margin in the short run but in the long run it will create a bunch of brand loyal customers.
Recommendations:
Factor
Tim's CoffeeShoppe
QUEEQUEGS Coffee
Starbucks
Score
Comments
Score
Comments
Score
Comment
Quality
1
4- Major Strength
3
4- Major strength
2
4-Major Strength
Location
1
4- Major strength
2
4- Major strength
3
3- Minor Strength
Brand Recognition
2
3- Minor Strength
3
1-Major Weakness
1
4-Major Strength
Profitability
2
3 - Minor Strength
3
2-Minor Weakness
1
4-Major Strength
Product
1
3 - Minor Strength
3
2-Minor Weakness
2
4-Major Strength
Staff
3
1-Major Weakness
2
3- Minor Strength
1
3- Minor Strength
Total
18
16
22
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