Name S-Number Assignmen T
Name S-Number Assignmen T
Name S-Number Assignmen T
S-number 3697088
Assignmen BUSM3309 STRATEGIC MANAGEMENT Homework 2
t
1.
The Coffee House's competitive advantage is derived from its broad differentiation approach.
According to Michael Porter's framework (1998), this approach entails differentiating the
company and its goods from other coffeehouse businesses. This distinction illustrates The Coffee
House's value proposition in terms of product consistency and individuality. The company's
focus on premium coffee distinguishes its cafés from many other coffee-serving establishments.
For example, The Coffee house company differentiates its products from rivals by implementing
a sustainable and responsible sourcing policy. Furthermore, the constant launch of new items or
combinations alike adds to the company's food and beverage's individuality and competitive
edge.
As a result of the large differentiation approach, The Coffee House must continue to innovate in
order to guarantee the uniqueness of its brands in the long run. Competitive advantage can be
eroded in this approach if rivals find ways to equal or surpass the coffee company's uniqueness.
The Coffee House is constantly innovating the product mix and supply chain to solve this
problem. Using the strong differentiation approach, the company focuses on niche ingredients
and brands, such as launching limited-edition beverages made from roasted coffee beans from
Dak Nong and Cau Dat. The Coffee House Company also innovates its supply chain to meet its
generic approach by searching for the most sustainable and finest products on a continuous
basis.
2. VRIO ANALYSIS
a. Specialty Coffees
Valuable: The Coffee House serves a variety of special and enjoyable coffee drinks that most
rivals do not. Additionally, they offer calorie-conscious options for these specialty coffees on
their menus to cater to a diverse customer base.
Rare: Although The Coffee House serves a variety of specialty drinks, many independent
coffee shops and other coffee chains also sell these types of beverages. This means that The
Coffee House-exclusive specialty drinks are no longer available.
Inimitable and Non-Substitutable: Given that other coffee shops do have this feature, it can
easily be replicated.
Organized to Exploit: The Coffee House capitalizes on this skill by serving a range of choices
and constantly updating their menu. With too many choices, the majority of customers can find
one they like, and those who enjoy trying new drinks on a regular basis can comfortably do so at
The Coffee House.
Valuable: Numerous The Coffee House locations provide an experience conducive to working
while drinking a cup of coffee. The majority of their stores opened with vast office spaces and
power outlets, as well as a secure wifi service, enabling consumers to make the most of their
time.
Rare: The Coffee House is the only big coffee shop in the price range with an upscale
ambiance. The majority of other coffee shops lack the environment necessary to entice
consumers to bring their computers and unwind for a while.
Inimitable and Non-Substitutable: Other coffee shops could easily renovate their locations and
adopt The Coffee House business model. As a result, The Coffee House's upscale and spacious
atmosphere could be replicated.
Organized to Exploit: The Coffee House makes effective use of this capacity by building an
environment that many consumers adore. The business is capitalizing on the trendy lifestyle that
exists in many cities in Vietnam.
Reference:
Porter, EM 1998, Competitive Strategy: Techniques for Analyzing Industries and Competitors,
4th edn, Free Press, US.