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drive_thru_coffe_shop.docxCompetition
Competitive Position
Drive Thru Coffee Shop will be the only coffee shop that offers Arabic coffee, which is rare to find in shops that provide Arabic coffee in the country. In fact, this Arabic coffee is one of the rarest products that guarantee 100% consistency in matters quality. Many customers will be forced to walk past several other competitors to get hold of Arabic Coffee, which is why no one would ever need the most expensive location to get their ready-made coffee. All the same, there are a number of coffee products that local companies provide, which can be seen as a trad-off for the coffee shop, even though they are mainly seen as generic competitors.
The companies that will have offer competition products include:
· Retail stores selling probiotic drinks
· Retail stores offering sparkling water
· Companies that specialize in processing of tea
· Other products that offer caffeine just like coffee, such as Yerba Mate.
· Retail stores that deals in distribution of soft drinks, such as hot apple cider.
Even though El Farouki Center will be offering the same products as Drive Thru Coffee shop, it would not be seen as a major competitor since there is a possibility that the shop will reach an agreement with it on how to price their products, so that the shop may earn significant profits. By forging a good working relationship with El Farouki Center, the shop will be in a position of growing its market share. In addition, the shop will take advantage of the company’s advertising space to reach out to new customers. Currently, the company is prides itself as the best provider of traditional coffee, such as Turkish and Arabic.
Competitive edge
Drive Thru Coffee Shop will aim to be the leading coffee provider in the year with more than 20% value share. The company will also be keen on having a strong following among the traditional coffee consumers, which includes Arabic coffee. Since the Bedouins and traditional Arabs normally consume this type of coffee in large quantities because they consider it as premium priced, the shop will have a strong value share. The shop will ensure that this coffee is available not only through our coffee shops, but also through the main grocery stores, a situation that will help us in maintaining the leading position.
Market share Distribution
There are quite a number of companies that offer the same products as Drive Thru Shop, even though their target market is different from the shop’s target market, which targets the young population and business people who wish to have a cup of coffee for their caffeine kick rather. We have made a projection that the shop will have about 20% of the market share at the end of the year. The shop will strive to sell as much coffee as do convenience stores and fast foods combined. By catering to this well-defined audience, we will be in a position to gain this large market share.
Future competition and Barriers to entry
Saudi Arabia is often seen as the most promising and emerging market worldwide. However, this potential market has relatively high barriers to entry, which would make it hard for other competing firms to gain access to the market. The partnership that Drive Thru shop will forge with El Farouki Center, coupled with government regulations will always make it hard for new investors to gain entry into the market. However, the shop must take an initiative of being a low cost leader in the region so everyone may be able to afford its products.
Strategic Position and Risk Assessment
The main objective of Drive Thru shop is to become a renowned provider of the rarest type of coffee, which guarantees 100% consistency in quality, in the whole of Saudi Arabia. The shop will take advantage of the following core competencies to become the premier provider of Arabic coffee in the country:
· The unwavering focus on quality
· Continuous product development
· Outstanding customer service
· Care for its employees
· The desire to be everywhere.
The strategic position of Drive Thru Shop will be based on the evaluation of the following factors:
a. Industry trends and analysis
b. Customer needs
c. Our strengths
d. Risks
Industry Trends and Future Opportunities
Saudi Arabia is the biggest consumer of coffee in the whole world, since it is a country where coffee is used to signify the Arabic hospitality and generosity, as well as the drink that is irreplaceable. A study that Dr. Firdaus Bukhari conducted in King Abdul Aziz University in Jeddah reveals that Saudi Arabia is the biggest consumer of coffee worldwide. The annual estimated quantities of coffee, which are imported for production of Arabic coffee, stands at 10,000 tons. The study further revealed that the per capita coffee consumption stands at 3kg annually. The same study also shows that the Saudi citizens spend over SR1 billion annually in preparing coffee and its components. The number of coffee shops within the country has continued to increase at a rate of over 10% annually. Therefore, these statistics are enough proof that Drive Thru Coffee Shop has the greatest market potential.
Customer Needs
The shop’s target market is the young population and business people. Therefore, in an effort to attract these people to come to our shop, we will consider several things. First, we will ensure that the shop has a modern and young feel, which will not only be warm, but also inviting. This ambience will set the tone and will help in attracting these people. Secondly, our shop will be fitted with comfortable and cozy furniture. This will ensure that customers will always relax, stay for a while, and enjoy another cup of coffee. Finally, we will ensure that our shop has a Wi-Fi connection since this is a perfect complement to coffee. The Wi-Fi will be fast, and hence customers will stay a little longer.
Our strengths
Our strengths will lie on serving the finest coffee. In fact, it is so rare to find a business that offers a product that guarantees 100% quality all the time. All the same, our shop will offer just that because customer satisfaction will always be our top most priority. Our experience will also enable us provide flexibility to the demands and needs of individual customers, as well as provide excellent customer service that exceeds their expectations. We will also ensure that all employees are well-trained to ensure that they provide all customers with outstanding services.
Risks
The consumption of coffee in Saudi Arabia is very high since the product is considered as the daily lifestyle. As a result, the risks associated with trading in coffee is very low, which means that Drive Thru Coffee Shop will have a higher prospects of success once it is ready to start business. The market potential is also expected to grow, which is advantageous for the coffee shop.
Sales Sales for Drive Thru Shop Sales for Other companies 0.2 0.8
