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The Broadway Cafe Essay

3410 words - 14 pages

A Traditional coffee shop, The Broadway Café was founded in 1952, and it was a local hotspot for many years. The Broadway Café still operates these days without technology. However, with the rapid growing technologic in business, the companies that do not adapt to the technology age possibly will find themselves with difficulties to survive the strong competition. In order to the Broadway Café survive the business competition, its needs an upgrade technologic on the entire system. The Café has as an advantage to be the first coffee business on the neighborhood. The café have also a wide variety of options available at the menu.
But now the situation is changing the competitors ...view middle of the document...

Competitive Advantage
A competitive advantage is defined by Baltzan & Phillips, 2007 product or service that an organization’s customers place a greater value on than similar offerings from a competitor.
The Broadway café is falling behind the companies’ technologic strong competition. The new manager of Broadway Café needs to understanding that the competitive advantage of a line of business is crucial to the development of future strategies. The Broadway Café can utilize the information technology (IT) as a tactical plan to go through the competitive advantage. The IT also can contribute to the cafe and take gain by creating easier path to markets, offering greater product differentiation.
When an organization is the first to market with a competitive advantage, it gains a first-mover advantage. The first-mover advantage occurs when an organization can significantly impact its market share by being first to market with a competitive advantage. (Baltzan & Phillips, 2007). Research has argued that the only way to sustain IT enabled advantage is to continually upgrade and expand the source system (Martin, & Mykytyn, 2010).
In order to the Broadway Café business become more competitive, it’s also necessary to have an analysis of the external environment. After study the external environment the Broadway Café would take benefits of the research and accomplish through the five-forces model developed by Michael Poter.
The Broadway café will need to face challenge decisions when enter a new commerce segment. The Five Forces Model Buyer Power, Supplier Power, Threat of substitute products or Services, Threat of New Entrants and Rivalry among Existing Competitors will allow the Broadway café manager to analyze the degree of attractiveness of a sector of the economy. This model also will help the manager to identify a set of five forces that affect the competition, within the Broadway café and the others rival.
According to Baltzan & Phillips 2007 buyer power in is high when buyers have many choices of whom to buy from and low when their choices are few. In order to the Broadway café to reduce buyer power, the Café should produce it more attractive for clients to purchase from it instead of its adversary. To reduce the buyer power one of the strategies would be as a goal to generate positive values and convenience for the costumers, and promote quality and work with affordable prices, even if people are looking for convenience only. Another good way to attract costumers using IT is implanting loyalty programs reward offering free samples and coupons for returning costumers.
The Broadway café should support their suppliers in providing differentiated, products and concentrate on business strategies. At this point, must be considerate the Café’s Supplier Power. Supplier power in the Five Forces Model is high when buyers have few choices of whom to buy from and low when their choices are many. In this dimension, the Broadway Cafe must...

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