Business Strategy

Competitive Strategy Track 5 Coffee

Competitive strategy relies on focus and differentiation, 

meaning we provide a better  product service within an industry segment

• Focus on an industry segment-Coffee

• Better product/service

As a coffee shop our industry segment is providing coffee related drinks to our customers. The way we stand out is by using coffee beans from our specific supplier while also providing beans from around the globe like Peru, Kenya, Tanzania, Nicaragua and etc. Our lattes are also done through a tenuous process that was established by Mr. Brennan so that every time the latte is consistent and customers are continuously satisfied. Track Five Coffee is focused on coffee in order to excel in provided good quality coffee. Yet Mr. Brennan knew he needed something else to stand out and that is the way our product/service is better, well our customer service has to be always on point. Whenever a customer enters the store the employees make them feel welcomed as they always say "hello", "good morning", "hi, how are you?", this gives a sense that they are among friends. Employees must also learn the customer's name so we give a sense of customization service. It is easier said than done but when the same customers come every day, both employee and customer create a relationship, and that is the reason our company is different than from other coffee shops.  

Regarding the five forces, there have been times where these have go up against Track Five coffee. Bargaining power of customers did happen, when the customers demanded to have lunch menus and so, Mr. Brennan has added lunch sandwiches to the menu, this can be considered strong as it forced the owner of Track Five to add lunch menus. In the part of threat of substitutions, there is a medium force as there is a Starbucks nearby Track Five Coffee, but it isn't considered a strong force as we are the only ones offering our Kona blend coffee that everyone seems to love. Bargaining power of suppliers, for some of the pastries Track Five receives there has been a relationship established with Breadsmith bakery across the street. For example, if they decided to raise their prices, Mr. Brennan might have to find other places to get the scone and quiches as it doesn’t seem like a strong force when there is another bakery that brings the rest of the other pastries, Mr. Brennan would just get all the pastries from Royal Bakers instead.

Threats of new entrants, an example of this would be if Starbucks started offering Kona Blend this would be considered a strong force, but this wouldn’t happen as the bean supplier only sells this blend to Track Five with its Track Five label. Rivalry would mean if a new coffee shop down the block opened with the same customer service that set's us aside from everyone, but as these business owners have been there for a long time, new comers aren't seen often, this would be considered a weak force.