Competitive Advantage - Tims Coffee Shoppe - Research Paper Example

Competitive Advantage Affiliation: Factor Tim’s Coffee Shoppe Competitor Queequeg’s Coffee) Competitor 2 (Tim Hortons) Score Comments Score Comments Score Comments Quality 3 Minor strength 3 Minor strength 4 Major strength Location 4 Major strength 3 Minor strength 3 Minor strength Employees 2 Minor weakness 2 Minor weakness 3 Minor strength Profitability 2 Minor weakness 2 Minor weakness 3 Minor strength Product 4 Major strength 2 Minor weakness 3 Minor strength Price 1 Major weakness 2 Minor weakness 2 Minor weakness Service 3 Minor strength 3 Minor strength 3 Minor strength Advertising 2 Minor weakness 3 Minor strength 4 Major strength Total 21 20 25 1 – Major weakness, 2 – Minor weakness, 3 – Minor strength, and 4 – Major strength Tim’s Coffee Shoppe operates in a highly competitive environment, where every operator formulates and implements operational strategies to outperform competitors. Coffee operators, Tim’s Coffee Shoppe included, enjoy diversified markets but they have to monitor and respond to trends in the industry in order to remain competitive and in business (Pride & Ferrell, 2012). Competitor encounters are normal, and Tim’s Coffee Shoppe knows this better. This coffee shop competes with numerous others, but the common denominator is that there is a market share to capture. While there exists competitors that constitute operational threats for Tim’s Coffee Shoppe, the coffee shop has managed to outperform its competitors in various aspects. In its line of operation, Tim’s Coffee Shoppe remains committed to the goal of satisfying its customers. This is in line with the primary objective of capturing a substantial market share in the industry within which the company operates. By comparing Tim’s Coffee Shoppe with the two identified competitors in the matrix above, the strengths and weaknesses that characterize the company’s operations are highlighted. Tim’s Coffee Shoppe’s operational quality is not the best in town. However, this matches Queequeg’s Coffee quality level, but it is outperformed by Tim Hortons. In general, the quality associated with Tim’s Coffee Shoppe is desirable. It accounts for a given level of the coffee shop’s strengths. Although the strength therein is relatively limited, there is room for improvement. By evaluating the outperformer’s operations and quality management practices, Tim’s Coffee Shoppe can enhance its quality strength. The outlets owned and managed by Tim’s Coffee Shoppe constitute a substantial strength for this coffee operator. In fact, this strength outperforms that of its competitors. Tim’s Coffee Shoppe is located in close proximity with busy and high demand areas like railways and universities. While both competitors have more locations than Tim’s Coffee Shoppe, their locations are not as strategically placed as those of Tim’s Coffee Shoppe. In this respect, Tim’s Coffee Shoppe enjoys an operational advantage over its competitors. Employees are essential drivers of the operations undertaken by any given company. Even with the need for Tim’s Coffee Shoppe to outperform its competitors, the company has not adequately addressed employee issues. Employee reorganization and the observance of management dynamics are vital from time to time, as an enterprise strives to improve its operations and position in the market (Daviron & Ponte, 2006). For Tim’s Coffee Shoppe, this is a minor weakness. The same sentiment is shared by competitor 1. In regard to competitor 2, Tim’s Coffee Shoppe stands a chance to learn how to reshape its employee and management aspects. Profitability is a critical factor to account for in any given business enterprise. Sales volumes influence generation of revenues, and revenues determine the profitability level. Tim’s Coffee Shoppe is not as strong as the second competitor in profitability. This implies that its profitability strategies are weaker than those of other players in the industry. It is vital for Tim’s Coffee Shoppe to reevaluate, reassess, and reorganize its strategic plans for profit making. In order to satisfy its clientele, Tim’s Coffee Shoppe has to understand and meet customer needs, tastes, and preferences. All these factors are combined in product development for the target market(s). Tim’s Coffee Shoppe has a unique product that is developed in line with the identified customer concerns. For this reason, Tim’s Coffee Shoppe’s product and product development practices constitute a major strength for the company. Tim’s Coffee Shoppe outperforms both competitors under the product factor, although these competitors have also outperformed the company under different factors. Pricing is an ultimate factor that influences every aspect of business (Pride & Ferrell, 2012). It is a factor upon which business continuity is based. While pricing mechanisms vary from one enterprise or industry to another, the common denominator is that pricing is a success or failure factor. Tim’s Coffee Shoppe and the two competitors given in the matrix exhibit differentiated pricing mechanisms. In this respect, the three coffee operators set prices based on their operational costs. Variation in price, service, and products between Tim’s Coffee Shoppe and the competitors shows just how much enterprises operate independently in setting prices. Based on the three companies, Tim’s Coffee Shoppe emerges with a major weakness in pricing. Revision and harmonization of price is vital to ensure that Tim’s Coffee Shoppe remains ahead of the competitors. Service delivery is not different across the three coffee operators. They all scored the same, meaning that they are more or less at the same level of service offering and delivery. All the three companies stand a chance to improve their service delivery aspects, and especially Tim’s Coffee Shoppe as it strives to enhance its market advantage. Although the three companies scored the same in this factor, there were some differentials noted. Tim’s Coffee Shoppe only sells in cash, as opposed to the competitors who offer cash and credit card services. Creating consumer awareness is a vital marketing tool (Daviron & Ponte, 2006). Tim’s Coffee Shoppe has not invested enough in advertising. This has given the rivals an added advantage over Tim’s Coffee Shoppe. Tim Hortons undertakes intensive and extensive advertising, thus constituting a major strength in that line. There is need for Tim’s Coffee Shoppe to diversify its advertising strategies and practices. In conclusion, Tim’s Coffee Shoppe outperforms Queequeg’s Coffee in terms of general competition, but it is outperformed by Tim Hortons in the same respect. To stand out over the competitors, Tim’s Coffee Shoppe will need to identify market gaps and competitor weaknesses, and consequently exploit any emerging opportunities. References Daviron, B. & Ponte, S. (2006). The Coffee Paradox: Global Markets, Commodity Trade and the Elusive Promise of Development. New York: Zed Books. Pride, W. & Ferrell, O. C. (2012). Foundations of Marketing. New York: Cengage Learning. Read More