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ThreatsRising Australian dollar – rising interest rates that are predicted forthe coming years could impact negatively on the disposable incomeof coffee drinking patrons.Global Corporation competitor entering the market : Competitorwould have expert resource’s in marketing, human resources andfinance and it could be serious to MacVille’s strategy and plans.
4TASK 3a)The strengths and weaknesses of each of the competitors/allies Competitors 1:Nufix Inc.Global CorporationThis company is shifting from instant coffee into the espresso bean and machine market.Strengths:The resources they would have at their disposal in marketing, finance and humanresourcesWeaknesses: Difficulty being adaptable to the needs of niche market buyers.Struggling to gain a foothold in a market that already has strong supplier/buyerallegiancesCompetitors 2: BeanExA large coffee bean supplier that had recently started selling espresso machines as wholesalers. Strengths: Easily access to markets with their coffee bean trade.Weakness No established service arm to help wholesale clients maintain the machines.b)Potential alliesAlly1 : Home Espresso TradesOrganization alignment: Selling consumer home espresso machines to the home market,only in Sydney Description of joint venture: Shared space in four trade shows per year.Strengths: Covers the consumer market for espresso machines to make a full range offer toclients.Weakness: In working non-hospitality partner.
5Ally :2 Ambrosia Coffee RoastOrganisation alignment: Sell all grades of coffee bean to supermarket and hospitalityoutlets around Australia.Description of joint venture: Shared in the cost of outdoor advertising for cafes andrestaurants with shared branding of umbrellas and barriers.Strengths: Supplier is committed to the coffee bean industry with some sharing of theclient base.Weakness: Productimage is not quality but more commodity-based.Ally 3 :Java EstateOrganization alignment: Sell quality Arabica roasted coffee beans to all states of Australia.Description of Joint venture: Java Estate provides MAcVille espresso machines to client forno-charge. Java Estate pays Macville cost price for the delivery and installation of themachine, and then pays the remainder of the purchase price on a 12 months repaymentprogram.Strengths: Australia wide partner-100% committed to hospitality and coffee bean market.Weaknesses: Other coffee bean suppliers may not recommend Macville machines with thisstrong strategic alliance.Risk: Concern over the amount of money outstanding.Risk: Partner not fulfilling their financial commitment.Association with a non-industry may have a negative effect on our customer base.Partner access to MacVille’s secrets.Cost benefit analysis: Costs of the show is $2,500 each. Four shows costing $10,000; selling 10 machines per show at$500. Profit for each would wee a profit of $10,000 for the year and a breakeven after twoshows.