Threats Rising Australian dollar rising interest rates that are predicted for

Threats rising australian dollar rising interest

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Threats Rising Australian dollar – rising interest rates that are predicted for the coming years could impact negatively on the disposable income of coffee drinking patrons. Global Corporation competitor entering the market : Competitor would have expert resource’s in marketing, human resources and finance and it could be serious to MacVille’s strategy and plans.
4 TASK 3 a) The strengths and weaknesses of each of the competitors/allies Competitors 1 : Nufix Inc . Global Corporation This 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 human resources Weaknesses: Difficulty being adaptable to the needs of niche market buyers. Struggling to gain a foothold in a market that already has strong supplier/buyer allegiances Competitors 2 : BeanEx A 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 allies Ally1 : Home Espresso Trades Organization 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 to clients. Weakness: In working non-hospitality partner.
5 Ally : 2 Ambrosia Coffee Roast Organisation alignment: Sell all grades of coffee bean to supermarket and hospitality outlets around Australia. Description of joint venture: Shared in the cost of outdoor advertising for cafes and restaurants with shared branding of umbrellas and barriers. Strengths: Supplier is committed to the coffee bean industry with some sharing of the client base. Weakness: Product image is not quality but more commodity-based. Ally 3 : Java Estate Organization alignment: Sell quality Arabica roasted coffee beans to all states of Australia. Description of Joint venture: Java Estate provides MAcVille espresso machines to client for no-charge. Java Estate pays Macville cost price for the delivery and installation of the machine, and then pays the remainder of the purchase price on a 12 months repayment program. Strengths: Australia wide partner-100% committed to hospitality and coffee bean market . Weaknesses: Other coffee bean suppliers may not recommend Macville machines with this strong 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 two shows.

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