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●Other opportunities could be found in strategic alliances with coffee bean suppliers,where market penetration could easily be achieved and costs of advertising andservice could be shared.●There was also concern about the raising Australian dollar having a severe long-termimpact on tourism, which was a major category buyer of espresso machines. Raisinginterest rates that are predicted for the coming years could impact negatively on thedisposable income of coffee-drinking patrons.●The concerns of the group were centred on a global corporation Nufix Inc. shiftingfrom instant coffee into the espresso bean and machine market. The resources theywould have at their disposal in marketing, finance and human resources could be aserious threat to MacVille’s plans. However, they would still struggle to gain a footholdin a market that already has strong supplier/buyer allegiances, with most stretchingover many years. Global players like Nufix Inc. have difficulty being adaptable to theneeds of niche market buyers.●Another competitor of note was BeanEx, a large coffee bean supplier that had recentlystarted importing espresso machines for their customers. There was talk of themselling the espresso machines as wholesalers. They certainly had easy access tomarkets with their coffee bean trade, but they had no established service arm to helpwholesale clients maintain the machines that they purchased.●MacVille has been keen to pursue strategic alliances as part of its strategy to achieveits objectives. It called for tenders from interested parties, who were asked tocomplete a tender application form that provided information relating to the tenderrequirements. Some notes have been included by senior managers who assessed someof the information.Tender submissionsThree submissions are attached to this case study.1.Business name – Home Espresso TradesDescription of business (include vision, etc.) – Selling consumer home espresso machines to the home market, only in Sydney, and incorporating other digital home entertainment products. Business College at International House RTO Code: 91109 CRICOS 02623GLevel 1, 203 Clarence St, Sydney NSW 2000 | Floor 1, 237 Oxford St, Bondi Junction NSW 2022 3 Searcy St, Darwin NT 0800 | Level 6, 601 Bourke St, Melbourne VIC 3000[email protected]|
Description of joint venture– Shared space in four trade shows per year.Venture: Strengths and weaknesses– Strength: covers the consumer market for espressomachines (that compliments the commercial espresso machines) to make a full range offerto clients. Weakness: in working with a strategic partner who is not solely focused on thehospitality industry.Venture: risks– 1.Partner not fulfilling their financial commitment. 2.Association with a non-industry partner may have a negative effect on our customer base.