Oldtown White Coffee Company Case Study

Improved Essays
According to our study, OldTown White Coffee Company is successful mostly because of its business model which is franchising business. This business model had enabled the company to expand its market to most of the hot markets. Franchising business model also enable OldTown White Coffee to collect a certain high amount of loyalties and used it to run for further research and innovation of its business. The business is not only getting benefit in term of profits and loyalties. It also been famous among the field because of the professional training by the franchisor’s training program. A good image had also been form among all over the regional market. Besides that, OldTown White Coffee business also successful from its café outlets, manufacturing …show more content…
This could happen because of the resources are always limited while demand would increase continuously. Therefore, we would suggest that the company to have cooperation with some supplier companies. For example, the logistics company and the resources manufacturers. Any contract done within their business could create a new value of their business and gain the lower cost of their business. Besides that, OldTown White Coffee Company can also redesign its suppliers’ distribution channels in order to shorten the distribution time or cost. All these ways might create a lower cost to the company and then contribute to the competitiveness of the …show more content…
The examples of the competitors are Starbucks, The Coffee Bean, Papparich Café, Tea Leaf and many other cafes. OldTown White Coffee should have a research group whereby they need to explore the new markets in order to get enter earlier than its competitors. In term of place and distribution, Oldtown White Coffee Company needs to expand its market earlier than its competitors such as most of the coffee producers and cafes. For example, there are many new places been developed by the developers in Johor and Melaka, Malaysia. All the company need to do is plan for the market expansion planning faster than the competitors and open up new outlets at the new places which is potentially profitable in future. Last but not least, I would suggest Oldtown White Coffee Company to plan for a drive-thru service for the customer. This is because Old Town White Coffee Café are mainly promoting their white coffee. They seek for people who sit to try their coffee, and secondary promoting their meal. This is mean that not every customer sit for the food but they rest and enjoy a cup of coffee. With a drive thru service, it may attract some people who do not afford to spend their time sitting inside the café to enjoy the coffee. People who are busy also have a chance to enjoy a quick coffee provided by Old Town White

Related Documents

  • Improved Essays

    The price of coffee beans in the global market could cause prices to increase and as a result, consumers from developing countries will seek to purchase less expensive coffee from companies like Dunkin Donuts and/or McDonald’s. Consumer trends food and beverage trends also need to be continuously monitored as these are constantly impacted by lifestyle choices. RECOMMENDATIONS The recommendations for Starbucks Corporation include continued international growth, expansion of its product mix, especially through fresh juices and tea beverages like Teavana and Tazo, track consumer trends and monitor the health food market for expansion opportunities in that arena. Consumers are focusing more and more on healthy lifestyles, so a health food market would be a great opportunity for them to expand upon. Negotiating the future price of coffee beans would also help in alleviating future prices increases.…

    • 838 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Though each employee looks forward to a salary or wage, the employees of Starbucks are motivated by other factors too. Each employee prides in working in an organization that acknowledges his efforts. Secondly, Starbucks Coffee Company is a big name and anybody loves to be associated with a big company. Therefore, some employees work for Starbucks to gain that status. The coffee farmers supply coffee to Starbucks.…

    • 1096 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Now, there is a very popular coffee machine that many Americans hold in their own houses called a Keurig. There are different opinions on instant coffee makers at home. “One camp believes the single-serve revolution represents an overwhelming sea of change in how Americans will brew their coffee. Others believe that cup quality and taste are compromised. They view it more as a fad that may have already reached the limit of its popularity”(Montalvo,…

    • 1157 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Lots of survey respondents agreed that Starbucks ’primary goal was making money and expanding stores. Although the company initially aimed to meet all standards set through value proposition. The image of the brand changed from customers’ perspective. In the beginning, the idea was to build a chain of coffee stores known as America’s “third place”, a place where you could relax, enjoy and be separate from home and work. The established customers were purchasing a cup of coffee for the uplifting service experience and upscale atmosphere, but now Starbucks was not much different.…

    • 994 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Starbucks has many ways in which it can introduce something new into its market. Though it has a very big strong hold on the coffee market, it is still developing relationships outside of the Unites States. This requires action on Starbucks part, entrepreneurial action. This is the action through the creation of new products/processes and the entry into new markets which may occur through a newly created organization (Hirsch & Peters, 1989). Before taking action one must asses the market and use prior knowledge to ensure that the new venture is needed, will be welcomed, and will draw an…

    • 1151 Words
    • 5 Pages
    Superior Essays
  • Superior Essays

    ENVIRONMENTAL. Many green techniques are more costly to companies, for example 100% recycled paper products. Also, discounted refills for customers with their own travel mug from the shop could eventually prove costly for the company. If these costs must be passed along to the customer, some may not recognize the environmental benefits and choose to go elsewhere for their coffee. 5.…

    • 1188 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    to their customer along with offering high quality coffee, in short Filiz and Smith will become a place where people can not only enjoy their drink but they can relax and get entertained as well. As mentioned above, the target market is specially the ones with the age group of 24-40 years 18-24 years and finally 13-17 years of age group. Initial group of men and women generally has higher income level along with good professional career. Moreover, this group will become major part in increasing the sales trend for Filiz and Smith coffee shop (Naik & Winer, 2005). Marketing Analysis (pie) Product Or Service reaching to the Customer For making it possible for the product and service to easily reach out the customer, Filiz and Smith coffee shop relies over promotional aspects.…

    • 713 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    On the other hand, the sales increased since the stores received more customers from the surrounding areas. The strategy also made it possible for the stores to be designed in a manner that they would accommodate the unique needs of the local population. However, the products of Starbucks into the Turkey were a hybrid marketing strategy. Starbucks’s marketers knew that Turkey has a profound culture of coffee, they could not ignore the local coffee habit, but they also wanted to innovate. They brought western style coffee culture into Turkey, this kind of coffee cultural fusion had newness, more and more local customers were attracted.…

    • 1137 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Starbucks Success

    • 761 Words
    • 4 Pages

    For example they introduced nice looking coffee cups, which bears Starbucks logo. This cup was made up of material, which prevents the hands from burning. This little innovation came at a very little extra price to customers. Success and complexities: Starbucks was able to do its promotion through these cups because whether the customer will later use those cups for Starbucks coffee or not, it will always bear the logo of Starbucks which will do its promotion. Transformational Change: In 1996, Schultz decided to expand the business of Starbucks outside the United States.…

    • 761 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Starbucks Research Paper

    • 1847 Words
    • 8 Pages

    This gave Starbucks full control and used better experienced expatriates to better implement their strategies. Afolabi, (n.d) explains starbucks international (which is their international division) is comprised of mostly partnerships as oppose to subsidiaries with Japan and asia as their main targets. They choose these markets as they resembled their aims, had multiple market networks and valuable expertise. Some coffee bars have been localized in order to better fit the consumer and have resulted in store differentiation within a single…

    • 1847 Words
    • 8 Pages
    Improved Essays