Cafe coffee day
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Transcript of Cafe coffee day
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Presented by : Group 6Megha Sinha()Prateek Jain()
Priyanka Kanwar(69)Radhika sethi()
Nishant Negi(43)
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Cafe Coffee Day, India's favorite coffee shop where the young at heart unwind. A division of India's largest
coffee conglomerate, the Amalgamated Bean Coffee Trading
Company Limited (ABCTCL). Popularly known as Coffee Day. With Asia's second-largest network of coffee
estates (10,500 acres) and 11,000 small growers, Coffee Day has a rich and abundant source of coffee. This
coffee goes all over the world to clients across the USA, Europe and
Japan, making us one of the top coffee exporters in the country.
(source : cafecoffeeday.com)
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Porter’s Five Forces Model of “coffee retailing” in India
Threat of new
entrants (LOW)
Buyer’s Power(HIGH)
Supplier’s Power(LOW)
Threat of Substitutes
(HIGH)
Industry Rivalry(HIGH)
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Porter’s Five Forces Model
Threat of new entrants – Low to Medium• Presence of several established brands/hangout places/fast food joints• High costs for starting a coffee shop chain• Government policies promoting FDI (Starbucks)
Buyer’s Power - High• Low switching cost• Variety of products• Variety of services
Supplier’s Power - Low• Absence of cartelization• Backward integration
Threat of substitutes - High• Aerated drinks, milk beverages, juices and tea • Fast food joints like Pizza Hut, McDonalds etc in terms of eatables menu.
Industry Rivalry - High• Local Coffee chains like Barista, Mochas and hundreds of small coffee shops.• Entry of international coffee chains such as Starbucks, Costa Coffee, Gloria Beans
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Question 2) CCD looks to grow through “franchisee” model.What are the advantages and disadvantages of this strategy?
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Access to better talent
Easy expansion capital
Minimized growth risk
Pros of Franchisee Model
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Less control over managers
A weaker core community
Innovation challenges
Cons of Franchisee Model
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Global Vs
Glocal Vs
Local
Question 3)For a chain like CCD what kind of growth strategy is required
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Glocal StrategyThink global, act local
Product or services designed to benefit a local market while at the same time being
developed and distributed on a global level. (source: businessdictionary.com)
International coffee retailers agree that understanding local markets and consumer preferences is vital to the success of their international business. As a result, a majority of retailers are customizing product offerings, using local merchants and managing campaigns with a localized calendar in order to relate best to the local market.
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Products for localized taste
localized Items on the menu
Keeping in mind the culture and religious beliefs
In terms of products
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ambience/infrastructure
look and feel
Align with the popular culture of the country in which business is operating
In terms of ambience
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Global strategy standardization of products
Local strategy Price Adaptation
Local govt. rules and regulations
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Thank You