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Strengths for Black Canyon
Black Canyon Coffee (BCC) celebrated its 10th year of business operations in 2002. The company has already operated the largest chain of coffee shops in Thailand. The reason why BCC has the great success is that the company has the good internal organization to adapt the external environment. The correct internal organization creates much strengths for BCC.
When the BCC was built in 1993, founder and managing director,Pravit C believed that given the success of fast food in the United States, an American theme would help to attract customers. They chose the Old West theme for business. Thai people were attracted by this special theme. It proved that Pravit fully understood the popular trend of domestic market. This is the correct market positioning for BCC, and this was also a good start that pave the way for the future.
Another strength of BCC is that managers are good at creating value. Valueis measured by a product’s performance characteristics and by its attributes for which customers are willing to pay. Firms create value by innovatively bundling and leveraging their resources to form capabilities and core competencies. This “value” is not only the product value, but the human resource value.
1）Pravit said that have good partners can release him from much of the burden of being a managing director, and many of people in BCC have an entrepreneurial spirit and have helped with the challenge of growing this business.
2）BCC doesn’t want to be the second Starbucks, so they create their own service and products with special food—-Thai food. It is a new business mode in Coffee industry. BCC creates extra product value to their coffee, and many people from different countries like it.
BCC is developing rapidly. There were three types of competitors in the Thai premium coffee market: foreign chains, local chains and independent shops. If the number of locations was used as a proxy for market share, then BCC would have been the clear leader: they had nearly 100 locations in mid-2003. Many top coffee firms only at the A-class location, but BCC will go into a much wider range. BCC operated three distinct types of outlets: kiosks, mini-restaurants and full restaurants. This will reduce the fixed cost, so BCC can supply a lower cost coffee to customers. This is an important strength that makes BCC become more competitive than other famous coffee companies. BCC already builds its own value chain and manages to set up a successful BCC model.
Weakness for Blue Nile:
Blue Nile is a largest online retailer of diamond engagement rings and tries to make engagement rings selection simpler. Unlike traditional jewelry retailers, Blue Nile operates completely store-front-free, without in-person consultation services. The first weakness of Blue Nile is the single operation mode. Jewelry is a high profit industry. More and more entrants become powerful and competitive in recent years, which means that Blue Nile has many strong competitors. Online retailers include Amazon, Overstock.com and Bidz.com, which are well known for their discounting, creating tremendous competition for Blue Nile. Most major firms who specialize in jewelry not only have storefront locations, but have their own online presence as well, such as Zales, Signet, Tiffany and Helzberg.
One of the important result of single operation mode is the less communicate with customers. Communication is a necessary step in every industry. If Blue Nile cannot communicate with customers face to face, they will not understand the customer needs and to then help them get it in time. It is also more difficult to develop a lasting, long-term relationship with the customer when the transaction lacks the face-to-face experience found at brick-and-mortar stores. This will decrease the quantity of potential customer and the reputation to some extent. The market shares are also reduced when the other jewelry companies becoming famous.
The lack of legal and political stability in many of the diamond source countries represents the weakness to Blue Nile, and the industry as a whole. With unstable changes in leadership and power, threats to the global supply chain of a valuable commodity are possible, and perhaps even likely to occur. Even though this is not it’s own problem, it is still the weakness of Blue Nile. I think Blue Nile needs to have a “Plan B” to prevent this external objective factor.
Nowadays, the development of economic globalization becomes faster than last decades. Blue Nile wants to expand internationally as it sees great potential in the global marketplace. One major weakness for Blue Nile here is the lack of adoption of online purchasing. Many countries have not yet advanced to the American consumer habits. For example, China is the biggest developing country, but Chinese do not shopping online as frequent as American. So, it’s difficult to promote the company brand to many countries.
Operating in a niche segment, Blue Nile is “stuck in the middle” of the diamond engagement ring market. This is not an advantage, quite the opposite; I think it is a weakness. Because it is not at the top end of the jewelry retail market, with the likes of Tiffany & Co. or DeBeers, and it is neither at the low end of the market, with the likes of Amazon or overstock.com. Blue Nile doesn't have the best resources and best discount. It is hard to have more market shares and profit. This will limit and restrict the development of Blue Nile company.