Suggested solution Sunbuck PDF

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SUGGESTED SOLUTION: SUNBUCKSa. Explain two (2) possible reasons that have made Sunbucks a popular coffee shop in Malaysia.i. Quality of its coffeeSunbucks has established a unique marketplace for its goods in its industry as a differentiator company. Offering the highest quality coffee to all custom...

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SUGGESTED SOLUTION: SUNBUCKS a.

Explain two (2) possible reasons that have made Sunbucks a popular coffee shop in Malaysia. i.

Quality of its coffee Sunbucks has established a unique marketplace for its goods in its industry as a differentiator company. Offering the highest quality coffee to all customers has set a high standard in the coffee house industry. Sunbucks ensures the high quality of its products by ensuring that its coffee bean suppliers follow all of the company's specifications and requirements. Sunbucks will please its existing customers while also attracting new customers willing to pay a premium for their preferences. Sunbucks has become one of Malaysia's most popular coffee shops as a result of this.

ii.

Excellent customer service. Sunbucks can understand consumer behaviour and respond to their needs in the most effective way possible. Customers receive exceptional service from Sunbucks, which goes above and beyond their wishes. Sunbucks' ability to provide exceptional customer support resulting in high levels of customer satisfaction and new customer acquisition. Customers' happiness is shown by their frequent visits to the coffee shop, not just for a cup of coffee but also to relax in the welcoming environment. Another factor Sunbucks is a famous coffee shop in Malaysia is because of this.

iii.

Pioneer in speciality coffee. In the coffee house industry, Sunbucks is a founder or first mover. Sunbucks enjoys several advantages, including consumer recognition resulting from its philosophy of uniquely blended coffees and its name. Sunbucks has maintained customer loyalty and attracted new potential customers due to these factors and has grown to become one of Malaysia's most successful coffee houses despite stiff competition.

b.

Advise the management of Sunbucks three (3) potential pitfalls it may face with its current business-level strategy that may threaten its performance. i.

Competition with its rivals /(Uniqueness that is not valuable) It is well known that one of the biggest rivals in the company is the competitor. Healthy competitions typically encourage players to be more creative and innovative. Customers have more options as Sunbucks' competitors introduce concepts such as concept cafes and new drink and dessert flavours. People are eager to try new things and abandon others that do not meet their requirements. Due to strong competition and shifts in consumer behaviour and expectations, the novelty of Sunbucks' goods and services can no longer be important. As a result, Sunbucks' success could be jeopardised.

ii.

Exposure to an imitation/ (Differentiation that is easily imitated) Since companies face so many risks, one of the most difficult tasks is ensuring that competitors in the same sector do not copy Sunbucks' strategies. This, however, is unavoidable, especially for a pioneer like Sunbucks. Whether current, new, or future, many rivals are watching Sunbucks' strategies and may have conducted some research and evaluation on the company's operations. Sunbucks' successful experience could have been replicated in more creative and inventive ways without

Sunbucks' knowledge. Sunbucks' competitive edge in the market would be difficult to maintain if the approach was copied, posing a challenge to the company's success. iii.

Too high a price premium. Many companies, like Sunbucks, could be harmed by a price premium that is too high. Customers may want the goods, but the high price turns them away. They should have opted for cheaper alternatives that serve the same purpose as Sunbucks' coffee. Customers can also be unable to overspending if they have a large family. As a result, this may be one of the contributing factors endangering Sunbucks' results.

iv.

Perceptions of differentiation may vary between buyers and sellers Sunbucks must recognise that, while it may see its products and services as exclusive, its buyers may see them as commodities due to the coffee industry's many competitors. As a result, if Sunbucks has to lower its price to represent market realities, it will lose all of its margins. As a result, Sunbucks' success could be jeopardised.

c.

Discuss three (3) strategies that Sunbucks may undertake upon facing the declining stage in the industry life cycle. i.

Maintaining Sunbucks can retain its product offerings while reducing market funding, technological growth, and investment, hoping that its rivals will leave the market. Sunbucks' loyal customers can still prefer the authentic coffee taste and one-of-a-kind service offered by the company. As a result, Sunbucks will still produce sales and income if it continues to operate.

ii.

Harvesting Sunbucks' goal is to make as much money as possible, which necessitates cutting costs as quickly as possible. Sunbucks must think about its value-creating operations (both main and support activities) and cut budgets for them. Sunbucks can squeeze out as much profit as possible in short to medium term by adopting this strategy.

iii.

Exiting Sunbucks would remove the unprofitable commodity from its portfolio as part of this plan. Sunbucks will be able to concentrate on selecting goods with the greatest demand by discontinuing some products that have been reported as having low sales or being unpopular. As a result, Sunbucks will boost its cashflows and stay afloat in its current market. Sunbucks' manager, on the other hand, must carefully consider adopting this policy if it affects the firm's significant relationship with other product markets since it may result in the loss of valuable Sunbucks brand names.

iv.

Consolidation Sunbucks' policy entails purchasing the best remaining companies in the industry at a fair price to increase market leverage and accumulate valuable assets. Sunbucks can merge with another coffee company, such as Morning Glory Coffee. As a result, it will help the company attract more clients, foster business longevity, instil customer support, and create goodwill....