Case Study: BrewSmart Coffee$$

BrewSmart Coffee is a mid$-$sized coffee chain with $50$ locations in Canada. For years, it has competed on quality and customer service, sourcing premium beans and training baristas to make personalized drinks.$$

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Recently, competition has increased from both global chains like Starbucks and small local artisanal caf$$s$.$ BrewSmart$$s sales growth has slowed, and market research shows that younger customers are increasingly ordering online and expecting quick delivery.$$

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The CEO initiates a strategic management process:$$

$-$ Mission: Provide high$-$quality, sustainably sourced coffee while creating a welcoming community space.$$

$-$ External Analysis: Opportunities include the growing demand for online ordering; threats include rising coffee bean prices and strong competition.$$

$-$ Internal Analysis: Strengths are strong brand loyalty and skilled staff; weaknesses are outdated online ordering technology and limited marketing to younger customers.$$

$-$ Strategy Formulation: Management decides on a growth strategy using related diversification$$launching a new mobile app with delivery and loyalty features, while also offering packaged coffee for online sale.$$

$-$ Implementation: The company partners with a delivery service, invests in app development, and trains staff to handle online and in$-$store orders simultaneously.$$

$-$ Evaluation: After $6$ months, online orders increase by $30\%,$ but in$-$store traffic falls slightly. The leadership team is reviewing whether the balance between in$-$store experience and online convenience needs adjusting.$$

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Questions$$

$1.$ Using a SWOT framework, what are BrewSmart$$s main strengths, weaknesses, opportunities, and threats?$$

$2.$ Which competitive strategy $($cost leadership, differentiation, or focus$)$ best fits BrewSmart$$s current approach, and why?$$