Identify and discuss ONE of Porter’s competitive forces in the context of the Avon Coffee scenario. For the chosen competitive force: Identify who is the counterparty of Avon Coffee (e.g., if you choose “Power of Buyers”, then identify Avon Coffee’s buyers). Assess the strength of the force in Avon Coffee’s context, and Give ONE (1) example (or evidence) from the Avon Coffee scenario that supports your evaluation of the force.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
icon
Related questions
Question

Avon Coffee Co-op (Avon Coffee) is formed around strong values of fair and ethical ways of doing business. Headquartered in Christchurch, Avon Coffee strives to create a place of belonging for its customers, employees, and producers in the far reaches of the globe, Ethiopia.

For some years as a business, Avon Coffee has been committed to redistributing 70% of the profits back to the producer’s community. This has helped build buildings and fund extra staff at local schools and build teachers’ accommodation in Ethiopia. Avon Coffee displays this progress clearly in their cafés, so the customers can be assured that their purchases contribute to the world. Avon Coffee and its loyal customers see this as not a matter of generosity but as the business’s profits going back to the producers and communities, to where they really belong. This difference made Avon Coffee excel in highly competitive markets. Avon Coffee has successfully expanded to 39 locations across Auckland, Wellington, and Christchurch.

When Covid-19 struck in 2020, Avon Coffee had to move its business online. This created a number of challenges for the company. Therefore, Avon Coffee hired you as a digital business innovation lead. Initially, you suggested launching an app called “Avon”, which customers can order and make payments online to minimise physical contact. The app also provides transparent progress about their redistribution of profits back to the producers as displayed in their cafés like before. 

Some of Avon App Functionalities are described below.

  • The Avon App is available on both Android and iOS.
  • To promote the App use, Avon Coffee offers all registered users a 10% off all hot drinks and freshly roasted coffee beans for home every visit. All that is required is for customers to scan the app at the till.
  • Other handy functions on the app include printing or emailing GST receipts (this is very useful for customers claiming their coffees as business expenses), loading credit using your credit card and tracking your transaction history
  1. Identify and discuss ONE of Porter’s competitive forces in the context of the Avon Coffee scenario. For the chosen competitive force:
    1. Identify who is the counterparty of Avon Coffee (e.g., if you choose “Power of Buyers”, then identify Avon Coffee’s buyers).
    2. Assess the strength of the force in Avon Coffee’s context, and
    3. Give ONE (1) example (or evidence) from the Avon Coffee scenario that supports your evaluation of the force.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles Of Marketing
Principles Of Marketing
Marketing
ISBN:
9780134492513
Author:
Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:
Pearson Higher Education,
Marketing
Marketing
Marketing
ISBN:
9781259924040
Author:
Roger A. Kerin, Steven W. Hartley
Publisher:
McGraw-Hill Education
Foundations of Business (MindTap Course List)
Foundations of Business (MindTap Course List)
Marketing
ISBN:
9781337386920
Author:
William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:
Cengage Learning
Marketing: An Introduction (13th Edition)
Marketing: An Introduction (13th Edition)
Marketing
ISBN:
9780134149530
Author:
Gary Armstrong, Philip Kotler
Publisher:
PEARSON
MKTG 12:STUDENT ED.-TEXT
MKTG 12:STUDENT ED.-TEXT
Marketing
ISBN:
9781337407595
Author:
Lamb
Publisher:
Cengage
Contemporary Marketing
Contemporary Marketing
Marketing
ISBN:
9780357033777
Author:
Louis E. Boone, David L. Kurtz
Publisher:
Cengage Learning