Espresso Espresso Case
Expresso Espresso Case
Expresso Espresso
In 2006, Expresso Espresso opened across the street from the University of South Alabama in Mobile, AL. Expresso Espresso target market were students and staff from the university. Todd Sylvester, wanted to use this store as proof that his business practices of culture and values become successful and expand to the city’s midtown area. However, after twelve weeks the store was operating at a loss. Todd was very optimistic and thought that his business practices would work anywhere and once the dust settled in the coffee shop would do just fine. Todd and his wife Angelle, took out an equity loan of $100,000 to start-up the business. However, Todd was having thoughts of whether his marketing efforts were enough to increase sales and give the company the jump start it needs and prevent his family from their financial hardship. (Bacon, Summer/ Fall 2006)
Todd had been considering opening his own business for years considering coming from an entrepreneurial family. He ended up opening a coffee shop thinking that it would be a good family business to have where their kids could work one day. Todd and Angelle always wanted their kids to have business and management skills and having their own shop would allow them to get that experience one day. (Bacon, Summer/ Fall 2006)
Michael Porter’s Five Force Model
Bargaining power of suppliers is high. That is why there are so many specialty coffee shops around. They are in high demand. Todd wanted to run a store which made the customers feel comfortable. Customers would come in read a newspaper on one of their leather couches, come in a few times a week, or some customers would come in and relax as they drink their delightful coffee or dessert. Todd wanted Expresso Espresso to have a strong emphasis in making sure customers feel like they are at home. They also offered free Wi-Fi Internet for students or professors. They also did not have to purchase anything to be able to use the Wi-Fi. They wanted Expresso Espresso to be a place where people can just come and hangout. By portraying this comfortable image and serving fresh coffee on the spot verses drip-brewed coffee, serving snickerdoodles, teas, smoothies, and a limited variety of pastries; this will attract customers to Expresso Espresso over other competition. (Bacon, Summer/ Fall 2006)
Bargaining power of customers is high. Customers are the reason why there are a lot of specialty coffee stores. The bargaining power of customers and suppliers go hand and hand. Customers demonstrate what they want through what the purchase and suppliers do their best to give the customer what they want. Customers contribute to how successful a company like Expresso