Free Essay

Cheese Cake Factory Competitive Advantage

In: Business and Management

Submitted By bessortiz
Words 1151
Pages 5
Assignment 1: Identify Your Competitive Advantage.
Write a three to four page (3-4) page paper in which you:
1. Identify which restaurant you choose to research, and explain that restaurant’s strengths, and weaknesses and justify your explanation
2. Identify one (1) way in which the restaurant you choose can utilize its strengths and minimize its weaknesses to be competitive. Explain why you believe this would be effective.

1. Identify which restaurant you choose to research, and explain that restaurant’s strengths and weaknesses and justify your explanation

I have chosen to research the Cheesecake Factory for assignment 1.
I am going to and explain Cheesecake Factory’s strengths and weaknesses and justify my explanation. Strength
When people think of Cheesecake Factory, the first thing that comes to their minds is cheese cake. The name Cheesecake factory is a strength I credit to the Cheesecake factory and its founder, Evelyn Overton. Evelyn Overton had created her own cheesecake recipe. She opened a shop in Detroit in 1940 but eventually closed the shop and moved to her basement and continues her business. Evelyn made that choice in order to be a say at home mom and raise her children. While cooking in her basement, she still was able to continually supply major restaurants with her delicious cheesecakes. About 30 years later in 1971, she and her husband made the choice to move to Las Angeles to try to establish a shop again in California. They both managed to open a 700 square foot store called The Cheesecake Factory.
Numerous people have common knowledge of cheesecakes. There are so many different varieties of cheese cakes. The over 40 choices of cheese cake varieties available s is another one of the outstanding strengths Cheesecake factory has. The consumer will keep coming back to try all the various cheesecake varieties available. From personally visiting the cheesecake factory, I notice they have so many types of cheesecake to choose from. I have thought about the question of why have not they started to sell all these cheesecakes to stores all over the country? They have more than enough to market for all those stores interested in selling the product. Then the thought of they may not want to do so because it could take away customers from the actual restaurant lingers in the back of my mind. When someone samples a frozen cake from cheesecakes collection and enjoys it, they may say to themselves if that is so good, I wonder what it is like made fresh in a restaurant setting. This brings me to the last strength I would like to comment on. Cheesecake makes their food in their restaurants daily and use high quality fresh ingredients. As a result, they have earned a strong name and popularity mainly in North America with 150 locations and still growing.
What sets apart the product of the Cheesecake factory are the branding, and quality of the product they sell. The owners Oscar and Evelyn Overton made a brand with a great American success story and developed the awareness of their product. The company is most famous for its large portions which are great for taking home. Not only does it mean that a customer gets a lot for the price, it also suggests another marketing technique which is word of mouth.

Weakness
A weakness that comes to mind is the name. How can the name be strength as well as a weakness? When people see Cheesecake factory with out prior knowledge of the company’s existence, they may think of a place where only cheesecakes are sold. They don’t see the place based off of the name as a place to have an extraordinary dining experience. The appeal factor is not apparent unless desert is what someone is looking for. Also, the Cheesecake factory would not excite someone to believe it should be on their list as a place to hang out. Someone may picture the Cheesecake factory like a factory setting mass producing cheesecake.
When people do decide to dine at the cheesecake factory, to many patrons, the price of the items on the menu and atmosphere is not always budget or kid friendly. Cost of an average meal for one may run $18.00. On top of not being budget friendly to many, customers with small children may not find a table right away, and have to wait in a long line to be seated. Currently Cheesecake factory does not allow reservations to be made and all patrons must walk in on a first come first serve basis. Personally, if I see a line that goes out the door, I will turn around and find a restaurant less crowded to and avoid the long wait.

2. Identify one (1) way in which the restaurant you choose can utilize its strengths and minimize its weaknesses to be competitive. Explain why you believe this would be effective.

One way Cheesecake Factory can utilize its strengths and minimize its weaknesses is by marketing. The owners Oscar and Evelyn Overton made a brand with a great American success story and developed the awareness of their product. That awareness should be further spread by use of technology and not only by the methods being used now which are personal selling, sales promotion, public relations and direct marketing. The main thing I have noticed about Cheesecake’s marketing strategy is that I have never seen a Cheesecake Factory commercial. I do see that they have heavily invested in the surrounding communities where word of mouth has prevailed as their main advertising method. A new advertising strategy would be effective when they using TV and internet networking sites would bring in a new wave of customers in to their numerous locations and boost sales. Currently Cheesecake factory employs hostesses and waiters to interact with customers for personal selling the available products. The advertising range is limited with their current method and adding TV, internet networking sites and other marketing outlets would reach a broader customer base. I personally did not know what was on Cheesecake’s menu until I walked in to the restaurant. I realized that Cheesecake factory specializes to American tastes by serving steak, chicken, pizza burgers, salads and desserts. Currently the way they increase sales is done by special offers off of the website, or offers emailed to customers ho sign up for mailing list which is how they directly market to consumers to keep them coming back. I believe with TV marketing to advertise what’s on the menu other than cheesecake would drive in more customers. Citations:

Cheesecake Factory. Retrieved October 25, 2013, from the World Wide Web: http://www.thecheesecakefactory.com The Cheesecake Factory. Retrieved October 25, 2013, from the World Wide Web: http://www.en.wikipedia.org/wiki/Cheesecake_Factory.com The Cheesecake Factory Incorporated –SWOT analysis. Retrieved October 25, 2013, from the World Wide Web:
http://www.researchandmarkets.com/reports/1937709/the_cheesecake_factory_incorporated_swot

Similar Documents

Premium Essay

Competitive Advantage

...Essay by Mashell Chapeyama University of the People Competitive advantages of Chipinge Banana Company A competitive advantage refers to any asset or capabilities that a company has that gives value to it or its products and services, which competitors do not have. Competitive advantage creates cost leadership to a firm or enables the firm to produce differentiated products. An example of a competitive advantage is being able to sell the products at low price but still be able to get some profits. This essay explores the competitive advantages which Chipinge Banana Company has. Chipinge Banana Company is a company that is found in Zimbabwe. The company produces bananas only. The bananas are sold to customers in the country and abroad. This company is located in the region where there is abundance of rainfall as well as good soils. One competitive advantage of Chipinge Banana Company is the natural resources it has. Firstly, the company is located in a region with a lot of rainfall. This enables the storage of water in some dams. Most parts of Zimbabwe have got very low rainfall. The land there is also very flat, unlike most parts of the country, where there is ample rainfall, which are mountainous. The flat terrain makes it possible for the use of modern technology in banana farming. At this company, there is usage of overhead cable tractors. This makes it easier and cheaper to harvest bananas. Therefore, the cost of production of bananas is very low, as compared to......

Words: 2034 - Pages: 9

Free Essay

Competitive Advantage

...exploit, and sustain its competitive advantages vis-à-vis rivals. And it has to do so consistently if it wants to be a perennial winner. Where do competitive advantages come from? What are their contents and effects? Where do they reside inside or outside the firm? In what form can we observe them? How sustainable are they? These are all important questions concerning the multiple facets of the anatomy of competitive advantage. Competitive advantage comes in various shapes and sizes. Understanding the anatomy of competitive advantage helps general managers improve their firms’ chance of gaining and sustaining of competitive advantage hence their chance of winning. This paper advances an integrative framework to help general managers systematically analyze six facets of competitive advantage: its substance, expression, locale, effect, cause, and time-span. Strategy is about winning. Strategy involves choice. It involves choice of a firm’s scope of product-market activities (Porter, 1980) as well as the combination of its resources and capabilities (Barney, 1991; Prahalad and Hamel, 1990). It is ultimately about the choice of matching resource commitment with changing opportunities for gaining and sustaining competitive advantages. As such, it is only fitting that the framework we use to dissect the anatomy of competitive advantage should be termed in acronym as SELECT, a tool designed to help a firm choose the right configuration of its competitive advantages. I’ve been in......

Words: 1099 - Pages: 5

Premium Essay

Competitive Advantage

...Event “Competitive Advantage” 15 September 2013 The term competitive advantage is the ability gained through attributes and resources to perform at a higher level than others in the same industry or market (Chacarbaghi and Lynch 1999, p. 45). There has been quite a bit of study and research interest due to existing issues regarding superior performance levels of businesses in the present competitive market conditions. "A firm is said to have a competitive advantage when it is implementing a value creating strategy, not simultaneously being implemented by any current or potential player" (Barney 1991 cited by Clulow et al.2003, p. 221). Firms that have a competitive edge over their rivals thrive in the marketplace and can exist for a very long time. Public companies in this category can have substantial returns for investors because they are able to capitalize on their competitive advantage. If one or more competitors can copy their ideas or make better products, then the company that had the competitive edge loses that advantage quickly. A prime example is Apple iPhones, in the cell phone manufacturing industry, U.S.-based Apple Inc. was on top of the world last year due to the astounding popularity of its iPhones and other products. Investors couldn't get enough of Apple's stock, pushing it well over $700 per share late last year. Investors were absorbed by the media and Wall Street’s glamorization that they seemed to fail to realize that Apple’s competitive......

Words: 731 - Pages: 3

Free Essay

Swot Cheese Cake Factory

...The Cheese Cake Factory SWOT Business 100 October 28, 2013 As a full upscale restaurant that serve fresh gourmet food. I believe some of the strengths of the Cheesecake Factory are the variety. Its 30+ page menu provides something for all to enjoy. My family and friends enjoy the fresh ingredients along with the Portion size of the foods, desserts even down to the appetizer that alone is well worth the cost. The Cheesecake Factories I been to are located in or adjacent to upscale malls, with casual dining which I love because this always allow me and my family to do some much needed shopping after we have dinner which allow us to walk off all the calories we just ate. The Cheesecake Factories restaurant has an awesome full scale bakery which is the first thing you smell as soon as you walk in the door. No matter what dish you choose out of the 200 plus items on the menu, you have a delicious cheesecake to top off your dining experience that’s why every time I go I get something different. Although we do not live in a city with a Cheesecake Factory, we make it a point to go when we visit Charlotte or Atlanta. The Cheesecake Factories weaknesses are the extremely long wait time. We have gone several times at different location and different times of the day, and each time our wait is at least 1 hour long. We normally wait but there have been a few times when we have left because we are starving. Another weakness is the small waiting area is...

Words: 604 - Pages: 3

Premium Essay

Competitive Advantage

...Competitive Advantages MGT/498 - Strategic Management February 9, 2014 Competitive Advantages Paper Economy today is highly competitive; increasingly competitive as more companies acknowledge that domestic landscape is shrinking. As the opportunities decrease in the domestic market, organizations are making the changes to gain a competitive advantage in the global market. In this paper, team B will discuss the advantages of Riordan Manufacturing and how there related to other organizations in the market, such as Starbucks, and Apple Inc. In addition to determining the competitive strategies of Riordan, they must improve innovation and sustainability in their business operations of both the United States and global market. Furthermore, Riordan has to establish particular strategies and determine the numerous ways in which they will accomplish sustainability of long-term organizational performance. Competitive Advantages The company Riordan has the competitive advantage of product differentiation because their producing computer fans, heart valve stems, and injected molded products, such as water bottles, etc. Their competitive advantage caters to any retail household store, office buildings, and even medical centers. Furthermore, Riordan has several locations, which can be used to implement production efficiencies, which lower costs. To identify opportunities, the organization holds a comprehension market study to gain knowledge and establish directional......

Words: 920 - Pages: 4

Free Essay

Competitive Advantages

...Competitive Advantages Riordan Manufacturing, Inc. is a corporation that focuses on the manufacturing of fans, plastic bottles, and plastic injection molding. Over the years Riordan Manufacturing Inc. has managed to expand its business into several cities and also around the world. A company who has a similar background is IKEA. IKEA has expanded its business to around the world branding itself as a household name. One way IKEA has a better competitive advantage over Riordan Manufacturing Inc. is the cost leadership strategy. IKEA has managed to sustain its operation by creating a product that is unique and which appeals to the masses but yet it is very cost effective to the consumers. Riordan Manufacturing has been able to stay in business due to the differentiation strategy but it could continue to grow globally and ensure its long term success by focuses on how it can reduce costs and pass that savings to the end users. IKEA has also used the cost focus strategy which has propelled its popularity and success globally. Using this method, IKEA has been able to identify a certain need in specific areas of the world and designed its furniture according to the style preference of that area while still keeping costs low and providing the savings to the end user. Riordan Manufacturing, Inc. could use this strategy to expand its products or manufacturing capabilities to specific groups of clientele around the world and beat out the competition cost wise. ......

Words: 303 - Pages: 2

Premium Essay

Competitive Advantage

...Darlene Ulmer Greta Miquelena 05 March 2014 Competitive advantage is a very important concept that seems very simple but it can bring lots of profitable benefits to a company. Competitive advantage means to have some sort of advantage over the industry competitors; in other words, when a company is able to create an innovative product that the competitors cannot imitate. For example, iPad tables are a hot item in the market and everyone from any age wants this item; therefore, it has been proven to have competitive advantage over any other table in the market. Now days all the companies are very competitive and only a few are able to succeed. Therefore, companies must use all the sources available to maintain the customers within the company. Brand names and costs switching are sources of competitive advantage; nonetheless, a brand name is not just created overnight. It takes dedication, consistency and interpersonal skills to create customer inertia. At the end of the day, if I get personalized treatment and every time I go to that store I get the same service, my expectations start to increase. Therefore, I would start spreading the world about my fascinating experience with families and friends. It is important to have more than one source of competitive advantage because this provides the company market share stability and profitability. The pharmaceutical industry has three major sources of competitive advantage, customer satisfaction, complaint resolution and...

Words: 459 - Pages: 2

Premium Essay

Competitive Advantages

... Competitive Advantages Paper Christopher Crehan, Sarah Franzen, Nicole Hadad, Kimberly Scott, and Leeza Steindorf MGT/ 498 April 26, 2014 Cheryl Boehm Competitive Advantages Paper Among large corporations there are many similar competitive advantages and they often share the same thought process on which competitive strategies will best result in long-term organizational performance. With that being said, this paper will discuss Riordan’s competitive advantages in association to some other major corporations, the competitive strategies that may help to increase the innovation and sustainability of their operations, how these strategies will affect the long-term performance of the business, and what global consideration should be taken into account for their business strategy. Coca Cola, Starbucks and Riordian have a number of competitive advantages in common, with the most significant as market leaders, having a strong brand, having a focus on corporate climate, and focusing on a product or product group. Other areas of strengths are being leaders in their field: Coca Cola as a giant in the beverage industry, Starbucks masters the art of producing, brewing, and serving high quality coffee in an upscale environment, and Riordian dominates in the plastics industry by using plastic injection molding for their containers, producing medical equipment parts, and the various fans and parts they produce. Another competitive advantage that these companies possess is......

Words: 902 - Pages: 4

Premium Essay

Competitive Advantages

...Competitive Advantages Trisha Sadler, Darryl Warren, Josephine Ives, Rebecca Smith, Beth Sexton MGT/498 May 19, 2014 Rolando Espiritu Competitive Advantages Competitive Advantages - Riordan Riordan is a plastic manufacturing company, which was started in 1991 (University of Phoenix [UOP], 2013). The company has locations in California, Michigan, Georgia, and China. The company’s business units are plastic parts manufacturing, plastic beverage containers, and the plastic fan facility. Riordan’s customers consist of beverage makers, medical supply firms, electronic supply firms, and pharmaceutical companies (UOP, 2013). A competitive advantage allows companies to increase sales, resources, and market share. Team B’s analysis will provide insight on Riordan’s competitive advantages by identifying competitive strategies, competitive sustainability, and the effect of the global market changes to the company’s business strategy. Riordan’s Competitive Advantages Every organization must establish some type of competitive advantage. The recent research of FedEx, Southwest, and McCain Foods’ competitive advantages assists in identifying Riordan’s competitive advantage. The first step in competitive advantage is creating a mission statement and developing a strategic plan. Firms that operate with a strategic plan develop focus and alignment. Introducing unique products or services leads to the establishment of a competitive advantage. In the case of FedEx, the core service...

Words: 1108 - Pages: 5

Free Essay

Cheese Cake Factory

...The Cheesecake Factory The cheesecake Factory has an established code of ethical conduct that is needed to factor in maintaining a balance in the human aspect of ethics and the link to the business success for The Cheesecake Factory. Leaders in the upper management need to be careful about their actions, and how they address other employees and how they make important decisions to help the company. Even though the areas of the Cheesecake Factory’s code of ethical conduct is important for the success of the company, there are a few specific areas of the company’s code of ethical conduct that are of substantial importance for The Cheesecake Factory. The first key area is in Article IV, in the “Conflicts of Interest,” section that talks about transactions and investments. This directly states that an officer or a director,” Should avoid participating in any transaction or investment that conflicts with, or gives the appearance of a conflict with, the interest of the company. It’s important in maintaining ethics because a person who is in a management position must be devoted to one company. All decisions that are made are suspect to the integrity of the , company especially when it comes to the financial decisions. Another key area of The Cheesecake Factory’s code of ethical conduct that is of significant importance is in Article V, in the “Compliance with Company Policies and Procedures,” section that talks about confidential information. It is important for the success of...

Words: 711 - Pages: 3

Premium Essay

Portfolio Models & Abc Cheese Factory

...Jovie Alvarez ID No. 3109617 Diploma of Marketing (BSB51207) Competencies:   BSBMKG514A – Implement and Monitor Marketing Activities BSBMKG515A – Conduct a Marketing Audit Case Study 1:   Chapter 3 – Portfolio Models (review questions 1-3, page 64) The ABC Cheese Factory – Case Questions (page 65) BSBMKG514A – Implement and Monitor Marketing Activities BSBMKG515A – Conduct a Marketing Audit 1 Jovie Alvarez ID No. 3109617 Chapter 3 – Portfolio Models (review questions 1-3, page 64) 1. What is a portfolio model and how is it used? Is a visual tool for diverse companies to review: – – – all businesses together; where growth is expected (resources needed); and returns generated (cash produced). It provides the decision maker with a starting point for decisions regarding: – – – strategic business units (SBU) retention or deletion general strategic direction (growth, maintenance, deletion) for each SBU resource allocation/redistribution decisions. 2. Using the BCG model: a. Draw and label all parts of the model HIGH 20% STARS QUESTION MARKS MARKET GROWTH (position in the product category life cyle) MED. 10% CASH COWS LOW 0% 10X 1.0X DOGS 0.1X RELATIVE MARKET SHARE (SBU’s market share compared to the largest competitor in the same market) BSBMKG514A – Implement and Monitor Marketing Activities BSBMKG515A – Conduct a Marketing Audit 2 Jovie Alvarez ID No. 3109617 b. Explain each......

Words: 1636 - Pages: 7

Premium Essay

Competitive Advantage

...Cost advantage/ Competing in distinctive way “If a company cannot be more operationally effective than its rivals, the only way to generate higher level of economic value is to gain a cost advantage or price premium by competing in a distinctive way”. Does this apply to the digital economy? Assess critically. It has been claimed that “value can be created with Internet communication either through finding ways of reducing costs or, on the demand side, by improving the match between buyer preferences and the goods they purchase”. Do you agree? “Internet technologies tend to reduce variable costs and tilt cost structure towards fixed cost, creating significant greater pressure for companies to engage in destructive price competition.” Do you agree? INTRODUCTION o It is argued that “If a company cannot be more operationally effective than its rivals, the only way to generate higher level of economic value is to gain a cost advantage or price premium by competing in a distinctive way”. o I will first give a definition of the digital economy and what is economic value. o This is followed by a briefly discussion on operational effectiveness. o I will then talk about the importance as well as limitation about cost advantage and price premium strategies. o The last part of the essay will look at other strategies and other elements besides cost advantage and price premium a firm can consider gaining competitive advantage. MAIN......

Words: 1498 - Pages: 6

Premium Essay

Competitive Advantage

...Competitive Advantage Tajsha Cheeks BUS 201 Principles of Management Instructor Glenda Riley February 27, 2012 Competitive Advantage The world has been chaining more rapidly than ever before, managers and other employees throughout an organization must perform at higher and higher levels. One of the most important lessons for managers and organizations to learn if they were to reach and remain at the top of the competitive environment of business is to achieve and build a competitive advantage. Competitive advantage is the ability of one organization to outperform other organizations because it produces desired goods or services more efficiently and effectively than its competitors. If company’s follow the four building blocks of competitive advantage, there’s no doubt in my mind their company will be superior to others (Jones, 2011). The four building blocks of competitive advantage consist of efficiency, quality, innovation, and responsiveness to customers. In today’s competitive environment, organizations continually search for new ways to use their resources to improve efficiency. Organizations increase their efficiency when they reduce the quantity of resources they use to produce goods or services. For example, many organizations are training their workforces in the new skills and techniques needed to operate heavily computerized assembly plants. Also, cross-training employees gives them the range of skills they need to perform many different tasks, and......

Words: 836 - Pages: 4

Free Essay

Competitive Advantage

...Competitive Advantage and Pro Sports LaChandra Nicole Gaines MGMT 488 June 5, 2011 Ronald Morritt Competitive Advantage and Pro Sports Sustainable competitive advantage is the main purpose of an organization’s corporate strategy. Sustainable Advantage permits the preservation and development of a company’s competitive location within market (Strategy Fundamental: Determining Sustainable Competitive Advantage, 2010). Competitive advantage facilitates an organization to outlast against its competitors for an insignificant amount of time. Competitive advantage may originate in many forms. The competitive characteristic stems from the likeness of other alternatives (Strategy Fundamental: Determining Sustainable Competitive Advantage, 2010). I chose the Miami Heat as my pro-sport team to discuss competitive advantage. Because signing the very talented LeBron James to its 2010-2011 rosters, the Miami Heat established competitive advantage over all other professional basketball teams in the league (Waller, 2011). Alongside Dewayne Wade, the Miami Heat has the potential to bring home another championship to the city of Miami. There is a unanimous conformity that both Dewayne Wade and LeBron James are two of the best players in the NBA (Waller, 2011). The talents of James and Wade can dominate any team to secure a win for by making all the shots, rebounds, and playing aggressive defense. Both James and Wade signify sustainable competitive advantage for the reason that...

Words: 574 - Pages: 3

Premium Essay

Competitive Advantage

...and putting them in production use example in Starbucks all staff required to attend to teach them not only how to make coffee also service oriented value of the company. Thought this Starbucks provides progressive compensation policies that gave even pat-time employee staff option grants and medical benefit. The innovative factor of Starbucks is most of them is part-time staff. By this organization Starbucks superior financial performance is begin with entire of repeat customer, for example the average value of customer come into Starbucks Store is around twenty times a month Starbucks competitive advantage and barriers to imitation is company be more creative innovative in production. Try to maintain reputation for having specialty and gourmet coffee. Example Starbucks most significant product is food and beverage, they need to create different variety and taste of coffee, cakes and other beverage using own brand. Following is can explore more market opportunity in U.S and oversees in franchising form. Starbucks try to cover many markets as possible A Starbucks main competitor is McDonalds (MCD) and Dunkin Donuts. McDonalds presently announced that it will be taking steps towards implementing cappuccino and espresso machines in its stores and it also offers a new Premium Roast coffee, which made by 100% of Arabian Coffee been. A high premium bland that also used many Starbucks and extra service provide by McDonalds cream and sugar coffee be an additional service is......

Words: 543 - Pages: 3