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Eco 557

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Introduction I inherited The Broadway Café coffee shop from my grandfather which is located in downtown Rockville. It was first opened in 1952. Coffee shop specialized in different coffees, teas, homemade soups, sandwiches, salads and full service bakery. For many years it was a hotspot, but for last five years business is going down. Now it needs new and improved methods to be back in business market. My grandfather never used computer and everything was manual including ordering and employee payroll. He had terrific memory and he knew his all customers. All recipes for homemade soups and baked goods were in his memory. Business’s only marketing was word-of-mouth. To bring café into 21 century it needs new technology like computers for sale, customer database, website for online presence, providing wireless hotspot, customer relationship management for marketing and sale strategies to gain a competitive advantage. We need to install cash register, computer server with wireless access to meet customers’ expectations. The Broadway Café is the only coffee shop in neighborhood. Employees have heard a rumor that Starbucks might be opening a store in the area. Right now we have competitive advantage, because we are only café which is specialized in coffee products. The situation will change when Starbuck will open a new shop. As Baltzan & Phillips (2009) have stated in their book that, Define Competitive advntage“competitive advantages are typically temporary because competitors often seek ways to duplicate the competitive advantage” (p. 22). The café have first mover advantage to be first in business but Starbucks is technologically advanced and have wholesale coffee business in the market. For example on Starbucks’s website (2009) it states, “in addition to sales through our company-operated retail stores, Starbucks sells whole bean coffees through a specialty

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