CPA 117 Extended Case Study

Chchou

Customer perspective(High): Why medium?

14 billion cups of Lavazza coffee are consumed each year

Barista Lavazza won theTimes Food Guide 2008 ‘Best coffee bar of the year’ award

Sales growth in emerging markets, 5% from Asia-Pacific, 33% from Central and South Amercia and 7% from Eastern Europe

Can anyone shed a light on the Strategic capabilites and non strategic capabilities?

mandymei

I agree with 'High for Customer perspective.' Cause the case talks lots of market expansion to suit customer needs.

adam1234hk

原帖由 mandymei 于 2011-10-19 14:36 发表
Hi Adam, there are a few KSF can be addressed from the Case, like Product development,Consistency of quality,Innovation, Effective marketing,Efficiently distribution networks and Sustainable advantage ...

Thx for the reply. Yes i did identify few the key success factors. However, we still need to compare those KSF with other competitors if the competitors may also have such KSF in their current capabilities, no strategic capabilities for Lavazza
However, there is no comparison can perform with competitors's KSF in the industry so I cannt define the strategic capabilities

宋不清

the key issue here is: the financial company for foodserice outlet, is foodservice outlet their existing customer?
If the answer is Yes, then it is product development.
If the answer is No (L comapny is also doing foodservices) and foodservices are internal units, then the financial company is merely providing supporting work for internal units, nothing to do with product development/market development/diverification.

pinky1030

i classified the 14M cups and 62% sales in Italy, 5% 33% 7% growth rate ..... all of these facts as strong financial perspective.

feel a bit conflicted about customer perspective, coz not too many feedbacks from customers in the case, and just one of the best award seems less convincible to make it strong?

any ideas?

Chchou

Material 3.38
Figure 3.11

I know, there's not much financials actually.

luby

Could I further discuss it with you?
There are two types of consumer segments: in-home and out - of home consumption. Expression cafe shop opened in Chicago, US in 2009. I  think its targeted consumers is out- of  home type. What is the new capsule coffee maker's consumer? If its consumer  is out-of home type, this stratege option should be product development. Correct me if i am wrong.

luby

I did not agree with Leader strategy focusing on differentiation and low cost.
Low cost means producing the product or service at a cheaper cost than competitors. According to Hubbard, this implies having the lowest cost structure in the industry. Is there any facts in case 3 to support it ? Please see type of low cost strategies on P  3.24 and Leader strategy example of Officework to think about it.

adam1234hk

原帖由 luby 于 2011-10-19 19:53 发表
I did not agree with Leader strategy focusing on differentiation and low cost.
Low cost means producing the product or service at a cheaper cost than competitors. According to Hubbard, this implies ha ...

yes thank you for correcting me. I changed it to differentiation.

可乐33

原帖由 luby 于 2011-10-19 19:53 发表
I did not agree with Leader strategy focusing on differentiation and low cost.
Low cost means producing the product or service at a cheaper cost than competitors. According to Hubbard, this implies ha ...

同意，我也不认为包括low cost, low cost应该主要是走低端路线的意思。明显LAVAZZA不是。

Lilikachen

我想问大家，如果要写rulmet's的话，是不是每个options都要准备一次？

mandymei

I think so.
Would you mind to share your thoughts on options?

Thanks,

yonei999

Luby, L never tried consumer seg for coffee machine in the U.S. ... don't confuse between consumer seg for coffee and consumer seg for coffee machine. they migh overlap, but not exactly identical

Lilikachen

我会把重点放在进入印度市场这个option.整篇case有很大篇幅都是在讲asian market，又讲了n次如果印度的厂房建成之后会对LAVAZZA有什么好处之类。。

Milklatte

What is the cost and benefit for entry in india (Asian market)? Please help.

cathytomorrow

原帖由 yonei999 于 2011-10-19 10:56 发表


and joint venture with GM

How about FDI? L opened Expression cafe, which should be considered ad FDI as they are diretly managed by L.

chun4u

Can someone can share some baisc idea for SWOT please?

Milklatte

Currently, Lavazza has its coffee chain in many countries, any futher acquire coffee chains is classfiy as market penetration (if in the same geographic area) OR market developement (if the new coffee is cover new geographic area). Please correct me if I am wrong. Thanks

Milklatte

Vending can classifed in two type, one is located in public or large organization. Another one is espresso coffee machine which is suitable for household or office. I am confusing how to classify this product in Ansoff's product-market matrix.

tjjimmycy

got the same confusion here with regard to vending machine, does it refer to the coffee maker only or include the automatic vending machine locatd in public area which could make you a coffee for coins.

Milklatte

I am made a research in Lavazza website, it seems they offer coffee machine (espresso coffee) and vending machine (which is located in public and make you the coffee for coins). For the vending division, is it include both of the business activities? Not sure.

Milklatte

Ansoff's pdt-mkt matrix

Coffee machine (for existing mkt-foodservice)=>pdt development
Coffee machine (for new mkt-consumer)=>diversification
New blend of coffee (through same distribution channel)=>product development
Cofincaf=>diversification
1st Lavazza Caffee Espresso Bar in Germany=>diversification (forward integration)
Acquired new coffee chain (existing carry out this business - same mkt)=>mkt penetration
Acquired new coffee chain (existing carry out this business - different mkt)=>mkt development
Correct me if I am wrong. Thanks

tjjimmycy

not sure of the cofincaf, whether it is the diversification, or just for penetration via financilly supporiting foodservice biz

kayroro

原帖由 yonei999 于 2011-10-15 22:54 发表
Vertical integration into coffee chain is a separate approach apart from market development and product developement. looking at the bigger picture, Lavazza is also selling a solution not just purely  ...

can i say the type of all the acquisitions of coffee chains done by L is vertical integration? coz L can be the supplier to these coffee chains.

Milklatte

In 1989-90, Lavazza opened its 1st Caffe Espresso Bar in Germany, therefore the acquisition of coffee chain cannot classify is vertifical integration as it already carry the coffee bar business

young20061113

if using this criteria to evaluate the strategic options, how to evaluate?
In my opinion, anything are consistency (external, internal, feasibility and competitve advantage).
Anyone done this? Any ideas?

chun4u

原帖由 young20061113 于 2011-10-21 00:50 发表
if using this criteria to evaluate the strategic options, how to evaluate?
In my opinion, anything are consistency (external, internal, feasibility and competitve advantage).
Anyone done this? Any ide ...

I suggest you focus on two options 1. India new factory 2. Green Mountain expansion

woodgateowen

Yes I try to focus in these two areas, but dont have much information in applying to 7S, Kotter 8, Profolio Management.....

chun4u

原帖由 woodgateowen 于 2011-10-21 03:34 发表
Yes I try to focus in these two areas, but dont have much information in applying to 7S, Kotter 8, Profolio Management.....

You may skip Kotter 8 , i guess. For 7s , you may only focus on like Skill (L has strong capabilities in coffee roaster)etc.
For portfolio management, not much idea on that too~

woodgateowen

yes....but for capabilities....without competitors' information for the comparation....how to apply the 3 tests.....