Beanz Versus Starbucks: Personality in a Cup!
Beanz Espresso Bar is located in downtown Charlottetown, Prince Edward Island, Canada. They are operating in a market with high rivalry (11 other coffee businesses in a two-block radius). The economy on Prince Edward Island has seen several diners, restaurants and coffee shops close their doors within the past few years, while simultaneously drawing in large corporate businesses such as Starbucks and a Running Room. Beanz has thus far survived the major environmental changes and managed to keep its clientele. The owners, Lori and Doug, feel it is a prime time to either sell Beanz and leave the industry, or exploit their competitive advantages to grow and capture more market share.
This case is intended for use in undergraduate and graduate courses in entrepreneurship and strategy. Students are challenged to consider the future direction of Beanz taking into consideration Lori and Doug's preferences, the external market as well as the current capabilities of Beanz. This case incorporates four objectives. The first objective is a quick valuation of a life-style business. The second is to assess the changing environment in which Beanz is working. The third is to determine the role of knowledge and brand in the entrepreneurial process. The final, but most important objective, is to evaluate the strategic options available to the founders.
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