Over the next two years, your organization needs to shift its busi.docx

Over the next two years, your organization needs to shift its
business model and widen its technology exploitation in order
to expand in its existing market, expand into new markets,
facilitate new products and services, and reduce costs. Your
mission is to provide the CTO or CIO with technical
recommendations on how to accomplish these goals.
Your assignment is to prepare a presentation for the CTO or
CIO, describing a technology you believe should be adopted,
describing the benefits, costs and risks of adoption, and
recommending how to proceed. However, all work and ideas not
your own should be clearly acknowledged in the PowerPoint
notes in accordance with academic standards. Use your own
words and do research to back up your assertions!
Use the PowerPoint “Notes” section for comments that you
would supply verbally at the presentation. Also use it for
explanations to your facilitator.
Address (in order) the sections described below in at most 15
PowerPoint slides with Notes sections. You may follow this
with appendices if you wish. Appendices will be read only as-
needed. You need not address every point mentioned within
each section – just those most significant for your organization
and the technology, and which result in a clear, coherent overall
presentation. Give approximately equal space to the sections.
Hints:
A. This presentation is designed to convince your CTO or CIO.
The slides should steer a course between the extremes of
wordiness (remember that you can talk to add content) and bare-
bones meaninglessness (viewers need words with meaning).
Vary bullet slides, figures, and tables to maintain attention.
B. You have limited space. Edit extensively because every
word counts.
1. Organizational Background
This section of the presentation demonstrates to the CTO/CIO

that you clearly understand your organization's background
enough to advocate the technology you propose. Emphasize the
basis on which it competes with similar organizations (or for
organizations where there is no relevant basis for competition,
describe the organization's mission). Include mention of
technology that your organization uses, but only to the extent
that it is relevant or needed to understand this presentation.
This will probably differ somewhat from assignment 1 in that it
describes the background for the proposals you are making in
this presentation: However, you are free to cut and paste from
assignment 1 if you wish. The section in this week’s notes on
SWOT may help too.
2. Technology Description
Identify and describe a technology (e.g., virtualization) that
your organization should adopt, along with its key capabilities
and characteristics. The specifics of “how” the technology
would be implemented are not required in this section. If it is
to replace technology your organization currently uses, consider
summarizing key technology differences. Focus on the here on
the essential technology description,as well as on the problems
you expect that adoption would solve. Do not focus on thes
details about the technology (especially ones extracted from
marketing materials). Where possible, focus on the technology,
rather than one particular product or supplier’s version. The
section in this week’s notes on IT portfolio management may
help for this and subsequent sections. In thinking about this,
note the section in this week’s notes on “The Technology Hype
Curve.”
3. Use and Benefits
In considering a technology, it is possible or even likely that
you have a specific use in mind (e.g., for a specific project, or
to solve a specific problem). However, keep in mind that a
technology may be used for a variety of purposes, and that after
its first use, others applications may present themselves.

Your task in this section is to be somewhat visionary, and
imagine, where possible, a range of potential uses (in part, so
that you can justify amortizing any one-time costs of adoption
over multiple uses) and benefits, while still remaining
pragmatic. Be clear about exactly how features of the
technology support the benefits described. Recall the
following.
a. Operational Uses and Benefits. What are the most significant
ways in which adoption of the technology could allow your
organization to operate more effectively? Consider both new
opportunities, as well as ways in which existing problems and
compliance requirements can be addressed.
b. Competitive Uses and Benefits. What are the most significant
ways in which adoption of the technology could benefit the
company's competitive strategy (or for organizations where
there is no relevant basis for competition, consider how
adoption would support the organization's mission)? Consider
new opportunities (e.g. ways of expanding or extending the
company's business model), as well as ways of addressing
existing environmental (e.g. regulatory, economic) and
competitive forces.
Hints:
c. For technologies whose benefits are primarily operational,
there may be no competitive use or benefit that you can clearly
articulate. Don't stretch to find competitive uses and benefits
that are not clear.
d. Internal cost reductions, by themselves, are primarily an
operational benefit rather than a competitive benefit, unless the
cost reduction is intended to directly affect product or market
positioning (e.g. by lowering prices in a market where cost is a
primary basis of competition) or to provide the crucial
additional revenues needed for specific competitive strategies.
e. Technologies that will be adopted for incorporation into
products or services that your organization offers may primarily
have competitive uses or benefits, and may not have significant

operational benefits for your organization. Note that
operational benefits refer to your organization, not to your
customers.
4. Technology Analysis
Summarize the preliminary analysis you have done which
convinced you that the technology is viable and appropriate for
its intended uses in the intended timeframe, and to identify any
additional analysis that will be needed as part of the adoption
consideration process.
Consider and address the specific points below to the extent that
they serve this purpose. The goal is not to necessarily address
every point, but to include material and organize this section in
a way that provides a clear, cohesive, and diligent analysis of
the technology, and how it would fit into your organization's
technology infrastructure. Focus here on “what” the technology
is, not necessarily “how” it will be implemented in the
organization. You may find the section “IT Architecture
Planning” – and, of course the section on “Technology
Analysis” – in this week’s notes helpful for this part of the
assignment.
a. Technology Maturity.
Think about where the technology currently falls on the reality
curve, where you think it will fall at the time you believe it
should be adopted, and what that says about whether your
organization should adopt it. What successes and difficulties
have been reported in both experimental and actual
deployments, especially in situations similar to the uses you
imagine? How stable and mature are the companies developing
and supplying the technology?
i. Technology Displacement and Disruption. In what ways, to
what degree, and how rapidly might this technology displace
other existing technologies, especially ones your organization is
currently using? How might this affect whether and when your
organization should adopt it?
ii. Technology Impacts. Think about ways in which the

technology would need to be integrated with your organization's
existing IT systems, and the associated costs and risks. How
might it result in new reliability, privacy, security and
compliance challenges? How might adoption drive or limit other
technology choices you expect to make in the future? What
other IT-based solutions or initiatives are needed to address
these issues and ameliorate these risks? (Note that initiatives or
processes that would involve your organization more broadly
are probably better discussed below under Addressing
Operational and Competitive Impacts).
iii. Technology Evolution. Think about how the technology
might evolve over the next five years and how this might affect
its value for your organization, or your organization's need to
adopt it. Might there be added costs or risks if your
organization doesn't have control over how it evolves?
b. Technology Alternatives. Are there alternative technologies
(other than the ones you are already using) that could be
adopted for the uses you envision? If so, how would they
compare with respect to technology evolution and lifetime
benefits, as well as costs, risks and benefits. Why do you
believe the technology you've chosen is the best alternative?
Note that if it's not clear, there might be some additional
evaluation needed during the adoption consideration process.
5. Operational and Competitive Risks
The purpose of this section is to describe the impact of adoption
and the approaches needed to ensure that any related issues and
risks are addressed successfully.
Consider including the following.
a. The major issues and risks that will need to be addressed
during integration and deployment of the technology (other than
ones fully addressed in the Technology Analysis section above)
b. What it is about your organization or the technology that
makes each of these issues or risks significant and critical (this
ensures that you focus on real issues specific to your

organization or the technology, not just general principles)
c. The operational processes, structures or approaches that will
be needed to address these issues and risks successfully. (These
should be very specific to your organization and to the
technology. Note that purely IT-specific solutions and
initiatives are probably better discussed above under
Technology Analysis.)
In regard to issues and risks, consider the following.
a. The structure, management, business processes, staff and
culture of your organization, and whether its capabilities are
adequate for successful adoption, as well as any negative
impacts that adoption might have.
b. The external relationships of the organization, and how they
might be impacted by adoption.
c. Whether adoption might have any negative impact on the
basis of competition in your segment (e.g. might adoption lead
to commoditization) or on the success of your organization's
competitive strategy.
In regard to processes, structures and approaches needed for
successful integration and deployment, consider the following.
d. relationships with technology suppliers
e. stakeholder involvement
f. change management
g. resource and capability management (including outsourcing)
h. pace and extent of deployment
i. management and governance structure and activities
6. Adoption Analysis Summary
The purpose of this section is to summarize the key reasons why
you believe, on balance (considering costs, risks etc.), that the
technology is seriously worth considering for adoption, and the
reasons for the specific timeframe you are recommending.
Consider and address the specific points below only to the
extent that they serve this purpose. The goal is not to
necessarily address each and every point, but to include
material and organize this section in a way that provides a clear,

cohesive and compelling overall analysis that supports your
recommendation.
j. Adoption Cost and Value. What are the main sources of cost
due to adoption, including some rough $ estimates? What are
the overall costs, and how would they be spread out? What's
the ROI (or other basis for evaluating return), or more
generally, how can the costs be justified relative to the
perceived value of adoption? You might think about
quantifying the perceived value in terms of $'s, although this
can be hard to estimate, especially when the benefits involve
opportunities such as preparing for potential business model
evolution, or are part of a larger initiative.
k. Risks of Adoption. What are the most significant risks of
adopting the technology? What's the likelihood of the various
risks? What kinds of effort should be put into ameliorating (vs.
accepting) the various risks, and what are the associated costs?
(Note that these may actually dominate other costs!) What are
the costs and other impacts if the risk scenarios actually occur?
l. Other Approaches. For the uses you intend, are there other
approaches that need to be considered that do NOT involve
adoption of new technology, and if so, why? How do they
compare with respect to costs, risks and benefits? Why do you
believe that adopting new technology makes most sense? Note
that if it's not clear, there might be some additional evaluation
processes needed during the adoption consideration process.
m. Relative Value. How important and urgent is adoption of
this technology relative to other IT activities your organization
could undertake instead? How well does adoption of this
technology fit into your organization's overall IT portfolio?
Adoption of this Technology. It is almost certainly worth
noting what kind of adopter your organization should be for this
technology, with respect to (a) all potential adopters, (b) all
organizations in your industry/segment and (c) just those of
comparable size. You will probably want to provide some
justification if the answers are different than the one for
organizational adoption, in general.

Running head: STARBUCKS RETAIL COMPANY
1
STARBUCKS RETAIL COMPANY 5
Analysis of Starbucks Retail Company

Analysis of Starbucks Retail Company
Introduction
Starbucks Retail Company is a retail company that purchases
and roasts whole bean coffee. The company produces the most
excellent coffee as well as providing connections with the
customers it serves, which gives it a competitive advantage.
This paper is going to provide an analysis of Starbucks Retail
Company in terms of business model, competitive forces, and
other challenges, competitive strategies, the evolution of the
business model, and the best IT-supported proposal.
The business model of Starbucks Retail Company
The company brand name is StarbucksCompany. The company
has about 191,000 employees operating in different capacities in
different stores. According to popularity Starbucks Retail
Company is at position five worldwide based on the ratings
done online by Google survey and fortune. The company has
22,000 stores in 66 countries. The company operates within the
local coffee and snacks store industry. The company has stores
and shops where it purchases and roasts whole bean coffee.
Some of the company stores also roll beer and wine options.
The company is a product business entity where it mainly
focuses on the roasted coffee targeting customers in 66
countries. The only services it offers are after-sell services to
customers, which are aimed at creating customer loyalty. Other
services are just aimed at attracting more customers. But there
is no service which is offered to the customers for business
purposes because its main focus is the product which is roasted
coffee.
The company offers roasted and brewed coffee to its customers
and has a market share in over 66 countries, which enables the
state to obtain enough revenue that is essential for product and
process development that gives the outcome of the company a
competitive advantage. The company is at the peak of the
market as compared to other companies in the same industry.
The company earns revenue by selling roasted and brewed

coffee to customers and get money in return. The company uses
promotional strategies to ensure that it increases its market
share and be able to serve more customer base. Promotions
offered include getting an opportunity to celebrate with a
birthday treat when ordering ahead and paying by the phone.
You can get a chance of being gifted with one free. Different
brands of the product have different prices. The brands include
whole bean, cold brew, verismo pods, and VIA instant. They are
all priced differently to attract more market segments to
maximize profit through increased revenue.
The company has unique features that help it to get more
revenues as compared to its customers, and this allows the
company to position it in a higher position in the market. The
company uses an online platform that enables users to make
payments online, which is convenient to customers who are
busy as they get an opportunity of getting the product of the
company at the comfort of their home. The company also has an
elaborate plan where shares are bought and sold, and
shareholding act as one way of the company generating capital
responsible for the expansion of the business and financing
other business operations. Having an adequate base of financial
sources is what has enabled the company to succeed.
The company also performs market segmentation as a way of
ensuring that it reaches out to more customers. It benefits from
this strategy through differentiating products to suit different
market segments, and those differentiated products are priced
differently. Market segmentation is a better strategy for the
company that has enough capital to cover a significant market
share to maximize profit.
Other methods used by the company to ensure that it controls
the market is through continuous advertisement and promotions.
The options selected as an advertisement method include the use
of social media platforms such as Twitter and Facebook, where
promotional activities are shared, and this increases awareness
to the public, which ensures that the company expands its

market share.
On operational, the company has more stores distributed in
more than 66 countries. By opening multiple stores in different
countries enables the company to spread the risks associated
with the operations, which are a positive strategy for the
company. Different states have different capabilities in terms of
the skills of the employees. Therefore, by operating in different
countries, it enables the company to benefit from dynamic
ability creating by working in different countries.
Starbucks Retail Company uses a cloud computing model as a
way of ensuring that data is stored safely. Most of the activities
of the company are carried out online and knowing that there is
a lot of cybercrime incidence in online business operations.
Customers who pay online for the products they receive from
the company are the reasons as to why the company decided to
implement the use of cloud computing to ensure that data is not
lost. It can be retrieved in case there are complaints to be
handled concerning the payments.
Competitive forces for the company and challenges that need to
be taken care
The company's profitability and position in the market can
easily be determined using Porter's five competitive forces,
which include the existence of substitute products, potential
entry of new entrants into the market, bargaining power of the
buyer, bargaining power of the supplier, and presence of
competitors. When the company analyses correctly, these five
forces and use proper strategies, then it is capable of
commanding the market and gain a competitive advantage.
The bargaining power of suppliers who are supplying the
company with coffee is not high as compared to the capabilities
of the company. The company used the strategies of getting raw
materials from more than one supplier, which forces the
suppliers to compete among themselves by providing raw
materials of high quality at a fordable price to get the loyalty of
the company for continuous business. This strategy has enabled
the company to have powers over the suppliers by preventing

monopoly powers of the suppliers, which gives the suppliers
capabilities of dictating the price. When the company has skills,
then it is in a position to negotiate for a low cost, which enables
it to maximize profit as a result of reduced raw material price
and increased revenue as a result of increased sales due to the
usage of high-quality raw materials (Porter, 2008).
The bargaining power of the buyers is high because of the
existence of competing products in the market. Customers have
the final say on whether to buy the products from the company
or not. Because of the presence of competing companies in the
market, the company needs to consider customers’ needs and
preferences before designing product and process development
as a way of gaining a competitive advantage. For the company
to fully maximize the profit, it needs to come up with a pricing
policy that is around market equilibrium where the price is
equated at the demand level of the customers so that they don't
switch to alternative products of the competitors of the company
in the market.
There is the potential entry of new entrants into the market
because the market is not regulated in a manner that eliminates
new entrants from the market. This scenario of restrictions only
exists where the government authorities governing the industry
give monopoly powers to one company to operate within the
market, which is not the case for this case. The business also
does need high capital to start because one can just start with
one shop or store and operates freely. Monopoly can even exist
where other companies are locked out due to high initial capital,
and the last reason why copyright does not exist in this market
is that it does not require unique technology that cannot be
managed by other competing firms which makes it easier for
other actors to copy the technology and uses it in operation
hence competing with the existing firm.
On the part of the existence of competitors in the market that

competes with Starbucks Retail Company, there is evidence
that, indeed, other companies are dealing with the same
products and share the same market with the company. Such
companies include Anodyne Coffee Roasters, Tandem Coffee
Roasters, La Colombe, Stumptown, and Intelligentsia. Having
more competitors in the market means that for the company to
command a more significant market share as a way of
maximizing its profit, it needs to have better strategies that will
enable it to be more attractive to customers as compared to
other competitors. One way of acquiring this competitive
advantage over the competitors is by performing a useful market
intelligence survey to understands the preferences and needs of
the customers so that products are processed in a way that is
attractive to customers. Another strategy is for the company to
analyze and understand the pricing policy of the competing
companies and price its product slightly lower than the
competitor's price. To maximize profit while pricing lower is by
the company implementing a low-cost strategy where it
emphasizes the efficiency of production, which minimizes
wastages, and the energy will enable the company to make a
profit even if the prices are lower.
Another way of having a competitive advantage over the
competitors is for the company to perform market penetration
where it targets new markets which are not currently being
covered and these new markets will enable the company to
increase its market share and have a competitive advantage over
the competitors by receiving more profits than the competitors
that will allow it to expand its production and be able to
produce the products that meet the market demand through
improved technology. Technology is a better option for
improved efficiency in production, which is beneficial to the
company. But for the companies to use modern technology
effectively, it has adequate capital to finance and implement
new technology.

There is the existence of substitute goods in the market that
competes with the products of Starbucks Retail Company. The
products are both roasted and brewed coffee that is being
produced by the competitors of Starbucks Retail Company such
as Anodyne Coffee Roasters, Tandem Coffee Roasters, La
Colombe, Stumptown, and Intelligentsia. The existence of
similar products in the market creates high competition, and for
Starbucks Retail Company to continue having a competitive
advantage in the market, it needs to start producing at least
differentiated products through product development and
process. When similar alternative products are in the market,
then any slight decision that goes against the wish of the
customers leads to a reduction in the demand for the outcomes
of the company.
The other way in which the company can ensure that its
products remain competitive in the market is by the company
providing better customer relations and services where it allows
the customers to give feedback after using the products from the
company. Feedback helps the company to upgrade its service s
and be able to produce products that meet the needs of the
customers. When the needs of the customers are satisfied, then
they are in a position to increase the demand for such products
helping the company to meet its primary objective of profit
maximization.
Challenges facing the operations of the company
The potential problems that are likely to affect the operation of
the company include cyber scams. The company is expected to
meet that challenge in the near feature because it is currently
using an online program as a platform for the customers to make
orders and make payments. Although online payment is a
convenient and faster method, it has a high risk of data-stealing
by hackers through the internet. When individuals pay via the
internet, information is stored in the network, and such data is
confident such as credit card information and bank account
information, which, when it leaks to the public it can cause

more harm where victims can lose their money to the hackers.
When the company allows hackers to get confidential
information from the customers and uses it to fraud them, then
the company risks losing the loyalty of customers, and this act
of information-stealing gives the company a bad reputation as
no one like information that is private to be shared to the
public.
The next challenge is the difficulty of managing diversity in the
person being hired by the company. Because the company is a
multinational company, it employs employees from a different
country to help the company runs effectively. People from
different countries have different cultures and beliefs, which
brings differences in how they manage and operate under
certain circumstances. Therefore, when the management does
not come up with a better way of managing diversity properly,
then it can a source of conflict within the company leading
frictions between employees, which affects the operation of the
company negatively.
Differences in regulation which keeps on changing in different
countries also may affect and influence the operation of the
company. The company needs to understand all the rules
governing the industries in different countries that it needs to
operate in. It also needs to be flexible in its structure so that
any changes in the regulation do not lead to the collapse of the
business. Still, instead, the company needs to be able to adapt to
the changes swiftly, and this why flexibility is necessary.
Raw materials for the company are agricultural-based, which is
fresh coffee. Coffee depends on the climatic conditions such as
availability of rainfall and warmth at an individual level. In the
current climatic conditions are changing, and it is difficult for
the forecasting team to predict with one hundred percent
(100%). Therefore, the company needs to have alternative
options of coming up with ways of controlling the procurement
of raw materials by coming with technology that will ensure
that the coffee always experiences the required weather
condition.

There is also a challenge of increased competition in the
oversee countries where the locals will prefer the local brands
assuming as one of their own. Sometimes I am challenging to
enter into the new market that has already had suppliers and try
to penetrate those markets. Penetrating is hard because the
existing supplier in the market has a greater understanding of
the customers in the market and is likely to produce the
products that meet their demand. Therefore, the company needs
to come up with ways that will ensure that it also understands
the need of the customers in the new market so that it even start
producing products that meet the preferences of the customers.
Another challenge is the regulation by the state that any
company was operating in the foreign land to incorporate a
higher percentage of the locals in the operations and sourcing of
the raw materials. Companies cannot be allowed to run, but
when it needs to meet this regulation, there is a threat of
leaving competent workers foreign countries that can ensure the
efficiency of operating leading high cost of operation. This
regulation will automatically lead to the high pricing of the
products to meet the cost of production used. The effect will be
a reduction in the demand for the outcome of the company, as
no customer is willing to pay more for products when
alternative products are available.
Technological changes that the company needs to keep pace
with is costly. There is no way the company can resist changes
in technology as this resistance can render the products and
services of the company obsolete. But implementing and
running the new technology in operation is expensive, which
needs the company to identify the way of acquiring enough
capital that at any time can be used to install new technology so
that the company remains competitive in the market.
Competitive strategies that can help the company in solving the
challenges
The challenge of cybercrime
On the problem of cybercrime, the company needs to come up
with network penetration test that will help the information and

Technology (IT) team to monitor the network and analyzes
potential attack on the system of the company. The penetration
test will ensure that company management is aware of the
potential risk on the web, and the necessary action is taken
before it happens, which saves the reputation of the company.
The company portal should allow users to use usernames and
passwords which can not be easily predicted by the hackers in
logging in to the company portal. The use of usernames and
passwords will help in denying unauthorized access to
information on the network (Rustad, 2001).
Another way of ensuring the safety of online transactions is by
the management team to implement encryptions of the message
being transferred by the internet. When words are encrypted, it
makes it hard for hackers to access and manipulate such
information. When the company ensures that information about
customers is safe, then the reputation of the company is
boosted, and customers will be willing to transact with the
company without fear.
Diversity of employees hired
For the company to successfully get the best from employees, it
needs to analyze and understands the strength of employees in
terms of experience, capabilities, and skills. After following,
the company then needs to use employees in ways that allow
them to produce maximum results. The management also needs
to accept differences in employees they are dealing with them.
It is, therefore, essential for the administration to be flexible in
the management style so as obtain the best from the employees.
We have employees who must be closely supervised for them to
perform well. For this kind of employee, close monitoring
leadership style can work, while for those who can work
without close supervision, a democratic leadership style can
work. It is, therefore, essential for the management to accept the
diversity of employees and manage them differently to get the
best out of them (Liu, 2003).

When creating teamwork, the management should ensure that in
one group employees with different background and skills are
grouped so that they can share a lot and understands the
importance of each other in achieving the objective of the
company. Working as a team it makes individual feel equal and
essential in the achievement of the aim of the company. By
grouping them in organizations, it improves the relationship
within employees. It makes them connected to each other hence
reducing conflict between them, which is the negative effect of
employee diversity if not appropriately managed.
Different regulation in different countries regulating the similar
industry
The company needs to have legal advisors in different
countries they wish to operate so that they are made familiar
with the legal requirement before the establishment of the
business. It is very costly for the company to establish itself
before ensuring that it meets all the legal requirements. The
legal team with other experts needs to be updated so that they
can be in a position to predict future changes in the legal
requirements so that the company is in place to plan itself so
that the changes do not affect its operation. The company
should avoid shortcuts and ensure that it follows the
requirement of the state even if it is costly because it risks
being closed when any of the regulations are not supported,
such as tax obligations and other statutory provisions (Joskow,
1996).
Another way for the company to ensure that it does not have a
conflict with the authorities in the new market is for the
management team to perform regulatory research to understand
all the legal requirements and financial requirements associated
with them so that the cost can be compared with the market
opportunity available.

Increased competition in foreign countries
Increased competition is a threat to the success of the
company, and it is therefore essential for the company to come
with better strategies that will enable it to have a competitive
advantage in the market over its competitors. The first strategy
is for the company to implement the use of a low-cost plan
where the company uses new technology and upgrades its
processes so that wastages are minimized to increase production
efficiency, which lowers the production cost of the products
being manufactured by the company. When the cost of
production is lower than the competitors, then the company is in
a position to price its products more economical than its
competitors and still be in a place to make a profit.
Another way of overcoming increased competition is for the
company to increase its advertisement and promotional
activities using different social media platforms such as
Whatsapp, Twitter, LinkedIn, and other broadcasting media.
When announcements are successful and potential customers
made aware of the benefits of the products being offered by the
company, then the company is in a position to increase its
market share as compared to the other competitors.
The next strategy is for the company to perform process
upgrades, which will enable it to complete product development
through product differentiation so that its product looks slightly
different and attractive to consumers, unlike competitors'
products. Product differential is essential as it can allow the
product to segment the entire market and come up with different
market segments, which will then enable the company to
produce a product to specific parts because different sectors
have different preferences.
Product diversification is another strategy that the company can
use to overcome competition in the market. When the game is
too high, and it is difficult for the company to differentiate its
product, then it decides to diversify the products it's producing
by coming up with more than one product line. When the
company is providing to the market more than one product line,

it is easy to spread risk because the profit of another product
can cover the loss of one product, and this will enable the
company to have a competitive advantage over its competitors.
Changing technology
The change in technology is another challenge, and the
company needs to identify ways of ensuring that it cop up with
changes in technology failure of which can lead to the collapse
of the company. To successfully implement the new technology
for the benefit of the company, the management team needs to
be updated s that any new technology in the industry is
implemented first so that the company becomes one among the
first implementers so that it can benefit before the technology
spread to other competitors. But for the company to be among
the early implementers, it needs to have a strong research team
that will be updated and provides a recommendation to the
management about the change in technology. The company
needs to structure its management structure in a way that allows
it to be flexible, which is essential in accommodating changes
in technology. Another requirement is for the management to set
aside financial resources that will enable the team to finance the
required changes at any time because you cannot predict
technological change. Hence, keeping money apart for the
implementation of any change is necessary.
Business model evolution
This section describes changes in the business model that is
useful for the competitiveness of the company in the market.
The article will cover changes that can be made on the products
and services being offered in the market, process upgrade, how
the company can perform product diversification, and how the
company can enter into the new market.
Product development
Products and services being offered by the company need to be
customer-driven products where its features reflect the
expectations and preferences of the customers. This can be done

by adding more features into the product by adding some
ingredients so that the products become of more use than they
were initially processed. Another way is ensuring that customer
relationship with the company is the best so that customers get
the opportunity of using the products which have the required
qualities. After tasting the products, then retention of such
customers is more natural, and customer loyalty to the company
is the main success factor of the business. Another way is by the
company to differentiate the product of similar content by
branding and to package them differently so that they can be
able to target different market segmentation as it will give
opportunities for customers to get products of their choice in
terms of branding and packaging.
Another way is sorting the products and grading them into
different groups to match them with different economic classes
in the market. Products can be classified in terms of quality
features such as chemical and nutritional composition, color,
size, and attractiveness of the packaging material. When
merchandise is graded differently, it will allow the company to
cover different segments in the market as everybody will have a
chance of using the company products, which are priced
individually depending on the grading quality.
Improving internal processes of the company in the production
sector
One way of ensuring that the company evolves and gain a
competitive advantage in the market is by improving internal
processes through process upgrade. Process upgrades can be
done through using modern technology in the roasting of coffee
to minimize wastages of raw materials through increased
efficiency. When proper technique is used and health
precautions observed in the processing stage, then the company
is in a position providing quality roasted coffee the market as
compared to the ones produced by the competitors.
Another way of upgrading the processing of the produced
product is for the company to hire qualified and experienced
personnel to be in charge of the production process. Having

experienced and skilled employees is a significant boost as they
are familiar with production techniques, and chances of them
making mistakes that can lead to loss are minimal. Employees
should be assigned in areas where they have the necessary
skills, and by placing employees in proper position improves
their efficiency as well as production.
The company need also to have a monitoring and evaluation
team to ensure that all the required procedures are followed for
the production of quality products. The team must perform a
continuous assessment of production processes to ensure that
the production exercise is up to date, and no step is being
omitted. In case of any deviation to the initially planned
method, an explanation is to be given so that it is assessed if it
will lead to improvement. If not, then corrective measures are to
be put in place to ensure that production follows the laid down
procedures.
Production of new related products
The company need also to start producing new similar products
through providing different product lines in the market, which
will allow the company to serve different segments of the
market. For the company to start producing a separate range of
the product, it needs to ensure that it has the required
technology, capital, and personnel to implement successfully
and manage the production of new products. Producing new
products adds the product lines of the company in the market,
and it will help in providing new market share to the company.
The benefit of product diversification which producing more
than one product line to supply in the market is that help the
company increases its sells by targeting a full scope of
customers and by increasing the sales of the product the
company is in position to increases its profit which is the main
objective of any business company.
Entering a new market through market segmentation
When the market performs market segmentation where it
groups marketing depending on the preferences and needs of the
customers as well as the financial status of the customers, then

the company is in the position of producing a variety of
products targeting different categories of the customers at one
time. Therefore, market segmentation is necessary as it allows
the company to focus on producing goods that meet the
requirement of various types of customers at the same time. The
advantage of market segmentation is that when the needs of the
customers are met, the market share of the company is
increased, which increases the revenue as well as the profit
(Datta, 1996).
Entering the new market where that company has not operated
before is also one way of increasing the market share of the
company but for the company to benefit from increased market
share it needs to perform market survey which will enable it to
understand all the requirements and need of the customers in the
new market before deciding to produce and supply product in
the new market.
Another strategy of entering into the new market thriving is for
the company management to analyze the competitors in the new
market to understand the qualities of the products they are
supplying to the market, the pricing policy is used, and the
market share they are controlling in that market. By
understanding the actions of the competitors, it gives the
company management team an opportunity of providing goods
and services that are better than the competitors to attract
customers from the competitors. Lowering the price in the new
market while starting is also a better strategy because the new
company does not currently have customers, so by reducing the
amount the company will be in a position to attract customers
who are price sensitive.
Starting a new business model
The company can as well decide to begin producing new
products and services that were not being offered before. This
strategy helps the company to diversify its production and in
case of failure of the core products of the business the company
will still be in a position to sell other products and this helps
the company from collapsing in case of a decline in demand of

one product as a result of different challenges faced by the
company.
For the company to successfully start a new business model, it
needs to research thoroughly on the challenges and
opportunities of the products it wants to start producing. It is
also essential to research on the needs of the customers so that
the new products are assessed to determine if they meet the
demand and specification of the potential customers. After the
research, there is a need for the management of the company to
decide whether or not it has the necessary financial and human
resources needed for the implementation and management of the
change as well as assessing the availability of the technology
that can help the company produce the new product with high
efficiency.
Technology that can help the company evolve its business
model
For the company to achieve the object of ensuring that its
business model is the best, it needs technology to facilitate
activities to be performed. The technology that is best suited for
this evolution is the establishment of a unified system by the
company where all the functions are integrated in a single order
where customers can get information about the different
products being offered in the market. They can as well give
feedback, which can help the management in coming up with
products in consideration of the input of the customers.
The system will help the company to reach more customers
within the shortest time with minimal financial resources as
customers can just log into the operation of the company and
get the information they need concerning the company. When
the new product lines are developed, it is easier for customers
to be aware as it will be shared into the system. The system will
also allow customers to subscribe to the notification concerning
new products and services being offered by the company. An
interactive process between the company and the customers will
enable the company to win the loyalty of customers as the
customer's decisions are taken into consideration before action

is made.
When the unified system is implemented correctly, then the
company will save the cost as transaction costs used for
traveling, and advertisement will be reduced because, by the use
of the system, the customers will be interacting with the
company just through the unified system. It will enable the
company to achieve the objective of implementing a low-cost
strategy to be competitive in the market as compared to its
competitors.
Another benefit of the technology is that it will reduce chances
of corruption and fraud cases especially by the finance
department personnel as no cash will be given to financing
department by the customers because the system will allow
customers to pay online and by finance personnel not holding
the cash the temptation of taking money that is meant for the
business is minimal because hard money is tempting as
compared to soft money which is paid through online method.
References
Datta, Y. (1996). Market segmentation: An integrated
framework. Long Range Planning, 29(6), 797-811.
Edvardsson, B., &Enquist, B. (2008, December). Values-based
Service for Sustainable Business: Lessons from the retailers
IKEA; Starbucks; H&M and Body Shop. In the 11th QMOD
Conference. Quality Management and Organizational
Development Attaining Sustainability From Organizational
Excellence to SustainAble Excellence; 20-22 August; 2008 in
Helsingborg; Sweden (No. 033, pp. 203-214). Linköping
University Electronic Press.
Joskow, P. L. (1996). Introducing competition into regulated
network industries: from hierarchies to markets in
electricity. Industrial and corporate change, 5(2), 341-382.
Liu, S. (2003). Cultures within the culture: Unity and diversity
of two generations of employees in state-owned enterprises.
Human Relations, 56(4), 387-417.

Porter, M. E. (2008). The five competitive forces that shape
strategy. Harvard business review, 86(1), 25-40.
Rustad, M. L. (2001). Private enforcement of cybercrime on the
electronic frontier. S. Cal. Interdisc. LJ, 11, 63.

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