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Café Xaragua, The Calgary Opportunity Case Solution & Answer

Café Xaragua, The Calgary Opportunity  Case Solution

Options presented in the case

In 2011, Rob Lehnert, 21 was in his last semester of degree completion and was looking for a possibility to hold on. In his first year he had the chance to go to Haiti (A Caribbean country). In Haiti he saw excellent future for profitable growth and found the country to be full of distinctive assets. In addition, the area has not been favorable visited by a private division that builds Lerner’s true interest. When he came back, he instantly decided to tell his two friends about the chances for profitability of the business and headed to Haiti with a truck. Before going their they did some studies based on the web-browsing and found that pieces of the coffee were quiet engaging and full of passion. In southern Haiti they found high-quality coffee seeds, may be the best in the world. In Sep 2011 the three friends brought in their first tanker and threw out the sizzling -related process. In a short time they sold all their items in Lehnert’s city and made a huge income of $ 20000. After this they planned to increase their business by continuing to present it as anitem. So, they plan to come up with anidea of cafe called “Cafe Xaragua”.

Evaluate the options by considering the following:

What are the advantages and disadvantages of selling the product in Calgary, Alberta?

Alberta

With the residents of over 3.8 m, Alberta had the largest citizens of Canada’s 3 provinces. Alberta has been the most important visiting place for many years, fascinating people from all over the world. The most liked of the several tourist attractiveness are the magnificent Mountains, where 2 of the most well renowned spots, Banff and Jasper, are located. Calgary-Edmonton passage was examined as one of Alberta’s most crowded cities in Canada. It is one of the fastest developing-divisions in the country, So Alberta is a good place to start a business.

 Calgary

Rationally,Calgary has a stable economy and is often mentioned to as Canada’s profitable capacity. Calgary’s economy has been doing an excellent job for Canada for so much time. For years it was also considered that it would resume to lead the way in the expected future. The people of Calgary are youthful, well-educated, As a strong business place, Calgary hires a large number of individuals from age 20 to 35 years, so it will be an important factor to be considered for  Xaragua’s market, because its selected market has sufficient wealth and it is interested in the coffee. These young people-tend to buy the Xaragua’s high price coffee-easily, because they have already bought coffee from different high-priced coffee outlets in the city, which indicates that this market is a best choice for the café to start its operations in.

Competitive Analysis

As the Kensington, which was chosen in Calgary which was very beneficial to business growth. So Café Xaragua will have to face big companions like Starbucks, Second cup. Starbucks is a famous name in the coffee business and has an advanced worldly sales platform with a distinctive brand name. They have a well-known contribution of coffee, an uncommon and constant taste by continuing an important financial position. Furthermore, Second Cup is a Canadian coffee distributes that works in more than 344 cafes all around the Canada and is well renowned for its coffee. It was establish back in 1975 and is very aggressive.

SWOT Analysis

Strengths

  • The taste of the items is very good.
  • The item is drink by 66% ​​of Canadians, which can be used as a tool to advertise and sell the item by keeping good quality.
  • Bring in high standard coffee from Haiti, therefore decreases costs.
  • Less cost ($ 3 regular and $ 4 special)

Weaknesses

  • New item name
  • Low investment
  • New working in the market.
  • Giving online service only.
  • Resource-slow funding in growth opportunities.

Opportunities

  • 66% of the people in Canada like and drink coffee every day.
  • Increasing purchase for coffee in young individuals (Colleges and Universities)
  • Coffee seeds are the 2nd largest production in Canada.
  • Increasing purchase for new and sweet coffee in young individuals.

Threats

  • New Competitors
  • Existing competitors (Starbucksetc.)
  • Excellent advertising drives from competitors……………………..

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