Pure Organic Food and Juice Bar Case Solution

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affect business profitability is crucial. Pure organic food and juice bar business activities require high capital expenditure in a low-margin industry. This affects business profitability as the business adopts both low-cost and differentiated strategies to enable them to compete with all industry players. The marketing and advertising strategies adopted by Graham and Buob is not sufficient to capture a larger market base as the market opportunities go beyond pamphlets and print media to online representation. Staff numbers and capacity of pure organic food and juice bar is limited to producing products and services lacking staffs with skills such as accounting, marketing, finance amongst others. Collingwood, on the other hand, possesses a threat to business profitability, with a population of approximately 17,000 residents with an average income of $21,896, local patronage is impacted. The seasonal fluctuation of tourists visits limits business profits at certain times of the year. Pure organic food and juice bar experiences intense competition from conventional restaurants offering organic and vegan menus. Although competition enhances consumer education on the health benefits and savory tastes of organic and vegan delicacies, it impacts the business monopoly enjoyed by pure organic food and juice bar.

Alternative Solutions

After careful consideration of the internal and external business environment of pure organic food and juice bar, there are several solutions that could be adopted by Graham and Buob to ensure business profitability in sustainable and ethical practices.

Brand Repositioning

The competitive strategy applied in pure organic food and juice bar seeks to incorporate a low-cost and differentiation strategy which may affect profits in a highly capital-intensive market. Graham and Buob could adopt a focused-differentiated strategy that concentrates on quality which as explained by Michael Porter provides a competitive advantage in a highly expansive market (Porter, 2008). This may lead to price increases for consumers, thus, reducing patronage, however, it could be tackled with effective marketing strategies.

Marketing Strategies

Marketing strategies involve full consideration of the 4 P’s, the product- customer solution, placement- convenience, promotion- communication, and pricing- cost to customers. Graham and Buob could redefine their target segment into two; consumers willing to pay a premium for organics and consumers committed to a healthy lifestyle. This would affect targeting strategies as the latter would require resources in consumer education.

Advertising Strategies

Globalization is the force of business activities in the 21st century and taking advantage of this would be beneficial to long term sustainability for pure organic food and juice bar. It impacts the entire value chain from the supply chain to the final consumer. Technology has affected how business connects with the final consumer, hence, pure organic food and juice bar has the potential to tap into more consumer base online. Diversifying business activities could include educating consumers online and conducting seminars which trickle down to the business advertisement.

Staffing

Human capital is the crux of every business operation, therefore recognizing individual strengths and hiring the right staff with the right skills at the right time could offer increased business opportunities for pure organic food and juice bar. Additionally, by having the right capacity, Graham and Buob can focus on managing business activities geared towards business profitability and sustainability.

Partnership and Business Expansion

Partnership with other business ventures that are aligned with the company’s core values could help accelerate market growth. Although, they have established relationships with local companies, a structured partnership that outlines values, expectations, and profits could promote the business.

Innovation

Adapting and re-evaluating business activities in response to market trends are vital. Innovating product offerings and staffing capacity to reflect peak and off-peak seasons could improve business activities. Graham and Buob could focus on other business activities during off peak and reduce capital expenditure at such times. The inclusion of wine with dinner could attract more consumers and shorter hours during off season could also