Question
read the following case and answer the questions below The country's most famous coffee shop Cilantro a famous known coffee shop for any coffee lovers
read the following case and answer the questions below
The country's most famous coffee shop "Cilantro" a famous known coffee shop for any coffee lovers in Egypt is currently facing huge problems. More specifically, if faces huge decline in its sales revenues due to falling demand and currently it faces real threat of going out of the market. During the last decade things have become so bad. "Cilantro" is being attacked by their customers for using poor quality of coffee beans which affect the taste of the coffee. More specifically, when they ask their customers why they are not satisfied they respond by "you have increased the prices of our favorite coffee, without preserving the same quality of the coffee beans". In other words, Cilantro were accused of serving overcharged products with low quality.
Moreover, it is a long time since any self-respecting teenager went willingly into cilantro seeking a good cup of coffee. Now even parents who used to go there for coffee have learned to say no, we prefer to have our coffee in another place to enjoy a good taste of the coffee especially if they used to have it with flavors - something that is not offered in Cilantro. This meant that the company rested on its laurels and refused any 'innovations' such as adding flavors to the coffee, offering fresh backed cakes and croissants; something is highly preferable for morning coffee lovers. More specifically, tastes and preferences of coffee addicts have changed where it's not only a cup of coffee no now coffee with flavors, whipped cream, extra shots of coffee and nice breakfast are really matters.
On the other hand, the rigidity of the management was not justified, especially with the large competition Cilantro is facing from its market competitors such as "Starbucks", "Costa", and "Espresso Lab". The competitors provide coffee with different flavors, high quality coffee beans, and for sure fresh backed food stuff are offered all over the day. These services are also provided with highly competitive prices.
In beverages, moreover, Cilantro faces problems that cannot be solved simply by improving its coffee. There are now huge governmental restrictions on importing coffee beans from Brazil - one of the leading countries in coffee beans exports to maintain stability in its exchange rate. Finally, Cilantro has also been accused for not having any strong advertising campaign in the last decade a factor which affects its sales revenue.
Based on the previous case study, answer all the following questions:
Questions 1: Identify the main factors affecting the demand for Cilantro coffee.
Question 2: Analyze the weaknesses and threats on the demand side of Cilantro, relating these to controllable and uncontrollable factors.
Question 3: From pure managerial perspective provide a proposal to the management recommending how "Cilantro" can attract their old customers back and how to re - innovate its structure to increase its market share
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