Business Studies

Competitive Analysis for the Bean

Before opening a coffee shop, called The Bean, at the Yokosuka Naval Station, Japan, it is necessary to consider the competitive environment. A competitive analysis looks at the competition that exists within the proposed market, this requires the identification and consideration of the types of firms and products that 'The Bean' will need to effectively compete with if the venture is to be successful. The competition may be divided into different types of competition; the first category will direct competition, firms that are seeking to compete in the same market with the same, or a very similar product. Firms that are competing for the same market, with a differentiated product will also provide competition. It may also be argued that the firm will also compete with companies that provide a different product, but satisfies the same customer needs (substitute products) (Mintzberg et al.,...
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