Issues for example could occur if business in one coffee shop is unexpected good for the day. However, because this business was unanticipated, the shop may encounter difficulties with appropriate inventory. Due to the proximity to the store, goods and inventory could easily be transferred to satisfy unexpected demand. This is particular useful in the early stages of business as inventory control is critical to profitability and return on assets.

In addition, having the store in the same demographic marketing area will allow the owners to further build the brand and competitive advantages over peers in the industry. Due in part to the commodity like nature of coffee, brand allows the owners to charge premium prices. This occurs with many coffee shops such as Starbucks, or Dunkin Donuts. Their coffee in many instances is similar to competitors. However, due to the brand, and what it represents to the consumer, both...
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