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Case Study : Cafe Expresso, One Of The Leading Companies From The Coffee Industry

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Introduction This case study is about Café Expresso, one of the leading companies in the coffee industry. Due to their “first mover” advantage the organisation became market leader, but their success lasted only 15 years, since their competitors quickly replicated Café Expresso’s profitable business model. In consequence the company had to record a disastrous loss in market share and lower customer frequency, which forced them to react. The circumstances challenged Café Expresso to rethink their entire business model. The only way to make it to the top again was to reorganise the HR strategy and adapt the company’s value statement, their mission and vision. The re-launch was a successful step into the right direction, but nevertheless the company has work hard to repeatedly become brand leader. In the following task, I will dwell on Café Expresso HR approaches before and after the implementation of the new business model and furthermore examine their key differences. Task 1 I will start my comparison with the approach of Michael Porter. It is important to know, that he distinguishes between three main focuses of business strategies, which are innovation, quality enhancement and cost reduction. In this case study it obvious that before the implementation of the new HR-strategy, Café Expresso concentrated on cost reduction, with the objective to achieve a competitive advantage through keeping their costs as low as possible. . The “coffee house” industry is known for its

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