V. Competitive Analysis
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Direct & Indirect Competitors
The following coffee/tea shops are located within a 2-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Tea Haven
Established in 1995, Tea Haven is a small bit of heaven for those needing a break from all the hustle and bustle of downtown life. It offers a nice selection of black teas, green teas, and white teas, as well as a cozy and calm atmosphere. For decades, residents have frequented this tea shop to get away from the craziness of modern-day life and enjoy all the benefits that tea can provide.
Though we expect Tea Haven to continue to thrive, its menu is far more limited than the menu we are currently developing. They focus primarily on black teas, white teas, and green teas, with no oolong, herbal, or other options. [Company Name] will offer a much greater variety so that all kinds of tea lovers can enjoy our tea shop. Tea Haven is also located on the outskirts of downtown, which is not as convenient as our proposed location.
Oaktown’s Organic Café
Oaktown’s Organic Café has been a powerhouse of coffee and tea for decades. This local café offers the works, from every kind of coffee you can imagine to a decent selection of teas. The café has been keeping its customers happy for decades with a long list of customizable drinks, fair prices, and an atmosphere that makes every visitor feel like one of the locals.
While Oaktown Organic Café will continue to thrive, the company’s tea selection is only slightly better than major chain competitors. They don’t offer any looseleaf selections, and they only keep about twenty varieties. It is better than most coffee shops but still won’t be able to compete with [Company Name].
Starbucks
Starbucks has cafes in multiple locations throughout downtown [location]. Starbucks has been popular nationwide for decades but is also a victim of a backlash. Currently, its prices, low-quality offerings, and lack of respect for its employees have made many turn away from this coffee giant. Furthermore, it has never been a major player in the tea industry, only offering a select few options that are passable at best.
We expect that Starbucks will continue to thrive based on its location, convenience, and recognizability. However, we expect that more and more customers will frequent [Company Name] based on the high-quality ingredients we use for our teas, product selection, and the fact that we are independently owned and operated.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name] will be located in a high-traffic area that is easy for residents and professionals to access. The location is in the heart of downtown and is easily accessible by foot or car. Thousands of residents and commuters pass through the area every day, so many will notice our cozy new tea shop.
- Pricing: Local coffee shops price their tea quite high but offer little quality. Our prices will be more moderate, but our tea will be perfectly handled and curated to ensure the best quality possible.
- Variety: Since most of our local competitors focus on coffee, they typically only have a handful of tea flavors to choose from. We will offer dozens of options, which may grow into the hundreds as the tea shop becomes more popular.
