This case study discusses Amalgamated Bean Coffee (ABC) Trading Company (also known as Café Coffee Day (CCD)), the market leader in the Indian coffee industry, and its competition with Starbucks, the market leader in the world's coffee industry. This paper will first focus on the competitive advantages and challenges of CCD, then suggest a feasible strategy together with a corporate social responsibility initiative for CCD to tackle the competition with Starbucks in India.
Regarding CCD's competitive advantages, VRIO framework will be used to determine if a particular resource or competency is a sustainable competitive advantage, which should be costly to imitate. Additionally, the discussed competitive advantages are selected based on the other three requirements, namely being valuable that may help CCD enhance effectiveness or efficiency or exploit opportunities, being rare in the Indian coffee industry, and being exploited by CCD.
Regarding CCD's competitive advantages, VRIO framework will be used to determine if a particular resource or competency is a sustainable competitive advantage, which should be costly to imitate. Additionally, the discussed competitive advantages are selected based on the other three requirements, namely being valuable that may help CCD enhance effectiveness or efficiency or exploit opportunities, being rare in the Indian coffee industry, and being exploited by CCD.
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