QUESTION 1

Differences:

Australian Market US Market

Full dine in operation that might cause Provide drive-through strategy in order to
customers to line up in order to have their customer has their food instantly
order.

High quality coffee, low price Instant coffee

Focus on kid Focus on working adults

Limitation:

1. Limited choice of coffee

2. Different preferences
3. Penetration limits for low and middle income

QUESTION 2

Causes of failure:

1. Weak customer value proposition

2. Lack of product competitiveness
3. Fail to appeal to the luxury coffee consumers
4. Lack of baristas
5. Low pricing strategy
6. Lack of product customization

QUESTION 3

SMA Model:

SMA Model Issues

Market Competitor Analysis - Wrong targeted customer in the US

market
- Lack of product competitiveness

Value Chain Analysis - Weak customer value proposition

- Fail to appeal to the luxury coffee
consumers
Cost & Attributes Analysis - Low pricing strategy

QUESTION 4

Recommendations:

- Get extra knowledge of US market before launch the operation

- Promote and provide extra advertising to gain customer attention
- Conduct campaigns to educate and influence its potential and existing consumers
- Provide training programmes to enhance skills of their employees