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Whitbread Analysis - Case Study Example

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The company has achieved the same by offering its products at affordable prices; or rather, it has offered inexpensive food and hotel prices. In…
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Download file to see previous pages company has utilized cost leadership is in the use of the technology, particularly iPhone Apps, and Mobile websites to ensure that it cuts prices (Porter, 1985). In the same context, the company has managed to realize success in the cost leadership strategy through innovation. As such, the company has focused on a unique Christmas campaign, variety of foods including breakfast and new drinks such as hot chocolate. Another approach, which companies enhance cost leadership, is through seeking new opportunities. As for such, it is evident that Whitbread has been venturing into new markets in different countries (Lynch, 2003).
The company is in a position to own a strong brand portfolio. Such is evident from its partner stores, which are Premier Inn and Costa, and they are market-leading performers. The mother company has many years of experience in the hospitality and restaurants industry. In addition, the company is focusing on providing new products in both local and international markets at affordable prices to ensure profitability (Worley, & Cummings, 2014).
Costa faces the risk of overpricing its products because of its location in a lavish ending of the coffee products spectrum (Lashely 2010). In addition, most of the brands are still untested outside the United Kingdom market, with only a low number of Costa Markets and premier Inn outlets in the international market. Similarly, the company has not provided proper brand awareness in the saturated international market, which is a factor that might undermine its sales.
Considering the store cutbacks and possible closure faced my many traditional retailers, the company has an opportunity to capitalize on the available high street retail price. In respect to expansion, the company has an opportunity to venture into new markets in Dubai, India and China among others.
The company’s global economic progress remains unstable; however, there is significant uncertainty in the process of expanding into new markets ...Download file to see next pagesRead More
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