Business

Business Strategy of AMT Coffee

The organization is popular among its potential target customers across the UK due to its adopted and implemented ethical strategies and approaches in business operation processes. The organization was named as the most ethical and renowned coffee chain by ethical consumers in the UK in the year 2011. The coffeehouse chains are mainly located in the railway stations. In addition to this, the organization also operates with small coffee kiosks on several station concourses across the UK. In some cases, these kiosks are extended in coffee lounges that increased the popularity and acceptability of the brand among the target customers. However, the organization has developed unique business levels and functional strategies in order to gain potential competitive advantages. But, some internal, as well as external challenges, created possible issues for the management of the organization. It affected the sales growth rate and profitability of the organization. Business level strategy can be divided into three types, such as cost-leadership strategy, differentiation strategy and focus generic strategy. The management of AMT coffee has focused on these business-level strategies in order to gain potential competitive advantages over the competitors (Augen, 2008, p.73). The organization has focused on differentiation generic strategy in order to gain potential sales growth rate. Effective adoption and implementation of differentiation strategy have helped the management of the organization to increase the number of kiosks and coffeehouse chains across different parts of the UK. In addition to this, the management of the organization has decided to increase the number of differentiated menu items in order to increase the brand loyalty and brand awareness of the products (Bains, 2011, p.28).

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