CAN PRODUCTS IN SUPERMARKETS EVER BE TOO CHEAP?

Can products in supermarkets ever be too cheap? The price of coffee is rising but volatile

Can products in supermarkets ever be too cheap? The price of coffee is rising but volatile

Coffee is always volatile being cheap in supermarkets is unexpected Coffee drinking has become an integral part of the modern lifestyle in Australia and specialist coffee shops have become more than just a place for coffee. Increasingly, coffee shops serve as places to meet for business and pleasure - a location for peace and quiet away from home and office. Nowadays, people are not only drinking more coffee, but becoming coffee connoisseurs. Coffee in Australia is no longer just a product, but a means of self-expression. As a society people are placing the emphasis on quality instead of quantity, and as such consumers are buying more exotic coffees. (Hams 2008)

An industry has to face different threats from internal and external environment. In coffee industry, some threats are following examined. Firstly, inadequate supply is the biggest threat for the industry. Although the coffee industry in has a dramatic increase of 65% over the last 10 years, it still can not catch up the demand of consumers and that being the reason for not being cheap in superstores. Many consumers have become familiar with superstores and use it as one stop shopping for groceries and household items. The fact that superstores have became an icon in the discount retail world means Sam Walton's dream has been realized. His dream would not have come true had it not been for a team of managers and employees to help him along the way. The managers took care of the planning, organizing, leading and controlling necessary to ensure success. The tasks associated with those functions were delegated to ...