Organizational Strategy of Blenz Coffee in Canada

Paper Summary:

This paper examines the organizational strategy of Blenz Coffee. The paper explains that the dominant strategy of Blenz is not one of lower cost but of differentiation. The paper then explains that Blenz uses this differentiation as a means to establish a competitive advantage over industry giant, Starbucks. The paper points out that although Blenz claims its focused differentiation is on its convenient "locations", top quality service and "highest quality" products, its real focused differentiation is on its specialty products not common to other coffee houses, such as the use of Belgian chocolate in some of the hot beverages. The paper then looks at why the differentiation strategy is the best one for Blenz to employ, as the organization cannot base profitability on its pricing system. The writer believes that Blenz can only grow in strength if it manages to satisfy the needs of the very-popular high-quality coffee chain industry. The writer suggests that the company's key tools for "differentiation" - primarily based on advertising of the use of real chocolate in chocolate beverages - are inadequate. Hot chocolate is not a large enough draw-card to turn one customer away from Starbucks towards Blenz. The writer then points out that, in this increasingly technological age the appeal of free wireless technology may draw in larger customers and encourage loyalty.

Outline:
Introduction
Organizational Strategy
Organizational Structure
Strategy and Structural Alignment and External Factors

From the Paper:

"According to Blenz, the dominant structure and strategy of the company is to "develop customer loyalty and growth by providing an environment of quality, service and consistency through the development of people, products and attitude" ("About Us"). The company publicly points to its Belgian chocolate chips as evidence of its commitment to providing "new and exciting beverages for our stores" (ibid) and an example of "how Blenz continually strives to be the innovation leader within the industry" (ibid). The organization's current strategy is based on one of international expansion. As a relatively new company (Blenz was established in 1992), Blenz does not yet have the reach of its competitors, such as Starbucks and Seattle's Best (which are industry leaders in the United States). Therefore, the current strategy of the company is based on expanding operations in existing international locations, and plans to expand into new international locations."

Sample of Sources Used:

• "About Us." Blenz Middle East. Date accessed: 19 June, 2007. Available: http://www.blenz-me.com/about-us.htm.
• "The Blenz Story". Blenz online. Date accessed: 19 June, 2007. Available: http://www.blenz.com/blenz_story.aspx.
• "What's New at Blenz." Blenz Coffee, Japan. Date accessed: 19 July, 2007. Available: http://www.blenz-japan.com/menu/index.html#anc_food.
• Fineman, J. & Scanlan, D. (2006). "Tim Hortons Raises C$783 Million in Initial Offering (Update1)." Bloomberg News. Date accessed: 19 June, 2007. Available: http://quote.bloomberg.com/apps/news?pid=10000103&sid=aVbau_WUTixk&refer=news_index

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