Skimming pricing will be taken place in the early stages at the early stage of product life cycle in order to gain necessary cash flow.
These coffee beans will then be transported to the OTWC roasting plant located near the New Dehli location and then transported to Mumbai through a vast and efficient railway system.
For example, one of the cafs in the area start doing promotion, the other cafs has been forced to do promotion also in order to get the market shares.
The inventory policy is to keep the stores stocked but not overstocked to ensure freshness of products. With strong and healthy coalition governments emerging, political instability in India has changed better since the previous general elections in This can create an effect of word of mouth easily from people to people.
Sovereign Risk in India is therefore zero for both foreign direct investment and foreign portfolio investment.
Some of the facilities should also be provided. The costs of production must also take into consideration because it involve the start-up capital, transportation cost, and imported goods.
When competitors are roughly equal size, competition may become intense if one competitor suddenly sets out to dominate the others. Certainly, OldTown provides a more comfortable ambience and better hygiene. But the high differentiation of products in specialty coffee industry makes it possible to act as barrier to protect its segment market once the brands has been established in the market.
Another weakness is that some of its cafs employ foreign labourers who cannot communicate properly. OTWC shop will sell a variety of coffee and tea beverages along with different types of snacks such as pastry, confection, and baked goods, coffee-related accessories, and etc.