Strategic Management at Cafe Nero

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It is evidently clear from the discussion that Caffe Nero is considered to be one of the fastest growing coffee chains in Europe. It is privately owned which gives it a considerable amount of flexibility to grow. The coffee served at Caffe Nero is widely preferred by many Europeans and is counted amongst the top-selling brands in the U.K. The brand also has a number of outlets in major airports of the U.K. Caffe Nero serve both hot and cold coffee variants thereby attracting consumers in all seasons of the year. Apart from coffee products, the brand also serves a variety of snacks such as pasta salads, sandwiches, and rolls. Caffe Nero gives special emphasis upon developing good relations with its suppliers who are essentially farmers. The business carries the belief that success depends upon the manner in which firms communicate with their suppliers. The business also ensures that customers are treated warmly and they are provided with a good experience. Caffe Nero has emerged as a strong competition for many existing lines of coffee shops chains in Europe and as also the Americas. In 2012, U.K had for the very first time broken the £ 1 billion barriers. The billion pounds worth industry has had lesser impacts of the recession and the figures of its growth say it all. On the basis of sales revenue, the coffee industry of the U.K is worth £ 831 million. The U.K coffee market is dominated by the instant coffee variant mainly. 72% of the market revenue is from the instant coffee sale. Coffee industry mainly targets the working population sector. Starbucks, Costa Coffee, Seattle’s Best Coffee and Caffe Nero are the strongest players in the retail coffee chain industry. The coffee industry, however, lacks innovation and change in terms of providing healthy coffee. The nutritional value of coffee is seen to decline as they are mixed with ice cream or other ingredients so as to make it more appealing to the younger generation. This has caused some of the older consumers to move away from instant coffee consumption. By focussing on developing a healthier coffee experience, the coffee industry can be expected to bring back many lost consumers.