Strategy Dynamics Briefing 50: Type-1 rivalry – developing potential customers

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The three types of rivalry from Briefing 49 can best be explained with a simplified example…Two new coffee-shops open up and operate in the same town.

The town has 5 000 customers, equally accessible to the two stores; i.e. the stores’ locations are of identical quality. Each customer normally uses a coffee store twice per week, unless value for money raises or lowers their usage. Each customer normally spends an average of $5.00 per visit, including both the coffee and snack ...

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