The Daily Beverage Company has initiated the idea of becoming a drive-thru version of the company, Starbucks, and it wishes to initiate the business through a venture capital funding through which it would be able to open up around 20 to 30 facilities in all the major metropolitan areas(Venture, Impact, 2012). This is the preferred exit strategy, which has been chosen by the management team of the company. However, the risk in this area is that there might be other competitors in the market which might come up which might cause the revenues of the company to suffer. The company is basically a newly established specialty beverage retailer. The point of differentiation of the company is that it offers cold and hot beverages to its customers in the most time efficient and convenient manner. The company would also be offering an option to the gas stations, fast food and the institutional coffee.

Company Products & Description

The first facility of the company would be opened in the Colonial Shopping Center and over the period of the next three years, 12 more drive thru facilities would also be established by the company in different metropolitan areas. The main products which would be offered by the company through these facilities would be cold and hot beverages, custom blended teas and specialty coffees. Along with this, the management of the company would also be offering Italian sodas, soft drinks, fresh baked pastries, cakes and also many other confections.

            The seasonal products of the company would basically include frozen coffees, hot chocolate and hot apple cider. The drive thru facilities of the company would provide its customers to easily order a coffee beverage which would be blended to their specifications. Along with this, other premium items would also be offered by the company through its website and other central locations. These premium items include ball caps, sweatshirts, T-shirts and coffee mugs etc.

Market Dynamics

 The owners of the company consider themselves to be the leading player in the beverages industry. However, the competitors of the company would be from a range of product manufacturers such as from adult beverages to milk shakes and soft drinks. The primary sources of competition of the company would be mainly from three sources as follows:

  • Local cafes
  • Convenience stores and fast food chains
  • National coffee houses such as Panera and Starbucks

 However, the main points of differentiation which would help the company to stand out against its competitors would be basically providing the beverages to the customers in the most timely and efficient manner through its Mobile cafes or drive thru facilities. The difference here would be that the customers would avoid the waiting lines or clean the mess which had been left by a previous patron etc. They can simply drive up, order, pay and drive off.

Financial Performance

The financial picture of the company is good. Since the owners of the company are going to operate a cash business, therefore, the initial start-up costs are going to be relatively less as compared to many other startups. A higher level of talent is required by the company to operate since it is labor intensive. The equipment and the facilities of the company need to be financed. The owners of the company believe that the financial performance of the company would be improved after the initial year of financing and investment. The growth of the company would be quite slow but it is going to be solid which would be entirely based upon the product demand and customer request.......................

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