Question 5: Does the strategy qualify as a winning strategy? Why or why not?
According to the 3 tests of a winning strategy, a strategy which qualifies as a winning
strategy need to answer 3 questions.
The first question is: does the strategy fit the company’s situation? It is clear that the
strategy fits the external situation nicely since the market for specialty co#ees had
grown at an annual rate of 32 percent between 2000 and 2007 to reach $13.5 billion.
Moreover, the retail sales of organic specialty co#ee had grown to $1 billion by 2007.
Mystic Monk Co#ee focus on Catholic consumers in the U.S. represents a large market
for MMC – and one that would arguably become very loyal customers.
The second question is: has the strategy yielded a sustainable competitive advantage?
Although there might be li1le argument that the strategy has the potential to yield
sustainable competitive advantage. However, at that time of the case, the advantage
achievement can be recognized through the company’s $56,500 average monthly sales,
which suggest Mystic Monk Co#ee has a growing and loyal following among Catholic
consumers.
The last question is: has the strategy produced good financial performance? As
revised substantially.