According to this passage, what the Second Cup company experiencing is a huge lost of $26.2-million in general. I think the most responsible reason is a tough rivalry with several considerable threats.

Second Cup does have a strong position in coffee shop market, because it has 349 locations across Canada after all. But it is difficult for Second Cup to do a revival given that other rivals such as Starbucks and Tim Hortons taking up a leading position in this market.

Beside of strong supplier power, what else possibly cause Second Cup a huge lost and dropping price per share, is customers’ inclination of other coffee shops. As people have increasing demand for “fast casual” chains, like what Panera Bread and Chipotle do, providing higher quality quick-service food options.

In that case, I think differentiate strategy would be efficient for Second Cup to provide new  drinks and snacks which are not available in other coffee shops. Since Tim Hortons focuses on fast order strategy, McDonalds’  runs for 24 hours, the Second cup would be better off choosing another differentiated characteristics to attract customers and expand their business scale.

http://business.financialpost.com/2014/11/03/second-cup-outlines-3-year-turnaround-plan-amid-26-2m-loss/