Monthly Archives: October 2014

Why Dutch Bros Coffee Should Move To Canada.

Recently, there have been a series of American companies that have failed to successfully launch in Canada with the most recent failure being Target Canada. Target was thwarted in its movement across the border due to many tactical errors including opening too many stores too quickly at the higher Canadian prices , and failing to account for the smaller population size and different customer demands. Target’s inadequate first year sales scared many American chains from even attempting to cross the border.

However, I believe that Dutch Bros, a small drive through coffee franchise that started in Oregon, would be the ideal chain to capture Canadian interest. According to Matt Farrell on his blog, Dutch Bros breaks the standard of quiet, drowsy, artsy coffee shops with loud, vivacious, fast moving drive-through stands. The funky and hip nature of Dutch Bros combined with an open space in the Canadian drive through coffee market makes Dutch Bros the obvious choice for Canadian expansion.

But in order to successfully move from the States to the Great White North, Dutch Bros will have to overcome certain obstacles: retail space in Canada is limited and expensive compared to the US, and the cost of labour and doing business is higher in Canada. All of which might drive up their current low prices. Since Dutch Bros is purely drive-through, the retail space needed is much smaller and is more likely to be available in parking lots near  many malls and shopping centres. Also, even thought the costs of production and labour are higher, the current US price for a simple Dutch Bros blend coffee is $1.50. Therefore, the increased cost will not inflate the price so much that it will be above the current standard for a cup of coffee at Starbucks Canada (around $2.50).

These two strategies alone will not guarantee success for Dutch Bros. Yet, if they can start their expansion slowly, gauge the market responses and adapt quickly to change in demand, then the spunky, spirited, and satisfying coffee chain can take the espresso lane to success!

Book Trailers: Publishers Last Hope

The downfall of the physical book has been predicted for as long as the Mayan’s predicted the end of the world. Since the creation of the e-book, it appears as if real books are disappearing. E-books are simple, they require no storage as they are merely pixels on a screen they are simply instantaneous. There is no longer need to go to the bookstore when your book can be uploaded in minutes. However, book lovers everywhere are protesting that e-books are difficult to share and don’t provide the same comfort that a real book grants. Despite these protests e-books are still gaining popularity with the help of major industry leaders Amazon and Harper Collins.

But book lovers don’t have to start mourning the loss of books just yet. Many publishing houses are boosting their marketing efforts in order to hopefully increase the sales of books. Book trailers, like movie trailers, but for books, aim to reach a wider audience (https://www.youtube.com/watch?v=QsG5IwaTxs4) than traditional book marketing strategies. How exciting! This clever marketing strategy excites readers and helps promote books on a bigger scale than methods previously utilized. Being able to reach a bigger market through posting book trailers online will hopefully usher real books into the modern era.

Coffee Wars?

 Coffee is the nectar that gets many people through the morning, possibly the day. This juice of the gods has recently become easier to access with the invention of coffee pods and new brewers. But this period of peace may be coming to a close. Keurig, currently holding 90% of the north american coffee pod market (Atkins), released the Keurig 2.0, the newest and most technologically advanced pod-brewer. Part of this new technology is the machine’s scanners that recognize whether or not Keurig brand pods are being inserted into the machine.

However, Toronto based Club Coffee has a problem with Keurig’s anti-competitive behaviour. Because Keurig has made it clear to its customers and grocery stores that competitors products will not work, even if they claim to have imitated the Keurig k-pods as Club Coffee has done. This threat to Club Coffee has caused them to launch a $600 million lawsuit against Keurig (Buckner). However, if Club Coffee were to turn this threat to their business plan into an opportunity, then maybe an armistice can be reached between them and Keurig. One way that Club Coffee can turn this into an opportunity is to reach out to other companies producing pod-brewers and partner with them to have their pods be compatible with the brewers. By doing this, they can increase the market for pod-brewers and potentially decrease Keurig’s control of the market. Another advantage of this strategy is they won’t waste time, money, and legal effort in trying to take down Keurig. Instead, by broadening the market, they can appeal to more people-like ones who don’t want to pay the hefty price for Keurig’s latest technology- and broaden the market, thereby decreasing Keurig’s dominion.

Resources:

Atkins, Eric. “Keurig faces $600-million Canadian lawsuit over coffee pods.” The Globe and Mail. N.p., 1 Oct. 2014. Web. 11 Oct. 2014. <http://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/home-brewing-war-heats-up-with-600-million-lawsuit-over-coffee-pods/article20868827/?cmpid=rss1>. 

Buckner, Dianne. “Keurig’s coffee supremacy challenged by Canadian firm.” CBCnews. CBC/Radio Canada, 5 Oct. 2014. Web. 11 Oct. 2014. <http://www.cbc.ca/news/business/keurig-s-coffee-supremacy-challenged-by-canadian-firm-1.2787075>. 

Should Enbridge Build the Pipeline?

These sparkling waters of Nak’al Koh in the Nak’azdli territory of British Columbia are home to a diverse assortment of the animal kingdom-ranging from humans, fish,and moose, to grizzly and black bears. The people of the Nak’azdli territory are well known for their dependence on the water for food and travel. Yet this coexistence with the land and waters of the Nak’azdli territory are threatened by Calgary based oil pipeline builders, Enbridge. Enbridge wants to dig under this water and the surrounding lands in order to build a 1177 kilo-meter long oil pipeline. Even after the recent Supreme Court Ruling that allowed this territory to be under the jurisdiction of the Aboriginal communities that live there, Enbridge is still attempting to negotiate an agreement that will allow them to build their potentially dangerous pipeline (Home)(Montpetit).

The debate over the Pipeline is long and unfinished, with both sides refusing to budge. Enbridge is convinced that the pipeline will cause little to no environmental damage and provide numerous jobs during the pipeline’s construction. While the aboriginal people of BC are strongly opposed to the destruction of their land for ultimately capitalist reasons (Gill)(ForestEthics)(Hoekstra).

As of now there seems to be no solution that satisfies both parties. However, I believe that the Enbridge pipeline will end up being a national mistake. Firstly, the oil pipelines are notorious for oil spills, which can’t be 100% cleaned up with today’s technology, which will damage the already fragile underwater ecosystem. Secondly, disputes between the government and the Aboriginal people have already been long and, in some cases, still unfinished. especially since the recent Supreme Court ruling, adding another opposer to Aboriginal land rights would just prolong the financial and emotional burden that comes with court proceedings and government decisions. Thirdly, from an evolutionary perspective, while Enbridge may provide jobs for people during its construction, the animals and ecosystem that exists is fragile and any small disruption in one ecosystem can have dramatic effects on the world’s ecosystem. And finally, from a business perspective, although there will be a short term increase in jobs and a potential for long term drops in oil prices-due to the increased speed of transportation that the pipeline will allow- there is still the eventual oil spill and the millions of dollars required to mostly clean it up. Overall the enbridge pipeline may just have to remain a pipe dream.

resources:

“ForestEthics | Dear Enbridge: Economics Aren’t Everything. Northern Gateway Pipeline Would Impact Much More..” ForestEthics.org. N.p., 25 June 2013. Web. 6 Oct. 2014. <http://forestethics.org/blog/dear-enbridge-economics-arent-everything-northern-gateway-pipeline-would-impact-much-more>.

Gill, Ian. “To the Tsilhqot’in, with Gloves | The Tyee.” The Tyee. N.p., 26 July 2014. Web. 6 Oct. 2014. <http://thetyee.ca/Opinion/2014/07/26/Tsilhqotin-With-Gloves/>.

Grandia, Kevin. “Who is Actually “Anti-Business” When it Comes to the Enbridge Northern Gateway Pipeline?.” DeSmog Canada. N.p., 29 Apr. 2013. Web. 6 Oct. 2014. <http://www.desmog.ca/2013/04/29/enbridge-northern-gateway-pipeline-worth-risk-bc-s-economy>.

Hoekstra, Gordon. “‘There will be no pipeline’.” www.vancouversun.com. N.p., 16 Aug. 2014. Web. 5 Oct. 2014. <http://www.vancouversun.com/news/There+will+pipeline/10122968/story.html>.

“Home.” index.html. N.p., n.d. Web. 4 Oct. 2014. <http://www.gatewayfacts.ca/>.

“Image.” Image. N.p., n.d. Web. 6 Oct. 2014. <http://www.vancouversun.com/cms/binary/10122973.jpg?size=620x400s>

Montpetit, Isabelle. “Background: The Indian Act.” CBCnews. CBC/Radio Canada, 14 July 2011. Web. 5 Oct. 2014. <http://www.cbc.ca/news/canada/background-the-indian-act-1.1056988>.