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Posted on April 24th, 2014, by

The economic environment is quite challenging and difficult because of the recent global financial crisis and consistent slowdown in the economic development. The slowdown of the economic growth discourages consumption and stimulates saving that lead to the decrease of profits of the company and overall downturn in the business development of Bob and Lou’s Café.

The social environment is rather positive than negative because customers are accustomed to attend Bob and Lou’s Café, although the customer loyalty to the brand remains relatively low. Therefore, the company has to enhance the customer loyalty through the rise of the customer satisfaction.

The technological environment forces Bob and Lou’s Café to introduce technological innovations, including entering online business. The company offers its services online, while customers can book a table or order certain dishes and drinks online.

The legal environment is positive for Bob and Lou’s Café because the existing legislation protects basic rights of the company’s owners and regulates relationships within the company as well as between the company and consumers. Legal rules are clear and transparent that facilitates the business development of Bob and Lou’s Café.

Environmental issues are particularly important today because consumers grow more and more concerned with the protection of their environment and minimization of the negative impact of human activities on the environment. In this regard, Bob and Lou’s Café has to take into consideration environmental issues. At this point, the company has already attempted to decrease the waste and to supply waste to local pet shelters. In such a way, the company attempts to develop environment-friendly policies to attract customers and to improve its public image.

3 Strategic positioning techniques

In actuality, the company focuses on the expansion of its market share due to the accelerated market growth. However, the company faces considerable problems with the acceleration of its market growth and the growth occurs slowly. At the moment, the market share of Bob and Lou’s Café in the local market does not exceed 10% and varies slightly depending on the performance of the company and its rivals. The company suffers particularly from the competition from the part of national and international chains of fast food restaurants, which cannot create the authentic atmosphere of Bob and Lou’s Café.

The market growth of the company is relatively slow. The company increases its sales steadily and plans to accelerate its sale rates and revenues (See App. Table 1), but to meet this goal, the company has to change its marketing strategy.

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