A business model is made in order to describe the way in which a company makes money and generates their revenue. This business model can be simple or very complex. For example, a restaurant's business model is to make money by cooking and serving food to their hungry customers. In the case we read, Caffebene, we were able to understand that coffee shops generate revenue by serving coffee and in this case, even Italian delights. In order to facilitate an effective business model, members of the company must work day in and day out to fulfill orders and deliver their product/service to the final consumer. Things a company must look into when assessing this model should be profit margins, analysis of the market segment, and how consumers value the company's product. This coordination emphasizes for companies to pinpoint their competitive advantage and realize what sets them apart from their competition. After recording this data, the company is able to identify their strengths and weaknesses in the industry and execute the product/service based on their research. .
In determining the model of Caffebene, Sun Kwon Kim had to strategize a way to become distinct from his big competitors such as Starbucks. Several factors come up that show why Caffebene had such success in a small span of time. For instance, the way Kim marketed and designed for the locations was stupendous. The entrepreneur decided to take on a "homey" theme, where customers can unwind and enjoy a cup of fine coffee. This soothing atmosphere came with an overall amusement from customers and kept them coming back. Even the outside appearance was inviting and this led to a world of success for Kim.
Since the Korean coffee industry had been taken over entirely by large, global brands, the fact that Caffe Bene had overcome such adverse condition with aggressive marketing strategy is outstanding. Mr. Kim is always confident about the philosophy for his company and that in turn led Caffe Bene to success.
