Gloria Jeans - Business Strategy

Gloria Jean's

As one of Australia's leading coffee shop, Gloria Jean has became the largest specialty coffee retailer by using a franchise model to expand the business operation and turn the firm to be the fastest growing franchise businesses in Australia.

Corporate and Business Strategies

In general, Gloria Jeans has two corporate and Business Strategies aiming to compete in coffee market and to connect with the company structure.

Firstly, Gloria Jeans uses a broad product and service differentiation strategy, which includes the specialty in quality coffee, the selling of the roasted coffee beans and a relatively low cost (Sun & Pan, 2011). With the advantage of owning its own roasting factory in Castle Hill in Sydney, Gloria Jeans managed to produce quality coffee and make it different from other coffee shops. In addition, selling roasted coffee beans also makes Gloria Jeans different and at the same time, reminds customers of Gloria Jeans' unique roasted coffee. In a more competitive market, cost says more. The relatively low cost is another important strength for Gloria Jeans--it will attract more customers as well as increase the possibility of suffering economic downturn.

The second strategy Gloria Jeans uses is the Centralising Management. This strategy is combined well with the company structure. As a franchise, it is recommended to managing through a centralised management. In centralised-managed organizations, authority is more allocated with senior managers, which makes it easier to implement common policies and practices for the business as a whole (Cobben, 2008). With a centralised management, Gloria Jeans can manage the micro-environment and prevent branched to turn a separate. All employees can be trained together and all information can be passed to branches through a organised way.