Team Exercise

Competition in the New Mobile Economy

Background Information

You are one of two owners of the Red Hot Coffee Pot. Your establishment is on a side street right off the main street through town. Your customer base is largely university students, artists, writers, and other locals who prefer your cozy atmosphere with its overstuffed couches, fireplace, outdoor seating in the summer, shelves full of books to borrow and browse, locally roasted coffees, and, of course, free Wi-Fi. Within a five-block radius there are at least three other coffee houses with slightly less ambiance but otherwise similar perks, and prices are consistent for all the drinks and pastries across the range of competitors. However, you’ve become concerned because ...

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