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Learning outcomes
  • Understanding the dynamics of the restaurant industry in Sukkur and how the dynamics differ from one zone to another.

  • Applying strategic management concepts, i.e. internal analysis and sustainable competitive advantage.

  • Develop critical thinking skills by assessing the challenges and evaluating strategies to determine the best course of action.

Case overview/synopsis

In Sukkur, Pakistan, Cafe Arvin, a fast-food provider, faces a critical crisis. Its owner, Mr Wajeeh, must decide whether to fight growing competition or exit the market. Located in a zone where many restaurants struggle to survive, Cafe Arvin initially thrived, earning a strong reputation for quality food and excellent service within two years of its opening. Relying solely on word-of-mouth advertising, it quickly built a loyal customer base. However, a false accusation tarnished its reputation despite Mr Wajeeh’s prompt efforts to counter it with a communication strategy. Compounding the challenges, new competitors offering high-quality food at lower prices have intensified market pressures. With Cafe Arvin’s survival at stake, Mr Wajeeh faces a pivotal decision: adapt and compete or shut down the business.

Complexity academic level

This case is tailored for BBA students to strengthen their decision-making ability in a competitive environment. This case is designed to help students understand the adversities businesses may face while navigating competitive forces. It underscores that even after successfully identifying a market gap, a business lacking a sustainable competitive advantage is vulnerable to losing its market share to new entrants.

Supplementary material

Teaching notes are available for educators only.

Subject code

CSS 11: Strategy.

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