I'll answer a few.

Lower operating cost. Margin is very low in this line of business, with low operating cost you'll be able to price your products more competitively. It deosn't matter if your shop looks like shit in the corner of somewhere, people will still come to you to save a few bucks.

Many have tried value added services like good customer service but overall it just deosn't work that well in Malaysia. Malaysian consumers are a terrible bunch and they'll abuse any system when given the opportunity. You'll have idiots who fried thier chips from lack of knowledge on how to install computer components to idiots who broke their gfcard from overclocking, coming to claim an exchange from you. In the US, those big stores will change them on the spot for you - really good customer service. In Malaysia if you do that, you'd close store in a month.

Positioning. Starbucks is positioned for middle to upper class customers. Local coffee shops works on the lower end of the spectrum.

Differentiate. Starbucks is fairly predictable, they drive on a straight road and you know they'll never imitate what you do even when they find you successful. So do what Starbucks cannot provide, while try to avoid going head-on with what they can provide - besides coffee of course. Starbucks = Coffee + cakes and pastries + wifi. Your shop could sell coffee + budget mixed rice for example. Starbucks won't challenge your mixed rice business .

Start a loyalty program. You already have a customer base while they don't. Give perks to these customers so they'll stay with you.

Referal benefits. Use your customers to work for you .

Give your shop a facelift and advertise yourself in health forums.

This post has been edited by rockets: Mar 23 2010, 11:25 AM