ANALYSIS AND IMPLEMENTATION OF BANDUNG COFFEE SHOP’S BUSINESS STRATEGY MANAGEMENT CASE STUDY OF COLDSIP COFFEE SHOP

• Main Author: Jovita, Karina
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22758
• Institution: Institut Teknologi Bandung

At the moment, coffee shops are popular places in Indonesia, especially for teenagers to enjoy coffee, spend time, meet friends, or even do chores. COLDSIP is one of the new coffee shops in Bandung. But unfortunately, COLDSIP is currently experiencing lower sales and brand awareness is low. The theory that became the basis of this research is the management strategy process of Wheelen and Hunger. First is environmental scanning which consists of external and internal environment analysis. To analyze the external environment, this research used General Environment Analysis theory and industry analysis using Porter Five Forces. The external environment also includes customer analysis using STP, Marketing Mix, and Service Quality and competitor analysis using comparison methods. Meanwhile, for the internal analysis, this research used resource analysis and Value Chain Activity. Furthermore, the strategy can be formulated using SWOT and TOWS analysis as well as Porter Generic Competitive Strategy Overall, this research uses qualitative and quantitative methods. Qualitative methods are conducted by interviewing COLDSIP owners and searching for data from the internet, books, or journals. Meanwhile, quantitative survey was conducted with 151 respondents who have visited COLDSIP and two other coffee shops that are the closest competitor of COLDSIP - Jack Runner Roastery and Zero Hour Coffee. From the results of all analyzes, COLDSIP is advised to adopt a differentiation strategy. It is because, based on external analysis, the coffee shop industry in Bandung is consideredas unfavorable – it is easy for people to start the business in coffee shop industry, the number of competitors that keep increasing, and a lot of subtitute products. However, it does not prevent people from opening a business in this field. It is proven by the increasing the number of coffee shops in Bandung. Therefore, when using the cost champion strategy, the coffee shop will eventually not be able to compete and end up bankrupt because price competition will be very tight considering the number of competitors and the subtitute products. In contrast to differentiation, with differentiation strategy a coffee shop will have more value when compared to its competitors. This strategy helps COLDSIP to highlight the strengths they have to cover their shortcomings and compete with their competitors. Therefore, COLDSIP is advised to focus on improving their quality. Differentiation strategy also aims to differentiate COLDSIP from competitors so that COLDSIP is expected to gain loyalty from its target market. As for the end of this research, it is expected to assist COLDSIP in terms of increasing sales and profit they can in the future able to compete and develop their business as an opportunities business.