BUSINESS STRATEGY FOR SPECIALTY COFFEE (CASE STUDY: PT X)
Specialty coffee Industry is now growing progressively both in upstream and downstream sector. Highly competitive market environment had challenged the industry players to elevate their competitive advantage. PT X, which a specialty coffee producer, has both upstream and downstream business. Current...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/76250 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Specialty coffee Industry is now growing progressively both in upstream and downstream sector. Highly competitive market environment had challenged the industry players to elevate their competitive advantage. PT X, which a specialty coffee producer, has both upstream and downstream business. Currently they are facing opportunities and threats both from upstream and downstream sector. From upstream sector, market competition is progressively increasing. Producer are demanded to craft high quality coffee with unique and distinctive flavour attribute, while on the other hand, threats from climate change is inevitable and had impacted green coffee quality and productivity in several years. Climate change impact rainfall, temperature, soil quality, and etc, which significantly impact quality. Another impact is price volatility, where the cost of production is increased due to failed crops that is caused by climate change, in which the producer are forced to sell at higher price. On the other hand, the demand for specialty coffee keeps increasing, especially from EU. 46,21% of global specialty market are from EU.
EU is also the main customer, accounted around 60 % of PT X product are sold to EU market. PT X is challenged to fulfil the demand, while the coffee cherry price increase at CAGR of 17% for the past four years. In 2024, EU Deforestation Regulations will be implemented, in which will impact the coffee business. Seller must be able to prove that their commodity is not involved with deforestation practices in order to be able to enter EU market. On downstream sector, market competition is also growing progressively. PT X are competing with other well-established brand that has more resource and capabilities in downstream sector. With limited resources and capabilities, PT X is challenged to gain sustainable competitive advantage in order to keep their existence in the market. Through this study, business strategy will be explored using External & Internal Analysis, SWOT Analysis, and TOWS Analysis to formulate the implementation plan that could help PT X to gain sustainable competitive advantage.
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