Propose Business Strategy for Coffee Shop in Indonesia (XYZ Company)

Abstract

Indonesia is one of the most potential markets for entrepreneurs who want to enter the coffee shop industry. The phenomenon of coffee as one of the local wisdoms in Indonesia has encouraged XYZ to have a vision of promoting the uniqueness of Indonesian coffee. However, XYZ ran into various hurdles to keep his business. XYZ’s performance from early 2018 to early 2020 experienced fluctuating conditions and in early 2020 experienced a drastic decline due to the effects of COVID-19. Then in mid-2020, the company started to improve its strategy in dealing with the impact of the pandemic. Currently, XYZ has one store in Tebet, South Jakarta. This study aims to assist the XYZ team in improving sales performance, especially in marketing strategies. In identifying external problems, this study uses general environmental analysis, industrial environmental analysis and competitor analysis. In identifying internal problems, this study uses resource analysis, value chain analysis, marketing mix analysis and competitor exploration. Furthermore, this study uses a qualitative approach that collects data from interviews with 15 customers as respondents. The respondents who were interviewed had the aim of capturing customer values and XYZ's ability to fulfill customer values. Interviews were also conducted due to changes in conditions caused by the pandemic which are likely to have an impact on customer value. Based on the analysis and determination of the direction of corporate strategy, this study finds that the company's situation is at the stage of growth and diversification. At this stage, XYZ needs to prioritize the target market according to its potential. In addition, this study also suggests XYZ to implement a diversification strategy in marketing activities. Finally, this study also uses the TOWS matrix as the main tool for developing marketing activities. In conclusion, this study proposes a strategy map, schedule, activity time and cost estimation as an implementation plan.