Strategic Management- II IMT Ghaziabad, November 2011

Industry growing at 40% .Chains need buying power for coffee.Potential for 5000 outlets compared to current 1500 Need for scale Sourcing is critical According to industry experts: Unless a player grows coffee it is very difficult to break even . sugar and other inputs to keep costs low .Business needs scale to be profitable and new comers need to expand fast. .Growth Potential .

Growth Strategy: Expansion Forward Integration Format Expansion Coffee Plantation Amalgamated Bean Coffee Trading Company Ltd. (ABCTCL) Product Expansion Geographical Expansion .

Format Expansion ‡ Coffee on the Go ‡ high traffic locations / corporate offices / railways / airports / malls / hospitals / institutions ‡ ‡ ‡ ‡ Main café format More relaxed settings Wider range of products Higher value per bill ‡ More premium format compared to its cafes ‡ Beverage is paired over gourmet cuisine ‡ Only in four metros ‡ Specialising in 'single origin' coffees beans sourced from a single estate in a single country.targeted at a more discerning consumer. .

Product Expansion .

Geographical Expansion .

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