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Strength:

Service Quality:

When entering F&B market with


full of difficulties, the local coffee
brand doesn't even flinch, they
extremely understand the insight
customers, focus on service to
dominate the market and market
share.

The creative design + Location:

They were launched for not only


a shop selling coffee but also an
ideal place for meetings and
working. They build an iconic
space to for relax and
experiences. Therefore, The
coffee house is always the first
place they think about when
arranging an appointment or
doing teamwork. In addition, the
Coffee House shops are centrally
situated in the city or
at commercial centres, which
makes it easier to see and attract
buyers with the prime places of
The Coffee House,

Reasonable Price:Price strategy


is used completely correctly by
TCH, customers can experience
a spacious, comfortable and
sophisticated space not inferior
to the "big" foreign countries like
Starbucks or The Coffee Bean
with only the price. 30,000-
60,000 VND. This is one reason
why many young people become
loyal "fans" of this chain.

Local Material:
In contrast to major international
coffee brands such as Starbuck
or The Coffee Bean, TCH
chooses Vietnamese beans with
its own identity which makes it
attractive to Vietnamese 'coffee
addicts', because
they believe Vietnamese coffee
beans are better off than they are
outside. TCH has launched a
collaboration from the very first
stores with Cau Dat Farm to
produce coffee to its own
specifications. At The Coffee
House farm. they work closely
with each farmer, control the
standards of the fertilization
process; have meticulousness in
the stages of preliminary
processing, roasting, brewing...
to send customers the best cup
of coffee.

Weakness: The coffee house


also has imperfect points.
Lack of diversity in the menu of
the store:

The longtime staff admitted that


the menu is not really special
and mostly customers come
there for the place and service.
Smoking area:

Moreover, some of TCH stores


do not have a smoking area,
which also makes this coffee
brand loose some types of
customers.
Opportunities:

Entering the Milk Tea market:

2017 witnessed a boom in milk


tea market when many
international giants such as Ding
Tea, KOI, Gong Cha or Vietnam
such as Tocotoco, Bobapop,
have been successful. The
Coffee House also caught this
opportunity and entering the
potential market with receiving a
franchise for Ten Ren- the top 3
largest milk tea system in
Taiwan.

Development in online sale:


Moreover, online sales is a
competitive market because of
changes of customer's demand
and The coffee House has
selected Ahamove as shipping
unit. CEO of Ahamove reveals:
"total online orders of The Coffee
House can be up to thousands of
orders per day with several cups
per order."

Coffee Dynasty of VietNam in


2021:

The number of above stores will


be the principle for The Coffee
House to set the goal of
becoming the Vietnamese coffee
empire. The architecture of The
Coffee House has obviously
influenced the entire system:
young, ego-friendly design. Along
with that, there is the imprint of
drinks and food in addition to key
coffees.

Threats: Success with fast


development
speed, however, challenges are
equally as much.

Many competitors in the


Vietnamese market:

Due to the appeal of the coffee


industry, a rival from The Coffee
House, participating in the chain
of start up companies like Cong
Coffee, Urban Station, stems
from a changed consumption
pattern and revenue in the major
cities to great names like Phue
Long. Highlands, Trung Nguyen
Coffee or the launch of world
"giants" like Starbucks or Coffee
Bean
Customer Feedbacks:
On average, TCH receives 400-
500 customer feedbacks a month
about quality and service
attitude. This is a problem with
the F&B chain business model
because the
more stores expand, the more
demanding it is to operate and
manage.

The high-cost of management


and expansion: Along with that is
the high cost of opening a new
store while keeping average
price. It will be difficult to cover
the loss cost if they don't attract
the customers.

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