Indonesia Coffee Business in The Global Value Chain: Global Player or Follower
Fithriyyah Shalihati, Asaduddin Abdullah, Annisa Ramadanti, Idqan Fahmi, Dikky Indrawan
School of Business IPB University, Jl. Raya Pajajaran, Babakan, Bogor Tengah, 16128, Indonesia
Abstract
The coffee business is rising globally which is indicated by the growing number of coffee companies, coffee shops, and customers. This rising trend also includes the Indonesian coffee business, but Indonesian coffee bean production could not benefit from this trend. This paper aims to map the Indonesian coffee business positioning in the global value chain. We performed a strategic analysis using the BCG matrix approach by looking at the local coffee business growth rate and market share in Indonesia. The study identified two coffee business types, namely macro-scale business, and micro-scale business. Each group was differed by two categories: business characteristics and its impact on the Indonesia coffee bean production. The result shows that the Indonesian coffee business was still as a follower in the global coffee business trend. Thus, they need a strategic plan to move from a follower to be a global player. The study shows that the BCG matrix was a useful tool to map the Indonesia coffee business positioning and their future strategic plan.
Keywords: Coffee Business, Coffee Bean, BCG Matrix, Global Value Chain
Topic: Business Strategies on GVC Participation