Ruto Coffee’s Business Strategy in Responding to Market Competition
DOI:
https://doi.org/10.31629/dignity.v1i1.8289Keywords:
Business, Strategy, Responding, Market CompetitionAbstract
The rapid growth of the coffee shop industry in Indonesia has intensified competition among micro, small, and medium enterprises (MSMEs), particularly in emerging urban markets. This study examines the competitive strategies employed by Ruto Coffee, a newly established coffee shop in Tanjungpinang City, to navigate the increasingly saturated market environment. The research employs a descriptive qualitative methodology through a case study approach, utilizing semi-structured interviews with five respondents (one business owner, one staff member, and three loyal customers), direct observations, and literature review. Strategic analysis was conducted using PESTEL framework to identify macro-environmental factors, Porter's Five Forces model to assess industry competition intensity, and Key Success Factors (KSF) analysis to determine critical success elements. The findings reveal that social factors, including the coffee culture lifestyle trend among millennials and Gen Z, digital technology advancements in social media marketing and delivery applications, and evolving consumer behavior patterns constitute the primary external influences shaping business operations. The coffee shop industry in Tanjungpinang demonstrates high competitive intensity due to the proliferation of new entrants and the growing coffee consumption lifestyle. Ruto Coffee's competitive advantage stems from consistent product quality, reliable customer service, effective digital promotion strategies via Instagram, and a distinctive vintage-themed ambiance that creates memorable customer experiences. The study concludes that Ruto Coffee should strengthen its differentiation strategy through enhanced digital marketing capabilities across multiple platforms (TikTok, Google Maps) and continue emphasizing experiential value to maintain competitive positioning and ensure long-term business sustainability in the dynamic coffee shop market.
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