Opportunity Analysis Report for a New Coffee House in Vietnam

A new Coffee house in Vietnam: Opportunity Analysis Report

Running Head: Report
Executive Summary
The coffee lovers in Vietnam are developing discerning tastes and the increasing sophistication
among younger consumers has effectively contributed towards the premiumisation of the coffee
products and tastes. The political environment is quite stable in the country and it even has a
vibrant free market economy, which makes the Vietnam markets a better option for opening a
new coffee outlet.
The citizens of Vietnam are quite hard working and live a stressful life. This coffee shop can
provide them with an option of quick refreshment breaks and even a place to hang out in an
unprofessional manner. The number of buyers in this industry is large and due to this, the buyers
have a low Bargaining Power. The competitive rivalry is medium and there is no evidence of
price or advertising wars in the industry. The new coffee shop could target customers in the age
group of 18-40 years and even a number of elderly people who want to spend a quality time
while sipping their favorite coffee.
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Running Head: Report
Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
External Environment Analysis...................................................................................................................4
Industry Analysis.........................................................................................................................................6
Market Segmentation...............................................................................................................................8
Competitor Analysis................................................................................................................................9
Target Market........................................................................................................................................10
Key People Analysis..................................................................................................................................10
Financial Feasibility..................................................................................................................................12
References.................................................................................................................................................14
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Running Head: Report
Introduction
The Vietnam Coffee Industry is evolving and there’s also a rapid growth in the specialty hipster
shops. Coffee production has been a major source of income in Vietnam since the early 20th
Century. The coffee lovers in the country are developing discerning tastes and the increasing
sophistication among younger consumers has effectively contributed towards the premiumisation
of the coffee products and tastes. There has been a shift from standard fresh ground coffee to the
premium coffee beans like the most popular Robusta Beans. The coffee outlets are attracting the
customers by offering them a number of premium coffee products and unique single-origin
coffee (Bhasin, 2018).
The following report is precisely written to evaluate the opportunities of a new coffee outlet in
the country and the chances of its success and survival. For the external environmental analysis,
PESTLE Analysis will be conducted and in the industrial analysis Porter’s Five Forces will be
discussed. There will also be a discussion of the market segmentation and the current coffee shop
competitors in Vietnam. This will help in evaluation of prime target markets for this new outlet.
The report will also unveil the key people related to this coffee business and the financial
feasibility of this new coffee shop (Thang & Phuc, 2018).
The diagram below shows the position of Vietnam among the countries which have the fastest
growing coffee markets by the retail value:
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