Chatime's Competitor in Malaysia

Topics: Coffee, Starbucks, Caffeine Pages: 20 (5851 words) Published: December 17, 2012
Executive Summary

Chatime seems to be blooming as the market leader in the bubble tea market of Malaysia. Instant-Chatime was recommended to maintain its market share in this competitive industry as suggested in the previous proposal. With this, Chatime seeks to investigate and study about its main competitor – Starbucks. A brief profile of Starbucks is shown and compared with our company. The illustrations and tables are tailored to what Chatime should be aware of the surroundings of every potential rival in Malaysia.

This proposal is about our analysis on Starbucks discussing about the three strategies the market leader used in the beverage industry. We observed Starbucks’ accomplishments and problems in accordance with analyzing the competitors which are expanding, protecting and increasing its total market share. Next, competitive strategies are presented in six basic steps of imitation in business. We looked into the techniques of imitating and innovating from successful companies. We applied this model and suggested the relationship between Starbucks and Chatime in the beverage industry. It is a great business to follow because with the lessons and undertakings of Starbucks, we learnt that there is so much room to boom further in this beverage industry in Malaysia. The Malaysian consumption of drinks, culture, trends and preferences have to be considered in this analysis as well. Recommendations for delivery services and Drive-Thru Chatime are suggested by the marketing team to provide convenience and availability of Chatime products.


The Malaysian bubble tea franchises have a few dominant players – Chatime, Ochado and Gong Cha, stated in the Star (The Star, 2012). However, other minor existing bubble tea players are Share Tea, Ding Tea, Each-A-Cup, Cup Bon, 17 C, Tea-Tac-Toe, etc. All these bubble tea brands are close substitutes that share similar qualities and prices in Malaysia that consumers could choose from. The Malaysian culture of lurking in cafés started a long time back since Sherri Johns, President of Whole Cup Consultant Company noticed the tea and coffee imports are massively served in Malaysia and cafés are usually utilised by the Chinese for business meetings. She also realised that the lifestyle of the younger people are converging towards a different lifestyle recently (Wallengren, 2012). Malaysians are constantly demanding for cosy cafés to have their drinks and to lurk in with their friends. Therefore, Chatime being an infant growing in the Malaysian beverage market has to be alert of this trend and identify the forces that may affect its business performance. Henry Wang, the founder of Chatime mentioned that Chatime mainly targets the younger generations because of the idea of sustaining its business in the long run in Exclusive Philippine Media Interview (Our Awesome Planet, 2012). His concept was to shadow the strategies that Starbucks uses in Chatime and making Chatime, the “Eastern Starbucks” in the bubble tea industry.

In accordance to the previous proposal - Instant-Chatime, we now further investigate Chatime’s competitors and determine the solutions to deal with our rivals. Instant-Chatime proposal sparkled solely from the example of Starbucks Via (instant coffee sachets), launched by Howard Schultz worldwide by the end of September 2011 (Global Coffee Review, 2010). With that, we would like to choose a coffee brand over a tea brand to be assumed as the main competitor for Chatime in the beverage industry.

Starbucks being an international luxurious coffee brand was brought into Malaysia since 1988. The Coffee Bean and Tea Leaf and Starbucks Coffee Company were the pioneers of the Western coffee culture (Siti Nurbaya Abdul Rahman, 2010). The reason for choosing Starbucks Coffee instead any other bubble tea brand in the beverage market is because Starbucks appears to be competing indirectly with Chatime, despite Chatime being a bubble tea brand. Chatime...
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