Chatime's Competitor in Malaysia

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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…show more content…
Lastly, a rough idea on the last factor - competitive rivalry which discusses about six details Chatime has to consider is shown in Table 1 (tutor2u.com, 2012) Competitive Rivalry (Degree Of Rivalry) | Examples And Findings | Structure of Competition | * Chatime is the largest market share in the bubble milk tea industry. * Although bubble milk tea falls under the tea industry, Chatime has to consider Starbucks or any other beverage to be a threat to the business. | Structure of Industry | * Chatime has to incur a fixed cost of opening outlets all across Malaysia. Each outlet costs RM300,000 to RM400,000 (depending on sizes of outlets). * A galleria cost over RM500,000 each. | Degree of Differentiation | * Chatime is a Taiwanese brand that sells dessert-like beverages. However, it specialises in the bubble tea industry. * In contrast to a regular milk tea found in the streets of Malaysia – “Teh Tarik” in Mamak stalls. | Switching Costs (Suppliers) | * Chatime is tied up with La Kaffa. | Strategic Objectives | * Chatime caters a wide range of beverages and convenience to the public. | Exit Barriers | * The sunk cost that Chatime will have to bare if it is liquidated. | Table 1: Competitive Rivalry that Chatime faces After knowing the five forces for Chatime here are three parts of analysing our competitor - Starbucks. Firstly, knowing about the market structure of Chatime is crucial. Currently,

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