Reference no: EM132203381

The Domestic Expansion of Bo’s Coffee

Philippine coffee chain Bo’s Coffee is planning to operate 200 local stores within two years2. The plan represents a change in direction for the brand, which opened its first outlet in Qatar recently. Chairman and President Steve Benitez says the company has secured a licensing deal with Qatari entrepreneurs, with international expansion being part of its long-term expansion plans. Meanwhile, overseas expansion for Bo’s is now shelved until 2020, as the brand’s immediate focus for growth is on domestic expansion. Bo’s Coffee was launched in Cebu City by Benitez in 1996. It has 30 outlets in Metro Cebu, and sources coffee beans from farmers in the Philippines. It also engages in other partnerships to help transform the lives of people in different communities. Benitez said: “The Qatar opening was long overdue. Finally, we have opened it. Our partners there are planning to open three to five more branches. We are happy to hear that despite minimal marketing, the coffee shop there is doing well. However, the plan is to grow the brand locally before we expand aggressively in other countries.”

1. Conduct an industry analysis of the coffee industry in Philippine.

2. Propose three possible growth strategies for Bo’s Coffee in the domestic market. Discuss the pros and cons of each strategy and prioritise your recommendations.