Café Amazon SWOT and PESTLE Analysis

Strength

1. Café Amazon is Thailand’s largest coffee chain: Café Amazon is the biggest network of branded coffee shops in Thailand. It was founded in 2002. The café runs 3,931 locations in Thailand as well as 324 outlets in 10 markets, including Cambodia, Vietnam, Laos, Oman, the Philippines, Myanmar, Malaysia, China, Singapore, and Japan. A selection of beverages, including tea, cocoa, fruit juice, drip coffee, and cold-brew coffee—all carefully chosen—along with delectable snacks and bakery menus, have been offered by Café Amazon to cater to consumers' changing lifestyles that involve spending more time at home. To do this, in addition to delivery, it has broadened its distribution networks through online channels, department stores, supermarkets, and Café Amazon's own mobile application.

2. World’s 6th largest coffee chain by number of outlets: Café Amazon was started by PTTOR in 2002 to sell their service products at the gas station but now it has become the most pivotal part of their “Retailing Beyond Fuel” business plan. As the company has been looking to expand its business beyond fuel, Café Amazon has emerged as the strongest segway to retailing. Café Amazon outlets are now almost evenly located at in-station and as independent outlets. Café Amazon in the span of 20 years has not only become Thailand’s largest coffee chain and biggest brand but it has also become the world’s 6th largest coffee chain by the number of outlets. The café chain has a total of 3,931 outlets. While most of its outlets are present in Thailand, the chain also has significant overseas presence with 324 outlets overseas in countries like Laos, Cambodia, Vietnam, China, Japan, etc. The company is looking to expand its overseas outlets to 1,000 by 2025.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

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Legal

1. Thailand raised the minimum wage across regions, across country in October, 2022: On 26th August, 2022, the National Wage Committee of Thailand, which consists of representatives from the government, employers, and employees, decided in favour of raising the minimum wage. Different provinces of Thailand will witness different rate of increase in the minimum wage within the range of 5-8% with the average increase being of 5%. The increase in the minimum wage comes in quick succession after it was last increased in January of 2020. The new minimum wage became applicable from October, 2022. This increase in minimum wage was done in response to record increase in inflation with inflation reaching a 14 year high of 7.61% in July 2022. The increase in minimum wage has been done to tackle inflation and to make sure that people have money to spend. This will help Café Amazon as people will tend to pay for food and beverages once they have a higher income. As consumption increases, so will the revenues. But at the same time, an increase in minimum wage twice in almost two and a half years, might be an area of concern for Café Amazon as an employer and as a part of a supply chain as it might translate to more expenses on its part. There might also be demand for higher pay by the existing employees to reduce the pinch of inflation on them.

Environmental

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