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Café Amazon SWOT and PESTLE Analysis

ID : 521430353| Feb 2023| 20 pages

COMPANY PROFILE -Café Amazon

Business Sector :Food and Beverages

Operating Geography :Thailand, Southeast Asia, Global

About Café Amazon :

Café Amazon is chain of coffee places all around Thailand and the world, owned by the PTT Public Company Limited. Founded in 2002 with its headquarters in Bangkok, Thailand, as of 2023 there are 3,333 such cafes spread across Asia and other countries, which makes it the sixth largest coffee chain in the world. The cafes are found in mainly shopping malls, petrol stations and city centres. They opened their first international branch in 2019 at the Jewel Changi Airport. It has branches in several countries like Thailand, Cambodia (200), Laos (51), Philippines (71), Myanmar (8), China (5), Oman (5), Singapore (3), Japan (2), Malaysia (1), Vietnam (4) and Saudi Arabia (1). The cafes were started as a means to increase the revenue of the PTT gas stations. They saw it as an opportunity and it has now become an integral part of Thai gas stations because it provides services which are adjacent to the lifestyle of the people who visit the gas stations.

The USP of the whole brand was created on the idea that the main source of coffee in the world is Brazil and the Amazon Forest is the world’s biggest natural rainforest. Thus, the idea of creating a café which could provide a pure and relaxing place in nature for weary travelers was born. It is always decorated with green tones, lots of greenery and has a very relaxed vibe. Along with its atmosphere and the intense coffee the slogan “Taste of Nature” was created.

Café Amazon Revenue :


(Revenues for PTTOR Lifestyle Business Segment)
฿16,965 Million – FY ended 31st December, 2021 (YoY growth 0.4%)
฿16,894 Million – FY ended 31st December, 2020

Competitive Analysis of Café Amazon

SWOT
PESTLE
The SWOT analysis for Café Amazon is presented below in a matrix format followed by a detailed analysis:
StrengthsWeaknesses
1. Café Amazon is Thailand’s largest coffee chain
2. World’s 6th largest coffee chain by number of outlets
3. Winner of multiple Brand of the Year awards for consecutive years
4. Parent company, PTT, is Thailand’s largest oil and gas company
1. No major presence outside of Southeast Asia
2. The current expansion plans have been revised to a lower total number of outlets
3. Struggles to expand in Vietnam
OpportunitiesThreats
1. PTTOR is planning to make Café Amazon a top 5 global brand by the number of branches
2. Coffee market in Thailand is expected to grow annually at 8.59% CAGR
3. Ramping up regional and international presence
1. Competitors like Starbucks have also expanded constantly and innovatively throughout Thailand
2. Many of the Café Amazon’s partners, which are SMEs, may have suffered irreversible damage during Covid
3. Global coffee market is facing a shortage of coffee beans in recent times
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Café Amazon

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.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

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Opportunity

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Threat

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Major Competitors :

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References used in Café Amazon SWOT & PESTLE Analysis Report

1. Annual Report - https://investor.pttor.com/en/document/viewer/60269/56-1-one-report-2021
2. Café Amazon targets 1,000 international outlets by 2025 - https://www.worldcoffeeportal.com/Latest/News/2021/October/Cafe-Amazon-targets-1,000-international-outlets-by
3. Thai coffee chain Café Amazon struggles to expand in Vietnam - https://e.vnexpress.net/news/economy/thai-coffee-chain-cafe-amazon-struggles-to-expand-in-vietnam-4550391.html
4. Coffee – Thailand - https://www.statista.com/outlook/cmo/hot-drinks/coffee/thailand#:~:text=Revenue%20in%20the%20Coffee%20segment,US%2495%2C580.00m%20in%202023
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