Analysis of Value Chain Model on Small and Medium Enterprises (SMEs): A Case Study of Coffee Shops in Bandung

Abstract

Indonesia is one of countries as the best quality coffee producers in the world. Indonesia’s geographical location is ideal for coffee growth and production, resulting in the diversity of coffee products with distinctive tastes. This led to the development of coffee shop business in Indonesia, especially in Bandung. Coffee business thrives in Indonesia and develops into a business with a scale of SMEs. This study aims to analyze the value chain model in coffee shop business in Bandung by mapping the input-output relationship, and identifying strength factors along the value chain. The research method used qualitative method with case study approach. The informant was determined by purposive sampling technique. Triangulation analysis is conducted to get more accurate and deep of data analysis. The results showed that the main activities and supporters in the coffee shop value chain in Bandung involve four main actors, namely local coffee farmers, coffee traders, processing industries, and coffee shops. This study contributes a similar trend to be observed in other coffee shop business value chains.