CHALLENGES ENCOUNTERED BY THE SELECTED COFFEE SHOP OWNERS OF GAPAN, SAN ISIDRO, AND CABIAO, NUEVA ECIJA DUE TO PRODUCT COMPETITION AND THEIR COPING STRATEGIES

Abstract

This study addresses the impact of product competition on coffee shop owners in Gapan, San Isidro, and Cabiao, Nueva Ecija by examining the challenges they encounter amid shifting consumer behavior and market trends. It aims to interpret how product competition affects these businesses in the long term. Additionally, the research investigates the business strategies employed by proprietors to navigate competition and sustain operations amid increasing competition from both new market entrants and existing competitors. The study employed a phenomenological research design to examine the challenges faced by coffee shop owners due to product competition. Purposive sampling was used to select seven (7) participants from Gapan, San Isidro, and Cabiao, Nueva Ecija. Semi-structured interviews supported by audio recordings were utilized for data collection. Frequency distribution was used to describe the profile of the respondents, while thematic analysis was applied to analyze the challenges encountered and the coping strategies used to manage competition. Based on the participants’ responses, the challenges encountered due to product competition included lower-priced product offerings by competitors, the need for coffee flavor and quality development, inadequate customer visits, secluded shop locations, and difficulty keeping up with market trends in the coffee industry. The results indicated that product competition has a negative effect on business operations. To address these challenges, the owners employed strategies such as enhancing coffee flavors and quality, product innovation, social media marketing, location strategies, and expanding the services offered. The study revealed that coffee shop owners experience significant challenges in managing their businesses due to intense competition. Therefore, it is essential for owners to implement effective strategies to gain competitive advantage and achieve business sustainability. However, further research is recommended due to the limited number of participants, as a larger sample size may provide more comprehensive insights and sufficient data.