LINKING BUSINESS STRATEGIES AND DIGITAL MARKETING TO COMPETITIVE ADVANTAGE IN LOCAL CAFES IN MALAYSIA
DOI:
https://doi.org/10.35631/IJEMP.933006Keywords:
Business Strategy, Competitive Advantage, Digital Marketing, Local Cafes, MalaysiaAbstract
The cafe industry in Malaysia has experienced rapid growth over the past decade, driven by lifestyle changes, urbanization, and the increasing popularity of coffee culture. However, these cafes face intense competition from international brands and market saturation, signals the imperativeness in identifying effective strategies for sustainable competitiveness. This concept paper examines the relationship between business strategies and competitive advantage among local cafes in Malaysia, with a focus on the moderating role of digital marketing. Drawing on Porter’s Generic Strategies cost leadership, differentiation, and focus and the Dynamic Capabilities Theory, this concept paper proposes that digital marketing strengthens the impact of strategic choices on competitive advantage. Cost leadership allows cafes to attract price-sensitive customers through efficiency, while differentiation emphasizes unique offerings and brand identity, and targets niche markets with tailored experiences. Digital marketing, encompassing social media, e-commerce, and online customer engagement, enhances these strategies by improving visibility, customer relationships, and market adaptability. It enables cafés to sense opportunities, respond swiftly to consumer trends, and reconfigure resources to sustain performance. The proposed framework highlights that digital marketing is a strategic enabler that amplifies the effectiveness of business strategies. This study contributes to the literature review by understanding how local cafes can leverage strategic and digital capabilities to build lasting competitive advantages in an increasingly digitalized and competitive environment. Future empirical research is recommended to validate the proposed model and guide local cafe owners in developing integrated strategic and digital approaches for long-term success.
Downloads
References
Abdul Malik, S., Zakaria, N., & Othman, S. (2024). The impact of digital marketing technology for transformation on SMES: a systematic review. Insight Journal (IJ), 11, 303-314.
Abdul Halim, T. F., Jamaluddin, R., Abdullah, N., Zahari, M. K., Kamaruddin, N. S., & Subramanian, B. (2025). Leveraging social media for enhanced SME performance in the restaurant industry: a case study of Penang, Malaysia. Journal of Computing Research and Innovation (JCRINN), 10(1), 266-282.
Abdullah, T. N. H. T., Hassan, W. M. H. W., Shukri, S. H., Mohamad, R., & Rosli, M. I. (2024). Factors Influencing Youngsters' Intention to Visit Hipster Cafes in Malaysia. Future horizon: Advancing Student-Led Innovations and Research in Sustainable Hospitality, Tourism and Wellness, 214.
Abdullah, S. I. N. W., Them, P. K., Samdin, Z., Lim, B. J. H., & Phuah, K. T. (2022). The future of social enterprise café in Malaysia: A study on millennials’ perception and intention. International Journal of Business and Society, 23(3), 1792-1812.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.
Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing: Strategy, implementation and practice (7th ed.). Pearson Education.
David, F. R., David, F. R., & David, M. E. (2020). Strategic management: Concepts and cases (17th ed.). Pearson.
Farid, A. M. (2021). Food tourism motivation and customer satisfaction on hipster cafe in Johor Bahru, Malaysia. Management, 6(26), 155-162.
Foo, W. C., Bajuri, N. H., & Wong, K. Y. (2013). Overview on SMEs family-run local coffee shop in Malaysia: Challenges and determinants of survival. Sains Humanika, 64(2).
Grant, R. M. (2016). Contemporary strategy analysis (9th ed.). Wiley.
Huang, L. V. (2017). Malaysian café culture: The relationship between customer experience and customer satisfaction towards contemporary cafés. Journal of Social Sciences, 3(2), 1582-1602.
Homburg, C., & Wielgos, D. M. (2022). The value relevance of digital marketing capabilities to firm performance. Journal of the Academy of Marketing Science, 50(4), 666-688.
Kotler, P., Kartajaya, H., & Setiawan, I. (2021). Marketing 5.0: Technology for humanity. John Wiley & Sons.
Kumar, J., Konar, R., & Balasubramanian, K. (2020). The impact of social media on consumers’ purchasing behaviour in Malaysian restaurants. Journal of tourism, sustainability and well-being, 8(3), 197-216.
Lee, S., Lee, K. S., Chua, B. L., & Han, H. (2017). Independent café entrepreneurships in Klang Valley, Malaysia–challenges and critical factors for success: does family matter? Journal of destination marketing & management, 6(4), 363-374.
Moorthy, K., En Chee, L., Chuan Yi, O., Soo Ying, O., Yee Woen, O., & Mun Wei, T. (2017). Customer loyalty to newly opened cafés and restaurants in Malaysia. Journal of Foodservice Business Research, 20(5), 525-541.
Porter, M. E. (1980). Competitive strategy: Techniques for analyzing industries and competitors. Free Press.
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
Saleh, M. F. Md, Halim, N., & Farid, A. M. (2024). Food tourism motivation and customer satisfaction on hipster café in Johor Bahru, Malaysia. Journal of Tourism, Hospitality and Environment Management, 6(26).
Shien, O. Y., Huei, N. S., & Yan, N. L. (2023). The impact of social media marketing on young consumers’ purchase intention in Malaysia: the mediating role of consumer engagement. International Journal of Academic Research in Business and Social Sciences, 13(1), 1540-1570.
SME Corp Malaysia, & Department of Statistics Malaysia. (2024). Profile of MSMEs in 2015-2024 [Data set]. SME Corp Malaysia. Retrieved from https://smecorp.gov.my/index.php/en/policies/2020-02-11-08-01-24/profile-and-importance-to-the-economy smecorp.gov.my
Talib, K. A., Gapar, M. H. A., Ismail, R., & Isa, S. M. (2021). Hipster foods and cafes: Framing cohesion and identity. Geografia, 17(2).
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350.
Tuan Norhafizah, T. Z., & Che Ku Nuraini, C. K. M. (2024). KopiCulture: Unveiling Customer Loyalty in Malaysia's Coffee Market through Clustering Algorithms for Local Cafe Insights. Journal of Data Science, 2024(35).
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171–180.
Yahya, N. Y., Mazlan, N. A., & Wan Kamarudin, W. N. B. (2022). Personal factor and consumer purchase intention: the risen of coffee culture in Klang Valley, Malaysia. Journal of Tourism, Hospitality and Culinary Arts, 14(2), 130-148
