By the end of the case discussion, students will be able to:
Evaluate strategic growth paths (expansion, diversification and internationalisation) under resource constraints in an emerging-market context.
Assess the trade-offs involved in preserving brand authenticity and identity while pursuing growth in a highly imitative market.
Critique how founder identity and personal values become embedded in a business model and shape strategic scalability.
Design a growth strategy for In3 Coffee that aligns with the founder’s vision, brand values and market realities.
This case explored the entrepreneurial journey of Ye, the 45-year-old founder of In3 Coffee, a culturally grounded speciality café in Chengdu, China. Launched in 2021 with municipal funding, In3 Coffee operated as a hybrid café, roastery and barista training centre built in a repurposed industrial site using reclaimed materials. It quickly gained popularity among Chengdu’s younger generation because of its emphasis on design, quality and cultural authenticity. Despite this visibility, by January 2025, In3 Coffee was running at break-even: the café covered its costs, wholesale bean sales provided the only profit and training activities were run at a loss for authenticity and community engagement. At the same time, imitation of In3’s brand design and experience by local competitors made its position more vulnerable. Ye now faced a strategic dilemma: should he expand In3’s café presence in Chengdu to reinforce legitimacy, diversify through wholesale and barista training, or pursue international expansion in Colombia? The case provided students with an opportunity to evaluate strategic growth paths and authenticity-driven entrepreneurship in the context of an emerging market.
This case was best suited for courses in entrepreneurship, strategic decision-making, branding and business model innovation in emerging markets. It was designed for graduate-level programs, particularly MBA students, and could also be used in advanced undergraduate courses in business, management, or international studies. Instructors may also find it relevant for executive education sessions on values-based entrepreneurship and brand development in emerging markets. Students should have prior exposure to strategic analysis tools, such as the resource-based view and the industry-level analysis tools.
CSS3: Entrepreneurship.
