In today’s global market, quality is an order wining criteria. Quality of a cup of coffee depends on every step in the value chain starting from the crop including planting, harvesting, primary and secondary processing, marketing, and storing or transporting. Ethiopia, as a major producer and exporter of coffee, one fourth of its population depends on this sector. In this context, a minor improvement in the coffee supply chain would have significant socio-economic importance. This research aimed at analyzing the detail value chain of the coffee industry towards quality improvement and competitiveness in general. The outcome will help to design and implement interventions by the government and non-government organizations so that the benefits obtained form the sector could be maximized.