JavaNet Internet Cafe is to be the first high tech internet cafe in Eugene, Oregon. The cafe will provide computer equipment, as well as high speed internet access as well as coffee and bakery items. The appeal of this company is to provide advanced internet services to the public that may not be affordable in home use. Also, the business plan includes a training staff to assist new internet users in learning the basics of the internet.
The goal of this plan is to provide an upscale social and educational environment for those who desire internet access as well as social interaction and technical assistance. Strengths JavaNet has sought out a knowledgeable staff who are eager to teach internet basics to new users. They have purchased state of the art equipment which will appeal to users who may not be able to afford the best equipment in their home or office. The company will offer a higher-class environment than other coffee houses or internet cafes.
The amenities will include hard wood tables and booths, track lighting, local art, and upscale coffee house equipment. The business appears to have sufficient capital from grants and investors to maintain operations for the first year. The small scale of the business requires only a small staff, and the business model appropriately includes the necessary management. The market segments are accurately identified as a split between new internet users, and the more experienced "power users". The business plan includes appropriate services for both segments.
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The marketing plan is effective for this type of business. Local advertisement and newspaper ads will be appropriate for the local scale of the business. Weaknesses Like any other technology based company, JavaNet is heavily dependent on a rapidly changing market. Computer technology, to include hardware and software as well as the users evolve very quickly. While computer technology may require the most attention in a dual service business such as this one, the other half should not be neglected. It seems as though not enough thought has gone to the coffee shop aspect of the business.
In order to be competitive with the high volume of coffee shops in Eugene, a staff who is knowledgeable and trained in making and serving specialty drinks will also be necessary. Opportunities Since this business was to open in 1998, the demand for public internet access was high. In Eugene, Oregon, JavaNet would be the first cafe to offer internet access as well as specialty coffee. There are several high end coffee suppliers in the region and wholesale cost for quality coffee beans is relatively low compared to resale value.
The demand for gourmet coffee is high, and should do well with the quickly growing interest in internet access. At the time, in 1998, home internet access was not affordable for everyone, and the dial up services were certainly not as fast as the T2 connections being offered by JavaNet. Access to new and expensive Software applications would be available to customers that would not normally be available unless the person had access to an office or school computer lab. Threats The greatest threat to this business plan may be offering services that are appealing enough to bring customers from their home to the cafe.
As technology advances, the cost of ownership for high tech computing and internet equipment goes down. The equipment that is available in the cafe may soon be available for home purchase at an affordable cost. Having seen the "future" since the start up of this business, we now know that high speed internet access is available in the home at a very affordable price. Many larger, mainstream food franchises now offer wi-fi (high speed wireless internet access) in their establishments.
McDonald's and Starbucks are two of the first companies to offer free wi-fi in almost all of their United States locations. For JavaNet to remain successful and competitive, the owners and staff must continually modify and evolve their business plan to be one step ahead of the services that are offered for in-home use. In 1998, a high speed internet connection along with laser printing and access to popular software, such as Adobe Photoshop and Microsoft Office applications were not affordable to many for home use.
Ten years later, most of these items are commonplace in the home. Another threat will be competition from similar businesses. While JavaNet may be at the front of the Cybercafe wave in Eugene, similar businesses will be starting in the near future. The owners and operators must be able to foresee the competition and have the ingenuity to offer cutting edge services that are not available from the competition.
- Internet Cafe Business Plan. (n. d. ). Retrieved July 18th, 2009, from http://www. bplans. com/internet_cafe_business_plan/executive_summary_fc. cfm
Java Culture SWOT Analysis
Analysts Java Culture Coffee Bar SWOT
SWOT Analysis is a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats. The SWOT analysis provides information that is helpful in matching the firm's resources and capabilities to the competitive environment in which it operates.
Java Culture is located near the University of Oregon campus, which is a great location because the location is popular with different varieties of people from age to personalities.
A customer can come and escape from their daily stresses of life to relax with friends or even catch up on their favorite book. Java Culture give free books out daily they are different ones for customers to be lost in a world of Culture. Java Culture is a successful company. It sells coffee, other beverages and snacks. For being a new, company this Java Culture in coffee sales alone between 2001 and 2003 has a sales increase by 73,584 dollars. In total sales alone between 2001 and 2003 sales increased by 122,640 dollars.
Java Culture is striving to maintain a 65% gross profit margin with reasonable operating expenses. In the same period, net profits grow from 100,000 to 125,000 dollars.
Sales slightly decrease during the school vacation period, with that said this company is striving to focus most of its business on the faculty and students of the University around the corner. The other part whom they are to focus business on are the local businesses around them which is they hope to strive for a big business boom even on weekends when office buildings are closed.
They are located on the bottom of an office building, which is set up for all the equipment but lacks in visibility for the streets nearby. Their ideal plan is to have two employees taking orders while one employee is preparing the orders. A great portion of their profits will be turned around to the employees and getting new customers in the store, which is where it leaves no room for this company to improve or make new drinks.
The company expects to grow in revenue sales from 584,000 in PAYOFF to 706,000 in PAYOFF.
Food cost assume at 25% for coffee beverages and 50% for retail beans and pastries. Java Culture has a great opportunity to beat out the competition as in Cutbacks with its close to campus and business sales points. This company can also have excellent prices and serve the best brewing coffee and pastries if they pay attention to the prices of their competitors. Another opportunity is for this coffee bar to be set up more like a relaxing place to come and have a nice cup of coffee get some studding done or even catch up with friends, make this coffee shop a home away from home.
Even though it is in a business building if it is a quite place for people to come and focus on life at hand then it will not be like a Cutbacks a place to do business or study. This will attract the students and faculty of the University all year round. A thing that will catch those readers is the free books and magazines to read in the coffee shop and if they changed each week, the clientele will increase
The threats around the coffee bar are not the average coffee shops even though Cutbacks Take 35% of the neighboring market customers due to their great tasting rinks and that they sales more then your average pastry.
Those whom buy their coffee or other items from Cutbacks are those who like to pay the over price beverages and tend to not like change. The Cafe© Roam is a company where students and faculty can choose to go to get a great tasting beverage and something to eat more then Just a pastry. The Cafe© Roam is a place where a customer can have a business meeting and order lunch, the customers may also want to get the meal to go and study at home or in the office. Cafe© Roam attracts 25% of the neighboring customers.
I-JOY Bookstore caters about 10% of the remaining customers also shared with other establishments. This bookstore focuses on mainly those customers looking to read or study in a quite place. They attract the customers whom need a place to study or grade papers while drinking their favorite drink or snack on something to SOOT is a great way to analysis business to see if that business is worth eat.
Making into a business. Java Culture is a great idea for a coffee shop even though next to a Cutbacks and a Cafe© this company could attract those whom like the sweet hometown coffee shops.
Cutbucks Coffee SWOT Analysis
Strong Market Position and Global Brand Recognition: Currently, the company has about 6,500 stores and has operations in over 29 countries. Cutbacks is also the most recognized brand in the coffeehouse segment and brand. Such strong market position and brand recognition allows the company to gain significant competitive advantage in further expanding into international markets and also help register higher growth in both domestic and international markets.
Products of the Highest Quality: They give the highest importance to the quality of their products and avoid standardization of their quality even for higher production output.
Strategic Analysis Of Cutbacks Corporation
Right Location: Cutbacks has stores in some of the most prime and strategic location across the globe. They target premium, high-traffic, high-visibility locations near a variety of settings, including downtown and suburban retail centers, office buildings, university campuses, and in elect rural and off-highway locations across the world.
This has earned them a significant competence and advantage to be able to penetrate prime markets and tap into customers convince factor.
Expensive Products: While Cutbacks does differentiate their products with being highly quality couple with the whole 'Cutbacks Experience', in times of economic sluggishness, consumers to have so switching costs to competitor's products with lower prices and forgo paying a premium. These premium prices could also pose mom weakness for it to succeed in developing countries.
American/European coffee culture clash with that of other countries: Cutbacks coffee culture may not widely accepted in some countries as part of their international expansion strategy.
Expansion into Emerging Markets: The increase saturation and self-centralization of the US market makes its international strategy even more important. Cutbacks has made good inroad into many countries, with India recently Joining the list with a Joint venture entry.
Cutbacks has a great growth potential in further expanding into the emerging and developing markets. They can leverage their size, experience, financial prowess and efficiencies to make new market share.
Strategic Analysis Of Cutbacks Corporation:
Strategic Alliance may be a vital factor in Cutbacks ultimate success around the world. In Japan, the firm has partnered with a local handbag manufacturer, Scabby Inc. In Spain, Cutbacks has Joined forces with Group VISP, the sec nod-largest family-owned restaurant operator in the country.
Expanding Product mix and offerings: Cutbacks recently started to expand their Shattuck SWOT Analysis By secretions acquisition strategy. This provides significant opportunities for Cutbacks.
Increased Competition: This is by far the biggest threat that Cutbacks faces with the market being at a mature stage, there is increased pressure on Cutbacks from its competitors like Dunking Brands, McDonald's, Costa Coffee, Pet's Coffee, mom and pop specialty coffee stores.
Price Volatility in the Global Coffee Market:
There has be significant fluctuations in the market prices of high quality coffee beans, which Cutbacks can't control. Uncertain marketing environment:
- Cutbacks will have to persevere international market due to different cultures, income and spending behavior and local perception.
- Boycotted: Consumers boycotted a Cutbacks store in Lebanon in protest against the U. S.
- Iraq war, and Cutbacks was forced to close its stores in Tell Aviva because of the violent conflict between Israelis and Palestinians.
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