Swot Analysis: Javanet Internet Cafe

SWOT Analysis: JavaNet Internet Cafe Business Overview 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 â€Å"power users†. The business plan includes appropriate services for both segments. 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 â€Å"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. References Internet Cafe Business Plan. (n. d. ). Retrieved July 18th, 2009, from http://www. bplans. com/internet_cafe_business_plan/executive_summary_fc. cfm