Swot Analysis Of Javanet Cafe

Strengths

The creator and owner, Carl Bruckner, while not indicating any previous experience in the industry, has taken an innovative approach to marketing a widely consumed beverage. Recognizing that coffee has a predictably consistent sales model but is lacking in a unique presentation and marketing angle, he has created a way to draw people in who might otherwise drink coffee at home, at work or at school, while having the same convenience of internet that his business offers.

The business plan is laid out in a flow that reads well and provides a logical progression. From an in-depth perspective as to what is lacking in Eugene concerning coffee shops to the various strategies the business intends to sell and market its product and on to the basis for the plan вЂ" the financial details, Mr. Bruckner presents a well developed business model. The research includes statistics that point to his target market, that in turn help develop anticipated earnings.

As the founder states, Eugene does not have any business operating such as this. He understands the composition of the customers that frequent establishments such as coffee shops and their need for a place to catch up on email, do some research for school or just browse the net. An internet coffee shop, as Mr. Bruckner has identified allows for individuals to visit the store with more reason to stay, if not meeting others.

The business plan clearly and rightly states that both coffee and the internet appeal to a large market, specifically the 18-50 year old age group. Within that market he has targeted those without laptops and provides computers, to those lacking in internet or computer skills he offers classes and to the power internet user, high-speed internet and office services like printing and scanning. The primary market segments inside the age demographic are students and office workers, which because of the desired location, makes this focus accurate. This is also reflected in the market analysis.

The owner will take advantage of local print advertising outlets and develop in-house promotional items to market the business. Together with a high visibility location will make this the right mix for a successful marketing strategy.

JavaNet has allowed for an efficient operations system by ensuring as least two managers, including the owner, as always present and because they are utilizing a well-established coffee and related equipment distributor, can rely on the material management system Allann Brothers provides.

The distribution channel is the coffee shop itself and all staff hired will be required to have experience working with the coffee making equipment and cash registers or undergo the appropriate training under the owner and technician’s guidance.

The owner desires to promote a social environment and foster a relaxed atmosphere, while balancing with and maintaining an upscale image. This will filter into management style but only with time will this be more refined.

Mr. Bruckner has recognized that the simple structure he has chosen for the business will allow for better dispersal of communication and anticipates that less organizational problems will arise compared to that of larger organizational chains. Also, the flexibility of the business structure enables JavaNet to react quickly to changes in the market. While not identifying this in the plan, the hiring of part time employees tends to target more of transient college age group, which fits well with providing a more diverse culture and promoting a social atmosphere.

Opportunities

The owner has determined that coffee sales are consistent and the interest in the internet increasing. This fits well with the college and office worker market segments for obvious reasons and because the internet is becoming more a part of business and social interaction can only lend to the aforementioned speculation.

JavaNet will target mostly students and business people but understands that there are more sub-groups and overtime more attention could be paid to these groups as trends evolve.

The internet, still in its infancy, has much growth potential to develop new technologies and methods of communication. Provided the company can stay up with these, it can continue to offer new reasons for customers to buy coffee at their shop.

Other food service businesses incorporate delivery service into their business model. A look at corporate sales should be examined and whether the location will make this opportunity feasible in the future. Perhaps using the internet for a direct gateway to online ordering would allow this to contribute to the current business model. The development of new distribution channels is only limited by JavaNet’s imagination.

Just as in any industry, time, effort, ingenuity and innovation must be exercised to lower running costs and increase profit margin. There is definitely room to do this and based on the owner’s already creative business model, could see the potential of a business such as this.

The food industry is constantly developing successful models and coffee shops are no different. We can look at Starbucks and Einstein’s and realize that the market is wide open and consumers are always looking for something better or different. This type of business, with the right management, could eventually franchise and go global.

Weaknesses

The marketing plan,