SWOT Analysis of an Internet cafe (Mecca) on Melton Road

Strengths:

* Belgrave area in which disposable incomes are moderate to high.

* Situates near the “Golden Mile” which is the heart of the Belgrave community. There are also a primary and a secondary school near by.

* Proposed premises are situated near bus stops and a busy shopping area throughout the week which will mean easy access to the general public in the area.

* The premises have many large windows and an open plan, located near the town centre, providing much opportunity to entice custom via interior design.

* The premises have easy access routes as there are number of ways to get to the location via buses and roads.

Weaknesses:

* The exterior design of there location is not breath taking and therefore does not attract many customers throughout the day.

* Limited parking space available (parking has to be done in the side streets which could become a problem such as congestion).

* It offers limited amounts of internet access as other space is used for national/international calls.

* They do not offer facilities that are offered by competitors such as scanning or gaming experience.

Opportunities:

* There is an opportunity to completely dominate the market of internet cafes and the small surrounding towns as the main service provided is modern, fashionable and the closest replicating service is in near by on Melton Road. On top of which it will be the most competitively price though this may require the adoption of penetration pricing until customer loyalty is established.

* If market domination is established there is and opportunity to expand the range of services to include new and efficient technology.

Threats:

* The main threat comes from current competitors who may also aim to slash prices, if this is the case; the internet cafe may have to look at product differentiation.

* The other threat comes for competitors as they can offer more technological facilities which could drive the business into bankruptcy problems, as profits may decline.

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