4. S.W.O.T. ANALYSIS
Strengths
- No internet café competitor in the area at this time
- No computer support services competitor in the area at this time
- Because the product offering is varied, it will appeal to a mixed audience of both locals and visitors, as well as to different age groups
- Reduced dependence on any one particular target market
- The central location of the business is close to guest houses, youth hostels and backpackers’ accommodation. It will draw foot traffic from all of these, as well as from local residents shopping in the neighbourhood
- Owner and spouse have considerable relevant experience/expertise
Weaknesses
- Establishing awareness and trust/acceptance may take some time
- Limited spending power of the surfing/young adventurer market. Similarly, many residents are retirees and the absence of notable commerce & industry means that local salaries are low
- Big-spending holidaymakers are more attracted to areas like Plettenberg Bay, Cape St Francis and Knysna
- Notable high season/low season variations in customer numbers are still possible, despite the varied product offerings of the business
Opportunities
- Being ‘first to market’ in an area which is growing in terms of both tourist and resident numbers
- Opportunity to build long-term, mutually beneficial relationships with accommodation venues, local tourism bodies, local chamber of commerce, and others
- Use the current mixed-product business model as a springboard from which to establish adjacent stand-alone operations, such as a full-service coffee bar/restaurant and full-service computer support business
Threats
- Entry of competitors into the marketplace
- The surfing and computer gaming markets can be fickle and easily persuaded to move to a ‘newer’ or ‘cooler’ venue
- Improvements to the internet connectivity infrastructure in the area will reduce demand for a specialist internet café
- Possible downtime of internet café/internet gaming activities due to service provider connectivity problems
