SWOT Analysis

Strengths

1.      Diverse Selection of Products:
Our business will offer an array of European coffee as well as exquisite tea and delicious desserts, meaning customers will not be disappointed with the range of products.

2.      Reasonable prices:
People get the impression that European coffee is too expensive to try but we offer them the chance to taste such coffee for a reasonable price, price sensitive customers will find this more convenient.

3.      Online order systems:
Also ordering system will be attached to each table so that customer doesn’t have to stay in line. The website will consist of varies options for the customer to select from such as flavors, coffee arts, sizes etc. and get them in real time.

4.      Website:
We will build a user friendly website and enable online ordering facilities so that customers could order there coffee beforehand and have quick take away in rush hours. We will also use it a means to get customer reviews on products and let them design their own type of coffee.

5.      Introducing new cuisines:
There will be new dishes and meals other than coffee and desserts. We will be providing breakfast, lunch and dinner to our customers so that they can get something more filling. 

6.      High tech machines:
To reduce the time customers has to wait for their coffees we will use high tech coffee maker machines and to maintain the international quality of the coffee. In this way we can provide efficient customer service.

7.      Different and unique:
The idea of a coffee shop offering international level coffee in Kandy is completely different to what is already out there, we believe this is a strength as people are going to want to test out the idea.

8.      International Quality Products:
Professional coffee roasters and pastry chefs will be hired to work for our business, and combining their skill with fine produce, the products sold by our business will be of international quality.

9.  Friendly Staff:
Our business will not only be marketed around the quality products, but also the high standard of customer service. Service is extremely important in retaining and gaining customers.

10.  Expression of art:
Our staff will consist of international level baristas who are experts in coffee arts, they will express any art that the customers’ requests through coffee. There will also be musicians and local bands playing in the shop so that the customers can relieve their stress with the soothing sound of music.

11.  Contemporary Design:
To attract customers into a different world from what they are used to and for our customers to enjoy having a break from work or a busy day.

Weaknesses

1.    Food kind:
The kind of foods we are selling is mostly going to involve sugars and sweetener and higher fat foods, this can be a major weakness in our business as people now days are much more health conscious and tend to choose the healthier options when it comes to meals and snacks. To overcome this we are going to have a low fat and low sugar range.

2.    Health and safety:
 As a new business we must learn all the health and safety laws, at first this may be a weakness as not all staff are going to be up to scratch with the rules. we will overcome this by sending staff to training.

3.    Peak times may not allow food to be out quickly:
Peak times in the morning when people start work and at lunch time rush will bring the kitchen to a slowdown. This will stop business workers from ordering fresh if there is not enough time for them to wait for their meal before leaving. Extra staff could be employed for these times but that will increase allocated wages.

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Opportunities

1. High demand for specialized coffee:
There are only few no. food outlets in Kandy, which produce coffee as the core-product. As Café is specialized in coffee we have the opportunity of serving the coffee lovers with quality products.

2. Rapid growth and expansion of the coffee market:
Through the researches during the past years, it is revealed that the market demand for coffee is very high. So this will show a drastic growth and an expansion in the coffee market in the future as well.

3.The chance to expand the business nationally and globally:
Drinking coffee has become a new trend in Sri Lanka. This will become a positive impact on the business, as we have the capability of opening new branches island wide in order to expand the business.
Café could be also launched globally in order to attract the international market, as coffee is the most favorite drink in many foreign countries.

4. Co-branding with other manufacturers of food and drinks:
As Café is at its initial stage, there is an opportunity for the company to co-brand the products with other well-known manufacturers, in order to position the brand name in the customers mind.

5. Ability to launch new products in the Café like “coffee of the day” and “special meals":
Café has the ability to change and differentiate the products according to customer preferences and could launch new products with the trend in the society.

6. Availability of quality coffee beans and other ingredients at an affordable price:
Ingredients needed to make coffee could be imported from countries like Indonesia which supply best quality coffee beans at a reasonable price.

7. Less competitors:
Though the food outlets in Kandy serve the customers with coffee products, there are not specialized in it. So cafe has small no. competitors who are professionals in coffee products which is a less threat for the company.

8. Ability to form lasting relationships with coffee producers:
As Café is dealing with large coffee manufacturing companies in daily basis, we have the opportunity of getting support from them, in order to extend the business into large scale.

9. Ability to differentiate the produce through price and quality:
With the change of the state of economy, the price and the quality of the products could be differentiated in order to suite the customer preferences and the affordability of the consumers.

10. Can cater to a diverse target market:
According to the location and high demand for coffee, we could target a large customer base which includes foreigners, business crowd, teenagers and teen adults.

11. Increase the customer base through loyalty programs:
In order to attract customers and increase the customer base, Café have the opportunity of conducting loyalty programs and sales promotions.

12. Ability to cater to health conscious people and also non- coffee lovers:
As Café is serving special bakery goods for health conscious people and also a range of beverages like hot cocoa and tea for non-coffee lovers, we have the ability to attract more customers to the business.

Threats

1.      Products being copied:
With our opportunity of being innovative, we have the risk of products being copied and possibly bettered by competitors which is a major threat

2.      Rising cost of ingredients:
A coffee house is exposed to rising costs of coffee and dairy products. This is something that cannot be foreseen but may have a big impact on the coffee store industry

3.      Government policies:
Government policy of reducing disposable income may reduce people’s income, which will ultimately reduce the demand for coffee which is not a necessity good.

4.      Coffee is considered as a luxury product:
As purchasing from a coffee shop is considered luxury for most people rather than a necessity, many individuals will not visit the cafe when they do not have extra income.