¶ … Competitors
PC BANG - PC Bang is a Korean Internet cafe with 21460 outlets across Korea.
Kinko's - Kinko's is a copy centre chain with 1100 stores across the United States and overseas.
Office Max - Office Max is a retail chain which also has a major online presence. Office Max offers a full range of business services.
Staples - Staples is a retail chain providing office supplies and services. It also has services available online.
Local Coffee Shop - Local coffee shop providing food and drinks to local customers.
SERVICES PROVIDED BY POTENTIAL COMPETITORS
PC BANG - PC Bang provides Internet services, specializing in entertainment. Its main service is providing an online gaming venue.
Kinko's - Kinko's operates from a store front, offering a full range of office services. Those services include photocopying, scanning, printing, mailing and fax services, FedEx drop boxes, videoconferencing, electronic document transfer, paper and office supplies and Internet access.
Office Max - Office Max provides both products and services to business. The product range includes all office furniture and supplies. The service range covers administration and travel, advertising and marketing, communications, computer services, finances, HR and e-services.
Staples - Staples provides a full range of office supplies and office furniture. It also has various business services available including business printing, financial management, sales and marketing, technology and communication, HR and insurance.
Local Coffee Shop - the local coffee shop provides both hot and cold food, hot and cold drinks and snack foods, as well as an area to sit and relax.
3. SIMILARITIES BETWEEN POTENTIAL COMPETITORS AND INTERNET CAFE
Kinko's, Office Max and Staples are all competitors in the business services area. The similarities with the Internet cafe are the Internet access and access to printing and scanning equipment. The Internet cafe will compete directly with these in the areas of providing office services.
The local coffee shop has two similarities, firstly in that it provides refreshments and secondly, that it provides an environment to sit down and relax.
PC Bang provides similar services to the Internet cafe, except that it does so in a different country. If it were to expand its services to America, it would be a direct competitor in the gaming and entertainment area.
4. SWOT ANALYSIS
Strengths
The strength of the Internet Cafe is its combination of facilities and its environment. While the business services do provide the office services, they do not provide it in the same environment. This is a factor that is likely to attract customers. For those in a business environment, a relaxed atmosphere and the ability to combine work with play will be an attractive feature. High speed Internet access and a variety of available programs will also be an attractive feature for both students and business users. For those using the Internet for long times, the ability to interact with others, to include recreation and to eat and drink will be an attractive feature. For the gaming features the major advantage is to compete with others and to be in an interactive environment.
Weaknesses
The weaknesses of the business will be the cost to the consumer and the range of services available. Business service providers have a much greater range of products and with their large size can likely provide services at a lower cost, they also have the convenience of providing the services online. The local coffee shop has the advantage of providing an easy environment for people to relax in. Customers may be more likely to visit such a coffee shop if they are after just a meal, with the coffee shop able to offer a greater choice of food.
Opportunities
As the Internet becomes even more popular people will find the isolation a greater problem. Making the Internet an interactive experience will likely become more popular in the future. Having a full range of games and programs also means that customers are not required to buy them. There is opportunity to introduce training sessions and trials of new games to attract customers. Gaming competitions is another opportunity to attract people. There is also opportunity for business and office users in the provision of computer support for those who need it, which is one major problem home users encounter.
Threats
The threats come from the current competitors who are already moving their operations in the direction of the Internet cafe. If the business service providers were to further expand their operations to include services similar to the Internet cafe it would be difficult for the Internet cafe to remain competitive. The large network of each chain with their buying power, would be able to operate more cost effectively and efficiently....
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