Dark Roast Java Essay
The SWOT Analysis preformed on Dark Roast Java has determined that the founding partners of an upscale coffee house have put together an excellent business plan. I am confident that this business will flourish and thrive in Pleasantville. Their business model seems to be thorough and extremely well planned. They have considered just about every element you can consider when starting up a new business. Strengths Starting a gourmet coffee house in Pleasantville appears to be a sound business idea.
According to the business model Dark Roast Java has the ability to set itself apart from the competition. The company’s owners are experienced businessman with combined backgrounds in marketing and real estate in the target market. Their previous career experience should assist them product brand marketing, employee recruiting, and store locations. The company intends to obtain most of their product locally, which may be a hit with their customers since they will be supporting the local economy and buying products they are already aware of.
Overall it is a well-developed and research business model. Plans for starting a coffee house in the Pleasantville market seem to be a good fit. Based on the information provided, the coffee house intends to service a variety of clientele that consists of local residents, tourists, local business people, students, and travelers. Unlike their competitors, who focus their marketing primarily on one group, they will have the means to service all types of customers from their convenient downtown location.
Dark Roast Java has plans to have a relaxing upscale interior design with outside dining. These are features that most local competitors lack. Financing seems to be a done deal. The company is incorporating as an LLC with three primary owners and some outside investors all providing capital for the anticipated $250,000 startup expenses. Each partner appears to have some business expertise to offer the company. Weaknesses Although Dark Roast Java has a well thought out business plan, there are some weaknesses to it.
For starters, there are several well established coffee houses in the Pleasantville area. Dark Java Roast will certainly have to do a lot to prove themselves in this market if they plan to profit off of the existing and growing market share. The menu Dark Java Roast plans on serving is a bit concerning. It is an unproven menu and there is no hard evidence that it will be accepted well by customers. There is no indication that it will be any different than those offered by competitors locally or nationally. Little or no mention what so ever of the quality of their coffee products.
There is only information of where they originate from. It’s hard to see on paper how they will be able to compete with Starbucks or some of the other local competition in these categories. Their startup expenses seem to be a bit steep. The plans calls for an initial startup cost of $250,000 for the first store. That could be a bit high for a company that is trying to make a name for itself. Opportunities According to the statistics provided throughout the business model, customer demand is increasing for coffee products.
Dark Roast Java has an opportunity to capture some of the traffic that some of the other coffee shops in town have been getting. Their use of local products may be a big hit with the community. I like the idea that their prices are in line with the leading chain stores. Customers have a tendency to notice a price differential when buying similar products. The location of the initial store, its design, and kiosk will certainly give them a legs up on the competition in the downtown district.
The company plans to have kiosk locations at community events. This will give them an opportunity to gain exposure in the community. Threats This business plan fails to anticipate the reactions of competitors in the Pleasantville market. There is no such mention of any potential reaction that Starbucks, Coffee Bean, Paradiseo, Grounds for Action, Ambrosia Kaffe, or any of the other local establishments will react. There no mention that the competition could possibly develop new or substitute products as a result of Dark Java Roast opening.