3. 0 Strengths, Weaknesses, Opportunities, Threats Analysis (SWOT) A SWOT analysis was directed to categorize varies areas that could positively or negatively affect the business and through this a risk analysis was formed. The following section addresses this concept.
STRENGTHS * Differentiation * Location * Appeal * Target market prominent in area | WEAKNESSES * High levels of competition * Cost strategies * Brand recognition * Unknown levels of financial and customer support * Limited customer range | OPPURTUNITY * Growth of target market population * Location in terms of accessibility * Franchise * Centre popularity | THREATS * Direct and Indirect competition * Pricing demand from both competitors and customers | 3. Risk Analysis It is essential to the success and continued future success of the ‘Student Hub’ that marketing strategies and techniques are put in place to suit the desired outcome of the newly founded business. As a combination of an eat in cafe and a student meeting and study point it is essential that all measures are put into place to retain the largest possible market share of the desired target market.
Through the affordable food and beverage options and the highly accessible location the hub is creating an ideal place for students not only of the university but of the surrounding area addressing a gap in the current market for the suburb and surrounding areas. Through analysis of the current and popular businesses located close to the student hub it is expected that some businesses may approach the newly defined section in the market and compete to gain popularity and customers.
These threats will be counteracted by the business proceedings of the ‘Student Hub’, through controlling the price point and extending only the upmost standards in terms of products and services. The ultimate threat of the business is the desired location of the university being the major competitor holding resources and the ‘easier option’ for students wishing to study. However this threat is overcome by the originality and niche experience that the ‘Student Hub’ will provide leaving it in a prime position within the established market creating something for students to enjoy with either relaxing or studying.