Assessment of the Viability of Opening an Internet Café.

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Assessment of the Viability of Opening an Internet Café.

After analysing and evaluating all the possible aspects within my power I have reached a conclusion that opening an internet café is a worthwhile business. By the analysis of my questionnaire, which shows there is a market for this field. The potential customers of my business are mainly students and business men. There is an aspect to be considered here, as students do not have a steady income is it right to enter a field which is for them. However, the reason why this aspect does not worry me is as they only create 38.3% of my target audience, and business men 61.7% of my target audience. Business men have a stable income and their incomes can be 40 thousand year or more, meaning they have lot of disposable Income, so even if they see the usage as luxury item they will still use it.

The location of the internet café is known to be one of the biggest factors affecting its success. The location is ideal; there are two high schools, three primary schools and a library near it. So there is a chance that the business will attract more customers than first expected. It is also neighboured by shops such as Woolworth’s, KFC and many other brand shops. As it is situated with shops of such good reputation it would also get good reputation it, lots of people go to these shops, and they see an internet café near it they may decide to give it a try. As service will be of high quality they will frequently visit becoming loyal customers.  It is not also far from residential areas, which means that potential customers around the area will not find it difficult to get to it.

 The results of my questionnaire also justify that this is a good location, as it shows most people that I questioned lived in Greenford or Northolt, this location being Greenford and Northolt being fairly close to it shows this location is good.  Internet cafes are know to have elastic demand, however, my research states that people are willing to pay more if the business is nearer to there residence. This could lead to problems as some customers may not be wiling to pay extra, for this reason I have only raised price by a bit.

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 Another factor, which would make sure the business, is not a disaster is repeated purchase. My questionnaire allocates that most customers visit an internet café around three times or more, so even if the business is not attracting many new customers it can survive on its loyal customers for a while.

  Another reason why I believe that this business can be a success is due to the fact that my results show that the internet is mainly used for business and studies, meaning it is used in constructive way .Most  people need to use it, they don’t ...

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