SWOT of Coffee Shop - Coffee Essay Example

Demand: The demand for coffee shops and quality products at competitive prices is enormous in the Heathrow airport as identified by Michael Peacock (2005)[2] - SWOT of Coffee Shop introduction. This is mainly because of the increasing number of passengers to the airport, which has not only increased the customer base but also accelerated the construction of Terminal 5 at the Heathrow airport. Customer base: The customer base which is the main element whilst determining the target market as argued by Gerry Johnson and Kevan Scholes (2003)[3] is enormous in the Heathrow airport terminals.

This is not only from the side of the passengers who arrive or depart from the airport but also because of the increase in the visitors who accompany the passengers as argued by David Jinks (2004)[4] Location: The location factor as argued by Laurence Mathew (2005)[5] is a critical element for strategic positioning of an organization in the target market. The fact that the Heathrow airport is of international importance and a shop located there can attract customers from both the national and international market makes the location factor as a key strength for setting-up a coffee shop in the airport.

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Weaknesses: Volatile customer base: The major weakness is the volatile nature of the customer base in the airport. The fact that even though the customer potential in the Heathrow airport is vast, but ever changing due to the nature of the business in the airport makes the customer potential as a critical weakness as much as it is argued as a strength. Since this is an apparent factor for any shop in the airport, the weakness is oblivious in nature.

Seasonal business: Another important factor that needs to be considered is that the airport caters high level of customers during the periods of holiday making whilst supports only the business travellers at other times. This makes it clear that the business for the coffee shop is seasonal in nature. Opportunities: Differentiation by Pricing: the demand for quality products at competitive pricing is an increasing demand at the Heathrow airport especially from the customers visiting from the far east of the world as argued by Laurence Mathew (2005).

This demand can1 be harnessed by the coffee shop through providing value-added services and quality products at competitive prices. The financial analysis in the next section will provide a deeper insight on the pricing of the products. Diverse Target market: The diversity in the market which is merely due to the diversity in the passengers to the airport provides an effective method of attracting a niche market or more than one segment of the market with customised products whilst providing a base line of product range to meet the overall demand of the customers.

Promotion through embracing culture: The fact that the airport caters visitors from difference culture makes it clear that the coffee shop can attract customers through embracing its promotions reflecting upon specific culture. This even though might appear niche marketing, is actually a successful method of reaching the wider market where the visitors would appreciate the innovation in the promotion as argued by Laurence Mathew (2005). Threats: Terrorism: The major threat is the element of disaster that can be caused by terrorist attacks.

The fact that the Heathrow airport is a pivotal location for terrorist attack is the major threat faced by any shop in the Heathrow airport. New entrants and costs: The threat of new entrants in the market is a critical element. This is also an increasingly concerning factor with the rapid deployment of the construction project for Terminal 5 at the Heathrow airport which not only increases the opportunities from development but also the threat of new entrants and stiff competition in the target market.

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