SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
STRATEGIES
It is important as a new business to build a strong and reliable reputation to begin with, as it can be a threat to your business if you don’t. This is especially important in our business as we are producing an upper-class bar which needs to live up to, and exceed, customer’s expectations. The first few weeks that our bar, Olympus Sky Lounge is open are crucial to the reputation that we will make for ourselves and the way we are able to differentiate ourselves from other well known bars. We can do this by making sure that all of our staff show the highest level of respect and knowledge toward our customers, providing them with an experience that they will remember and return for.
When our bar first opens we will not have a strong relationship with the suppliers that we will be using. It is crucial to build this relationship as quickly as possible so that the patrons to our bar experience the same quality and supply of Alcohol that they love and return for. A Strong relationship with the supplier will ensure that this is possible and that there will be a constant supply of high quality products in our bar
As our bar is located in an area that is a tourist district it is important to differentiate our Bar from the alternative cheaper bars in the area. By doing this we could specialise in local alcohol, such as wines. This will bring get the attention of tourists as these are things that they may have not had before and wish to try out.
Over winter Business may fall. So it is important to our bar to be able to maintain our customers over the colder months or to even gain more customers. This can be done by reinforcing the point that customer satisfaction is our number one priority, and making sure that customers are comfortable and warm, in our relaxed bar environment during these months is one way that we can show this. Equipment, such as indoor heaters, may need to be invested in to begin with to make this happen, but will be able to be used on any cold night throughout the year to make our customers comfortable, especially during winter.
As this is an 18+ venue and alcohol is supplied it is important that security is high and vigilant. This can come at a high cost to our business. Therefore it is important to find the best way to have high security at a low cost. We can do this by purchasing security machines, and strategically placing the security team. This will make patrons feel safe as well as meeting all government regulations
As our target market is very specific and therefore means that our market is limited it is important that we make the most of the market share that we do have. We will be doing promotional work to get the name of our bar out to our target market. From there we will do all that we can to satisfy our customers so that they return with pleasure.
- Bar is in a high traffic area.
- Location is near target market.
- View seen from the bar may entice customers.
- Large range of alcohol that cannot be found at other bars.
- Our Bar is based in an area where customers have disposable income.
- Being an upper-class bar there is less chance of rowdy behavior.
- Consistent quality of high customer service, therefore customers will return.
- Free entry, this will entice customers to try our new bar.
- Opportunities to expand business.
- Staff have previous experience in the industry.
- Ability to franchise the business.
- Located in tourist district.
- New plans to improve the scarborough area.
Weaknesses
- Target market is very specific and therefore our market is limited.
- Dress code limits possible customers.
- Very few ways to differentiate from other bars.
- No reputation at start off, rely on customer satisfaction
- Scarborough is not central to transport network, therefore taxis may be required and this may be expensive.
- High running costs
- Staff need to be well educated in the area, to meet customers satisfaction we are trying to maintain the outlook of an upper-class bar
- No relationships with suppliers to begin with
- Currently have no market share
Opportunities
- Low competition in the area.
- Seasonal influx of customers.
- Planning for success.
- Website that shows packages available and upcoming events
- Bottle storage, so that people are able to buy a whole bottle and drink from it on multiple visits.
- Promotion through media
- Opportunity to establish a brand name
Threats
- Start-up cost and expenses will be high if we want to create such a fancy, upper class bar.
- Cheaper alternative bars that patrons may go to instead.
- Legislation (liquor licensing, maximum capacities)
- Major, well known bars
- People that are underage may try to get in. (Fake ID)
- Retaining employees that know the job well
- May not see as many customers during winter therefore profit will fall
- Changing economy (Less disposable income)
- There is becoming an increased amount of awareness of the social risks of alcohol
- High security costs
STRATEGIES
It is important as a new business to build a strong and reliable reputation to begin with, as it can be a threat to your business if you don’t. This is especially important in our business as we are producing an upper-class bar which needs to live up to, and exceed, customer’s expectations. The first few weeks that our bar, Olympus Sky Lounge is open are crucial to the reputation that we will make for ourselves and the way we are able to differentiate ourselves from other well known bars. We can do this by making sure that all of our staff show the highest level of respect and knowledge toward our customers, providing them with an experience that they will remember and return for.
When our bar first opens we will not have a strong relationship with the suppliers that we will be using. It is crucial to build this relationship as quickly as possible so that the patrons to our bar experience the same quality and supply of Alcohol that they love and return for. A Strong relationship with the supplier will ensure that this is possible and that there will be a constant supply of high quality products in our bar
As our bar is located in an area that is a tourist district it is important to differentiate our Bar from the alternative cheaper bars in the area. By doing this we could specialise in local alcohol, such as wines. This will bring get the attention of tourists as these are things that they may have not had before and wish to try out.
Over winter Business may fall. So it is important to our bar to be able to maintain our customers over the colder months or to even gain more customers. This can be done by reinforcing the point that customer satisfaction is our number one priority, and making sure that customers are comfortable and warm, in our relaxed bar environment during these months is one way that we can show this. Equipment, such as indoor heaters, may need to be invested in to begin with to make this happen, but will be able to be used on any cold night throughout the year to make our customers comfortable, especially during winter.
As this is an 18+ venue and alcohol is supplied it is important that security is high and vigilant. This can come at a high cost to our business. Therefore it is important to find the best way to have high security at a low cost. We can do this by purchasing security machines, and strategically placing the security team. This will make patrons feel safe as well as meeting all government regulations
As our target market is very specific and therefore means that our market is limited it is important that we make the most of the market share that we do have. We will be doing promotional work to get the name of our bar out to our target market. From there we will do all that we can to satisfy our customers so that they return with pleasure.