Redondo Beach Restaurant

The entire scope of this particular business idea entails; classifying and describing the product, knowing the target market and consumers of this product, considering a competitive situation analysis of this product as wells doing a SWOT analysis for this business. In a brief summary, the product is a processed consumer product. This product is to be used in coffee shops as the end product to the consumers. I consider this product to be a convenience good since it entails being frequently bought by customers catching up time or resting in the coffee shop. The coffee sold to the customers is also not very expensive. The price has been set to be affordable and moderate compared to the other coffee shops in the locality. The place that has been considered for the coffee shop is Redondo Beach at California. This locality has a huge customer base owing to …show more content…
The shop holds opportunities in two key areas, one of these areas is in the fact that Redondo Beach, CA is a region that has been growing steadily economically and socially; this portends greater sales and the potential increase in the number of customers. Secondly, the café has the prospects of growth in the sale of complimentary products to coffee such as snacks; if these snacks are produced in-house, they can greatly supplement income. Finally, the café has two major threats, one of the threats is the aspect of product cost of coffee beans, and the fluctuations in the cost of coffee products will have a direct impact on the prices of coffee. In this regard, while the café seeks to offer coffee at the fairest prices, the cost of the products may affect the end user. The second threat is that of new entrants into the market, the threat, in this case, is that there are many coffee shops currently, the entry of additional competition may further affect prices and destabilize the customer