SWOT ANALYSIS

SWOT ANALYSIS

Strength:

• Low cost of goods with high profit
• Good quality tea and pearls with friendly customer service.
• High quality drinks for our entire menu
• Our house brand speciality: Ooh La La, Bo-Ba-Boo, Peachilicious, and Tropical Sunset.
• Results of effective management.
• Competitive pricing.

Weakness:

• Forecast demand
• Cash flow

Opportunity:

• The Bubble Tea’s fever is heating up in developed countries like the US and Japan including the third world countries like Vietnam and Indonesia. It is becoming a global trend
• Huge market: many target customers around the area
• Health property

Threat:

• Too high rental cost
• Seasonal demand: winter and summer are different
• Competition. Although there are not very many Boba shops around the area, there are many other restaurants and coffee shops that people can go to as an alternative

Target Market

The dominant target market for Bocha Tea Lounge is a regular stream of local residents. Personal and expedient customer service at a competitive price is key to maintaining the local market share of this target market.

Fullerton City’s Income Household 2006-2010

The graph above illustrates per capita money income in past 12 months and median household income from 2006 to 2010 of Fullerton city. It clearly shows that both incomes of Fullerton are higher than that of California State. Therefore, we have a strong base to believe that population of Fullerton has the higher disposable income than the average of California state population. In short, our Boba drinks should be affordable for Fullerton citizens.