Caribbean Internet Cafe Case Study

Caribbean Internet Café Case Study

I. Internet Café Caribbean [1]

A. The concept

In June 1996, David Grant was visiting his home in Kingston, Jamaica, for a short time in the summer master program Master Business Administration (MBA) in Business School London, Ontario, "Richard Ivey" . He was gathering information on the feasibility of opening an internet cafe in Kingston upon graduationfrom the MBA program in 1997. David always wanted to be his own boss, and considered to be in time to move in this business oportunity to Jamaica.

Before entering the master's program, David was working in computer systems engineering in the local telephone company, Jamaica Telecommunications Limited (JTL). JTL 80% owned by a British telecommunications company that was one of seven Internetproviders on the island. If this adventure becomes feasible, David intends to lease phone lines JTL. The addition of the time worked as a teacher in a computer program at the University of Technology, Jamaica.

A typical Internet cafe offers computer services (including internet access), a small menu of sandwiches and snacks, and assorted beverages. While he was studying in London, David visited agood number of cafes and the concept intrigued. A cafe seems to be the perfect vehicle for people to use the Internet and other computer services without making a large investment in computer equipment. Additionally a cybercafe offers external socialization spaces: customers can surf the Web while listening to music or just relax and socialize.

B. Competitive environment

Although Jamaicahad no awareness of the importance of the Internet, there is little accessibility and use. In most cases, universities and corporations use the Internet. But even in these institutions, users have restricted access to the Internet for a short and limited period of time. Private use is still low and David expected to remain so until the end of the next three years. The main reasons for the lowpenetration rates were:

Ø The high cost of computers as a percentage of salary,

Or lack of telephone lines in some areas of Kingston, and

Ø The high prices of Internet access providers.

Most providers charge a similar price for the same number of hours per month and then charge hourly rates, in the case of exceeding the contracted hours. Prices diagram the tendency to charge proportionallymore users who only check their email and use the internet for a few hours. The average price per hour of service providers was $ 90 Jamaican dollars. [2]

There are a number of restaurants and cafes in Kingston, but none of these establishments provide Internet service. Most cafes have outdoor seating, music, games and other entertainment and traditional drinks and food. Most cafes serve coffeetraditionally not because this beverage has been popular in Jamaica.

C. Caribbean Internet Café

David has planned to introduce the European concept of coffee in Jamaica, offering brewed coffee (local, imported, espresso, cappuccino and coffee can), imported wines, fresh tropical juices, and baked goods such as croissants, bagels, donuts and other pastries. He has displayed his coffee inthree areas:

A computer area with cubicles,

A drink wine lounge with comfy sofas, and

A general area for coffee tables and chairs. Initially he bought five Pentium computers and Internet connection via telephone contracted with JTL 56 kbps. [3] The facility will also provide print services, scanner and the latest version of software (spreadsheet, word processor and presentations). TheCaribbean Internet Café (CIC) will not have kitchen. All products are obtained from the baked cake as needed.

The target market will be on computing and literature students and professionals aged between 18 to 35 years with relatively high incomes available. Most of these people have limited access to the Internet at school and at work, but with access to the site, you can relax, with the ease of...