Free August Karaoke Box Essay Sample
Karaoke Box or karaoke music video (KTV) is the first of its kind to be stated in phoenix area. The KTV is situated half a mile from the Arizona state university and the affluent neighborhood consisting of student housing and other numerous suburban communities. The company specializes in offering of private room and serving of snacks as well as drinks all in an accessible exciting, friendly and a relaxing atmosphere. August Karaoke Box mission is to offer the residents of phoenix area its first and the best karaoke experience and focuses on achieving its objectives of reaching 50% capacity in its first quarter,60% in it firsts year and 70% in its second year of operation. In addition, the company aims at expanding to more locations while franchising the august karaoke box name.
In order to conduct an internal and external analysis environment of any organization one has to conduct a SWOT analysis as well as the porter's model of five forces and the PEST analysis. The SWOT analysis generates in-depth information of the company's internal conditions i.e. strengths and weaknesses as well as the prevailing external conditions including opportunities and the threats. The porter's models of five forces yield detailed analysis of company's competitive environmental analysis and it focuses on issues regarding threats by new entrant in the industry, the bargaining power of suppliers and customers, the availability of complementary and substitute's products. The models reveals on the macro element environment of the company. In addition, the conduction of PEST analysis of the company takes a keen look at the factors that affect the greater or the outside business environment of the karaoke industry. The model analysis conditions that affect business include the prevailing political conditions, socio-economic, cultural as well as the technological advancement in the business world (Coulter, 2009).
Internal Environmental Analysis
This analysis is achieved through SWOT analysis and it focuses on issues that greatly impacts on day to day as well as on the future operations of the company. This includes analysis of the strengths and the weaknesses that august Karaoke box have. Strengths are often generally internally generated and yield advantages for the company over it rivals in the market. SWOT Analysis of the august karaoke Box reveals that the company has several strengths that promote sits operations. The first strength is it location near the Arizona University which constitutes of both the student population and the non student population which offers customer needs to be satisfied. The student population targets the students under the age of 25 who have entertainment need which are fulfilled by the company. The affluent communities and the diverse neighborhood of the university also provide a market for the company as they have some student needs like need for place to express their emotions, hangout with family and friends as well as place to practice singing. Therefore, location of the company near the university becomes one of its strengths as it gets a ready market as well as a growing customer base of more than 1000 Chinese student's population that has an annual increase of 13% (Caves & Porter, 1977).
Second strength that the company has is the ability to maintain a large and up to date song selection that includes more than fifty thousand songs updated each an every month. The songs are selected from various languages including English, Chinese, Korean and Japanese. Finally, the company has strength of owning a state of art vocal karaoke equipment. This includes the best vocal speaker in the KTV industry as well as the high-end amplifier and a mixer. This gives the company a competitive edge when it comes to delivering its services in the karaoke industry.
These factors are also internally generated and controlled and have long-term fundamentals that concern the business operations. Company weaknesses include the underlying concerns that are able of causing the company considerable effort and can be fixed. SWOT analysis of August Karaoke box has several weaknesses that include the following. First weakness is the limited food service that the company offers and this limits the revenues generated. In addition, the company faces the weakness of limited customer base, which solely consists of the student population and the neighboring communities hence the need. In addition to that another weakness that August karaoke faces is the limited number of private rooms that are available for customers hence if customers increases, rooms will be insufficient hence a limiting effect to operations of the company. Finally, the weakness of limited financial source as well as cash flow limits the abilities in which the company is able to perform its daily business operations.
External environmental analysis
SWOT analysis reveals on the external condition that help in the operations of the company (opportunities) as well as the conditions that are harmful to the operations of the company (threats). SWOT analysis show that August Karaoke Box has several opportunities in its operations and it includes the business potentials that comes with expanding the current food and drink manual to include serving of diverse foods and drink menu. In addition, the company has the opportunity of improving business through strategies that target a wider customer base leading to more revenue generation. Finally, the company can expand into other locations thus exploiting new market niches.
On the other hand, the company faces threats to it operations and these inside the entry of new competitors into the karaoke market. Despite the current benefits that the company enjoys a 100% market share, the possibility of new entrants is inevitable thus threatening the future company benefits. In addition to that, the company suffers loses during summer and winter as well as slow seasons hence a threat to its operations (Richter & Pahl, 2004).
The most important external environmental factor in the remote industry and external operating environments of August Karaoke Industry include taping into the global market. This was done through the utilization of the internet, video advertisements, search engines like Google, newspaper advertisements e.g. the Chinese papers, use of flyers in campus, holding of contests, use of event sponsoring and finally utilizing the social network websites like face book and twitter.
Based on the SWOT analysis, the company is very competitive in the karaoke industry
It is still in a better position to achieve its goals as well as carryout out its business operations sustainable in to the future as long as its management works toward minimizing weaknesses and evading the potential business threats while maximizing on the opportunities and its strengths.