Caret Internet Cafe Essay
Caret Internet Cafe
1. Executive Summary
Internet becomes one of the most important aspects in communication. Not only for browsing, do research, communicating, but also playing game and access social media. Internet already becomes a lifestyle, without it some people will get frustrated. Warnet are very popular in Indonesia, for they allow those who cannot afford computers the advantage of being online and participating in global communications,” Rudy Rusdiah, the chairman of the Indonesian Internet Kiosks Association (Awari) said. During the economic crisis in 2008, it was very difficult for a great number of the population to purchase a computer, let alone afford the cost of installing a phone line. The introduction of Internet cafes or kiosks and their growth in the nation has been beneficial to the public. There is a diverse variety of warnet in Jakarta. They range from the street-side computer terminals to plush cafe environments.
In current situation, the competition of computer manufacturer and the increasing of income level of people in Jakarta made the situation a bit change; many of people can affordable computer, smart phone and mini gadgets become people choice to suitable with their needs. Still the need of internet connection is become bigger a line with the growth of population in Jakarta. This business plan will make a design of what internet cafe can provide as a new unique services that different with common warnet in the past. The price war of computer and electronic device make an affordable price for people to buy it, therefore focusing in providing computer is no longer effective in 2013. Instead the traffic of internet user is become an issue, for example the telkomsel 3g connection become bad and the price is high. Selling the internet connection itself can help people to get high speed connection for downloading, playing, browsing, and do their stuff. Most warnet in Indonesia providing their customer a computer access which is need extra capital for it. Usually warnet offer internet access and rent per hour for using that computer.
The cost to invest and maintain the desktop is quite high comparing with the productivity income that one desktop can give. Moreover if the customer didn’t have the sense of belonging that will decrease the durable of computer. Because the rapid growing of technology and the price of electronic device is decrease easily after new technology appears, the consumptive of customer become booming and if investors follow to invest their money in electronic device such as computer the depreciation will dramatically go down. CARET Cafe Internet offer customer with high speed internet access without providing customer the desktop. The computer or the gadget itself is already become prime device that almost everybody have. This place also offer games that can be access by giving copy game trough HD or flash disk. The game will be updated twice a month to make customer feel enjoy playing the game without buffering the update. Customer can bring their own laptop and the place will be providing sockets.
The internet access for each room will have password for Wi-Fi access and each user will need to register the id and password in the counter in order to access the internet. The place will be as big as 200m2 separated with 5 rooms that each rooms can fit 15 persons. And each room can be booked for gaming tournament or even for meeting room. The room will be sound proof and also have chair and table set. There will be a cleaning service that will maintain the cleanliness of each room. This business will sell high speed internet access, cozy place, food and beverages. The unique point of this business is no need investment in desktop, only focusing on high speed internet access and the router. CARET will have a canteen that offers food with low medium price range of 20.000-50.000. For the drinks customer can have a coffee and tea blended drinks. The food and beverages will only become complement as the business grow, this element can be improve further more. Target market of this business will aim.
Student that need a fun place to spend their time with friends and playing together Student that need a place to do their assignment with internet connection Gamers: People that have passion in playing game and searching cozy and fast internet Businessman: People that search a place to conduct meeting during lunch break The business is unique that we provide place and connection with a cozy moreover, what they need such as meal and drinks are there. It’s a place where people can spend a lot of their time to play, do assignment, hanging around, and as a meeting point.
The main investment in this business will be:
Investment a place in good place near campus.
Investment in IT support such as modem, Wi-Fi routers, and software that can create multiple ID and password for same Internet connection. Investment in furnishing the place to create a signature of modern and cozy place. Investment in Sofa, chair and table approximately 75 chairs and 10 sofas at beginning. Investment in coffee roasters and cafe stall.
Investment in kitchen and food equipment
2. Description of the Business
This business focusing on give a convinience place for the customers, and the customer will be paid based on hourly for accessing the Wi-Fi. The front counter will have HD or flash disk that contain of many game customer can play just ask to copy it trough their laptop. The mission is to bring modern and fun athmosphere in the place.
Cleanliness of the place
Variety of updated games provided.
Usually common warnet will be fully of the customer because of the game trend, and this business will also trying identify what kind of games that trend in this time. Objectives
Gain awareness from people around the location
Fulfill the place 80% of capacity
Distribute pamphlet around campus and office
Using buzz marketing
Give a free one hour internet connection
To make the place active and attract more customer to come, by inviting gamers to conduct a game tournament.
Remapping people mind set about warnet
Noticed by businessman
Give a positive value that warnet not always need to provide computer rather providing high speed internet connection
Create a unique place that comfort not only for student, but also for customer which need a place to conduct a meeting.
Leverage the business trough other investor capital
Picture 2.1 Business Process Diagram
Type of business
Product or services
High speed internet connection and cozy place
Unique selling point
Only providing connection and comfort place without providing desktop Growth Potential
Can attract new segment customer, that not only focus in gaming customer, but a worker staff that want to conduct a meeting during break time.
Range population in South Jakarta shown as bellow, the target market is age around 15-50 which reach 1,375,570 peoples and if the 22.1% is willing to connected with internet there will be 304000 people that will be our target market. The market is targeted for people who in the productive age that use internet as a tool to gain information and have fun with friends. Based on internet research, there are listed 12 warnets spread out around South Jakarta. There will be 25000 target markets for each warnet if the target equally distributed.
Barriers to entry
Warnet have common things on sale, which are computer rental and internet connection, while CARET will follow the market behavior that only focusing on internet connection and cozy place. There are several things that can avoid competitor to copy such a business: 1. Strategic location(Near Campus Bina Nusantara JWC and Moestopo) 2. IT technology that make a modern business model and secure place 3. Focusing on high speed internet connection that can reach 20mbps 4. Can freely download without any limitation
5. Facility that include projector and good place to even conduct a meeting 6. Clean and full furnish place that make it cozy and different with common warnet 7. Have a café inside that provide drink and meal
Based on research in South Jakarta, HANANET have quite high internet connection around 7.2 mbps that in average warnet in South Jakarta only have 2-5mbps. The strength on HANANET:
1. Stable and high internet connection
2. Unique product that can give package play for 100.000 in whole day Weakness:
1. Bad environment for play, no separation smoking area
2. The properties not managed well
The rate per hour is Rp6,000,-
The full capacity of CARET is for 100 peoples in the first month of opening, the target capacity will be 80% loaded because the need of internet connection, roughly 20% only from BINUS INTER student will spend their free time connected with internet. People around such as student will be delight to buy these services. 1
CARET will be better than the competitor because of the modern environment there are: 1. Separated smoke room
2. Cleanliness that maintain by cleaning service /hour
3. Café that provided food and drinks
4. High speed connection that reach 50mbps
5. Facility that also support for meeting purpose
First of all to make customer notice that there is a new place that provide high speed connection, CARET will give a brochure and a free one hour coupon for new customer. Latter on the data will be collected for customer behavior analysis. The brochure will be spread around 2 campuses BINUS INTERNATIONAL and Moestopo. Under CARET management team, the business will be handled by creating a basic goal for each semester. The main goal will be become a pioneer in developing warnet without computer and be the first top tier warnet in South Jakarta.
Picture 3.1 BizNet Package promotion
For the Internet connection CARET will use BizNet that have a business package that can reach 50mbps. The Advantage using BizNet:
Internet access services up to 20 Mbps
Safe, fast and very stable
The connection uses RJ-45, can be directly connected to a router, firewall, proxy or existing LAN switches Direct peering with multiple Tier-1 provider in the world, large bandwidth capacity for the International and local
Picture 3.2 BizNet Internet connection
Expense for each month will be define as bellow, for Internet connection CARET will use the best package from BizNet which is can reach 50Mbps, and for router itself, CARET using approximately 10 routers that can cover 100 user at the same time. The technician has a credible skill focusing in maintain stability and sustainability of the connection. ATK are including markers, paper and operational worksheet.
Identification and planning for key risk
The risk that warnet usually face is the electricity problem or unstable connection for external risk. For the internal risk there will be unprofessional staff in the wrong management that use the facility for own interest. Risk can be avoid, acceptance, mitigate, or transfer. The risk will be classified as:
1. Electricity problem and unstable connection:
Risk avoid: By using genset, power supply and for the connection there will be a technician that can handle such a problem by issuing some teamwork with BizNet
2. Irresponsible Customer
Risk avoid: By placing security and CCTV camera around the place
3. Second Liner competitor
Risk mitigation: Reducing the risk by creating a unique services such as Saturday tournament and get a link for food and beverages trough franchising example: Chat time, share tea Internal Risk
1. Undedicated staff, low morale staff:
Risk avoid: Conduct a month meeting to evaluate work performance and conduct a briefing in the morning.