Situation Analysis
The Java Lounge in Saudi Arabia opened its doors in 2003. Java lounge has to contend with the strict laws and regulations that are highly influenced by Islam. Islam religion greatly influences the rules and regulations Java Lounge has to adhere to, for instance, Java Lounge does not sell Alcohol or Pork Products. Java Lounge mainly caters to an affluent clientele mainly foreigners and Saudis who have travelled the world and are more open minded as compared to their rural counterparts. As Saudis become more prosperous they are becoming more flexible and waiving some of the religious prohibitions for instance, the government has allowed businesses to buy accident insurance.
Java Lounge does not face significant competition as there are not many coffee shops. However, the success of Java Lounge has enjoyed in Saudi Arabia may serve as an incentive for other global players to set shop in Saudi Arabia. India is the major supplier of coffee and thus enjoys significant supplier power (Susantha, 2013). Buyer power is limited since one customer purchases only a small amount of the aggregate coffee sold. The possibility of coffee customers substituting it for another tea or another beverage is quite low
Strategic Marketing Issues
The main issues Java Lounge faces in marketing its products is ensuring that they remain sensitive to the religious inclinations of their customers while at the same time providing their patrons with the luxuries of the west. For instance, Java Lounge has to provide space for prayers, and also adjust their business practices to accommodate certain religious festivities such as Ramadan.
SWOT Analysis
Java Lounge main strengths lie in the ability to provide their patrons with the luxuries of the west while at the same time remaining sensitive to their religion. The main weakness is that Java Lounge does not hire female workers and therefore they are not able to supervise the quality of service their female patrons receive. The main opportunities lie in setting up more lounges in other cities of Saudi Arabia. The main threat Java lounge faces is government regulations that seem very strict.
Alternative Courses of Action
Recommended Course of Action
I would recommend Java Lounge to hire female employees because they would be able to freely interact with female patrons. This would improve service delivery to female patrons as well as to increase profitability.
Reference list
Susantha. (2013). ANALYSIS OF MARKETING ENVIRONMENT. Retrieved February 14,
2016, from http://susanthahm.blogspot.co.ke/2013/05/analysis-of-marketing-environment.html
