Strategic Analysis

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1. Executive Summary This proposal analyzes the feasibility of establishing a neighborhood bar in a gentrified mixed use area that abuts a university. The conceptual model used for the design and operations of the neighborhood bar familiarly known as Cheers and it is the equivalent of the Starbucks concept Third Place. The target area in which the neighborhood bar would be sited contains virtually no informal gathering places for neighborhood residents. A number of shops and upscale restaurants line the pedestrian mall in the center of the neighborhood, but the business hours of these enterprises preclude casual use by those who live in the neighborhood but commute to jobs in nearby urban areas or at the university. A Porter's Five Forces analysis indicates that there are only a few factors that would have negative influence on the establishment of a neighborhood bar in the location selected and these barriers are not substantial, nor are they sufficient to prevent the establishment and survival of the proposed business. The SWOT analysis triangulates well with the Five Forces analysis, adding credibility to the potential for establishing a profitable enterprise in the target area. The customer base is adequate, growing, and indicates interest in the neighborhood bar Two main market segments can be well-served by the establishment The location is convenient and attractive for both residents and students No competition in the category currently exists in the target

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