5.

1 Strategy Pyramid
The following subtopics provide an overview of JavaNet's three key strategies.
Strategy pyramid graphics are presented in the appendix of this plan.

5.1.1 Attract Power Internet Users

JavaNet's second strategy will be focused on attracting power Internet users. Power
Internet users provide an important function at JavaNet. JavaNet plans on
attracting this type of customer by:

Providing the latest in computing technology.

Providing scanning and printing services.
Providing access to powerful software applications.

5.4 Marketing Strategy

JavaNet will position itself as an upscale coffee house and Internet service
provider. It will serve high-quality coffee and espresso specialty drinks at a
competitive price. Due to the number of cafes in Eugene, it is important that
JavaNet sets fair prices for its coffee. JavaNet will use advertising as its main
source of promotion. Ads placed in The Register Guard, Eugene Weekly, and the
Emerald will help build customer awareness. Accompanying the ad will be a coupon
for a free hour of Internet travel. Furthermore, JavaNet will give away three free
hours of Internet use to beginners who sign up for an introduction to the Internet
workshop provided by JavaNet.

5.4.1 Pricing Strategy

JavaNet bases its prices for coffee and specialty drinks on the "retail profit
analysis" provided by our supplier, Allann Brothers Coffee Co., Inc. Allann
Brothers has been in the coffee business for 22 years and has developed a solid
pricing strategy.

Determining a fair market, hourly price, for online use is more difficult because
there is no direct competition from another cyber-cafe in Eugene. Therefore,
JavaNet considered three sources to determine the hourly charge rate. First, we
considered the cost to use other Internet servers, whether it is a local networking
firm or a provider such as America Online. Internet access providers use different
pricing schemes. Some charge a monthly fee, while others charge an hourly fee. In
addition, some providers use a strategy with a combination of both pricing schemes.
Thus, it can quickly become a high monthly cost for the individual. Second, JavaNet
looked at how cyber-cafes in other markets such as Portland and Ashland went about
pricing Internet access. Third, JavaNet used the market survey conducted in the
Fall of 1996. Evaluating these three factors resulted in JavaNet's hourly price of
five dollars.

5.4.2 Promotion Strategy

JavaNet will implement a pull strategy in order to build consumer awareness and
demand. Initially, JavaNet has budgeted $5,000 for promotional efforts which will
include advertising with coupons for a free hour of Internet time in local
publications and in-house promotions such as offering customers free Internet time
if they pay for an introduction to the Internet workshop taught by JavaNet's
computer technician.

JavaNet realizes that in the future, when competition enters the market, additional
revenues must be allocated for promotion in order to maintain market share.

5.5 Sales Strategy

As a retail establishment, JavaNet employs people to handle sales transactions.
Computer literacy is a requirement for JavaNet employees. If an employee does not
possess basic computer skills when they are hired, they are trained by our full-
time technician. Our full-time technician is also available for customers in need
of assistance. JavaNet's commitment to friendly, helpful service is one of the key
factors that distinguishes JavaNet from other Internet cafes.

2.1 EXTERNAL ENVIRONMENT ANALYSIS

This includes an analysis of the Political, Economic, Social, Technological,

Legislative and Environmental changes taking place. The analysis outlooks as to
whether these will be opportunities or threats to the business.

Political Changes
The South African Government has set up a number of small business support
initiatives through the Department of Trade and Industry; these include: Small
Enterprise Development Agency (SEDA) and the National Youth Development Agency NYDA
(previously known as Umsobomvu Youth Fund). These are aimed at promoting small,
micro and medium businesses. The agencies will be an opportunity for the business
as it will have access to support in terms of assistance with the development of a
comprehensive marketing strategy and plan, financial and accounting systems,
branding and so forth. There is also support in terms of skills development and
training as a result of the establishment of Sector Education and Training
Authority (SETA). South Africa has looked at various policies and initiatives aimed
at growth, empowerment, procurement and other factors. Key opportunities will
include:

Broad Based Black Economic Empowerment

This is essentially a policy that focuses on growth and helping South Africa
realise its full economic potential while taking into account employment equity. It
will be an opportunity for the business.

Industry Charters � ICT Charters

Industry Charters such as the ICT Empowerment Charter will also be an opportunity
for the business. It comprises of Broadcasting Electronics, IT and
Telecommunications sub-sectors and looks into aspects such as preferential
procurement, Skills Development, Employment Equity, Management and Control, Equity
Ownership and other factors within the ICT context.

Other developments in term political changes that will be an opportunity to AfriNET

IT Solutions include: Affirmative Procurement, Local Economic Development,
Accelerated and Shared Growth Initiative for South Africa and the Integrated
Development Plans.

Economic Changes
There are a number of economic changes taking place in South Africa. The economic
slowdown has had an adverse effect on the economy of South Africa as evident from
the declines in manufacturing, mining, agricultural and other sectors. The
resulting unemployment has resulted in reduced numbers of people with buying
potential and hence an adverse impact on existing and potential businesses. The
recession has led to the tightening of budgets by public and private institutions.
Individuals have also been noted to not easily part away with their hard earned
money. On a positive note, this year has seen the fall of interest rates and this
is sure to be an opportunity for the business as its conception and realisation
will depend on borrowed funds. Borrowed funds attract interest as a cost and
therefore if the interest rates are low then the cost of borrowed funds is less.
Inflation is at an average of about 7%, rising prices continue to have a negative
effect on the economy. However, this is likely to increase as there is potential
for Eskom to increase the electricity prices by 45% thus posing threat to the
business.

Social Changes
South Africa has a relatively high crime rate and this is likely to be a threat for
the business as it will be forced to incur expenditure on security instruments and
gadgets such as alarm systems, burglar bars and lock systems. The current socials
ills in the country and indeed the rest of the world may also pose threat on the
life cycle of employees in the business. This includes social ills such as Aids/
HIV pandemic and the surfacing incidence of the Swine flu.

On a positive note the IDP applicable to Gauteng region looks into the development
of more social centers and a majority of these are to be integrated with
Information Technology advancements. The growing population coupled with the growth
in double income families will be an opportunity for the business.

Technological Changes
Technological changes taking place will be an opportunity to the business as it
will have access to the latest Information Technology computer diagnosis software,
networking platforms, devices and much more. The momentum gained by open source
software could provide the business with free software that is capable of producing
advanced websites and promotional material to mention a few uses. With signs of
cellular phone network prices declining, the business could be open to capitalise
on low priced mobile internet options. The business will be open to internet
marketing and e-commerce opportunities which will expand the market for it.

Environmental Changes
A key opportunity emanating from environment changes is the movement towards
electronic waste recycling. eWASA � e Waste Association of South Africa is an
electronic waste association in South Africa. It is a platform aimed at driving the
recycling of electrical and electronic waste. The business can support this drive
as a lot of faulty parts from clients computers will be kept for disposal. These
could simply be put in the pipeline for recycling as e-waste. An additional stream
of income could be generated as a result.

Legislative Changes
The business will have to comply with the laws of the Republic of South Africa.
There is a threat of the business not being fully able to comply with laws and
regulations. Particular attention will have to be placed on complying with anti
piracy laws and Information and Communications Technology Laws. The Information and
Communication Technology law addresses and focuses on the legal risks posed by
information technology, information security and management. The business will have
to observe the following acts amongst others:

Income Tax Act

Occupational Health and Safety Act
Employment Equity Act
2.2 INDUSTRY ANALYSIS

Industry Overview, size and growth

The nature of the business falls under the Information and Communication Technology
(ICT) Industry of South Africa. The industry is diverse and contributes lucratively
to the growth of South Africa. In addition, the industry is well recognized for its
creation of employment. Between 1991 and 2001, the size of the South African ICT
workforce ranged between 45 000 and 60 000 employees and most of these where
employed by financial, information technology, business and manufacturing sectors.

The size of the Information Technology Industry in South Africa is currently

estimated at US$8.8 billion or R67.7 billion. This can be presented under the
following categories:

IT Services � 39%
Multiuser Systems � 8%
Single User Systems � 21%
Data Communications Equipment � 9%
Packaged Software - 19%
Other industry Specific � 5%

Growth in the past has been driven and will continue to be amplified by public and
private training institutions that produce well over 20 000 people who pass ICT
courses per annum.

The industry is projected to grow to around US$13.0 billion or 97.5 billion in

2013. The Information Technology spending growth is noted to be easing further in
2009 as a result of the economic slowdown before recovering in 2010 and 2011.
Despite the effects of the economic slowdown, the boom in infrastructure projects
as catalyzed by the 2010 Fifa World Cup has helped to encourage IT spending and
enhance the growth. The Information Technology industry will offer greater
opportunities in the years to come.

Players
The players in the industry can be categorised as follows:
Website developers and programmers
Networking solution providers
Software developers
Hardware developers
E-commerce providers
Other IT solution providers
Key success factors
The key success factors include:

The provision of fast and reliable services

The location of the business is an important factor. The location has to be easily
accessible to the customers, suppliers, employees and other stakeholders
Keeping up with the latest developments in terms of website engineering, PC repairs
and maintenance, software and hardware development
Responsiveness is also a key success factor as customers seek fast responses in
instances where their computers are down and many other scenarios
Reputation and trustworthiness: customers seek Information Technology solution
providers that are known for providing excellent service. Essentially these get the
job done right the first time

Barriers to entry
The factors limiting new entrants in the industry primarily include:
Start up capital constraints
Access to finance to run businesses effectively; provision of collateral challenges
Lack of technical know how � skills competencies and expertise
Capacity and resource constraints
Threat of compliance to regulations

What is a Cyber Caf� Attendant?

A cyber caf� attendant is the one who caters his or her customers request in an
internet caf�. He is knowledgeable on computers, filing, data encoding,
troubleshooting any future problems in the caf�.

Duties of a Cyber Caf� Attendant

A cyber caf� attendant provides a complete computer facility or unit to customer.
They offer foods and beverages to add comfort to customer�s internet surfing
activity. They are to print, data encode, troubleshoot internet problems that a
customer might encounter. A cyber attendant works for hours to attend all the needs
of the customers. It is also their obligation to provide a safe surfing environment
to customers.

What Does a Cyber Cafe Assistant Professional Do?

As the name suggests, cyber caf� assistants help users with questions or problems
in using the Internet or computers at the establishment. They also oversee the
delivery of services and ensure user fees are collected. In some establishments,
these attendants may also prepare and serve simple beverages or snacks.

Cyber Cafe Assistant Job Description for Resume � Responsibilities

Help customers with the use of computers and applications.
Respond to customers who encounter error messages from accessing sites, emailing or
downloading content.
Assist customers with downloads, printing, and encoding.
Monitor use of computers to ensure compliance with caf� policies and applicable
laws and regulations.
Troubleshoot hardware, terminals, software and connectivity issues.
Track customers� time at computer terminals.
Report improper or illegal use of supervisors or law enforcement as required by law
or company policy.
Fill orders for food or beverages.
Clean computer areas and eating tables.
Promote computer or Internet-related products or services.