Chapter 2: Research

2-1: What is Situation Analysis

Erik: First I should do research. Why do I need research, Susan?

Susan: Research helps you to understand your business situation clearly. It is called
Situation Analysis.

Erik: How do I do a situation analysis?

Susan: There are two methods that you can use a 3C Analysis and a SWOT Analysis.

Erik: 3C Analysis? SWOT Analysis?

Susan: Yeah. You can understand your business situation very well by using 3C
Analysis and SWOT Analysis.

Erik: Sounds great!

2-2: 3C Analysis

Erik: What does 3C mean?

Susan: 3C stands for Customer, Competitor and Company.

Erik: Customer, Competitor and Company. I see. How do I do a 3C Analysis?

Susan: First, let’s analyze the Customer of your café. What kind of customers are there
at your café?

Erik: Well, there are a lot of business people as my customers, because my café is
located in the business district.

Susan: I see. After that, let’s analyze the competitor of your café.
Erik: My competitors would be the new café and the fast-food shop.

Susan: I see. After that, let’s analyze the company. Company means your café. What
kind of special features does your café have?

Erik: Well, my café has a relaxed atmosphere and my customer can drink good tasting
coffee.

Susan: Excellent! This is a 3C Analysis.

Erik: I see. I can understand business situation of my café using a 3C Analysis.

2-3: SWOT Analysis

Erik: You mentioned a second method for Situation Analysis.

Susan: Yeah. You can use a SWOT Analysis to understand your business situation very
well.

Erik: What does SWOT mean?

Susan: SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

Erik: Strengths, Weaknesses, Opportunities, and Threats. I see. How do I do a SWOT

Analysis?

Susan: First, let’s analyze the strengths of your café. What are the strengths of your
café?

Erik: The strengths of my café are a relaxed atmosphere and good-tasting coffee.

Susan: Excellent! Next, let’s analyze the weaknesses of your café! What are the
weaknesses of your café?
Erik: Well, the price of the coffee is expensive. This is the weakness of my café.

Susan: I see. The analysis of strengths and weaknesses is called Internal Analysis.

Erik: Internal Analysis?

Susan: Yeah. It is so called because strengths and weaknesses are internal factors.

Erik: I see. What should I do after that?

Susan: After that, let’s analyze the opportunities of your café. What are the
opportunities of your café?

Erik: Opportunities? Well, the customers who work with mobile PC have increased at
our café.

Susan: Excellent! After that, let’s analyze the threats of your café! What are the threats
of your café?

Erik: The new café opened near my café. The customers of the new café have increased,
and the customers of my café have decreased.

Susan: Yeah. What kind of special features does new café have?

Erik: Because the new café has stylish atmosphere and many kinds of desert menu for
young people, the new café is popular with young people.

Susan: What about the fast-food shop?

Erik: The fast-food shop can supply food and drink at low price.

Susan: I see. The analysis of opportunities and threats is called External Analysis.

Erik: External Analysis?

Susan: It is so called because opportunities and threats are external factors.

Erik: I see.

Susan: How can you use your strengths to take advantage of the opportunities?

Erik: Well, if I could supply the business people with the services to work comfortably at
my café, I could satisfy them with my services.

Susan: Good job, Erik!

Erik: I can understand business situation of my café very well using a SWOT Analysis.
Thank you, Susan!

Susan: You are welcome, Erik!