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Surviving the shift: Strategies of the Internet Cafés in the face of Evolving

Connectivity Options

MANDAUE CITY, CEBU , PHILIPPINES

JENALYN CARTECIANO
SANCHEZ KARYL GARCIANO
MARK KEVIN ALLOSADA
PETER PAUL PLATIL
JOHN REY MEDELO
SHARLENE MALINAO

TECHNICAL VOCATIONAL LIVELIHOOD (TVL)

MANDAUE CITY COMPREHENSIVE NATIONAL HIGH SCHOOL

APRIL 2023

INTRODUCTION

The internet has transformed the way individuals interact with one another and access

information globally. This transformation has been achieved through the availability of evolving

connectivity options which have change the dynamics of internet cafes were a primary

destination for customers to access the internet, play games or complete their work in a

conductive environment.
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Today, with the advent of smartphones, laptops, tablets, piso-wifi and home internet connections.

The traditional use of internet cafes have experience a significant decline in demand over the

years. Despite this challenge , several existing internet cafés in Mandaue City have remained in

business.

This study will be conducted in the internet cafés of Mandaue City, Cebu , Philippines. Internet

cafés are a common sight here in Mandaue City with many establishments catering to the needs

of students and young adults. The establishments are usually located near schools and

universities and offers a range of service, including; internet access , gaming , printing and

scanning.

It can be seen that the impact on customers who have a positive perception to gauge the benefits

of internet café (Wibowo, T. O., Udasmoro, W., & Noviani, R. (2020). The statement suggests

thst customers who have a positive perception of internet cafés can recognize and evaluate the

advantages of using them. The impact refers to the effect or influence that this positive

perception has on customers decisions and behavior regarding internet cafes. By understanding

the benefits, these customers are more likely to choose to use internet cafes and may even

become a regular customers.Small internet cafes, contribute to the country’s economy, the

majority of internet cafes fail to survive for more than 2 years after their first year of operation. .

(Tsoai, N., & Chipunza, C. (2022).This statement suggest that despite the positive impact small

businesses,specifically internet cafes,have on the economy, a large percentage of them do not last

very long. Most internet cafés are unable to survive beyond their first year of in business and

typically close down within two years. Transformation from warnet was a way to survive amid

mobile technology. digital content is the new insight to understand that internet cafes are not
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only a place to copy contents, but this can be seen as a symbol of empowerment to local users.

Therefore, internet cafes can be seen as media-industry bottom lines to promote a culture of

resistance to digital content without going to the store or going to the cinema.

Internet cafes are like a part of our childhood they have been existing since 1994. But

technology never stops it keeps on evolving and evolving until cellphones, laptops , piso-wifi

and other portable devices are invented. Thus the declining of our internet cafes are inevitable

and small internet café shop owners are gravely affected by this technological evolution.

Our small internet café shop owners are struggling against this evolving connectivity options. If

we don’t address this matter and keep on turning a blind eye there might come a time where

small café shop owners cease to exist.

The general objective of this research is to investigate the strategies of small internet café shop

owners in the face of evolving connectivity options. At this present day the continuous evolution

of technology leaves our small internet café shop owners with two options they either close their

shop or strategize on how to keep their small business running.

The general purpose of this research is to know how and what kind of strategy did our small

internet café shop owners do to keep their business running in the face of evolving connectivity

options.

STATEMENT OF THE PROBLEM

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This study aims to investigate the strategies of internet cafés in the face of evolving connectivity

options at Mandaue City.

Specifically, The study seeks to:

1.Explore the challenges of internet cafés in the face of evolving connectivity options.

2.Identify the strategies of internet cafés despite the declining demand due to the connectivity

options.

3.Evaluate the features of internet cafés on how they adapt the changes of technology and how

they remain competitive in their business.

SCOPE AND DELIMITATION

The research will cover the various challenges faced by internet cafes due to advancements in

technology and the availability of alternative means of accessing the internet, such as

smartphones and home internet connections. The study will also look into the different strategies

that internet cafes have adopted to sustain their business, such as offering unique services and

amenities, upgrading their equipment, and implementing marketing campaigns. It may focus

only on internet cafes within a particular region or city, or it may limit the study to a certain

number of cafes.

The respondents of the research will compose of 10 Internet café owners from 10 selected

Internet café within the area of Mandaue City, Cebu. Every Internet café has one shop

representative to answer the prepared interview guide. Additionally, the research may not cover

other factors that may impact the survival of internet cafes, such as government regulations,

economic conditions, or social trends.

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This research will add to the existing literature about internet cafés survival through the shift of

connectivity options. The findings from the study will act as a guide for existing business in the

industry and start-ups in the city. Furthermore, this research will determine the strategies

employed by the businesses to survive despite the changing dynamics of the industry.

SIGNIFICANCE OF THE STUDY

This paper serves as information about how the owner of internet cafés survives the declining

demand of their business due to evolving connectivity options. This research was anticipated to

contribute additional information to serve the following individuals:

Owners. The research will provide insight into the strategies that internet café owners have

adopted to remain competitive in the industry, despite the increasing usage of mobile networks

and Wi-Fi connectivity among customers. By understanding the best practices and effective

approaches used by these businesses, owners can improve their business operations, make

informed investment decisions, and ultimately increase their chances of survival in the ever-

changing technological landscape.

Customers. The research will provide insight into Internet Cafès customers, their perspectives

can provide important context for understanding why demand for internet cafés has declined and

what factors have contributed to the shift towards alternative connectivity options.

General Public. This research is important for the public, particularly individuals and families

who rely on internet cafés for their computing and internet access needs. The findings of the

research can help ensure that quality and affordable services remain available, even as

technologies continue to evolve.

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Future Researchers. The study will contribute to the literature on small businesses,

entrepreneurial strategies, and digital transformation. By analyzing the challenges and

opportunities present in the industry, researchers can identify gaps in existing knowledge and

explore new areas of inquiry. This research will add to the body of knowledge on strategies used

by internet café owners, which can be used to inform future research in this area.

Definition Of Terms

War Net. Or Internet café, usually referred to as a cybercafé, is a coffee shop that allows

customers to use computers with high-speed Internet connection in exchange for a fee. Usage is

typically billed by the minute or hourly portion.

Evolving Connectivity Options. It refers to the continuous evolution of our connectivity options

over the past few years. Before, we usually went to internet cafés just to send and edit our

important documents and also to print, scan, play games, do research, and surf the net. All of this

are not available in our home, so we usually visit the nearest internet café in our area.
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Theoretical Framework

This part of the paper presents the conceptual framework to describe the in-depth details of

Strategies of the Internet Cafés in the face of Evolving Connectivity Options. In validating the

study, some theories related to the topic will be cited as support for this study.

Technology Diffusion
acceptance Porter’s five
of
model forces model
innovation
(TAM) theory

Surviving the shift: Strategies of the Internet

Cafés in the face of Evolving Connectivity
Options

Declining Technology
Strategies
demand adaptation

Analysis

Conclusion

Strategies of the Internet Cafés in the

face of Evolving Connectivity Options
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Three theories form the foundation of this study: Technology acceptance model, Diffusion of

innovation theory, Porter’s five forces model. The technology acceptance model (TAM; Davis,

1989) has been one of the most influential models of technology acceptance, with two primary

factors influencing an individual’s intention to use new technology: perceived ease of use and

perceived usefulness.

The diffusion of innovations theory is a hypothesis outlining how new technological and other

advancements spread throughout societies and cultures, from introduction to widespread

adoption. The diffusion of innovations theory seeks to explain how and why new ideas and

practices are adopted, with timelines potentially spread out over long periods.

The way in which innovations are communicated to different parts of society and the subjective

opinions associated with the innovations are important factors in how quickly diffusion or

spreading occurs. Important to understand when developing market share, this theory is

frequently referred to in the marketing of new products.

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape

every industry and helps determine an industry's weaknesses and strengths. Five Forces analysis

is frequently used to identify an industry's structure to determine corporate strategy.

Porter's model can be applied to any segment of the economy to understand the level of

competition within the industry and enhance a company's long-term profitability. The Five

Forces model is named after Harvard Business School professor, Michael E. Porter.
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Porter's 5 forces are:

Competition in the industry

Potential of new entrants into the industry

Power of suppliers

Power of customers

Threat of substitute products

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