Describe the 4Ps of marketing in your organization (product/positioning, pricing, promotion, and placement). If you have a service organization, in addition you may consider describing the 4Is (intangibility, inconsistency, inseperabilty, and inventory).
Environmental and Industry Analysis 7
CLC Capstone: Five-Star Cleaning Services
Jessica Cisneros
Nicholas Gaudet
Cory Nicholson
Rebekah Reno
MGT-485
March 5, 2017
Industry Analysis
Porter’s Five Forces Model of Competition
Suppliers’ bargaining Power
There is a high competition among suppliers in the cleaning industry. This reduces their bargaining power. Moreover, buyers are highly informed of the cleaning industry. As a result, they are likely to opt for better services, thereby reducing bargaining power.
Threats of Substitutes
Five-Star Cleaning services faces threats from substitutes such as home cleaning machines. The industry will also likely go through an automation of the cleaning processes. As more people afford to buy cleaning machines, the organization will face stiff competition from substitutes.
Buyers’ Bargaining Power
As the number of customers increase, their bargaining power will likely decline. However, in seasons where there is a sharp decline in the number of buyers. Their bargaining power will increase.
Threats of Entrants
The industry is faced with challenges that stem from new entrants. However, since the company enjoys a strong brand that has established itself, entrants will less likely pose threats. Moreover, customers will increasingly become more loyal to existing brands, thereby reducing threats from new entrants.
Intensity of Rivalry
The organization operates in an environment that is characterized by stiff competition. This is because many suppliers provide the same cleaning services. There industry size is also large and dynamic. Further, rapid pace of industry growth poses competitive threats.
Sources of Competitive Advantage of Five-Star Cleaning Services:
Whether you are looking for a deep cleaning, allergen reduction, or simply aiming to increase the overall freshness of your home, our all-natural, proprietary blend of eco-friendly cleaning formulas will turn your home into the green ‘safe’ haven you and your family deserve.
Our highly-trained team of experts are not simply housekeepers, but dedicated hospitality professionals determined to transform the cleanliness of your home while, establishing lasting relationships with each and every client.
With a guaranteed response and turnaround time of 24 hours, Five-Star Cleaning Services is your quickest and most effective route to a clean and healthy home.
We offer an array of affordable customizable monthly subscription models tailor made to fit your specific needs and achieve your cleanliness goals. Whether you are a single working professional or family of five, these cleaning programs provide a superior solution to all of your cleaning needs.
Modes of Entry
The brilliant cleaning systems here at Five-Star Cleaning Services are currently only available in the Unites States, though we plan to branch out quickly into other countries. The first country we intend to branch into is Canada because of its physical proximity to the United States. Our best mode of entry at first would be licensing deals or franchising deals. This would be the best way for us to get our foot in the door and establish our brand. English is our company’s primary language, but Canada is both English and French speaking. Our ideal elite housekeeper would be bilingual, so as to communicate clearly with both groups of clients as necessary.
External Environmental Analysis
Scanning: Identifying early signals of environmental changes and trends
One of the main trends Five-Star has observed in the United States is that people are becoming more aware and concerned about their effect on the natural environment of the earth. They are also becoming more health conscious. The products used solely by our services fit into those trends as they are all natural and free of harmful chemicals. This keeps the homeowner, the housekeeper, and the environment protected while providing a clean like no other. There are few other cleaning services offering environmentally friendly cleaning solutions, and most of those have it as an option rather than a standard. Our main competitor does use a “green” solution, but does not offer services in most of the plains or western states, or outside the United States (Green Cleaning, n.d.).
Monitoring: Detecting meaning through on-going observations of environmental changes and trends.
In an effort to maintain a competitive advantage according to both trends and changes in areas such as technology and the economy, Five-Star has a select group monitoring trends and environmental changes. This group will also link with a creative team to continue to produce innovative and earth-friendly products, as well as improve in areas of service and cleaning techniques.
Forecasting: Developing projections of anticipated outcomes based on monitored changes and trends.
Five-Star’s monitoring group will analyze their findings and create projections. These projections will include the foreseeable potentials, problems, and possible solutions to both. Currently, an economic analysis is underway to ensure that our customer base has the potential to increase given our current prices.
Assessing: Determining the timing and importance of environmental changes and trends for firms’ strategies and their management.
One of the elements of Five-Star’s monitoring and creative teams is timing. A new product or type of service they have decided upon based on forecasted trends must be released only at an appropriate time. Too early, and it will not catch on or help to further the company in a significant way. Too late, and our competitors might have it rolled out first. Timing is key. This is why we at Five-Star aim to not only stay abreast of the current environment and trends, but to stay two steps ahead, ready to shape the environment in which we operate.
References
Green Cleaning | Home Cleaning Services. (n.d.). Retrieved from http://www.thecleaningauthority.com/our-cleaning-services/green-cleaning/
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2015). Strategic management: Competitiveness and globalization: concepts (11th ed.). Stamford, CT: Cengage Learning.
