BUSINESS POSITIONING STRATEGY
In order to sustain the growth of the Laundromat, the owner builds its business on four (4) main business positioning strategies.
- The first is building a strong local operating platform, and then testing it over time to determine if profitable growth would be possible through the selection of the right brands and creation of the structures for distribution to supply a local national market.
- The second is broadening the portfolio. Global perspectives are also gathered to help optimize both the local and global brands. By broadening the portfolio, Laundromat is able to meet the consumer’s needs and minimize the costs of local infrastructures.
- The third business positioning strategy involves a balanced portfolio of countries among established and developing markets. In this instance, the established markets such as those in North America will provide the funds to invest in developing markets like those in Korea and Russia that have lower GDPs but possess a tremendous potential for growth and development.
- The last business positioning strategy involves market consolidation which would help in the securing of positions and the creation of shareholder values. Laundromat strives to be in the top position on each market.
SUPPLY CHAIN ANALYSIS
Supply Chain analysis in this business involves working across multiple enterprises in an effort to limit the supply chain time of washing clothes of the consumers.
The uncertainty of demands in supply chains within this business is easily solved through the implementation of faster response times. Laundromat’s supply chain has the luxury of longer lead times in terms of batch washing of clothes in order to meet the demands. Most supply chains, including Laundromat’s, are moving in a position to support faster changes of demand by the consumers.
Because of the agile supply chain of Laundromat, it is able to enjoy so many advantages. As mentioned above, the supply chain analysis tends to shorten the supply chain itself. Also, this will significantly reduce company inventories. Forecasting, scheduling and planning, on the other hand, will significantly improve.
INTERVIEW SUMMARY
The owner basically bought the Laundromat from the previous owner for about $ 50,000, where the rent is about $ 1,000 and the monthly revenue is about $ 15,000. The Laundromat has very few personnel, but because of the machineries the workload becomes easier. It normally takes about 30 minutes for every washing task to be accomplished. This is not very long, and customers can even afford to bring their reading materials while waiting for their clothes to become washed up. The owner wanted to establish an Internet service area perhaps for the waiting customers to enjoy, but backed out because of the abundance of Internet shops in their area.
SWOT ANALYSIS
Strengths:
- has services that boast of a very powerful retail. This includes a reputation for value of money, convenience and a wide variety of products
- has grown significantly over the years
- Laundromat’s main competence lies on the use of modern washing facilities to fully support its international logistics system.
- is able to deliver good customer care, as the limited amount of work would mean plenty of time to devote to customers.
- Laundromat’s lead consultants have established a strong reputation within the market.
- can afford to change direction quickly if its management finds that the company’s marketing strategy is not effective.
- has little deficits and overheads. Therefore the company can offer good value to customers on a consistent basis.
Weaknesses:
- Laundromat is one of US’s main washing facilities but has a weak control of its empire, despite its technological advantages. This could lead to a decrease in productivity in some areas where they have the least control of.
- Since Laundromat has many branches across many sectors, the company may lack the flexibility that some of its more focused competitors possess.
- Laundromat operates within the US, but its presence is located in only relatively few states.
- Some of Laundromat’s weaker branches lack market presence or reputation
- Some of the company’s personnel still lack the essential skills base in many areas.
- The company is still vulnerable to the temporary losses of its vital staff (e.g. being sick, leaving).
- The company’s cash flow is unreliable especially in the early stages of a new branch / site development.
Opportunities:
- Taking over, merging, or forming strategic alliances with other laundry companies while focusing on strong markets like Europe or the Greater China Region.
- The branches of Laundromat operate only in a relatively small number of states all over America. Thus, this would open the opportunities for future Laundromat businesses in expanding various consumer markets, such as those in China and India.
- The opening of new locations and branches offer Laundromat the opportunities to exploit market development. This could lead to the diversification of the company’s branches from large laundry centers to local-based sites.
- Opportunities exist for Laundromat to continue with its current strategy of establishing large branches within the US.
- Laundromat is continuously expanding, with plenty of future opportunities to exploit for success.
- The local councils of Laundromat are in the process of encouraging local businesses with work whenever possible.
- The competitors of Laundromat may be slow to adapt to new technologies especially the ones that it releases.
Threats:
- Being number one means that Laundromat is the target of competition, the company to beat.
- Being a national business means that Laundromat might be exposed to political problems in the US states where the company has operations.
- The production costs of most consumer products have the tendency to fall because of lower manufacturing costs. Manufacturing costs fall because of outsourcing to low-cost regions around the globe. This phenomenon could lead to competition in prices, which in turn would result in the deflation of prices in various ranges. Intense price competition must definitely be considered a threat.
- The latest developments in information technology which could possibly change the markets might challenge the company’s ability to adapt to these changes
- A slight shift in focus of a large competitor might wipe out any market position that Laundromat has achieved over the years. This could force the company to specialize in rapid response but good value services to local businesses. This would put so much pressure on the company’s consultancy staff to keep informed with the latest changes in technology where possible.
Credit:ivythesis.typepad.com
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