Pro Clean’s owner has more than 15 years of experience, has good reputation in Knoxville and has established a sustainable customer base. The company offers good service at considerable price, and maintains good relation with its past customers. Weaknesses: The Company has many problems in its marketing, management and accounting systems. It tries to reach out to customers from every segment, and probably exceeding its capacity.
The company’s staff has very limited skills in sales, can only approach certain group of customers, and has ambiguous responsibility in day-to-day functions. Lastly, the company is financially weak, due to poor financial management. This is likely to be the problem to their higher operating cost and cash flow problem. Opportunities: Given the current environment, Pro Clean has certain opportunities to survive in Knoxville. There is clear market segmentation, which to allows Pro Clean to avoid direct competition with competitors from other strategic group.
Threats: Pro Clean faces other competitors who offer similar or service at the same price, threatening its customer base. Also, a change in financial policy, such as an increase in interest rates, can threaten the survival of the company, given its current financial situation. (See Appendix C for the SWOT analysis table) Building Core Competency From our analysis in the previous segments, we advise Pro Clean to build its core competency in two dimensions: Customer Relationship in combination with an excellent cleaning service and a high quality. Valuable: By focusing and creating an unique relationship with its customers, Pro Clean can definitely be considered as a valuable company * Rare: Pro Clean will offer a wide range of extra services and supporting tools which aren’t offered by other cleaning companies * In-imitate: By providing innovative services, Pro Clean will enjoy a competitive advantage over its competitors. * Non-substitutable: Once become a member of the customer base, customers will be offered an excellent service and loyalty programs.
The better the relationship between Pro Clean and its customers, the higher the switching costs will be for the customers. Value Chain Analysis The following is a value chain analysis on what activities Pro Clean can do based on their core competencies, and also some of the other activities that they can improve on to give them a strategic competitive advantage: Primary Services: Currently, the service quality of Pro Clean is good and we feel that they can leverage on it, by adding on the hardwood floor cleaning service and improving their scheduling to suit the customers’.
Sales & Marketing: To grow the business, Pro Clean should focus on market penetration and increasing their revenue stream from its existing customer base. Increase penetration: * Referral programmes can be initiated by offering discounts to customers who refer their neighbours. * Wilson should also take advantage of the on-site estimate service by rewarding employees who bring in more of such jobs. Doing so should increase the closing rate, and increase sales. * Sales can also be improved by “advertising” the other services that Pro Clean has to offer.
They can also get employees to ask customers if they need other services while they are on-site. * Pro Clean should also explore the possibility of expanding into the commercial business, as it is currently a greatly underserved market. Increase average customer spending: * As a large part of sales is derived from people seeing Pro Clean’s van being driven around the neighbourhood, Pro Clean can get technicians to drive the van around the neighbourhood more often to increase their visibility. They can also come up with a bigger range of packaged services to cross sell to customers. Support Infrastructure: It was identified earlier that Wilson is pretty weak in managing the finances of the company. Hence we recommend that he should outsource this part of the business to an accountant. In addition, we think that he should also move his operations back to his home office to cut costs. HR management: This is an area that also needs to be worked on in order to successfully implement the other plans. We think that a new staffing plan is needed.
We propose that Turner should be re-hired as a technician for the skills that he already has and keep Scott as the sales/marketing manager. A detailed portrayal of the new organization structure can be found in appendix D. Vision Our aim is to become a household name, associated with high service quality, in the cleaning services industry with 100% customer satisfaction. Mission Statement Our mission is to provide the highest quality cleaning service to our customers, within the shortest response time possible at the convenience of our customers.