Environmental and Industry Analysis - Essay Example

Environmental and Industry Analysis Environmental and Industry Analysis MARKET ANALYSIS Competitive Analysis Guam Concierge Service’s competition composes of only secondary competitors. There exist no other businesses within Guam that offer similar range of services as GCS. Three main significant businesses that GCS will compete with include Registration Express, Grocereaze, and Good-to-Go. The three businesses also offer particular services that Guam Concierge will operate in as well. It is imperative to note that all the three businesses fundamentally offer varied services when compared to each other (Linsenman et al., 2011). Good-to-Go operates as a restaurant delivery service.

Good-to-Go customers place orders with the business via telephone or company website, and then the company collects the requests and consequently delivers them to the customer. The business strengths include partnerships with other restaurants and print and online advertisement. However, their weaknesses rely on diversity as they only deal in restaurant industry and have not considered exploration possibilities. Registration Express refers to a company that conducts registration of a customer’s vehicle at the Department of Motor Vehicles.

The inherent strengths of the company involve its comprehensive techniques, ideas, skills, and knowledge relating to the varied requirements for vehicle registration at the Department of Motor Vehicles (DMV). Besides, the company has long lasting intimate relationship with majority of the employees at DMV who willingly assist them. The main weakness of the company remains that it specifically advertises its services only online via social media including Facebook. Moreover, the company remains entirely dependent on the inherent regulations outlined by DMV.

Grocereaze exists as a new business, and not much information remains available concerning the corporation. The company provides services relating to shopping and delivery of groceries to their esteemed customers. Grocereaze advertises via bulletin boards. Service Differentiation Guam Concierge Services will employ technological applications in order to differentiate itself from other concierge-related companies within Guam, and guarantee an inherent reputation based on its trusted service. The company will use Dashboard cameras and Ipads to ensure provision of trusted services to customers.

The business would initiate a policy that will require Dashboard cameras to remain turned on while performing errands for a client. Based on Dashboard cameras, if there will exist any disputes in the service offered by the company a camera would provide a timestamp and record all transactions that occurred. Ipads will provide live streaming services and opportunity with clients or in sending photographs to customers for immediate viewing. Target Market The company’s target market consists of two significant cohorts including companies and the general public.

Companies act as the primary target market while upper-income individuals remain as the secondary market for Guam Concierge. Companies that will be primarily targeted include law firms since they hire full-time runners. Based on market research contracting with GCS the company would provide inexpensive alternative (Ghemawat, 2001). Our second target market will be upper-income individuals, such as executives, lawyers, doctors, and other similar professionals. Marketing StrategyGuam Concierge Service, LLC will utilize different forms of marketing to promote its business services.

Our marketing strategy will consist of print and online advertisement, radio talk shows, and word of mouth. The company will use radio advertisement in informing as many people within the general public as possible concerning our business services. In addition, the management would implement print advertisement through use of pamphlets. The pamphlets will provide information of all our services, prices, hours, contact information, and other beneficial information for potential customers. Moreover, the company will distribute the pamphlets to our target market, companies and individuals.

Online advertisement will consist of Facebook. The company will have its own Facebook page that will inform potential customers of its services, receive feedback from the public, and allow other users to share our page. The most important form of advertisement for our company would involve word of mouth. Different action phases will be needed to implement word of mouth advertisement. The first action phase would entail establishing business relationship with certain businesses and individuals.

The second action phase would involve conducting our services in a qualified and appropriate way to receive positive reviews. Consequently, the positive information and reviews about the company will spread through word of mouth. US market In the United States the concierge services industry remains as a steadily growing industry. In 2012, the industry had a total revenue collection of $220.3 million. Five years prior to 2012, the industry had a low average annual growth of 0.3% due to the economic recession.

However, according to IBIS World, with economic situation continuing to recover within America the concierge services industry would remain within expectation to grow over the next forecasted five years.Local market Date for the concierge industry on Guam remains readily unavailable. Nonetheless, the number of concierge related businesses has increased on Guam over the past couple of years. SWOT AnalysisStrengths Guam Concierge Services, LLC strengths includes comprehensive training in customer and flexible services.

GCS employees will also train in professional customer service. In addition, our company will provide services that we have control over to accommodate wide variety of demands. Weaknesses Since there exists only particular amount of employees there would be many errands the company can accomplish in a day, which will limit its overall revenue stream. Another weakness is since we are inexperienced within concierge industry we may be inefficient on time and other resources, such as gas. For example, we may not plan errands that are economically efficient for saving gas.

Opportunities Since the concierge service industry is relatively new on Guam there are numerous opportunities for the company to take advantage of. Guam Concierge Services can capture majority of the customer base. Our company can also make it difficult for other companies to enter the industry. Threats A weakening economy could greatly affect our business. Since concierge services are not an essential necessity, if the economy weakens our services would be limited from customer’s spending budget.

Another factor that could negatively affect the business relates to high gas prices. New concierge service businesses could enter the market since barriers to entry are relatively low and start-up capital is low. Lastly, the weather conditions specifically in relation to heavy rains and typhoons that can affect hours of operation and our vehicles. Porter’s 5 ForcesPotential Competitors: Low to Medium Pressure Entry barriers are relatively low for the concierge service industry. Start-up cost for a concierge business is minimal compared to other service industries.

The number of businesses in the concierge service industry is increasing locally and nationally (Ahlstrom and Bruton, 2010).Threat of Substitute Products: Low to Medium Pressure There is no other business on Guam that provides the similar wide range of services.Bargaining Power of Buyers: Medium to High Pressure Individual customers and contracts with companies would determine profitability of the company (Hill and Jones, 2010). Bargaining Power of Suppliers: Low Pressure The supplies needed to operate Guam Concierge Services are readily available from multiple vendors such as gas and other equipment required for day to day operations.

Rivalry amongst Existing Firms: Low to Medium Pressure There are several businesses that provide some of the same services we provide. However, all businesses in completion provide very different services from one another besides offering limited services. ReferencesAhlstrom, D., & Bruton, G. D. (2010). International management: Strategy and culture in the emerging world. Australia: South-Western Cengage Learning.Ghemawat, P. (2001, September). Distance still matters: The hard reality of global expansion.

Harvard Business Review, 79(8), 137-147Hill, C. W. L., & Jones, G. R. (2010). Strategic management theory: An integrated approach. Boston, MA: Houghton Mifflin.Linsenman, C., Dismore, H., & Entrepreneur Press. (2011). Start your own personal concierge service: Your step-by-step guide to success. Irvine, Calif.: Entrepreneur Press.