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Davis Service Group -Textile Maintenance Service - Case Study Example

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This paper 'Davis Service Group -Textile Maintenance Service" focuses on the company that provides textile maintenance service to the hospitals, restaurants and private businesses of UK and EU. By developing the reputation the company managed to develop good relations with its customers. …
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Davis Service Group -Textile Maintenance Service
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Download file to see previous pages In 2001 company used to be a conglomerate, According to John, a conglomerate is a market diversified firm (Narver). It consisted of three main companies;
Looking at the previous experience of the company it plans to grow by taking over companies to strengthen the existing business efficiently. Taking over of a present company will advantage the Davis group as it would have experience and local contacts in the market of Australia.
Our main focus is on the tool hire business-HSS (High-Speed Steel) in Australia. Looking at the standard of construction on the domestic and industrial level we believe it has the potential of a vast market in here. The current competitors we face in the market are Algeco SA, ARAMARK Corporation; ATCO Structures Ltd. The market is an oligopoly with a small number of sellers.
However, the nature of purchase is not routine but it is on an occasional and large scale. Therefore companies in this industry are highly competitive. Therefore providing good quality at the low price is the best choice.
Buyers for the HSS tools are saturated. It’s mainly a commercial business; sellers have a standardized price to offer. On price strategy there isn’t much of a difference it’s the overall package that we offer.
The biggest barrier to enter the market is the existing competition. A well-rooted company has a bundle of loyal customers of its own, it’s difficult to fetch for new customers in the market. The main strategy on which the company relies is through the vast experience in UK and EU and by the standard of service through which it can basket all the customers.
The company has a 10-year experience to serve the UK and EU market for a long time. It is aware of the needs and demands of the customers and is competent enough to meet the standards and expectations.
Currently, the company has a successful business set up in UK and EU; therefore it has planned to expand in Australia.    ...Download file to see next pagesRead More
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