Table of Contents
Clean & Wash is a newly created American company that specializes in cleaning and washing services. This organization operates in Chicago. It means that Clean & Wash has all chances to become popular and successful business due to the high demand in washing and cleaning services. This company consists of headquarter where people can receive the services from the professionals. It is evident that it is a small business that needs growth and development to expand in other locations. Consequently, this paper intends to analyze the peculiarities of Clean & Wash as a newly created business, its external and internal environment.
An Environmental Analysis
The environmental analysis includes the external factors that influence the company’s development. These are the competitive, economic, political, legal, technological, and sociocultural forces. The competitive force can be a driving and restraining factor. Consequently, it is a must for Clean & Wash to develop the competitive advantage with the help of the product, price, and promotion strategies. The rivalry in the market is too high, and one cannot follow the competitors to become successful and profitable (Scott, 2011). As a result, Clean & Wash should take into consideration the policy of its rivals, but it should also present a new vision of the business.
The economic forces that are influential for Clean & Wash are the following: taxes, the level of economy in the market, inflation, and unemployment. Consequently, while winning other markets and finding new locations, the company should be sure whether it has all the necessary financial resources. The political forces include the regulations and laws that can be favorable or harmful to the company. First, Clean & Wash should be eco-friendly to avoid the problems with the government. Second, it should have the transparent business and pay all taxes in time. Third, it is crucial to be collaborative and fair in managing the company.
The legal forces are also crucial for running the business. It is important for Clean & Wash to follow antitrust laws and budget appropriation laws. Moreover, the company should license insurance, equipment, and staff appropriately. Consequently, it means that Clean & Wash should be committed to existed American legislation. Technological factors also determine the external environment of the company. Clean & Wash should protect its information through the implementation of security systems. Moreover, the company should use Business Intelligence System to analyze the information and find new consumers (Scott, 2011). Additionally, the organization should promote their products with the help of electronic mailing.
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The sociocultural factors that will be relevant for Clean & Wash are the equal treatment of employees and customers, eco-friendly image, and demographic changes. It means that aging of the population can lead to the decline of profits. As to baby boom, it can increase demand in services and profits. As a result, Clean & Wash should take into consideration all these factors and use them to drive its business to benefit its external environment. Moreover, one should mention that the state of affairs of the external environment can determine the internal one.
Primary and Secondary Target Markets
The primary target market of Clean & Wash presupposes the female customers from Chicago as the company suggests only the services that are mostly done by women. The primary target market includes females from 30 to 75 years old. It means that they want to save their time and efforts spent on cleaning and washing. The secondary target market presupposes the males who live alone or are too busy to clean and wash. Consequently, the company should also take into consideration their preferences. One recommends segmenting more the primary market dividing the services according to customers’ preferences. In most cases, the clients of Clean & Wash are from upper-class families as people of middle class cannot afford these services very often. Moreover, the company should look for the customers from other American cities.
4Ps Marketing Mix
4Ps marketing mix presupposes analysis of the following components: place, price, promotion, and product (Armstrong & Kotler, 2012).
Cleaning and washing homes are key services of newly created company Clean & Wash. One recommends the diversification of service. They should include such services as clothes’ washing and taking it to the laundry.
The main office and stores of Clean & Wash are in Chicago. However, the company should expand its locations.
The prices for the services of this company are not very cheap as they are appointed for the people of the upper class. However, Clean & Wash should offer cleaning and washing services for more reasonable prices to attract the customers.
As to promotion, Clean & Was should use the direct way of advertisement as the company is new and unknown for consumers. When the first outcomes become evident, one can use indirect promotion via public relations, sponsorship, or partnership.
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5Cs-analysis includes the analysis of the following aspects: customer, company, competition, collaborators, and context (Barney, 2012).
The customers are the females and males from Chicago as the company suggests washing and cleaning services that help to save time and efforts. These are the females and males from 30 to 75 years old.
Clean & Wash is the company that belongs to the small business. Consequently, the profits cannot become large immediately. Specializing in cleaning services presupposes a high competition.
The competition in Chicago market is high as there are many organizations that suggest not only cleaning and washing but cooking, ironing, and gardening.
Clean & Wash should look for partnership and merging to become profitable and successful as quickly as possible.
The context can be beneficial if Clean & Wash use the political, economic, technological, sociocultural, and competitive forces as driving ones.