unit 4 capstone

Unit 3 HW Capestone

Erica Chidester

Unit 3 HW Capestone

Introduction

All businesses operate their activities putting into consideration focus on the customer and the market. Firms operate with an aim of making a profit and expanding their operations. This is possible when firms have increased their volume of sales over time. Increase in the level of sales is attributed to maintaining the existing customers and attracting new customers. This increases the market share of a firm. The most significant thing is defining well customer needs and being able to fully address them. Due to competition which exists within the industry, a business firm should stand out to have a competitive advantage over other businesses. A business can do this by retaining its customers. A business firm should conduct a market survey in order to maintain its enterprise. This work seeks to analyze dynamics relating to retaining customers and the aspects of business competitive advantage.

The business seeks to offer cleaning services to various categories of customers. This is because the cleaning service industry has been rapidly expanding over many past years. Many people and various institutions and organizations have opted to outsource cleaning activities. This will give them ample time to focus on doing other significant activities. The main target market for this business service are 50 years and above. These people are high-income earners (Perry Byers, n. d). They spend more than 32 percent on such acquisition of cleaning services. The business will also be targeting people who live in residential houses. These people are of age 25 50. They include couples, university graduates etc. They work and have and have a considerable size of income. These potential customers need these types of services. Their needs are not being met since there are few cleaning services companies in the cleaning industry. Therefore, there is a need to fill this gap which exists. The size of the primary market is large enough to guarantee huge returns. The forecasted market growth of the primary market is high. The market share percentage and number of customers expected to be obtained in one geographic area is about seventy percent because there are few Cleaning services firms.

There are various reasons why my company has a competitive advantage over others to attract and retain your customer. The market share is estimated to be about 70 percent. The level of competition is about 60 percent. My business has a competitive advantage since its strengths outweigh the weaknesses. The target market is very important to some of my competitors since it is a market which has not been explored. Even though my business has a competitive advantage, there are some barriers that may hinder me as I enter the market. This includes externalities such as market imperfections characterized by distorted markets and imperfect knowledge about the customers. The window of opportunity to enter the market is by use of modern advertising platforms such as social media. There are various indirect or secondary competitors who may impact my success. This includes the existing companies which also offer cleaning services. Barriers such as changes in technology, high investment cost, and lack of qualified personnel may hinder my business from offering best services. The business will implement best market strategies to ensure that attracts potential customers and attract the existing ones. The business will aim at achieving a sustainable competitive advantage as compared to a temporary competitive advantage. The firm will improve and understand important strategies which are applicable. Research regulations that need to be understood in order to get started as well as to maintain the enterprise base include guidelines which govern the operations of various businesses in the country.

Conclusion

A business succeeds only it put into consideration many factors. The main ones being the aspect of market share, customer and competition. A firm should implement strategies that will enable it to increase the market size as the time goes by. As indicated above, a firm should also try to establish a competitive advantage over its business competitors.

Works Cited

Perry Byers, (n. d) Cleaning Services Retrieved from http://www.sbdcnet.org/small-business-research-reports/commercial-residential-cleaning-services

Retrieved at https://www.sba.gov/managing-business/business-law-regulations as a resource