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Situation Analysis & Market Research

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Autor:   •  November 30, 2010  •  2,681 Words (11 Pages)  •  873 Views

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Situation Analysis &Market Research

Dirty Deeds Incorporated is a for-profit home cleaning service that was created by six entrepreneurs on July 7, 2005. In order to differentiate Dirty Deed Inc.'s cleaning service from their competitors, they are implementing a risquÐ"© alternative. Dirty Deeds Inc. will be targeting single men and women over the age of 18 in need of domestic cleaning services and desiring discreet adult entertainment. Teams of at least two men and/or women dressed in sexy lingerie will conduct all cleaning services. The company has strict provisions in place to ensure that the services offered will always remain tasteful and in accordance with all federal, state, and county laws.

The creators of Dirty Deeds Inc. formed their partnership as Southward Bound Acquisition L.L.C., and are a group of investors from the American west and southwest. Their backgrounds range from commercial real estate development, to loan origination, to service sector business operation. They have in common, their affinity for this region, and their desire to find and conquer an unmapped region of the domestic business landscape future.

Southward Bound Acquisition L.L.C., in their venture as Dirty Deeds Inc. wishes to grow the company to ensure their profitability in the future. To achieve this, specific objectives must be made to chart successes and possibly redirect the business strategy if necessary. Although Dirty Deeds broad goals are to increase awareness of their product in the Tucson market, prepare for future expansion in other cities within Arizona, and achieve overall profitability, these goals must be refined and specified in order to arrive at a cohesive and measurable marketing plan.

The first objective of Dirty Deeds Inc. is to have a net profit of $100,000 in the first year. Dirty Deeds Inc.'s second objective is to have 125 regular customers by the end of the first year. Their third objective is to maintain a clean image within the community. In looking at future objectives, Dirty Deed, Inc. wants to prepare for expansion into other areas of Arizona. A long-term objective is to open new offices in Phoenix and Scottsdale.

In order to better swat the competition, a SWOT analysis must be performed to identify all the major factors affecting competitiveness before deciding upon a business strategy. A SWOT analysis assesses strengths (what an organization does well) and weaknesses (what an organization cannot do) in addition to opportunities (potential favorable conditions) and threats (potential unfavorable conditions). By performing a SWOT analysis, Dirty Deeds Inc. will be more likely to accomplish there marketing objectives by converting weaknesses into strengths and threats into opportunities.

An internal analysis of Dirty Deeds Incorporated indicates that they posses many strengths. Among Dirty Deeds primary strengths is the fact that they have the latest cleaning equipment in the industry. This new equipment will assists in the quality and efficiency of their work. Also, their business is unlike any other cleaning service in town, and they are thereby able to offer essentially a composite of two services, in an entirely fresh and new format. An innovative cleaning service may be exactly what Tucson residents want. Tucsonans may widely accept the idea due to the high numbers of retirees and adults with money and an equally high number of collage students who need money. Advertising for customers and employees can also be efficiently and effectively achieved by word of mouth on the various Southern Arizona campuses. Lastly, Dirty Deeds staff is on-call and conveniently located in most areas of town for quick arrival. This will enable Dirty Deeds to clean more homes on shorter notice.

Besides strengths, Dirty Deeds Inc.'s has internal weaknesses as well. This unique blend of services has not been tried before; therefore, Dirty Deeds Inc. is sailing uncharted waters, and the primary risk is the unknown reaction of the market to their product. Pornography and the sex industry may be associated with the business which may drive away business. Licensing will also be more difficult to obtain, since adult entertainment is involved. These additional fees as well as the additional talent required will cause Dirty Deeds prices to be higher than traditional cleaning services. Another weakness is that Tucson's older population may be more conservative than anticipated which may cause them to reject the service. The last weakness is there may be a staff shortage during the summer and holiday months when college students are out of town. Not having employees to clean houses means less productivity and profitability.

Among the external opportunities that Dirty Deeds may enjoy are that this type of service has never been offered in Tucson before. If the service is widely accepted, the company can be very profitable. Furthermore, Tucson's diverse population is consistently expanding which offers a growing customer base. Dirty Deeds may also be able to utilize the new ideas that today's college student have to offer. Applying new concepts to current cleaning methods will boost Dirty Deeds Inc. reputation as an innovative cleaning company. Since customer satisfaction is guaranteed, clients will likely refer Dirty Deeds Inc. to their friends which may also contribute to an increased workflow.

Threats exist that Dirty Deeds must convert into opportunities in order to realize sufficient profit. One such threat is that people may not be willing to pay the extra money to have their house cleaned by scantly dressed college students. Another potential threat is sexual harassment against employees while they are working. It is extremely important that staff members feel safe and secure when performing their predetermined duties. Because citizens of Tucson only have a certain amount of disposable income, a recession can pose a serious threat to any business who's services are be considered a luxury. The last threat facing Dirty Deeds Inc. is the employment of a young and possibly inexperienced staff. Many college students have little work experience and therefore may not make the most effective decisions with the business in mind. Bad decisions can lead to a catastrophic meltdown of the company's marketing mix.

In order for Dirty Deeds Inc. to succeed, it needs to expose and be aware of as much information about its competitors as possible. To achieve this goal, a competitive analysis will be performed to identify all potential competitors. A SWOT analysis will also be conducted on the top three competitors to evaluate their strengths and weaknesses. By understanding the actions of their competitors, Dirty Deed Inc. will be better able to market their own products for success

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