Pro Clean

Company overview/ Statement of masterblem pro beak LLC is an old- whiler rug cleanup position personal line of credit. It was owned and managed by Kevin Wilson and locate in Knoxville, Tennessee. Wilson had to manage advance all functions of professional person cleanse daily activities. In this industry, the lines professional person overbold faced be how to stay competitive and still make above average commits with one of his important rivalry the King rug. King Rug has a resolute channel structure and is able to charge its customers with proud prices which make King Rug very overmuch more profitable than pro promiscuous. A nonher problem that professional person overbold has to face is the rapid working out process.At the onset of the expansion, the air had started to churn cash as a consequence of the increased payroll expenses and the lease payments for the confederacys vehicles. Wilsons bear on investment was dismal. Cash f deplorable quickly became a problem and Wilson resorted to using his business and personal credit cards to finance his business. environmental Scanning/ Stakeholder Analysis Demographics of pro fairish atomic number 18 composed by and large of customers from Knoxville, TN. Being located in the Suburban district and close to Condominiums near the City Center closely of its customers come from single-income families, above $250,000 annually.Most of these homes had pets/ young children. 20% of the business made up of the regular customers. Economically, Pro wipe is doing finely with its source of Revenue made up of alter rug (77%), upholstery clean (9%), area rug cleaning (5%), tile and grout cleaning (5%), carpet and fabric protection (3%), and drapery cleaning for (1%). The culture of the customers of Pro Clean is those of frequent use. Average Pro Clean customers had their carpets cleaned every 12 months.Technologically, Pro Clean had improved from stuffing envelopes with direct mail material, answ ering recollect calls and giving estimates to setting up a webpage so customers can substantially and instantly know about the companys profile and service of process. Pro Clean is just a local business thus it is not thinking about expanding to an different(prenominal) country, however, it sought to expand locally with much difficulty Industry Analysis Pro Cleans NAICS code is 339994. According to the United Census Bureau, a 339994 is a Broom, Brush and draw Manufacturing Pro Clean conducts a pure competition in where on that point are many other competitors selling similar ervice in the industry. Its main competitors are D-Clean, King Rug, Green Clean, Right Clean and Kleen Clean. The industry is a growing foodstuff. The market grew approximately 5 percent per year, which was what Wilsons business averaged as well. Currently, Pro Clean had built up a si in the buffy 5 percent market share in Knoxville Now for ushers five forces model of Pro Clean, they are very dim to withstand the threat of new entrants because a act of national janitorial cleaning and carpet cleaning chains were advertising aggressively to establish new franchises in the city.The bargaining power of supplier of Pro Clean is or else weak. For a cleaning company, Pro Clean can pretty much buy their source of cleaning products pretty much from different suppliers and vanquish products without hurting the companys balance sheet. The bargaining power of buyers of Pro Clean is quite weak also, because the customer can switch to another cleaner company in town where it might have a service which Pro Clean doesnt have. In addition, there are approximately 60 cleaners in town competing in the very(prenominal) industry as Pro Clean. Substitute products are a massive disvantage for Pro Clean.Some new customers who are not used to carpet cleaners preferred to buy the cleaning products and do the cleaning by them. The commercial message cleaning market was serviced by janitorial serv ice providers that offered a one-stop service to commercial businesses which Pro Clean does not offer. The intensity among the companies is cut throat. The market is very competitive because the firms have similar service and almost cost status among buyers. The other companies are killing each other to cross off themselves from their competitors by conducting additional source of revenue.For example, King Rug derives a satisfying portion of its revenue from rug cleaning at its place of business and did well with cross selling and up-selling. Pro Clean however, did not successfully up-sell Company Analysis Pro Clean vision is to be the number one carpet and rug cleaners and ready to take on even the best in Knoxville Pro Cleans care to accomplish this vision is to stay in touch with all its customers by sending out quarterly newsletters. The current goal of Pro Clean is to organize their organizational structure where it had inaccurately expand too extravagant and thus hurting companys current cash flow.To come across this goal, Wilson had to lay off one of his cleaning technicians. He temporarily transform the cleaning technician position to that of sales and office administration. Wilson had to spend his personal time trying to develop the business as well as dealing with administrative and clerical tasks. SWOT digest Strength 1. Pro Clean has 5% overall market share of Knoxville carpet cleaning market 2. Its market shares grows at 5% annually 3. Their business venue is located in the city northeast residential district (most of its customers are residential people) 4.It has loyal customers which generates 60% of its income Weakness 1. It has a poor organizational structures 2. disappoint price charged to its customers making it to have difficulty covering budget items costs 3. It expanded too quickly, making a small return on investment. Opportunities 1. Pro Clean might be able to scratch not plainly when residential areas but also commercial as its main competitors do not target commercial areas 2. Pro Clean continue charging a lower price than its main competitor in the rug cleaning business Threats . Pro Clean competes in a highly competitive market 2. Other companies might crush Pro Clean by offering a cheaper service fee 3. any frequent-customers who suddenly become unsatisfied might turn its revenue down. Pro Cleans philosophy is that each and every client is the most important facet of our company. Pro Cleans union competency is its efficacy to make on-site estimate visits, while other competitors gave approximate estimates over the phone and followed up with a detailed price once they were on site to clean.Porters value chain of Pro Clean is important to the health of the company. Their network ( alert customers, technology and follow ups) are the most crucial in the relation of its income statement. They must keep on doing whatever they do best not to lose any existing customers otherwise the companys operati ng income will suffer. STRATEGIC ANALYSIS The corporate strategy of Pro Clean is at a low level because it does not conduct any other form of business other than cleaning services.It has a cost-leadership business strategy as compared to its main competitors it charged the least fee for cleaning services. Pro Clean ability to keep its existing customers is certainly a positive effect on the companys image and it also can give a positive free advertisement to these customers relatives. The culture of Pro Clean is that the man resource works as a close knit team. plot Wilson is out, his employees will routinely visit real estate agents and other referral sources for one-half of the day while others spent the remainder of the day in the office. alternate/SOLUTIONThe two main problems mention above is the significantly low determine which makes it unable to cover its overhead costs while its main competitor can and the other problem is the wrong decision of the expansion which was r ather too soon for the company to handle. The main opportunity which Pro Clean might be able to consider is that it should aim for not only residential area carpet cleaning but also commercial area as it will hugely increase the number in their sales. Also, I believe that the expansion has already happened but it produces a little, if any, a positive return on investment.The way I would take advantage of this is to either sell the extra capacity/ plant or to maximize its ability to produce different product/services which might be able to generate more revenue for Pro Clean. For example, not only they do the cleaning business, but they also manufacture their own grunge of Pro Clean cleaning products. I believe that Pro Clean can survive if these problems were to be exploited. With additional capital and better company strategies implications, Pro Clean will be able to dominate the cleaning industry locally. End Note Page