SWOT Analysis for Cleaning Company Essay Example

balance between cost and efficiency.

Weaknesses:

• The company currently operates with old stuff making the work hard for their employees
• The training process for new employees is too short and is not well developed where only people with previous experience can work
• The company has a lack of casual staff or on call staff and the job is being jeopardise when more of three permanent employees are absent
• The do not follow completely green clean policies and some of their products can affect the environment and for this reason some building manager has been looking for other cleaning companies
• The company shows a big rate of desertion of workers.

Opportunities:

• Sydney is a city in development with more units being building up and offers possibilities to acquire new contracts
• There are new targets to be approached in the sector of commercial cleaning as banks, call centres or shopping centres
• The possible expansion of the company to other areas of Sydney or other cities is a possibility due the annual growth that shows the company which is about a 20% every year
• The Australian legislation is supporting cleaning companies at the moment that it pushes them to acquire insurances to get permission to work and at the same time eliminating illegal and independent workers operating near to the place they live.

Threats:

• The cleaning industry is really closed industry, and it is difficult to acquire contracts from buildings that already have a cleaning service due long term that these contracts are being made
  

to protect both parts

Rivalry Among Existing Firms:

This could be considerate the most dangerous aspect in the five forces, it is due the big amount of cleaning companies in the market with similar rates and services.

Threat of New Entrants:

This threat is low due the policies and the insurances that protect the cleaning companies and their existing contracts against new emerging companies in the market.

Determinants of Supplier Power:

This power could be considerate low in respect with the acquisition of cleaning products and the suppliers; it is due to the big number of suppliers in the market and the different options of prices that could be found. However is some risk when talking about labour; Australian citizen do not want to work in job that required physical activity and most of this job are taken by international students or temporary visitors, resulting this in a risk for the cleaning industry.

Threats of Substitute Products:

It could be considerate a high threat due the preferences of the manager buildings and the needs of the property; some manager buildings prefer to take the money designate for

cleaning and invest in property maintenance or some other destinations. Also, this power could be low due the customer loyalty and the policies in the contracts that protect both parts.

Determinants of Buyer Power:

• This power is could be considerate high due to the customer can easily change to another cleaning company or service.
• With the aid of Ansoff’s matrix, develop some growth strategies for the product or service. Ensure that you investigate the potential of each the four alternatives.

Market Penetration:

The company at the moment is offering other product that is gardening, and as a part of market penetration one possibility could be ask for a full rate in one of the products that are cleaning and gardening and offer a discount in the second one if the building manager decides to acquire both of them. In other words, when some property asks for cleaning service, the gardening service could be offered with a discount; and when the property asks for gardening service, the cleaning service could be offered with a discount.

Product Development:

Inside the new budget of products or services that could be offered, we could find swimming pool cleaning, high rise window cleaning, carpet cleaning or steam cleaning and event cleaning.

Market Development:

In the near future could be possible to think in a local expansion and the other two areas in Sydney that are not being covered so far, as the north area and the east area of Sydney. I a long term, the expansion for market development could be reflected with the presence of the company in

other major cities of Australia as Melbourne and Brisbane.

Diversification:

The acquisition of a real state agency in the south of Sydney could be a really good business, especially with the development observed in areas as Ramsgate and Rockdale area and the big number of new units being building up in these sectors.

Other acquisition could be cleaning products factory to elaborate these ones and sell them to the Team Force as an independent company and to other cleaning companies; and toilet paper factory with the aim of selling the product to minimarkets and other cleaning companies

Suggest and detail any strategic alliances that might be of assistance in ensuring the growth of the product or service.

One of the possibilities is to get an alliance with a cleaning company with a similar volume of contracts operating mainly in the north and east areas of Sydney to avoid competence and at the same time make a more efficient job; for example, if the company operating in the south and west areas of Sydney gets contracts in the north or east areas the first company can cedes the contract to the second one; and exactly the same in the other way.

A second alliance could be with a real state agency operating Sydney north and east areas and with a big budget of properties. The alliance works at the moment that the real state agency promotes the services of the cleaning agency with all the properties in its portfolio and the cleaning agency put the real state agency advertising in their vans, and in this way, the real state agency

will get a mobile advertising that could be seen wherever the vans go during their work time. In this case both parts are highly benefited.

• And finally a third option could be an alliance with maintenance building company to offer a better and more complete service to the actual customers.
• Summarise the marketing strategies you would adopt to ensure the continuous sales success of the product or service.
• Market penetration. Offer a service with a full price and a second service with a discount in the original price.
• Product development. New service will be offered to attract a bigger number of customers.
• Market development. In a short term company could think in expand the business to the north area of the city and by the time think about to move to the east area with the objective to.
• Diversification. Buy a real state agency, a toilet paper factory and a cleaning products factory.
• Strategic alliance. Create an alliance with a real state agency in north and east Sydney areas.
• Create a report using Power Point slides, summarise your answers as if you are going to do a presentation.