Home Improvement Company Case Study Analysis
The case study is related to the peculiarities of Your Home is a Good Place, Inc. First, it reveals the company’s background, its supply side, the demand side and the intersection of supply and demand. Moreover, the case study provides information on the peculiarities of the staff and current marketing endeavors. The case study demonstrates that Your Home is a Good Place, Inc. demands improvements that should be revealed with the help of the situational analysis via SWOT and 5 Porter’s techniques and provide the alternative solutions as the recommendations for improving the organizational strategies.
The analysis of the organizational environment of Your Home is a Good Place, Inc. shows that the company’s strengths prove the proper product and promotion strategies. The weaknesses provoke the necessity of the improvement of the work with customers and establishing a proper collaboration with the suppliers. The revealed opportunities demonstrate the new possibilities that will increase the organizational reputation and image of the company. The detected threats prove that Your Home is a Good Place, Inc. should be ready for any changes and innovations to deal with their customers in a proper way.
The competitive advantage of the company refers to its possibility to be more profitable and successful than other home design companies with the help of its individual approach to every customer. Your Home is a Good Place, Inc. depends on the power of buyers as it determines its profitability. The competitive rivalry is high in question connected to home design. However, it does not influence the state of affair of the company. The suppliers are the basement of the physical resources of the company. The threat of new entry is moderate and is not dangerous for Your Home is a Good Place, Inc. The threat of substitutes is also moderate as the company management knows how to target their audience. The proposed solutions are the following: providing needs-based segmentation of the customers and incorporation of the future development plans. Such solutions should be applied as the response to any weaknesses and threats emerging within the company.
In conclusion, it should be stated that Your Home is a Good Place, Inc. demonstrates a healthy environment that is suitable for further development, growth, and expansion. The findings revealed from a given case study prove that the diversity of operations and a large number of suppliers can be the keys to success. However, expensiveness can deter customers from the usage of services. Consequently, it is recommended to provide the needs-based segmentation that will result in more effective work with customers as they will be divided according to gender, age, and services preferences. Moreover, it is necessary to implement the development programs that presuppose the changes in marketing and innovations within the company. Your Home is a Good Place, Inc. should strengthen the current weaknesses introducing new services related to home improvements. It should also support the collaboration with new suppliers to retain its competitive advantage and expand into the global market.
Your Home is a Good Place, Inc. is the company that specializes in home improvement. It means that the organization provides unique services related to making the personal environment more comfortable and different compared to the neighbors’ one. Your Home is a Good Place, Inc. saves consumers’ time and efforts making their home tasteful. Satisfying the homeowner needs the company has won its target market. However, it does not mean that Your Home is a Good Place, Inc. has achieved its perfection. Consequently, it is important to conduct the analysis to find alternative solutions to improve marketing and expansion in the market.
SWOT-analysis is a necessary and effective technique for revealing the peculiarities of the organizational environment. Such marketing tool presupposes the analysis of the strengths, weaknesses, threats, and opportunities for the company. Consequently, to implement the necessary improvements Your Home is a Good Place, Inc. needs a detailed SWOT-analysis (Look Appendix 1).
1. Providing shopping experience.
2. Transformation of any home into a luxurious playground.
3. An individual approach to any customer.
4. Demand for a little cash for designing.
5. The increase of the target audience.
The strengths of Your Home is a Good Place, Inc. is related to its responsibility for all services related to home improvement. As other companies incorporate only home services, the organization provides a shopping experience. The supply side of Your Home is a Good Place, Inc. makes it a unique and competitive organization. Transforming any home into a luxurious playground proves that the company fulfills such the function of demand satisfaction to the full extent. As to the individual approach to any customer, it is provided by the qualified and creative staff that will advise or recommend anything related to home design. The company does not demand too much money for designing. However, more money presupposes more changes and creative ideas. The increase of the target audience proves that Your Home is a Good Place, Inc. has a successful marketing strategy that is strategic and innovative. Such strengths help the company to achieve its objectives. First, they prove that Your Home is a Good Place, Inc. takes into consideration customers’ interests. Second, they argue about their competitive advantage.
2. Provoking the problems related to design and architectural changes.
3. Dependence on many suppliers.
4. Most customers are rich people.
5. High demand for financial, human, and physical resources.
The weaknesses of Your Home is a Good Place, Inc. proves that the company should change its approach to price strategy. Moreover, they reinforce the necessity of the implementation of the change management process and strategic marketing. However, such weaknesses are typical for any organization and signalize about the necessity of improvements.
1. Increasing the number of suppliers.
2. Development of human resources.
4. Partnership with architects and designers.
5. Improvement of image and reputation in the market.
Such opportunities prove that Your Home is a Good Place, Inc. should move forward expanding its business, improving human and physical resources. The opportunities of the organization are endless, proving that the company can win new markets. They are necessary to find new customers and increase sales and profits. Need for innovation is another opportunity for the company. Collaboration with other home improvement companies is necessary to strengthen brand awareness and find new partners.
1. The decrease in customers.
2. The frequent complaints.
3. Damage to reputation.
4. The loss of suppliers and sponsors.
5. Possible lawsuits.
6. High competition.
It is evident that such threats are related to customer perspective that is a driving force of the company. Moreover, the threats are also related to competitors’ perspective as their success and failure are the main determinants leading to innovations. The company can deal with the lawsuits due to the imperfection of services, low quality, and high prices. It means that the organization should do all possible to avoid lawsuits to save its brand and reputation in the market. It is evident that violation of customers’ rights can lead to a compromised reputation. Consequently, the company should improve its quality and prioritize customers’ interests to save its reputation.
The competitive advantage of Your Home is a Good Place, Inc. is evident, and it is related to its unique services and individual approach to every customer. First, the company puts its customers at the center of its policy, making them feel unique and special. Secondly, the company has managed to unite architects, designers, financiers, and contractors with one common objective to create a comfortable home for any customer. Your Home is a Good Place, Inc. differs from the traditional home improvement companies as it provides a one-stop shopping experience.
Another advantage of Your Home is a Good Place, Inc. refers to the opportunity to handle the supply and the demand sides. It means that the organization managers can predict all possible threats and avoid them. Moreover, they can ask suppliers for support in problematic situations. It should be mentioned that Your Home is a Good Place, Inc. provides its customer with the site that can suggest the ideas of home improvement. However, the peculiarity of the company is that it can incorporate customers’ projects. It is evident that Your Home is a Good Place, Inc. is different than typical home stores or design centers with its creative projects.
The competitive advantage of the company also concerns its collaboration with many architects, designers, landscapers, and local contractors. It means that it has a positive reputation that attracts not only customers but suppliers. Moreover, the advantage of Your Home is a Good Place, Inc. is that it helps obtain building inspections and permits. It means that the company simplifies the process of redesigning for the customers. The company is more competitive than other design centers as it coordinates its projects from start to finish. Consequently, the customer can be sure about the success of the outcome.
Porter’s Five Forces Analysis
Current technique presupposes analysis of the competitive rivalry, the power of buyers, supplier power, the threat of substitutes, and the threat of new entry.
The Power of Buyers
It is evident that Your Home is a Good Place, Inc. is totally dependent on the power of buyers. Buyers determine the profitability of the company. The key customers of the organization are people with incomes of $100, 000 or more. The power of such buyers is high. However, the company should provide less expensive services available for customers with lower incomes. The company should enhance its customers with the system of reductions that will target the new audience.
Growing buyer preferences in apparel is another driving force of Your Home is a Good Place, Inc. Nowadays, customers have become more critical and demanding due to the current weak economic state. The modern market provides the company with a chance to occupy a leading place among other reputable companies. The main thing is to remain attentive to the customers’ demands.
The competitive rivalry in home design is high. Consequently, Your Home is a Good Place, Inc. has many competitors. First, they are companies specializing in home design. Secondly, they are organizations that provide services for home improvements. Consequently, the company should do all possible to achieve uniqueness in its services. Moreover, Your Home is a Good Place, Inc. should be ready for the situation when the number of competitors is constantly increasing threatening with the replacement. The changes in marketing strategy and implementation of more strategic solutions will provide a basement for a healthy competition.
It should be stated that Your Home is a Good Place, Inc. has a large number of suppliers who are responsible for home design. Consequently, supplier power is high. Landscapers, architects, painters, carpenters, engineers, wallpaper hangers, and plumbers are the key suppliers whose labor is necessary and valuable for the company. It is crucial for the organization to make all such suppliers constant. Moreover, they should be very talented and creative to provide high-quality services. It should be mentioned that the suppliers are the sources to the potential consumers. Consequently, the task of the company is to encourage them to work better.
The Threat of New Entry
Another factor that can restrain Your Home is a Good Place, Inc. is the threat of new entry. The emergence of new companies specializing in home improvement and home design puts the organization under threat of replacement. However, the threat of new entry is moderate as most companies deal only with home design or home improvements. As to Your Home is a Good Place, Inc., it fulfills both functions, which differentiates it from other organizations. Moreover, new entrants may not be very successful due to the lack of experience in the market. However, Your Home is a Good Place, Inc. should monitor the market in order not to omit its future competitor.
The Threat of Substitutes
The threat of substitutes is moderate due to the uniqueness of the services of Your Home is a Good Place, Inc. There is not a direct rivalry, except the diverse design companies, the number of which is increasing constantly. To avoid the threat of substitutes, the organization should provide unique and diverse services and an individual approach to every customer taking into consideration his/her interests. In another case, the substitution can touch not only services but customers.
Strategic Solution 1: To provide needs-based segmentation of customers
The first strategic solution provided by the team refers to creating needs-based segmentation of customers. Such change is necessary due to the diversity of customers and differences in their interests and ideas related to home design. Needs-based segmentation of customers can be incorporated after suggesting customers’ survey necessary for detecting such needs. However, it is evident that the segmentation will be possible when there are improvements in the product and price strategies as they are the most crucial factors. The needs of the customers when they have a large choice in services, prices, and creative ideas should be studied.
The current solution should encourage Your Home is a Good Place, Inc. to expand and attract new customers, as well as suppliers and contractors. The management of the company can provide needs-based segmentation only with the help of transferring to strategic management that is more innovative and perspective. Moreover, it is a way of achieving the sustainable advantage that will help avoid the issues with the customers. Furthermore, Your Home is a Good Place, Inc. needs the changes in the marketing strategy to make it more concentrated on customers’ interests. The company can increase with the help of overcoming weaknesses and reinforcing strengths.
Moreover, it is recommended to increase studying the employees’ and customers’ feedbacks to avoid misunderstandings. Customers’ preferences about products should be studied to implement them in practice. It is obligatory to focus attention on the differentiation strategy as it will allow creating an individual approach to every customer, which is extremely important for home design. The short-term and long-term goals of the company can be defined with the help of the marketing planning and SWOT and Porter’s 5 Analysis. Such techniques with help determine the customers’ needs and then make them real with the help of services. The increases in market share, customer value, and rate of growth can become the indicators of the company’s success.
Strategic Solution 2: To implement future development plans
The second strategic solution as a feasible choice cannot bring success immediately but it has the right to exist as it refers to long-term goals. The implementation of future development plans is necessary for building further perspectives. They should deal with such aspects as sustainability, dynamics, increasing productivity and performance, and reliance on the past and present experience. The future development plans are necessary to solve such a problem as expensiveness. The company’s management will need time and efforts to achieve profitability and regulate the price strategy in a proper way. Moreover, the future development plans should include such aspects as the growth of the organizational culture and incorporation of the ethical principles.
The future development plans should result in substitutive growth. Consequently, it is necessary to apply alternative strategies like diversification, horizontal integration, and vertical integration. The diversification should deal with the product strategy that demands constant improvements. Horizontal integration can be used for new markets as it presupposes merging with competitors for increasing the market share. Consequently, Your Home is a Good Place, Inc. can merge with other home design companies for achieving the common goals. Vertical integration can be applied to the domestic market because it presupposes linking with another company that has the same supply chain. It is a good way of partnership.
Employing technological innovation is another aspect that leads the company to the development. Changing trend in home design makes the company innovate. Innovation will help the company be more competitive and profitable. For example, the company uses Business Intelligence System and Balanced Scorecard to control its sales, achieve more profits, and use the data efficiently. Such innovations are necessary to predict possible threats and weaknesses, reinforce strengths, and open new opportunities. Consequently, technological innovations are ways to progress.
In conclusion, it is evident that the case study of Your Home is a Good Place, Inc. demonstrates a usual situation when the company operates in a proper way. However, it demands the changes and innovations to reinforce its marketing, and customer perspectives. The findings of SWOT-analysis demonstrate that the organization should improve its work with customers to avoid negative feedbacks, complaints, and lawsuits. Porter’s 5 analysis shows that Your Home is a Good Place, Inc. should implement its strategy of development that will be different from the competitors’ and entrants’ ones. The competitive advantage of the company is in its unique approach to every customer.
The proposed strategic solutions are to provide needs-based segmentation of the customers and implement future development plans. Such solutions are necessary to increase market share and open new opportunities for growth. Moreover, they will help expand the locations as there is a demand for the services of Your Home is a Good Place, Inc. It is extremely necessary to improve the marketing strategy to save the competitive advantage. Furthermore, the company needs the physical, human, and financial resources to move forward and avoid possible threats. The financial resources will benefit expansion, while the human resources will benefit productivity and performance. At the same time, physical resources will encourage to implement innovations.
It is evident that the company should have an individual approach to every customer to make him/her feel unique and special. The company needs to arrange the service lines as they are disorganized and many customers cannot be aware of the presence of some services. Expensiveness can also be a weakness as it makes customers look for cheaper services. Consequently, the prices should be reasonable and available and the company management should target different segments of customers.