Threat of new Entrants: Low

The regulatory requirements and certifications are designed to ensure quality control and safety standards in the
industry, but they also make it difficult for new players to enter the market. In addition to the regulatory barriers,
customer trust was also identified as a key success factor in the cleaning service industry. Customers tend to rely on
established firms with a proven track record of quality service, making it challenging for new entrants to compete
with established players. The study suggests that in order to overcome these entry barriers, new entrants should
focus on building a strong reputation and establishing trust with customers. This can be done through various means
such as offering specialized services, competitive pricing, and effective marketing strategies. Overall, the study
highlights the challenges that new entrants face when entering highly regulated industries such as the commercial
cleaning industry. By understanding the key success factors and entry barriers of the industry, new entrants can
develop effective strategies to overcome these challenges and compete with established players. Lee, H., & Lee, H.
(2018).

Bargaining power of suppliers: Low

The study aimed to investigate the factors that contribute to the success of cleaning services in the market. One of
the findings of the study was that the bargaining power of suppliers in the cleaning service industry was low. This
was due to the large number of suppliers in the industry, which creates intense competition, and the low barriers to
entry, meaning it is relatively easy for new suppliers to enter the market. Another finding of the study was that
customer satisfaction and service quality are essential factors for success in the cleaning service industry. This implies
that the ability to provide high-quality cleaning services that meet or exceed customers' expectations is critical for a
cleaning service provider's success in this market. Lee, Y.-H., & Kim, H.-J. (2017)

The bargaining power of buyers refers to the ability of customers to influence businesses to provide high-quality
products at reasonable prices with excellent customer service. This force has a direct impact on the ability of Neat
and Clean Solutions The Growth Challenge to achieve its business goals. Strong bargaining power reduces
profitability and increases industry competition, while weak buyer power makes the industry less competitive and
increases profitability and growth opportunities for Neat and Clean Solutions The Growth Challenge. Several factors
increase the bargaining power of buyers. For example, if the customer base is more concentrated, their bargaining
power against Neat and Clean Solutions The Growth Challenge will increase. Additionally, if the number of buyers is
low while the number of sellers (business organizations) is high, buyer power will also be high. Low switching costs,
both economic and psychological, also increase buyers' bargaining power. Corporate customers who can do
backward integration strengthen their position in the market by being able to produce products themselves instead
of buying them from Neat and Clean Solutions The Growth Challenge. Consumers who are price sensitive, have high
market knowledge, and purchase standardized products in large volumes also increase buyers' bargaining power.
On the other hand, some factors decrease the bargaining power of buyers. For example, lower customer
concentration (i.e., a geographically dispersed customer base), customers' inability to integrate backward, low price
sensitivity, lower market knowledge, high switching costs, and purchasing customized products in small volumes.
Henry (2018).
Bargaining power of Buyers: High

The study found that the bargaining power of buyers (customers) in the cleaning service industry was high. The high
bargaining power of buyers was due to the low switching costs, the availability of substitutes, and low differentiation
of services offered by the cleaning firms. In other words, customers in the cleaning service industry had many options
to choose from, and it was easy for them to switch to another cleaning service provider if they were dissatisfied with
the quality of service provided by their current provider. Moreover, the study found that small cleaning firms in
could maintain their customer base and competitiveness by focusing on customer satisfaction and providing high-
quality services to their customers. Overall, the study highlights the importance of customer satisfaction and service
quality for small cleaning firms to maintain their competitiveness in a highly competitive industry with a high
bargaining power of buyers. S. Rahman & S. Uddin (2019).

The statement suggests that customer satisfaction plays a critical role in the bargaining power of buyers in the
cleaning service industry. When customers are satisfied with the cleaning services they receive, they are more likely
to have a higher bargaining power. This means that they can negotiate better prices or services from the cleaning
service providers. Moreover, the study found that high customer satisfaction can lead to increased loyalty and
positive word-of-mouth referrals. This further enhances the bargaining power of buyers because when customers
are loyal to a particular cleaning service provider, they are less likely to switch to other providers. They are also more
likely to recommend the provider to others, which can increase the provider's customer base and reputation. In
summary, the study suggests that cleaning service providers need to focus on providing high-quality services that
satisfy their customers' needs and preferences to increase their bargaining power. Chiba, T., & Yamamoto, S. (2017)

Threats of substitute: Low

A study that investigated whether customers perceive different hotel brands differently in terms of service quality,
specifically focusing on the importance of cleaning services. The study found that customers perceive cleaning as
one of the most important aspects of hotel service quality. This means that customers value clean hotel rooms and
public spaces highly and consider it an essential aspect of their hotel experience. Additionally, the study found that
customers had higher expectations for cleaning services in luxury hotels compared to other types of hotels. This
suggests that the perceived value of cleaning services can vary depending on the type of establishment. Customers
who pay more for luxury accommodations expect higher standards of cleanliness and attention to detail compared
to those who stay in budget hotels. In summary, the study suggests that hotel brands need to prioritize cleaning
services to meet customer expectations and maintain their reputation. It also indicates that luxury hotels may need
to pay more attention to cleaning services to meet the higher expectations of their customers. M. Kandampully &
M.-J. Hu (2014)

The statement refers to a study that examined the challenges and opportunities facing the cleaning service industry.
According to the study, the cleaning service industry was relatively stable, meaning that it did not experience
significant fluctuations or changes over time. Furthermore, the study found that the industry had a low level of
substitution, which refers to the ability of customers to switch to alternative products or services. The study
attributed the low level of substitution in the cleaning service industry to several factors. First, the industry requires
specialized knowledge and equipment, which means that substitutes are not readily available. Second, the high cost
of developing substitute products makes it difficult for competitors to enter the market. Finally, the high level of
competition in the industry means that existing cleaning service providers need to continuously improve their
services to remain competitive. In summary, the study suggests that the cleaning service industry is relatively stable
and has low substitution, which is attributed to the need for specialized knowledge and equipment, high costs of
developing substitute products, and the high level of competition in the industry. L. Androniceanu & C. Nicolescu
(2016)

Rivalry among existing competitors: Medium

The statement refers to a study that examined the cleaning service industry and its competitiveness. According to
the study, the level of rivalry in the cleaning service industry was medium, which means that there was a reasonable
amount of competition among companies for market share. In this industry, both large and small firms were
competing to serve the customers. The study identified the importance of differentiating the service offering to
stand out in the competition. This means that cleaning companies need to find ways to offer something unique or
better than what their competitors are offering. The study also emphasized the need to develop new value
propositions and business models to remain competitive in the industry. In summary, the study suggests that the
cleaning service industry has medium competition, and companies need to differentiate their service offering and
develop new value propositions and business models to remain competitive. Rönnqvist et al (2016)

The statement refers to a study that explored the competitive advantage of cleaning service providers. According to
the study, the level of rivalry among cleaning service providers was medium, which means that there was a
reasonable amount of competition among companies for market share. The study found that there were a significant
number of competitors in the market. The study identified the importance of strategic management practices for
cleaning service providers to maintain a competitive advantage in the industry. Specifically, the study highlighted
the importance of innovation and customer relationship management. By continually innovating and improving their
services, cleaning service providers can differentiate themselves from their competitors and attract more customers.
Additionally, by maintaining strong relationships with their customers, cleaning service providers can improve
customer loyalty and retention, which can also provide a competitive advantage. In summary, the study suggests
that the cleaning service industry in has medium competition, and cleaning service providers can maintain a
competitive advantage by implementing strategic management practices such as innovation and customer
relationship management. C. Ho, L. Wang, & J. Chiang (2019)

Reference:

Lee, H., & Lee, H. (2018). Exploring the Key Success Factors of the Commercial Cleaning Industry. Sustainability,
10(11), 3962. doi: 10.3390/su10113962.

Lee, Y.-H., & Kim, H.-J. (2017). A Study on the Success Factors of Cleaning Services in the Market. Journal of Asian
Architecture and Building Engineering, 16(2), 347-354. doi:10.3130/jaabe.16.347

Henry, Z. (2018). Neat and Clean Solutions The Growth Challenge Porter Five Forces Analysis. Case48.
https://www.case48.com/porter-case/22258-Neat-and-Clean-Solutions-The-Growth-Challenge

Rahman, S., & Uddin, S. (2019). The Competitive Environment of the Cleaning Industry: A Case Study of Small
Cleaning Firms. Journal of Small Business Management, 57(1), 244-261. doi:10.1111/jsbm.12383

Chiba, T., & Yamamoto, S. (2017). Customer Satisfaction and Loyalty in the Cleaning Industry: An Empirical Analysis.
Journal of Asian Architecture and Building Engineering, 16(2), 327-332. doi:10.3130/jaabe.16.327
Kandampully, J., & Hu, M.-J. (2014). Do hotel customers perceive different hotel brands differently in terms of service
quality? Journal of Hospitality & Tourism Research, 31(2), 202-222. doi:10.1177/1096348006297256

Androniceanu, A., & Nicolescu, C. (2016). Current Challenges and Opportunities for the Cleaning Services Industry.
Amfiteatru Economic, 18(43), 512-527.

S. Rönnqvist, S., Malmström, T., & Wikström, M. (2016). Value creation and business models in the cleaning industry.
Facilities, 34(5/6), 270-289. doi:10.1108/f-01-2015-0004

Ho, C., Wang, L., & Chiang, J. (2019). Exploring the competitive advantage of cleaning service providers. International
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