Strategy Case study: Managed

by Q

Manan Trivedi
9-May-2021
 Agenda

Competitive advantages of Managed by Recommendation for Growth for

Q Managed by Q
• Corporate philosophy • Growth strategies
• Resources as edge • Reasonable alternatives to
• Environmental factors recommended strategies
• Threats • Possible disadvantage of
recommendations
• Strategic objectives & initiatives to
support strategy and how to track it
 Competitive Advantages: Corporate philosophy

FOCUS ON THREE THINGS: QUALITY,
PEOPLE & TECHNOLOGY TO
LEVERAGE MAXIMUM OUT OF THE
BUSINESS
AGGREGATING DEMAND FOR THEIR
PRODUCTS AND SERVICES
THIS IS APPARENT FROM Q GETTING GOAL: TO MANAGE ENTIRE
$15M IN SERIES A ROUND & PHYSICAL SPACE AND NOT JUST
EXPANDED FROM NEY YORK TO
CHICAGO & SAN FRANCISCO WITH
CLEANING FLOORS & WINDOWS
HIGH CUSTOMER SATISFACTION
Competitive advantage: Resources
• Tangible resources: HQ & 247 field
operators (NY-177, CH-23, SF-47), software
• Intangible resource: Brand value,
Customer satisfaction, Transparency,
employee trust and Integrity
• Human resource & organizational
capabilities: HQ (HR, software developer,
accounting, founders, building
management team& City functions (GM,
field operators, helper, handymen)
• Fits into VRIO model
Competitive advantage:
Environmental factors
• Political: different labor market in SFO than in NY;
whereas in Chicago real estate market was different
than NY. Still could get customers signed 15 times
out of 24
• Economical: Janitor service industry worth $51B;
Labor intensive and 96% of companies employing
less than five; competition was largely on price and
at 5.9% of sales & low profit margins
• Social: highly fragmented janitor services; office
cleaning accounted for 32% of revenue & top 3
companies took 10% of revenue
• Technological: It provided transparent on demand
services with tracking & scheduling capabilities with
customer feedback and robust communication
method
 To expand current business into Chicago as more
consolidated commercial land ownership meaning
less commercial building best fit for Q

Too many on demand start-ups in SFO where Q is

facing different labor market than NY

Cheap alternative services of on-demand

Competition was largely on price and high turnover

Threats

rates in industry

Copycat problem: similar company established in

Berlin and in San Francisco
 Differentiation
Technological
strategy: high
recommendation/Strategies
leadership:
customer
leveraging
satisfaction
advantage of
through quality
tracking and
for Managed by Q for
services to
transparency
expand in existing
capabilities;
market
existing markets

Focus strategy
based on
differentiation by Forward
increasing integration value
Growth

perceived value of chain strategy

the product or
services
 Diversification: Taking advantage of current
covid19 pandemic crisis Q should use related
constrained strategy of diversification like
venture into residential complex, developing
homeworking workstations and other facility
services

Reasonable
alternatives to Strategic alliance: licensing agreement for
usage of their i-pad based application and

recommended customized dashboards to other companies

strategies
Mergers: To enter and expand new market of
Boston, Atlanta & Washington DC
Possible As competition is steep and profit margin are
low it might be difficult to sustain existing
disadvantages of business model in new markets to achieve
economies of scope in which case, they should

recommended
only focus on their core business services

strategies From potential mergers consistent quality

services may not be achieved which will
ultimately impact customer satisfaction and
brand value

Open threat of new entrants copycatting

existing models at cheap prices to offer their
services
Strategic objectives and initiatives (Balanced
score card) Financial
Objectives ↑
sharehol
Improve
liquidity
der
value
KPI Share price
Initiatives ↓operational cost

Internal Processes
Customer
Objectives Objectives Increase improve
Enhance USP & get 70-
80% conversion rate efficiency technology/
service
KPI Click through rate & KPI
Strategy Capacity utilization %
Conversion rate
Initiatives SOP update on cleaning
Initiatives Digital marketing and maintenance /
campaign Partnership

Org. capacity
Objectives Increase expertise
KPI Competency profile
Initiatives Staff training prog.
From lean
management
References
1. Zeynep Ton and Cate Reavis, Managed by Q. MIT Sloan school, case studies, May 24, 2016. Accessed on May 8, 2021

Thank you