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Entre
Entre
Introduction
Ray Monroe was the owner of A. Monroe Lock and Security Systems (AMLSS).
Financial results have been poor, with losses of $6500 in the first year and a profit of only $3500 in year 2. AMLSSs target market is 3 local communities in the Boston area.
Background
Ray Monroe is the only child of parents who are both successful entrepreneurs.
He had substantial inheritance that would satisfy any of his financial needs for the rest of his life.
He worked in a security and alarm manufacturing business in various areas of the business learning a great deal about alarms and locks.
He entered
business so that he can start his own lock and security business.
He felt from his experience and education that this market offered tremendous opportunities.
Industry Structure/Competition
The locksmith Industry was dominated by small operators, 60% of which consisted of an owner and one employee. Only about 20% of these firms had five or more employees.
Number of small operators had grown in the past few years because of low entry barriers.
The larger operators were the most sophisticated in terms of service and
The Boston area was densely populated with 160 locksmiths all advertising in the local yellow pages.
Present Strategy
Ray Monroe offered just about every locksmith service excluding alarms.
During operating hours he was able to respond to all requests fairly quickly even if he was not in office, because of the beeper and cellular phone.
But after 5 p.m. however, Ray turned off the system and refused to take calls.
The advertisement in yellow pages helped the business and contributed to the $2500 profit.
SWOT Analysis
STRENGTH
products.
quickly.
WEAKNESSES
He worked in the industry only for 2 years and decided to enter into industry.
Ray did not offer alarm installations as part of his venture. He did not respond to customers after 5p.m. while his competitors
OPPORTUNITY
Increased crime rate and residential house sales offered many opportunities to succeed.
The demographic profile of the 3 local communities in the Boston area offered many opportunities.
He could use his company van to serve to more than 3 communities or promoting the business.
The yellow pages ad also helped him to improve his business. His name was on the top of yellow pages which gave him advantage.
THREATS
Presence of large and experienced players in the market. Better customer service provided by the competitors like 24- hour emergency service, follow-up guarantee service etc.
There were 37 other locksmiths in the three communities on which AMLSS concentrated.
Recommendations
Invest more in the business as Ray had substantial inheritance which met his financial needs for rest of his life.
THANK YOU