Market Analysis - Sample Essay
In summary, the general industry analysis shows that domestic and commercial cleaning services are on the increase and will continue to increase. According to our market research, there is a need for our services and products in London area because we could provide our customer quality, reliable and totally trustworthy cleaning service. A cleaning business is a popular choice of starting a new business for sole traders. In theory all you need is cleaning products, a sponge and polish cleaner. Nevertheless, the reality is more complicated.
Cleaning businesses cover everything from one cleaner with a few domestic houses to maintain each week, to an enormous commercial business with lots of staff. There are domestic cleaners, universities and school cleaners, office cleaners, hospital cleaners, but there are also carpet cleaners, window floor cleaners. The cleaning industry has grown 6% to 11% annually since 1994 and we expected growth of 30% over the next three years. One of the biggest problems of that kind of industry is stuff turnover.
Employees are the vital thread between the company and the customer with providing a professional and quality service; however Hope Cleaning Services will provide our employees good and adequate salary, additional employee benefits, so we will be able to keep our experienced staff to provide the highest quality of customer service. According to National Statistics in 12 months to August 2002, more than i?? 233m was spent on household cleaning products in the UK. Potential target customers are located in London area.
This kind of business looks really specious and easy achievable for the new entrants but actually the reality is different. What differ us from our competitors is that we rely on hardworking, listening to our customers and satisfying their needs. There is a need for a quality, trustworthy and honest service. According to National Statistics the number of men in employment in UK increased by 132,000 on the quarter, to reach 15. 62 million, while the number of women in employment increased by 46,000 on the quarter to reach 13. 54 million.
This means that a lot more women will follow their carriers and they will work full time jobs and they will want to spend more time with their children instead of to do cleaning. Hope Cleaning Services will meet those needs by providing specialized domestic cleaning, regular weekly house cleaning and carpet and upholstery cleaning. Competition: Our main competitors are companies who established before us and they own a big share of the market. One of the most powerful competitors is: Although there are lots of competitors in the cleaning service business, there is good explanation for this competition, demand is high.
The potential customers want high standards and extremely good rates and this is the key to success in this business. Cleaning service customers want quality, and not everyone in the cleaning service space offers quality. How often when you ask one of your friends for a recommendation do they tell you they have been using a bunch of different companies and they have yet to find one that they are truly happy with. This kind of business has shown thumping growth in the recent years. It has benefited from corporate downsizing and increased reliance of businesses to provide cleaning services.
The best option for many businesses given the high incomes rate of employees is the sub-contracting private firms that could perform this service. There are no companies that truly control this industry. There are large companies throughout, but small businesses take more than 80% of industry sales. Growth in the industry couples with increased competition. One thing is certain – competition is ferocious within the industry but, Hope Cleaning Services will ensure complete professionalism, good work and quality to satisfy our clients.