Pro Clean

Topics: Strategic management, Competition, Cleaning products Pages: 4 (1432 words) Published: December 1, 2012
Company overview/ Statement of Problem
Pro Clean LLC is an old-timer carpet cleaning business. It was owned and managed by Kevin Wilson and located in Knoxville, Tennessee. Wilson had to manage almost all functions of Pro Clean daily activities. In this industry, the problems Pro Clean faced are how to stay competitive and still make above average returns with one of his main competitor the King Rug. King Rug has a resolute business structure and is able to charge its customers with high prices which make King Rug much more profitable than Pro Clean. Another problem that Pro Clean has to face is the rapid expansion process. At the onset of the expansion, the business had started to churn cash as a result of the increased payroll expenses and the lease payments for the company’s vehicles. Wilson’s return on investment was dismal. Cash flow quickly became a problem and Wilson resorted to using his business and personal credit cards to finance his business. Environmental Scanning/ Stakeholder Analysis

Demographics of Pro Clean are composed mostly of customers from Knoxville, TN. Being located in the Suburban district and close to Condominiums near the City Center; most of its customers come from single-income families, above $250,000 annually. Most of these homes had pets/ young children. 20% of the business made up of the regular customers. Economically, Pro Clean is doing fine with its source of Revenue made up of cleaning carpet (77%), upholstery cleaning (9%), area rug cleaning (5%), tile and grout cleaning (5%), carpet and fabric protection (3%), and drapery cleaning for (1%). The culture of the customers of Pro Clean is those of frequent use. Average Pro Clean customers had their carpets cleaned every 12 months. Technologically, Pro Clean had improved from stuffing envelopes with direct mail material, answering phone calls and giving estimates to setting up a webpage so customers can easily and instantly know about the company’s profile and service. Pro...
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