Zoots - the Cleaner Cleaner

Topics: Strategic management, Dry cleaning, Management Pages: 2 (531 words) Published: January 22, 2007
Problem:
Four conditions of any successful operations that require constant maintenance are management strategy (corporate strategy), organizational characteristics, business processes and information systems. Company's resources and capabilities include all of the financial, human, and organizational assets used by firm to develop, manufacture, and deliver products and services to its customers. Company "Zoots" before they move further has to answer to the question "What corporate strategy should be the right one for the company's future in the dry cleaning business?"

Competition:
Zoots is able to perform very well in basic strategies:
-to out-perform competitors
-maintain a market position against competition
Firm offer the same or better quality dry cleaning services; even though it is not always at less cost than anyone else, the price is usually competitive within the market. Company should be able to benefit from greater profits or in the event of a price war, stay in the market, profitably, with reduced prices. Zoots intends to offer a better or different product or service (or perceived as different) from others, with differentiated quality as the target. Differentiation can earn above average profits even in a slow growth or declining market.

Symptoms:
-lost garments – the store information system does not allow to split orders in the production facility; -human dynamics - trained personnel turnover;
-economy of scale is not reached in the Portsmouth and Virginia Beach markets due to the real estate challenges;

SWOT analysis:
Competition between firms is normally focused on the relationship between a firm's environmental opportunities and threats on one hand, and the internal strength and weakness on the other. Strengths: Company has a massive head start on others in the dry cleaning industry. Firm has broadly researched their market niche and most of the major competitors. They have a broad knowledge of how to get customer base...
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