January 10th, 2018
Home Pick-up| Strategic plan – Goals and objectives
HPDLS plans to focus its laundry business on low income groups, college students and senior citizens. The goals of the company would thus comprise making professional laundry services affordable to the low income classes and ensuring market leadership in technology based laundry business. To enable this HPDLS has set up specific objectives against which goal achievement would be evaluated. The first objective will be assessed on the company’s ability to acquire a good number of clients in the market segment. The company thus aims to get more than 75% of the lower market laundry clients in the region during its first year of existence. In ensuring technological advancements are realized, the company aims to digitalize its ordering and delivery services in the six months following its inception so as to allow customers make orders and schedule deliveries online thus curtailing the costs that would have otherwise been incurred for missed deliveries. Further, the company aims to install a system that would allow the clients to check on to the status of their laundry during the second year of establishment.
Strategic approach for HPDLS
The company has evaluated various strategies that would enhance its successful entry and sustainable growth in the laundry market. First the company will be required to set the market entry price that will influence clients sign up. In this regard the company has decided to place its places at 10% lower than the average market prices (average market prices being shirts $ 2.20; tops & bottoms $ 5.25; Scarfs $ 8.20; and coats/ dresses $ 12.00) with the first 1,000 clients signing up as clients getting a 50 % discount for the first month. With this plan the company does not intend to recoup the capital investment it will have made rapidly since this would mean an increase in price and thus scaring away the already acquired clients. A key strategy that the company is exploring is stabilization of prices such that these are not subject to huge fluctuations based on prevailing economic environment. The company thus plans to use the technological and networking alternatives to drive its growth rather than employ high pricing policies. To minimize costs the company envisages the delivery via bike couriers to regions that are not far from the laundry operations installations and those that are inaccessible via trucks. Further by allowing online orders for pick up and delivery the firm wishes to save substantial amounts that would have been used in telephone and postage costs.
A method that the company wishes to employ more in achieving its growth is establishing strong networks with both the clients and suppliers. Such has been informed by the role that networking has been indicated to play in ensuring small firms growth (Chen, Zou, & Wang, 2009). To establish such a network the firm intends to actively engage the organizations that are within its precincts through organized leadership such as student teams, religious organization’s leaders and managed care institutions leaders. By partnering with these the entity intends to establish its brand in these areas whereas aggressive online marketing and promotion services will factor into bringing on board low income earners who do not subscribe to any organization that the firm will focus its marketing strategy on.
Another approach through which the company wishes to achieve its mission is by ensuring that at all times customers receive their garments in branded company bags and sleeves. To ensure this the company has sought partnerships with suppliers by making forward contracts that would guard against high prices in future. Such contracts have been informed by the need to ensure price stability for our clients such that laundry services would be an expenditure that they can easily budget for without the fear of price fluctuations. With appreciable market share the company envisions expansion into many neighborhoods through setting up of branches in such areas to further reduce pick-up and delivery costs. This expansion however would require massive capital outlays hence the company has established a strong budgetary control mechanism that would ensure focused financial management practices. Further the company envisions that with success it can acquire long-term funding from banking institutions that would help it save its operations income to non capital intensive projects. With these actions the company aims to achieve unmatched customer service that would ensure customers refer their friends to the company thus expanding the network.