The Dag Group Analysis

1316 Words Feb 21st, 2013 6 Pages
The Dag Group Analysis.
Problem definition: Chris and Val are deciding if enter to compete in the service of laundry through starting a new chain of laundries or buy some already existing. Also consider if they should better not enter compete in this market.
To start we must take into account the context in which the case arises and for that we will use a picture to consider some factors political, social, economic and technological that later could help us to develop a SWOT analysis for the various options presented in the case. Political factors |  Is expected that rules on emissions of fumes in laundries is more rigid in the short term by what the laundry will be forced to renew their equipment to make it more friendly with the
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3. To provide the best service to the customer.
4. Operating stores with an impeccable aspect and a town that offers convenience and is highly busy.
Start a Dry Cleaning Service from 0 Strengths:  Chris and Val are business people who have a different approach to most people working in laundries. Both graduate with an MBA from Harvard University and experience in investment and capital equipment sales. | Weaknesses: Has little capital to invest. Would have to get a large part of the capital through investors. The big chains already have hundreds of stores in major cities, maintain a high presence. Chris and Val have little experience in the industry. | Opportunities: Capacity of doubling sales without a proportional increase in costs. Locations at strategic locations. Services aimed at high-end users such as open on Sundays, work in non-business hours, etc. Put a price 10% - 15% above the average. Enter to Washington D.C., which is one of the cities with less number of stores and less presence strings of laundry. | Threats: Large laundry chains could copy the formula of Chris and Val if they see that they have success. Offer more quality and more specialized service to the high user segment is not something difficult to copy.  Not get 25-50% of return that investors demand. Is a business of high risk. The first year would have been lost, the second year could achieve the break even in case of duplicate

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