What Factors Account For Shurgard 's Historic Performance?
1773 Words8 Pages
1. What factors account for Shurgard’s historic performance? What near and intermediate term risks, if any, do you foresee?
In the 1970s, when Shurgard first began, it was able to successfully capitalize on changes in Americans’ post-World War II lifestyles; Americans had more discretionary income and were therefore purchasing more items and goods than they had in previous years, while simultaneously relocating frequently for jobs, education, and/or relationships. As a result, there was a need for easily accessible, inexpensive storage options. Shurgard benefited from Ameriacns’ materialism and sentimentality, as it discovered that Americans dreaded parting with both superficial goods and with memories or nostalgic items. Self-storage was also a useful concept for individual consumers and business customers alike. Furthermore, throughout its existence, Shurgard has been adept at adjusting its business in order to reflect further changes in American preferences, whether this was in regards to its architecture, its appearance, or its security. For example, when Americans began to increasingly value convenience, the company recognized that and chose locations easily accessible off of highways; when security became more important to Americans, Shurgard updated its security systems. Shurgard’s initial financial success was also due to the fact that the self-storage business is one that is relatively low-cost and low-maintenance. Self-storage unit structures are comparatively