Competitive Advantage and Risk Management of Dry Cleaning Company



Competitive Advantage and Risk Management of Dry Cleaning Company

Introduction

The Linday Dry Cleaning Company is a family run business. An exclusive personal service, reliable pick-up & delivery and most of all, impeccable finish have meant that the Linday Dry Cleaning Company has been rated time and again as one of the best direct dry cleaning companies in the US.

Competitive Advantage

A little competition can be a healthy thing. It can also be both costly and disastrous if you aren't up to par with others in your particular business or industry. How you handle competition can be a direct link to the success or the failure of your company. You can, however, significantly increase your chances of coming out on top by creating a competitive edge.

Having a competitive edge means possessing an advantage over your competition. This does not take the luck of the Irish, but rather some solid strategic planning (Clulow, 2003). Before you can accurately identify your competition, it's crucial to first define and analyze your target market. What are you selling and to whom? Next, make a list of those companies trying to do the same. What are their strengths and weaknesses? How do they draw in customers? What, if anything, makes them stand out from the pack?

If you don't have this vital information, get it quickly. You shouldn't live in awe of your competition, nor should you fear them, but you must find out who they are and what makes them attractive to current and potential customers. Assessing your competitors openly and honestly will play a key role in helping you develop a competitive edge.

Define Yourself

Before your customers can get to know you, it's important to first know yourself and your company's mission in the marketplace. In today's highly competitive world, it isn't enough to simply say, "I own a card shop." You must define the type of card shop. Are you a card shop for everyone with wall-to-wall generic cards that can easily be purchased at other stores? Or do you specialize in unusual cards, thus attracting those people who demand cards that are unique and not readily available at other locations (Erica, 2012)?

Define Your Competitors

Now that you have a clear understanding of who you are, you must make a list of all your competitors and track them on a regular basis. In order to compete, you should compile the following data about each competitor:

What are their strengths?

What are their weaknesses?

What are their capabilities?

Who is their customer base?

What are their revenues?

Are their profit margins growing?

What are their promotional and marketing strategies?

What are their current offerings?

What are their future goals?

Identify Your Customers

Once you have a handle on your competitors, the next important step is to clearly define who your customer base is (Rijamampianina, 2003). For more information on this subject please refer to the article Identify Your Target Market. To clearly identify your customer base, ask yourself the following questions:

Where do my customers live?

Approximately how old are my customers?

Are my customers ...