Dry Cleaners Case

301 Words2 Pages
Question 1 The starting point for Mr. Runyan was his dissatisfaction with the industry of dry cleaners in his home town. He identified key flaws in KC’s dry cleaners: dirty facilities, rude workers and use of chemicals, which created barriers for new entrants. Mr. Runyan discovered that if he focuses his strategy on the abovementioned factors, he will gain competitive advantage on the market. Afterwards, Mr. Runyan conducted his own research and found out that he could use liquid carbon dioxide in the cleaning process. This innovative technology would give him an opportunity to enter the market, as he will be able to negotiate lease agreements with building owners. Besides, environmentally friendly cleaning will distinguish his company amongst competitors. Finally, Mr. Runyan had introduced innovative approach to distribution channels, and offered pick-up-and-delivery service, which none of his competitors was aware of. Question 2 Small is Beautiful. How to compete with bigger competitors. (2012). Is4Profit online magazine. Retrieved from: http://www.is4profit.com/business-advice/business-strategy/small-is-beautiful-how-to-compete-with-bigger-competitors.html • Although small companies can’t use economies of scale, they are more efficient in cutting costs, while examining their operating model. • Small businesses can deal directly with their clients, without using the “middle men”. • Small companies may use their size to their advantage, as they are more agile and reactive to market demands. Decisions are made faster and actions are implemented instantly. • Small businesses could compete on service. Their flexibility provides the opportunities for better customer service and individual approach, which is valued by their clients. • Small companies are better at implementing innovation, as their change costs are lower compared to big businesses.
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