This sample research paper features a SWOT analysis on Jerry’s Janitorial Service. It explores the strengths, weaknesses, opportunities, and threats for this relatively new business in a competitive industry. This Ultius paper was written to serve as sample at the undergraduate level.
SWOT of Jerry’s Janitorial Service
“A SWOT analysis is a strategic planning tool that helps a business owner identify his or her own strengths and weaknesses, as well as any opportunities and threats that may exist in a specific business situation. A SWOT analysis is most commonly used as part of a marketing plan, but it is also a good tool for general business strategizing, and to use as a starting point for team discussions” (Gregory, 2017, p. 1). A SWOT analysis includes strengths, weaknesses, opportunities, and threats (Gregory, 2017).
Jerry’s Janitorial Service is a relatively new business, having been established in 2016. The company is headquartered in Fitchburg, Wisconsin, which is also where all of the company’s operations take place. The organization offers one-time and reoccurring cleaning services, specializing in commercial cleaning. Jerry’s Janitorial does plan to have the additional capacity necessary to begin incorporating residential cleaning services into its business plan during the next twelve months. Being that the company is relatively new and still considered a start-up, the CEO, Jerry, has requested a SWOT analysis be conducted for the business.
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Strength of Jerry’s Janitorial Services
The strengths of Jerry’s Janitorial Services heavily lie within the skills of its CEO, Jerry. Jerry is well versed in the skills necessary for a janitorial company to succeed, as Jerry has been in the janitorial field for thirty years. Jerry has always worked for other organizations, however. After twenty-five years in the industry, Jerry then took out a loan and put himself through business school, with the aim of opening his own business. Thus, two of Jerry’s Janitorial Services greatest strengths are those of the deep understanding of the janitorial field and what its customers want, and the business aptitude for success.
Additionally, Jerry’s Janitorial has the strength of decades of experience, which they do far better than much of the competition. Also, with greater competency and understanding of the janitorial field, comes greater efficiency. Thus, efficiency and the resultant cost effectiveness are also strengths of Jerry’s Janitorial.
Weaknesses of Jerry’s Janitorial Services
While the CEO has business education, he does not have formal experience in running a business. This is the main weakness of Jerry’s Janitorial. Rather than just completing the work itself, Jerry’s Janitorial will need to gain it’s footing in the business world, which includes Accounting and Customer Management. Taking the time to gain fluency in the various aspects of business management will undoubtedly cost the company some money, at least initially, and especially in the area of lost opportunity. For example, the CEO will need to spend time keeping the business running, when he could be out working in the field and bringing in additional revenue by doing so. On a good note, this weakness will improve with time as the business gains some time and experience.
Opportunities for Jerry’s Janitorial Services
The main opportunity for Jerry’s Janitorial Service is the planned expansion from solely commercial janitorial services into additionally offering residential cleaning services. This is a goal that is being worked towards, and will require robust pricing models and the addition of more employees. Social media can help them reach out to a wider audience, both commercially and residentially. This opportunity is a great one, though, because it will allow the company to compete in two segments within its current market, potentially gaining a competitive advantage in each segment due to the vast amount of field experience touted by the CEO.
Threats for Jerry’s Janitorial Services
Finally, there are a couple of threats to Jerry’s Janitorial Services. One is the ease of entrance into the janitorial market. Virtually every person can clean, but not all can do it well. The problem is that not everyone realizes that not all cleaning services are of equal quality, which drives a great number of supposed entrepreneurs to attempt to enter the market. They often do so and low, below market prices to match their below market standards of both business and living. While these new entrants are not long-term threats, they are short term threats that will continually keep coming. The economy is one additional threat to the business practices. When economies struggle, residential cleaning becomes a luxury and commercial cleaning becomes something to be done in-house, rather than being outsourced.
References
Gregory, A. (2017). How to conduct a SWOT analysis for your small business. The Balance. Retrieved October 15, 2017, from, https://www.thebalance.com/swot-analysis-for-small-business-2951706