- Competitive Analysis
The new business comprises the manufacture of coffin boxes located in Australia. In Australia, there are a number of competitors in the funeral industry such as Coffin Bay in South Australia, Amalgamatedcasket.com, and Timba Caskets Pty Ltd. However, the company will endeavor to stay ahead of the competition through differentiation. An SWOT analysis can illustrate these facts.
In terms of strengths, the company has a wide range of caskets available. Among them is the provision of quality services and a wide range of products. Notable among the products will be eco-friendly coffins made up of materials whose production does not lead to emission of greenhouse gases or deplete natural resources such as trees. Most businesses in the coffin industry make use of timber (McDonald, 2014). This leads to deforestation which is detrimental to the environment and to climate. Some of the coffins made by this company will be made out of recycled materials such as paper as well as sawdust. The coffins will also be of high quality. The second strength lies in the marketing team. The company will recruit experiences marketing teams. A third strength is the business and pricing models. The business aims to provide people with a fitting send-off for their loved ones by offering high quality caskets and coffins with great finishes and at affordable prices.
In terms of weaknesses, the company is fairly new in the industry and may not have a command of the market as compared to other established companies. The second weakness is that the company does not offer other services to accompany its funeral services. Competitors with a wider package of services may exploit this advantage (Svala, 2013). However, through creative marketing strategies such as website and social media marketing, the company will establish itself in the industry.
In terms of opportunities, the business has a very high potential as a result of being close to everyone in the world. People die every day, and it is the destiny of every human being to die. As weird as this business may be, it is backed by real statistics which are undeniable. Secondly, market research indicates that providers of coffins are at a low number as compared to the number of people dying every day. According to Indexmundi.com (2014), there were 7.01deaths per 1000 of the population in the year 2013. This statistic is highly influenced by age distribution. Even with decreased mortality rates recorded in Australia in recent years as medical care improves, declining fertility rates and economic downturns have affected the overall death rate (Australian Bureau of Statistics, 2014). This puts the coffin-making industry in very good stead for business. The business also has high potential because it is not an appealing line of business and may not attract many investors because of the beliefs associated with death.
The business faces several threats such as the entry of strong competitors in the market or the resurgence of already established companies. The second constant threat is the improvement of mortality rates. With more developments in healthcare, insurance and techno, the death rate will continue to reduce. However, research shows that people will continue to die as a result of old age.
The operation of the coffin business will be led by business professionals experienced in the area of sales and marketing. Their main job will be to link up with other stakeholders. This working relationship will involve the participation different stakeholders such as Funeral Director Company, carpenter, undertaker, operations managers and the insurance companies. The strategy for the business will be to make people feel a sense of responsibility in taking care of the deceased in the best way possible and giving them a dignified send-off. The business will have three physical offices, a workshop for the construction process and a website, which will provide visuals on the products available as well as online buying option for clients who cannot make it visit our premises.
- Management and Organization
The management of the company will consist of managing director, who will lead the executive part of the business. Under the managing director will be three managers representing three offices. These offices will be in three different regions of the country. The managers will head sales teams which will be led by sales representatives. Under the sales representatives, a five-member sales executive teams will be responsible for marketing the product to different areas in the three regions. Sales executives will be expected to reach their targets and will be paid through a payment structure which comprises of a fixed amount and an additional percentage of sales made. This means that the more sales an executive brings to the company, the higher their monthly pay will be. The sales representatives will also have targets to achieve by following up on their respective teams to make sure that they are making the right movements and bringing in the right sales. The company will also recruit a team of carpenters who will be expected to meet the demand of coffins. A head carpenter will accompany sales executives as they meet different clients to get the specifications required.
Australian Bureau of Statistics. (2014, May 5). Australian Bureau of Statistics. DEATHS. Retrieved May 22, 2014, from http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/1301.0~2012~Main%20Features~Deaths~52
Indexmundi.com. (2013, March 5). Australia Death rate. - Demographics. Retrieved May 22, 2014, from http://www.indexmundi.com/australia/death_rate.html
McDonald, M. L. (2014, April 10). The curious case of the CEO and the coffin business. TheJournal. Retrieved May 22, 2014, from http://www.thejournal.ie/angela-kerins-rehab-coffins-1408689-Apr2014/
Svala, H. D. (2013). Funeral Home Business Plan. Evergreen Life Memorial Center, 4(3), 1-11.