CorbelArch Real Estate Inspectors
Market Analysis Summary
CorbelArch Real Estate Inspectors will focus on two markets within the industry, the residential segment (including apartment buildings) and the commercial segment (including buildings used for professional purposes).
The commercial market participants currently need competent inspection firms to provide services to themselves or their clients. Since our inspection findings can significantly impact a business’ profitability, it is absolutely crucial for our service to be accurate and complete.
Although the above is also true for the residental owner, quality and meeting the individual needs/wants of the client while maintaining the Realtor’s transaction come first in the residential segment. The inspector must be willing to be more flexible and willing to listen and work directly with the client.
Over the past decade a number of new trends have been observed in this industry. This includes the steady growth of the local economy, the increased percentage of property transactions that require inspections and the requirement and escalation of credentials needed to be licensed to perform inspections.
4.1 Market Segmentation
CorbelArch Real Estate Inspectors will focus on two markets within the industry, the residential segment (including apartment buildings) and the commercial segment which includes buildings used for professional purposes. The company can handle any size building that needs inspection or management services. It is the goal of the company to eventually have approximately one-third of all business coming from the commercial segment, since this generates the greatest cash flow. Furthermore, this segment has the lowest percentage of variable costs. The residential segment is considered to be the company’s cash cow. Even during the slow winter months, the company can expect to have a several residential contracts.

Market Analysis | |||||||
2004 | 2005 | 2006 | 2007 | 2008 | |||
Potential Customers | Growth | CAGR | |||||
Single Family Residential Customers | 10% | 50,000 | 55,000 | 60,500 | 66,550 | 73,205 | 10.00% |
Real Estate Investors | 10% | 10,000 | 11,000 | 12,100 | 13,310 | 14,641 | 10.00% |
Lending Institutions | 0% | 100 | 100 | 100 | 100 | 100 | 0.00% |
Insurance Providers | 0% | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | 0.00% |
Property Management Corporations | 50% | 30 | 45 | 68 | 102 | 153 | 50.28% |
Total | 9.34% | 65,130 | 71,145 | 77,768 | 85,062 | 93,099 | 9.34% |
4.2 Target Market Segment Strategy
Currently there is limited competition in the commercial inspection services industry. We plan to target our marketing to gain share in this growing business.
4.3 Service Business Analysis
Most of the industry analysis is contained in the Competitive Comparison section to give the reader the idea of the competitive nature of the industry, its opportunities and threats, and the company’s flexibility in pricing. CorbelArch Real Estate Inspectors exists in a purely competitive market that faces virtually unlimited competition and high demand. The ability of the company to differentiate its services or enter into a niche market is possible. The company will engage in strong leadership principles, aggressive sales and a high level of quality.
4.3.1 Competition and Buying Patterns
This industry is somewhat seasonal. The busiest times are during the summer months where it is easy for a company to become so engaged that it must turn down opportunities. During the winter months businesses must focus on service diversification and marketing to maintain consistent level of work.