Market Analysis Summary
Office Space Solutions will be focusing on a very specific part of the business market:
- Start-up with more than five employees.
- Small businesses that are rapidly expanding operations.
The city has several support service businesses but none as visible as Office Space Solutions and none with the success record Bev Johnson has.
4.1 Target Market Segment Strategy
Office Space Solutions is focusing on new and growing companies that are often located in small offices. The targeted start-up business will have four or more staff in its office in addition to a owner. This is a perfect atmosphere for a support service because the services Office Space Solutions provides are out of the business's field of expertise but so critical to their success.
Another reason for focusing on a growing businesses is that it is easier to be competitive with the smaller businesses. Presently, this segment of businesses is not being marketed by the Office Space Solutions's competitors.
For these reasons, Office Space Solutions will concentrate on the new and growing companies to be able to quickly grab market share.
4.2 Service Business Analysis
The competition consists of a few support service firms that offer a wide range of service offerings to city's large companies. Though these firms replicate the offerings of Office Space Solutions, they are not targeting the vital area of new and growing businesses. Office Space Solutions will focus only on these companies. There is an advantage to hiring a service that is focused on your problems and is knowledgeable regarding your specific needs.
In addition, the target clients are prone to want a long-term relationship with critical services. If they are happy they will generally stay with the same service provider. It is more cost effective then jumping through the hoops each time it needs a space management, or work flow assessment.
4.3 Market Segmentation
The market for office space and work flow organizers can be broken down into two important segments:
- Start-ups with five or more employees. These start-ups rarely have the in-house expertise to solve office space or work flow management problems. As a general role, there is a tremendous amount of wasted effort and space in start-ups. The focus is always on getting a product or service out to customers with very little thought about how the office organization is working against them. The city is growing at a rate of 10% annually and the numbers of start-ups increase each year in all the city's major industries and service areas. Office Space Solutions believes that this is an underserved segment and with her successes and connections, Office Space Solutions would become an invaluable service to these target clients. As these companies move from the start-up phase to the growth phase, Office Space Solutions will receive this repeat business.
- Small rapidly growing companies. These companies have already reached some margin of success and are planning to expand their operations; yet this doesn't mean that they are efficient. The success of their product or service may be hiding problems in the operation that will emerge as greater pressure is placed on company performance. Each stage of growth in a company, present challenges that can hurt its performance and success. Office Space Solutions can provide these companies a focused approach that is responsive to unique client demands, assisting them in achieving their future sales goals.