RCB

a. Monroe lock & security systems by, harsha karthik morsy Farhan ritesh uthappa : 

a. Monroe lock & security systems by, harsha karthik morsy Farhan ritesh uthappa CASE STUDY

Introduction: 

Introduction Ray Monroe was the owner of “A. Monroe Lock and Security Systems “(AMLSS). It was established about 2 years ago and offered locksmithing services to residential and commercial customers as well as automobile owners in the greater Boston area. AMLSS was certified by the Commonwealth of Massachusetts to perform alarm installations and offered a full range of alarm products. Financial results have been poor, with losses of $6500 in the first year and a profit of only $3500 in year 2. AMLSS’s target market is 3 local communities in the Boston area.

Background: 

Background Ray Monroe is the only child of parents who are both successful entrepreneurs. He had substantial inheritance that would satisfy any of his financial needs for the rest of his life. He worked in a security and alarm manufacturing business in various areas of the business learning a great deal about alarms and locks. He entered a special program to learn more about the locksmith business so that he can start his own lock and security business. He felt from his experience and education that this market offered tremendous opportunities.

Industry Structure/Competition: 

Industry Structure/Competition The locksmith Industry was dominated by small operators, 60% of which consisted of an owner and one employee. Only about 20% of these firms had five or more employees. Number of small operators had grown in the past few years because of low entry barriers. The larger operators were the most sophisticated in terms of service and products and relied primarily on commercial accounts. The Boston area was densely populated with 160 locksmiths all advertising in the local yellow pages. In the 3 communities on which AMLSS concentrated, there were 37 other locksmiths.

Present Strategy: 

Present Strategy Ray Monroe offered just about every locksmith service excluding alarms. During operating hours he was able to respond to all requests fairly quickly even if he was not in office, because of the beeper and cellular phone. But after 5 p.m. however, Ray turned off the system and refused to take calls. The advertisement in yellow pages helped the business and contributed to the $2500 profit.

SWOT Analysis: 

SWOT Analysis STRENGTH Ray’s parents were both successful entrepreneurs AMLSS was certified by the Commonwealth of Massachusetts to perform alarm installations and offered a full range of alarm products. Ray had 2 years experience in security and alarm manufacturing business. He had worked in various areas of the business learning a great deal about alarms and locks. During operating hours he was able to respond to all requests fairly quickly.

PowerPoint Presentation: 

WEAKNESSES He worked in the industry only for 2 years and decided to enter into industry. Ray did not offer alarm installations as part of his venture. He did not respond to customers after 5p.m. while his competitors offered 24-hour emergency the business needed an emergency service to address these customers.

PowerPoint Presentation: 

OPPORTUNITY Increased crime rate and residential house sales offered many opportunities to succeed. He could have targeted the mobile customers of these 3 communities which were not offered by his customers. The demographic profile of the 3 local communities in the Boston area offered many opportunities. He could use his company van to serve to more than 3 communities or promoting the business. The yellow pages ad also helped him to improve his business. His name was on the top of yellow pages which gave him advantage.

PowerPoint Presentation: 

THREATS Presence of large and experienced players in the market. Better customer service provided by the competitors like 24- hour emergency service, follow-up guarantee service etc. There were 37 other locksmiths in the three communities on which AMLSS concentrated.

Recommendations: 

Recommendations Providing 24 hours customer service by recruiting 2-3 people and make them work in shifts. Invest more in the business as Ray had substantial inheritance which met his financial needs for rest of his life. Should start performing alarm installations and sell alarm products. Should expand his business covering more territories. Ray should offer services to both commercial and residential accounts. Ray can hire/appoint management and technical specialists.

THANK YOU: 

THANK YOU