Microsoft Word peachtree case study
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| Depot Construction – a chain of Do‐It‐Yourself hardware stores serving the southeast portion of the country. Depot contracts out installation of new plumbing fixtures, purchased at their store, to Peachtree Plumbing, Inc. 4.6 Competition The plumbing market in greater Atlanta is very competitive. While many contractors purport to serve both the residential and commercial market, the reality is that many serve only the residential market. Compounding this issue is Page 59 of 141 the prevalence of many home based business contractors that have one truck and operate as sole proprietorship for all intents and purposes. Acquiring commercial business, particularly in the new construction arena, require a more robust operation due to bonding requirements. The competition is weeded out to some degree in this world. Certain financial thresholds must be met in order to obtain the bonding needed to compete in this arena. Given the 25 year history of the Company, the marketing efforts of Mike Jones in networking throughout the local general contracting trade associations, the company feels like this gives them a competitive advantage. The profit margins are significant in residential service but the size and scope of new commercial construction aids tremendously in regards to increasing revenues. To that end, the company maintains a strong position in the local market. The barriers to entry in this industry are very high. Starting a business requires acquiring a state license, significant capital to fund the necessary equipment to properly and effectively run a plumbing business. With that said, there still remains strong completion among companies that maintain a strong presence in the residential and commercial markets. They areas follows Download 0.84 Mb. Share with your friends:
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