November 16, 2017 Junk Van Case Analysis Part 1 Project Group 1 Gabriella Bonamo Danita Clark Jacquelyn Egan Shannon Vercammen Montclair State University INFO563_57: Strategic Information Systems Fall 2017
November 16, 2017 Introduction Waste material exists all over the world; the removal of waste can be handled by an individual, group or a contracted company depending on the size and environmental concern of the waste material. This paper will discuss the challenges Junk Van, a waste disposal company, face as Marcus Kingo (owner) attempts to bring the company up to speed with new information technology. Strategy and information technology options will be analyzed to determine which system will meet Kingo’s business needs and allow him to provide better-quality customer service. Position of Junk Van in the Waste Disposal Industry The Waste Management Industry involves the removal of non-hazardous material; making up a small segment of the growing environmental and facilities industry. The responsibilities of companies who have decided to enter this industry consist of collecting, transporting, processing, recycling, disposing and keeping an eye on the waste material. 1-888-JUNK-VAN, a waste removal company, was established by Marcus Kingo in 2008. Operating out of the London, Ontario area, the company began with one truck and quickly grew into a bustling business with five trucks and additional cities added to their territory (Kitchener and Hamilton). Junk Van is one of the lead waste removal companies in the area, their top competitor in the industry is 1-800- Got-Junk; the other companies in the area operate under “one man, one truck” system and don’t pose a major threat to Junk Van. Kingo operates the business through a virtual office (work from home concept) which allowed him to keep his overhead low. As the business continued to grow, Kingo realized to stay ahead of his competitors he needed to bring his current virtual office up date with new information technology. The new technology needs to meets the demands of Junk Van’s client base while reinforcing the company’s strategy of cost leadership. Generic Strategy Of the four generic strategies described by Porter, Junk Van most implements the cost leadership strategy. Junk Van focuses on cost as a source of competitive advantage with a broad scope. In the initial stages of building 1-888-JUNK-VAN, Kingo was motivated in designing a business model that required low overhead so they could keep costs down and offer low prices. To achieve this, he opted for his business to occupy a virtual office where his employees could work from home and all communication would be electronic thus avoiding high fixed start up costs and office expenses. The company was successful in being a cost leader by offering highly competitive prices against their many competitors. While their main strategy was cost leadership, Junk Van also made sure to offer differentiation to set them apart. Junk Van strived to offer customers time flexibility and
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