Info563_FA18_Group 2 Junk Van Analysis Part 1.docx - 1-888-Junk-Van established by Marcus Kingo in 2008 is a Canadian company that operates in the waste

Info563_FA18_Group 2 Junk Van Analysis Part 1.docx -...

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1-888-Junk-Van, established by Marcus Kingo in 2008, is a Canadian company that operates in the waste collection industry. The company has been growing rapidly since its inception. It began with one waste removal truck and quickly expanded, needing five trucks. In this growth phase, sales doubled from $300K to $600K. However, as the company grew and expanded, Kingo's company faced the risk for higher levels of inefficiency and clerical errors as the company didn't have a cost-effective IT system that could support, sustain and help grow its operations. These information errors were causing information handling errors which were, ultimately, leading to a loss of customers. The company was operating under a business strategy that increases its market share to deliver a higher level of service by offering highly competitive prices, while also meeting customers’ specific preferences. Kingo's goal was to maintain his virtual business model in order to facilitate business expansion by franchising his company. He knew that, in order to accomplish this, the company needed to find an affordable IT system that meets his operation requirements to improve customer satisfaction by reducing scheduling and clerical errors. From Kingo’s research, he identified five options that could, potentially, benefit his company: Microsoft Access, Database, Custom Application, Google Docs, using an online tool called Platform as a Service (PaaS), and implementing a small-business enterprise resource planning (ERP) system. We will first talk about the waste disposal industry and Junk Van’s strategy, then we will analyze the available strategic IT solutions and conclude which one is the best option for Junk Van. The Waste Management is a segment of the larger environmental and facilities services industry which specializes in the removal of non-hazardous materials. The responsibilities waste management companies include waste collection, transport, processing, recycling or disposal, and monitoring of waste disposal. Waste disposal is an industry with a total value of $275 billion. The industry only has two global competitors which together account for 10.5 percent of the global market share and the other 90 percent is comprised of tiny companies “one man, one truck” which don’t pose a significant threat to Junk Van. Kingo is currently the sole proprietor of all 1-888- Junk- Van locations. His goal was to franchise his company to facilitate future growth. The largest competitor for Kingo was 1-800-Got-Junk, which was a relatively young franchise company operating both in Canada and worldwide that also has similar values and offerings to their customers. Waste collection is considered to be a rough business
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