Info563 Junk Van Case Analysis (Team) Part 1.docx - Currently 1-888-Junk-Van is a small sole proprietor that operates in the waste collection industry

Info563 Junk Van Case Analysis (Team) Part 1.docx -...

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Currently 1-888-Junk-Van is a small sole proprietor that operates in the waste collectionindustry. It utilizes a simple virtual business model that proved to be very effective in expandingthe business initially. The goal of the company is to utilize franchising for further growth of itsoperations. As the business expands, operational deficiencies and errors continue to grow.Work order issues due to information handling errors are resulting in poor customer servicequality which tarnishes the company’s reputation. Junk Van needs an affordable IT system tomeet the operational needs of its virtual business model, improve efficiency of daily operationsand allow for future growth.The waste collection industry is considered a commodity service, where competitors rely heavilyon outpricing each other. Companies are easy to imitate and offer similar services, making themarket rather competitive. Fortunately, the threat of new entrants has become less present dueto increased environmental regulations. The industry also has a reputation for lacking reliablecustomer service and professionalism which is an opportunity for Junk Van to gain a competitiveadvantage. After reviewing Porter’s generic strategies discussed in the lecture our team believes that JunkVan is following a cost focus generic strategy by offering competitive prices while providingflexible service times to customers. To combat the industry’s reputation of unprofessionalismand distinguish itself from competitors, Junk Van’s drivers wear uniforms and strive to provideexceptional service. Another source of competitive advantage is Junk Van’s willingness toperform jobs that may have we refused by other competitors.While evaluating available options based on the provided information and their alignment to costfocus strategy, our group considered the following important factors for future IT investment:cost effectiveness, time needed for implementation, ability to scale the use of technology givenvirtual business model, and sustainability of the solution in the long-term. Microsoft Access DatabaseThe first possible IT solution Kingo researched was Microsoft Access Database (MS-Access).Implementation of this solution could be done on a small budget and within a short period oftime. The overall license cost of $179 per computer fits the company’s budget as they currentlyhave a limited number of machines. Installation could be done locally or on a centralized server.Kingo believes he could keep down initial implementation costs by performing local installationshimself. This meets Junk Van’s affordability criteria given the current size of businessoperations.Additionally, Access can easily be integrated with other MS applications the company is using.
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