Junk Van Analysis Part 1.pdf - Instructions Read the 1-888-Junk-Van case(in your Harvard Course Pack Working with your team write a 2-3 page analysis of

Junk Van Analysis Part 1.pdf - Instructions Read the...

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Instructions: Read the 1-888-Junk-Van case (in your Harvard Course Pack) Working with your team write a 2-3 page analysis of Junk Van’s strategy and the alignment of each option with that strategy. You may use the collaboration tools in the Canvas groups (or any other online tools) to help you share files, have online discussions, or launch synchronous online meetings. 1 person from your team will need to upload the assignment here and also post the analysis to the Junk Van Strategy Whole Class Q&A Discussion. Some questions to think about include: Where does Junk Van sit in the waste disposal industry? What generic strategy do you feel Junk Van is using or should use? How do each of the options proposed align with the generic strategy? Junk Van Analysis Part 1 In 2008, Marcus Kingo decided to enter the waste disposal industry with 1-888-JUNK- VAN, a local one man one truck company based in London, Ontario. The waste disposal industry is highly fragmented, primarily being made up of small “one man, one truck” companies, and a few large national/international players. Entry into the industry is relatively easy, especially in Canada, where the only requirements are some paperwork and the capital to purchase a truck. This has led to market saturation in certain regional areas. Paired with readily available substitutes, including no cost options for doing things oneself, this commodity service requires small local companies to compete mainly on price (cost focus strategy). Kingo was well aware of this fact and decided that an effective way to cut overhead costs was to eliminate the need for a physical office location. As the business grew to include other employees, Kingo developed a rudimentary functional system to allow everyone to work from home or the trucks. All communication between employees was done electronically. Besides competing in the low-cost game, Kingo sought to differentiate his company from competitors by following through on the company’s slogan, “yes, we do that.” Kingo knew that in a saturated market, price alone would not build loyalty or lead to word of mouth referrals. He strived to create a positive customer experience with professional, courteous staff and efficient service. Kingo’s model was successful and by the end of 2009 the company had expanded to provide services to two additional regions within Ontario, Canada.
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With growth, however, came growing pains. The original system built around a single
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