Business model - Five Star Moving COmpany-final

Business model - Five Star Moving COmpany-final - BUSINESS...

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BUSINESS MODEL Company Analysis: Five Star Moving was founded February 2nd, 2009 when several college students majoring in finance decided to embark on an entrepreneurial project to create a service company. After much deliberation, the six students reached a mutual agreement to create a moving service company, focusing on a differentiation strategy. The idea was to capture niche markets within the San Francisco Bay Area. The entity of the company shall be structured such that its’ a limited liability partnership with six partners (Scott, Beth, Ken, Tommy, Nay Lin, Tim). All phone calls will be forwarded to employee’s cell phones to lower costs. The company is a startup that is currently serving customers in the San Francisco Bay Area and locations within a two hundred mile radius of San Jose and expanding. Industry Analysis: According to The American Moving and Storage Association (AMSA) annual statistics for 2005, the US Moving industry generates revenue in excess of 13 billion yearly while employing 450,000 people. The Industry is comprised of nearly 8,000 companies within a fragmented market, 50 largest moving companies controlling 45% of the market. Further, the 2005 Bureau of the Census report showed for year ending March 2005, 39.9 million Americans changed residences, with the average family size of 2.34 persons (approximately 17.0 million households). Most importantly, The Census reported the following. Percentage of Moves
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Nearly 77 percent of all moves in 2005 were within the same state and leading the ten most active states for moving was California. Finally, the most mobile population based upon age was the 19-24 years old range representing 30% of the total American moving population. Two major factors provide for a favorable situation for our industry: High-rate of
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This note was uploaded on 09/08/2010 for the course BUS 173C at San Jose State University .

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Business model - Five Star Moving COmpany-final - BUSINESS...

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