Our client is currently operating two companies, his father’s company signs by tomorrow and his own company long tail advertising. Signs by tomorrow is a franchise that has been up and running successfully for over 20 years and his newly established company long tail advertising. Long tail advertising is not like signs by tomorrow because it is self ran, where signs by tomorrow is one of many franchises. Both of these companies work within the same industry. Their main business focus is advertised by doing whatever the customer desires. For instance, last year Long Tail advertising worked with Bud Light during the Super Bowl to do all of Bud Light’s signs and whatever advertising they desired. When we asked our client 's who is competition was, …show more content…
In terms territories, the master franchisor does not offer Sanchay and his father much protection. Three other Signsbytomorrow franchises exist just within the New Jersey area and even though Sanchay claims that competition amongst them is not fierce, it must eat-away at a small portion of the Agarwals’ target market. For Longtail Advertising, the threat of new entrants is Medium since the business has low start-up costs and requires little to no expertise at least initially. Threat of Substitutes: For both of the businesses, a threat of substitutes is certainly relatively high. The only factor that differentiates their business from anyone else’s is the level of service and the time taken to deliver a project. These two factors most certainly are a competitive advantage, however, is something that can be replicated. Bargaining Power of …show more content…
This meant that they always received pricing that usually could not be matched by any competitor as they could take advantage of economies of scale without having to be a large company. SWOT Analysis Strengths: Being in business for over 25 years is SBT’s biggest strength as this amount of time has brought about strong relationships with clients who are loyal, experience in executing a range of projects across different sectors and a family-like culture where employees are motivated to work at their best. Weaknesses: SBT and Longtail’s biggest weakness is their lack of an online presence and the lack of a dedicated sales team. Not having an online presence is a critical issue for them to rectify; this could be contributing them to losing out on companies who are sourcing their services online. Additionally, with more companies conducting their business online everyday, it could mean that soon SBT and Longtail may find it hard to win new clients due to their perceived non-existence