Hansen Mechanical Contractors (HMC) is a large company based out of Las Vegas, Nevada. To date their primary profit has been local and since the Las Vegas market changes regularly they have decided to develop new services with the intention of reaching the global market. Las Vegas Nevada is known for its world class hotels and casinos and most of HMC’s work has been on the world famous strip. HMC is known nationally to be an elite company with many years of expertise in the mechanical field. The first new product or service they propose to develop is a thermostat (Plan 1) for new and preexisting air conditioning units. HMC currently purchases this from an outside supplier and is interested in getting in the market of sales. This would allow HMC at times of slowdowns in the Las Vegas construction market to still return a profit by making and selling these nationally as well as globally. The second new product or service HMC would like to develop is a troubleshooting guide (Plan 2). HMC is a leader in the service industry in Las Vegas. They have skilled and educated employees who’s knowledge should be combined to create this troubleshooting guide …show more content…
Competitive advantage gives a firm a competitive advantage in serving a client’s needs better than competitors (Pride & Ferrell, 2014). HMC’s competitive advantage is being able to provide lower prices for their thermostats and troubleshooting guide. HMC is a company backed by a large corporation. This gives them an advantage to their competitors in that they are able to offer lower pricing due to lower prices they are given because of their affiliation with their corporate headquarters. They participate in their corporate national purchasing program that creates discounts and rebates. This will give them a competitive advantage in that they will be able to offer lower pricing than their