Page 39 - Business Plans that Work A Guide for Small Business

30 • Business Plans that Work

Exercise 1.1 Quick Screen: Lazybones (continued)

II. Competitive Advantages

Higher Lower
Potential Potential Comments
Fixed and Lowest >>>>XXX>>>>Higher Higher fixed costs to build out the
variable costs laundry facilities.
Degree of control
Prices and cost Stronger >>XXX>>>>Weaker Low price elasticity. Students are
willing to pay a premium to have
laundry done for them.
Channels of Stronger >>XXX>>>>Weaker Channels have limited power.
supply and Equipment and detergent are
distribution commodities.
Barriers to entry Stronger >>>>>XXX>>None Low barriers. The industry is highly
fragmented. The only barrier is the
cost to set up the laundry facility.
Proprietary Stronger >>>>>>>>XXX>None Advantage is tied up in processes.
advantage Lazybones has tight control
processes that insure quality and
reliability. May be hard to replicate.
Lead time Stronger >>XXX>>>>>>>None While a competitor could set up a
advantage laundry service relatively quickly,
(product, Lazybones has years of experience
technology, in setting up efficient operations
people, and developing relationships with
resources, universities. This would take
location) competitors time to imitate.
Service chain Stronger >>>>>>>>XXX>Weaker Potentially strong considering their
Contractual record on getting university
advantage endorsements. Also, as they grow
the chain, they may have supply
advantages for equipment,
detergents, etc.
Contacts and Stronger >>XXX>>>>>>>Weaker Founders have almost 20 years
networks experience in the industry.
Overall Potential Lazybones competes in a crowded
marketplace against coin-operated
1. Costs Higher ____X____avg ______lower
outlets and other laundry services.
2. Channel Higher _________avg __X__ lower They’ve found a niche (universities)
and a model to capture that niche
that has been proven at its
3. Barriers to Higher _________avg __X__ lower company stores. With four
entry
company stores operating
4. Timing Higher ____X____avg ______lower successfully, they now think they
can create a franchise system.