Introduction
ESNY Construction Estimate Company specializes in providing estimates about materials required and for preparing the list of materials for any kind of construction. The job of a construction estimator is to judge by quantifying the blueprint maps of your construction side. They will then provide a list of all the materials which may be needed and all the accessories to be used. This specific list of materials will be in the form of an Excel sheet on Microsoft Excel. It will be easier to have a birds’ eye view in one look.
All construction companies have an opportunity to learn about their industry’s position. To know about this, companies usually conduct an analysis of their internal and external weaknesses. It helps them to understand the current ranking of own company as compared to players within the industry. Construction companies that provide estimating services have to consider the changes in the environmental conditions. These changes may be economic, technological, social, legal or political. Any kind of change in these aspects may lead to cost adjustments for estimation. Besides this, new rivalries in the form of new entry of some competitor firm may also affect the operational workings of the company.
SWOT is a short form acronym for a company’s internal and external factors which may affect its short and long term plans. The internal factors include the strengths and weaknesses whereas the external factors include the opportunities and threats. It is a structured and pre-planned analysis of one’s own internal and external factors (Hill and Westbrook)
The internal factors are very important for a construction estimating Service Company. These factors involve the internal factors within the organization which can be controlled by the company after prior planning. These may be in the form of positive factors which will help the construction estimating services company to grow successfully. These can also be called as its strengths. They can have control over it by altering it accordingly. On the contrary, there are some negative factors which can be controlled by the firm after proper planning. They are known as the weaknesses.
The external factors of the SWOT analysis are beyond the control on organization. This may involve any kind of legal, political, social, or economic changes. These factors include the external factors outside the organization which are not under the influence of the management and organization. These factors include the opportunities which they can use to have a better industry position. It also includes some threats that may occur due to competitors of some other environmental factors (Hill and Westbrook)
SWOT analysis has multiple uses. It can be used to explore new possibilities for solutions of problems. Decisions can be made to know about the best opportunities for being successful by overcoming the weaknesses and threats. It can also help in determining where there is a possibility for any kind of change (Pickton and Wright)
Strengths
The ESNY construction estimate services have the following positive aspects as its internal strengths:
Strong Management
If the team of managers is persistent in helping in achieving goals and objectives according to plans, then it shall be an added advantage to the organization. In this case, ENSY construction estimate services are quite lucky to have a hard-working team of managers and employees who are striving hard for profitable operations.
Power of Pricing
Customers usually resist when there are increments in prices. They may switch to some other competitors products or services. But if the organization is following the power of pricing, it will influence its loyal customers to continue using their products and services. They can sell their services to them at a higher price but at the same time they’ll be able to retain their customers due to high quality of services being delivered (Mochtar and Arditi)
Asset Leverage
Asset leverage refers to the situation when a business organization borrows an asset to expand its current ownerships of assets. This can be further explained by an example. If they need to buy a building which will be around $80,000, they have two decisions to opt from. They may be able to either get it by paying it instantly, or by taking a mortgage for that building. If they are taking up the option of a mortgage, they can obtain an advance mortgage for $40,000 and consume the remaining among to buy another building. This will allow the construction estimating services to use their most excellent operational assets to increase and develop their business. It also helps it to improve their market share.
Customer Loyalty
Customer loyalty is said to be a very important strength for the business firm. When any other competitor is offering lower prices or vast variety of services, then some of the customers may be drawn towards them. But in the case of ENSY, their customer base is really deep-rooted and strong. This will enable them to retain their customers from going to other competitors for construction estimation services (Yisa and Ndekugri)
Brand Name
A well reputed and distinguished brand name is one of the major strengths of ENSY. This enables them with the favorable ability of charging them a high price for their services of estimating the construction costs. In this case, the customers are also prepared and ready to pay an extra amount or high price because the brand has an additional perceived value (Yisa and Ndekugri)
Weaknesses
They are facing the following harmful aspects as its internal weaknesses:
Work Inefficiency
It may be a possibility that the management team is not utilizing their personal and professional skills at the optimal level. This will delay the potential success and chance of development. If all employees are not giving their best output, then it will not be fruitful to make efforts without any visible results (Lu et al.)
Outdated Technology
Nowadays, the world is rapidly changing technologically. New technological innovations are bringing dynamic changes in the world of technology. If ENSY is using outdated technologies for their business operations, then it will definitely affect their success factors. It is obligatory to be equipped with the latest technological advancements in order to compete with rival firms. It will not be an ideal situation to be outdated regarding this. Other competitors within the industry will use this weakness as their own strength. This will assist them to progress and stand out due to this plus point.
Weak R&D
R&D stands for research and development. In today’s world, all business organizations have a separate department which is solely responsible for extensive research in their respective field. This is now considered to be an essential element in the success of huge names. They can come across some serious threats if it lacks behind other competitors in research and development. Others may make use of this weakness as their strong point. They will start emphasizing upon their research and development department to excel from others. In this way, they will be able to improve their existing services or to introduce some new service. This will have a long term negative impact on the organization’s image among others.
Weak Supply Chain
If the supply chain structure is weakened then it will surely affect the link with customers. It will cause delay in the deliverance of products or services. This will affect the ENSY Company in the long term period. If there orders are delayed, then the customers will be forced to cancel their orders. This aspect will then ultimately cause an increase in the overall costs. It will also affect the profitability (Yisa and Ndekugri)
Opportunities
ENSY can look upon some of these factors as an opportunity to expand its business operations:
Online Market
If ENSY starts giving its construction estimate services online through the internet, it will affect their sales immensely. It shall be a new opening of prospective customers. Internet has a broader reach in a cheaper price. It can reach out to many people instantly. This can be a great opportunity for expanding their business operations. This will give them a relatively huge market audience in a little amount of expense.
Innovation
Greater innovation will facilitate ENSY to introduce new products and services that shall meet customer’s expectations and needs. This can be a great opportunity if it is exploited properly by the management. Extensive research and development by the team members can help in bringing up new and unique ideas for latest products and services. Some slight changes can be made in the existing products or services. Otherwise some totally new product or service can be introduced by them.
Emerging Markets
ENSY should find out that which developing or developed countries have the potential to welcome them. There may be customers who will be willing to use their services for getting an estimate of their constructions. Then, they can plan to enter into the rapidly growing markets which have a higher chance of acceptability (Lu et al.)
New Technology
Changes in the technological advancements are an opportunity for ENSY to expand their business operations successfully. Nowadays, there are many innovative changes in technology. This will help ENSY to come up to the expectations of their customers with unique and improved products and services. Technology will also help up in building a competitive obstacle among the rivals present within the industry.
Threats
ENSY is facing some of the threats which are beyond their own control. They are discussed below briefly:
Intense Competition
When there is excessive competition among the players of the industry, it will lower the profits earned by ENSY. The competitors will tempt the customers towards their own products and services. It is important to note that competitors can overcome the existence of ENSY by offering low priced services of estimating the construction costs. So, this threat should be taken very seriously for surviving within the industry (Mochtar and Arditi)
Political Risks
Political instability can increase the risks for ENSY. When there is a rapid change in governments, then the political leaders are unaware of the law situations. They formulate new rules and regulations according to their own will and feasibility. This has a long-term negative effect on the business operations.
Government Regulations
Amendments in the rules and regulations of the government will have a negative impact upon their business operations and profitability. When there are rapid changes in the government, the law enforcing authorities can not stick to implementing a particular law or regulation. The government can enforce any kind of taxes, duties, quotas or tariffs.
Change in Market Preferences
Changes in the preferences of target market can also be a threat for ENSY. Their central part of business is to help in building living facilities where people are looking for housing facilities like larger toilets and easily accessible shopping malls and restaurants. If there is a sudden change in choices of people, then it will change the preferences of the target market. There will be an increased chance of losing their customers in this way. They will prefer someone else who is still meeting their requirements and expectations (Lu et al.)
Environmental Effects
There are a number of aspects which may occur in the environmental aspects. They can be in the form of social, political, physiological, technological or economic. Changes in any of these factors will have an influence upon ENSY’s operations and strategic plans. It is essential to be well updated about these changes and occurrences in these environments. A close check needs to be done to avoid any mishandlings.
Conclusion
According to the detailed SWOT analysis which has been discussed above, it would be better for ENSY if they focus on their internal weaknesses. They can overcome it by proper strategic planning. Similarly, they need to have a control on their strengths. They can give it more potency by focusing on their plus points. Environmental factors can never be under complete control so prior planning should be done to adjust accordingly.
References
- Hill, Terry, and Roy Westbrook. "SWOT analysis: it's time for a product recall."Long range planning 30.1 (1997): 46-52.
- Jackson, Susan E., Aparna Joshi, and Niclas L. Erhardt. "Recent research on team and organizational diversity: SWOT analysis and implications." Journal of management 29.6 (2003): 801-830.
- Lu, Weisheng, et al. "Developing Construction Professional Services in the International Market: SWOT Analysis of China." Journal of Management in Engineering 29.3 (2013): 302-313.
- Mochtar, Krishna, and David Arditi. "Pricing strategy in the US construction industry." Construction Management & Economics 19.4 (2001): 405-415.
- Pearce, John A., and Richard Braden Robinson. Strategic management: Formulation, implementation, and control. Irwin/McGraw-Hill, 2000.
- Pickton, David W., and Sheila Wright. "What's swot in strategic analysis?."Strategic change 7.2 (1998): 101-109.
- Yisa, Silas B., Issaka Ndekugri, and Brian Ambrose. "A review of changes in the UK construction industry: their implications for the marketing of construction services." European Journal of Marketing 30.3 (1996): 47-64.
