Introduction
Speaking about the expansion, business owners often focus on the pros and cons of new strategies for their companies. However, to get a full picture, it is also critical to evaluate such decisions with reference to positive and negative changes for new communities to be served. This paper discusses 1-800-GOT-JUNK, a profitable Canadian junk removal service, in the context of expansion.
Main body
The advantages of the company’s global expansion include further popularization of sustainable practices. Aaker and Moorman (2018) claim that the success of expansion strategies is defined by the degree to which the company can add value in new markets. The business relies on sustainable methods of work and aims at maximizing the use of collected junk. When it comes to decluttering services, the collected items undergo the process of evaluation and are disposed of or recycled in the most appropriate way (1-800-GOT-JUNK, n.d.). Today, people’s willingness to follow waste recycling guidelines and the state of recycling technology depends upon the country (Crociata, Agovino, & Sacco, 2015). The company’s willingness to enter new markets can result in the growth of recycling literacy levels in the world, which will positively impact global waste management.
The next advantage is the ability to meet the growing demand for innovative and individualized garbage removal services. There have been multiple attempts to demonize excessive consumption and prevent people from overestimating their needs. However, consumerism is becoming more popular even in cultures promoting the value of non-possession, such as Sri Lanka or India (Chandrasekara & Wijetunga, 2016; Swadia & Patel, 2018). Thus, 1-800-GOT-JUNK’s services are likely to be in demand in different parts of the world. Consumerism results in the increasing number of unwanted and disused items that are stored in people’s houses, and 1-800-GOT-JUNK offers professional help in decluttering living areas and organizing unnecessary items to send them for recycling.
Additionally, the company’s global expansion can be advantageous since its selection of transportation options allows serving a variety of populated localities. 1-800-GOT-JUNK (n.d.) uses trucks that are small, maneuverable, and eco-friendly. Due to the transportation decisions, the company will be able to compete, which is one of the key criteria of success in the expansion (Aaker & Moorman, 2018). The properties of trucks can contribute to the company’s popularity in other countries by increasing the speed of executing orders and managing the collected junk.
Global expansion may not be the best option due to financial constraints and competition. To begin with, small trucks’ carrying capacity is not extremely high. It will eventually affect the costs of transporting junk and result in the selection of pricing strategies that will not be the most attractive to target customers. The second problem relates to the presence of alternatives – junk removal businesses are quite common today, and luring clients away from local competitors can be a difficult task. More than that, when serving people in developing and poor countries, the company will probably face difficulties when trying to find recycling facilities. As a result, its operating policies and vision will be compromised.
Conclusion
To sum it up, 1-800-GOT-JUNK’s decision to go global is associated with both positive and negative outcomes. The advantages of expansion are presented by the promotion of proper waste management and recycling, the opportunity to manage the outcomes of consumerism, and rapid operation. However, the negative consequences of this decision include transportation costs and the company’s questionable competitive ability.
References
1-800-GOT-JUNK. (n.d.). What we do. Web.
Aaker, D. A., & Moorman, C. (2018). Strategic market management (11th ed.). Hoboken, NJ: John Wiley & Sons.
Chandrasekara, R., & Wijetunga, D. (2016). Tension between values of traditional and consumerist cultures in a Sri Lankan context: A self-discrepancy perspective. Journal of International Consumer Marketing, 28(5), 309-322.
Crociata, A., Agovino, M., & Sacco, P. L. (2015). Recycling waste: Does culture matter? Journal of Behavioral and Experimental Economics, 55, 40-47.
Swadia, B. U., & Patel, J. (2018). Customers’ attitude towards shopping malls: Does gender matter? Indian Journal of Public Health Research & Development, 9(12), 1963-1966.