Introduction
The company chosen for the SWOT analysis is Spotless Cleaning Services and the four factors that are selected are listed below. For each of the factor, the strengths, weaknesses, opportunities and threats are analyzed. The overall objective is to ensure that an analysis is done of the company’s competencies and threats in the areas described in the analysis.
Legal and Regulatory
Spotless Cleaning Services faces increased threats from the labor department on account of its perceived labor policies that include hiring of workers below the wage standards and also allegations over using immigrants as workers who do not have the requisite clearances to work. There have been instances where Spotless Cleaning Services has been penalized for such kind of business practices and has found itself at the receiving end of legal and regulatory troubles.
Thus, Spotless Cleaning Services has to ensure that it manages its products and businesses in such a way so as to not attract the penalties under the provisions of the anti-labor laws. Spotless Cleaning Services can see an opportunity in the way in which the latest laws on hiring immigrant labor are shaping up in its favor. There is a definite weakness for the company in its dealings which include monopolistic behavior.
Economic
This factor or force can be considered Spotless Cleaning Service’s biggest strength as the company’s business model is robust and takes care of its revenues and cash flows in an effective manner. The company operates in markets where it has a distinct advantage and an edge over its rivals and ensures that it retains the market leader position. The weakness is perceived in Spotless Cleaning Service’s inability to take on the smaller sized companies who have captured the market for individual housing units. Spotless Cleaning Services can well do to ramp up its capacity in these areas. Spotless Cleaning Services sees an opportunity in the small office, home office business and as outlined above, if it can seize the initiative in this market, future threats would be substantially minimized.
Culture
Spotless Cleaning Service is known for its culture of treating its employees well despite its hiring practices that many allege use immigrant labor. However, the company takes pains to ensure that the employees are treated well and receive benefits that its competitors in the business do not offer. These include shuttle services and more leave particularly for its women employees.
Leadership
Spotless Cleaning service enjoys leadership position in the market segment that it caters to and is first among its competitors in the same space. It has established a unique reputation for efficient service and customer satisfaction. This is the primary strength of the company in this factor, that of unparalleled customer service. However, the leadership position of the company is facing threats from up and coming cleaning services who are offering better value propositions arising out of their business models that thrive on cheap labor and lower overheads due to their relatively smaller scale of operation.
Spotless Cleaning service has an opportunity in the condominium and gated community cleaning business. Because of its size and scale of operation, it can garner the market for large apartments and those in the gated communities that thrive on huge numbers of houses to be cleaned and hence SCS can reap the benefits of this market. However, its perceived weakness arises from not being able to the medium range of the market due to its higher costs of operation. As has been emphasized throughout, if it can reduce its costs of operation, it would be in a better position to capitalize on the different market segments and increase market share across segments.