Business Opportunity for Kindred Life
1. Discussion of competitors
Business opportunity of a company depends on several factors such as competitors, business environment and customer’s acceptance (Guţă, 2014). Based in these three factors a company chooses location where new outlet is to be launched. SWOT analysis detects that threats of a company comes from its competitors in similar field. Thus for Kindred Life, analysis of competitors is essential. The two most competitive competitors in Tasmania State are Vincent funerals and Simplicity funerals. They provide same sort of service as Kindred Life.
The main disadvantage of kindred Life is its age as it is relatively new (established in 2015) (kindredlife.com.au, 2018). Lesser experience may reflect on its arrangement for funeral service and other services such as remembering loved one's memory in electronic form. Vincent and Simplicity funerals have lots of experience in managing funeral service and additionally remembering service (to remember loved one’s legacy). The Simplicity Funerals has experience over thirty five years across various state of Australia (simplicityfunerals.com.au, 2018). Vincent Funerals on the other hand originates from Tasmania and therefore has competitive advantage in terms of visibility over kindred Life. It has over seventy five years of experience (vincentfunerals.com.au, 2018).
Business sustainability depends on business acceptability and business acceptability from customer's end depends on business visibility (van et al. 2016). It is a psychological fact that customers will automatically attracted towards a company regarding a service that possess greater experience in same or relevant field. People do believe that management from an experience company’s end will be far professional than performed by an inexperienced one. This lack of experience thus deemed as threat for Kindred Life, one which can be removed by advertisement in both online and offline level. Marketing skills needs to be proper for kindred life to counter competitive threats.
On the other hand, as Tasmania State is least populous than any other state in Australia,rivalry is less and Kindred Life is opposed by few firms. This is a chance of their visibility. This factor also provides risk as low population means less customers and therefore less revenue.
2. Discussion on possible barriers for business
Low experience possesses a great threat towards expandsif business of Kindred Life in Australia. The population of Tasmania is quit less than any other Australian states and thus it becomes difficult to increase visibility. Funeral service is a sensitive matter which requires caring in an extensive manner.
Another thing is material cost which comes in form a package. Comparing to the costs of package of other companies in Tasmania State, this value is higher and hence customers may turn their back towards kindred Life. If Kindred Life wants to counterbalance they have to reduce cost of materials and package which in turn effect on their annual revenue. For experienced companies like Vincent Funerals, Simplicity Funerals, they can reduce package cost and on the same time incurred no loss due to their long term revenue they have created for years.
Technical aspect is another thing in business of Kindred Life as to create a legacy on deceased person they have to get help from professional software which is expensive and therefore package cost will automatically increase. As company is relatively new IT team does not exist. IT team can create software for own company and thus reduce cost. However, non-existence of IT team creates a barrier.
3. Brief evaluationrecommendations
Kindred Life is relatively new and lack experience however, this situation cannot be eliminated and they will always lack behind reputed organizations. They however can change in their business policies to overcome this difficulty. Many times it happens that a new company betas a reputed company in competition by their innovative business policies. It is therefore recommended to Kindred Life is to innovate new policies in their business. New business policies means to renovate package they are offering (its cost and its benefits). The packages need to be designed in such a manner that it can be afforded by all class of people in a society. Tasmania is our only home for rich people. On the contrary, Tasmania is home of mostly middle class people and therefore packages of low cost will increase business sustainability and therefore business visibility.
A video message collecting memory of known person can be posted at official website to increase business visibility. Although relatively new, Kindred Life needs to recruit more and human resource still works a primary workforce even in this technologically governed era. Separate department needs to be created within kindred Life to look into various parts of business. For example, Human Resource department will look for potential recruits and responsible for managing recruitment process. Technical department need to have a professional team to developed new software so that “deceased one’s memory and legacy can be stored more lively in electronic form”. Marketing team will be responsible for devising new marketing policy as and when deemed necessary by kindred Life in Tasmania. Above all the departments need to connect with HR department as well as MD & CEO so that interlink remains strong.