EXTERNAL ANALYSIS:
Walmart & Costco are new entrants and threats to a portion of the business.
external analysis, including general macro environment (using PESTEL) and industry attractiveness (employing Porter 's Five Forces framework). The issues surfaced in the financial analysis will find support here (and/or in the internal analysis to come).
Porter’s Five Forces of Competition Framework – Funeral Services Industry
Threat of New Entry – The pressure from competition is relatively low as the barriers to entry in this industry are very high. In the financial analysis above the review of data displayed a high requirement for capital to be able to purchase the land, buildings, inventory and other materials necessary to enter the funeral …show more content…
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VRIO Analysis
Unique capabilities and resources include:
• Economies of Scale – SCI maximizes its size by capitalizing on economies of scale. From consolidated accounting and management to central afterdeath care facilities.
• Internal training and development program – Providing top of the industry training and development is a strong selling point SCI provides the small shops it purchases from owner operators. After selling to SCI many have moved upwards in the corporation following development training.
• Geographic Reach – SCI has over 2,000 facilities including cemeteries and funeral homes in 44 states and 8 Canadian provinces.
• Community outreach and participation – To combat the corporate image, SCI focuses on community integration by hosting annual, celebratory events in the cities and towns it purchases cemeteries and funeral homes in. Additionally, they reach out to the community by hosting food and blood drives and providing free safety seminars for protecting children and the elderly.
VRIO Analysis Value Rarity Inimitable Organized Result
Economies of Scale V R - O VR_O
Internal Training & Development V R - O VR_O
Geographic Reach # of Locations V R - O …show more content…
Within the funeral services industry it is rare to be able to have such a high level and ability to achieve economies of scale. SCI is highly organized to take advantage of this capability; it was actually the main driver behind the creation of SCI in the 1960’s.
Internal Training & Development – This capability also provides a temporary competitive advantage to SCI. Due to the size of the company they are able to provide high level, professional training to the employees of the different establishments they purchase as well as their corporate staff. Outside of the professional licensing required to perform afterdeath care, it is rare for businesses to be able to provide this type of professional development internally, or at all. SCI is highly organized in their methods of training and development, and commonly use it as a selling point for the businesses they
Walmart & Costco are new entrants and threats to a portion of the business.
external analysis, including general macro environment (using PESTEL) and industry attractiveness (employing Porter 's Five Forces framework). The issues surfaced in the financial analysis will find support here (and/or in the internal analysis to come).
Porter’s Five Forces of Competition Framework – Funeral Services Industry
Threat of New Entry – The pressure from competition is relatively low as the barriers to entry in this industry are very high. In the financial analysis above the review of data displayed a high requirement for capital to be able to purchase the land, buildings, inventory and other materials necessary to enter the funeral …show more content…
FIX ME LATER!!
VRIO Analysis
Unique capabilities and resources include:
• Economies of Scale – SCI maximizes its size by capitalizing on economies of scale. From consolidated accounting and management to central afterdeath care facilities.
• Internal training and development program – Providing top of the industry training and development is a strong selling point SCI provides the small shops it purchases from owner operators. After selling to SCI many have moved upwards in the corporation following development training.
• Geographic Reach – SCI has over 2,000 facilities including cemeteries and funeral homes in 44 states and 8 Canadian provinces.
• Community outreach and participation – To combat the corporate image, SCI focuses on community integration by hosting annual, celebratory events in the cities and towns it purchases cemeteries and funeral homes in. Additionally, they reach out to the community by hosting food and blood drives and providing free safety seminars for protecting children and the elderly.
VRIO Analysis Value Rarity Inimitable Organized Result
Economies of Scale V R - O VR_O
Internal Training & Development V R - O VR_O
Geographic Reach # of Locations V R - O …show more content…
Within the funeral services industry it is rare to be able to have such a high level and ability to achieve economies of scale. SCI is highly organized to take advantage of this capability; it was actually the main driver behind the creation of SCI in the 1960’s.
Internal Training & Development – This capability also provides a temporary competitive advantage to SCI. Due to the size of the company they are able to provide high level, professional training to the employees of the different establishments they purchase as well as their corporate staff. Outside of the professional licensing required to perform afterdeath care, it is rare for businesses to be able to provide this type of professional development internally, or at all. SCI is highly organized in their methods of training and development, and commonly use it as a selling point for the businesses they