Perform an Internal Analysis of J&J Electrical Contractors

INTERNAL ANALYSIS OF J & J ELECTRICAL CONTRACTORS
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Internal Analysis of J & J Electrical Contractors
Abstract
Over the resent past years, many companies have been started by their pioneer founders with a goal of providing the world with something better than and new. Most of these companies have been cropped out from scratch by owners who either defected from other companies or had the desire to create newness. Some of the companies are managed by families or a circle of close friends. Additionally, most of these companies are focused around construction, technical work, electrical installation and maintenance. Furthermore, they are regional based as most of them are just beginning in the commercial or domestic sector.
The analysis below is about a middle fledged company, which unlike any average middle fledged companies, went out of its way to penetrate the market and deliver astounding results and grows to pose as a threat to its rival companies and competitors. The discussion tackles how the company J & J Electricals Contractors Ltd came to be and how they rose through the market to become leaders of the market. It further discusses the SWOT analysis of the company in which is the strengths, weaknesses, opportunities and the threats facing the company. Finally the content will cover the proposed solutions to the company`s problems.
Introduction
J&J Electrical contractors is actually a good instance of a regional business that is family owned by Joan who is the CEO and his wife known as Jean Aberbathy who is on the other hand the CFO. The company deals with electrical contracting for heavy industrial installations, commercial and office buildings, educational institutions, public works, and many specialized systems including maintenance services. The company is under the license of state of California. The firm is competing severely with other with other large electrical contractors in that industry and therefore it is gaining a prosperity status. Therefore J&J company is a Well-established company known for excellent customer service.
Research shows that by 2006 in May the company had expanded J&J from a firm of 3 electricians to one of 54 employees. John and Jean took the firm to 2005 income of 5.22 dollars million, a seventy five percent rise over revenues of 2.98 dollar million in the year 2001. J&J developed good customer relationship that saw the company grow. The company believes that their biggest accomplishment is customer service. They therefore accomplish this by building responsibility, reliability and reputation on integrity.
J&J electrical company explains that court is not the solution whenever they face bad projects. They believe that the solution is just fixing the problems themselves. They are always ready to take the risks and loss as they believe that`s part of business.
However, according to John despite the thrilling revenues earned by the company, J&J electrical firm had faced low NIAT taxes over the last three years.
How they perform their operations
J&J electrical firm involves doing electrical tasks onsite, by doing maintenance, selling and installing electrical equipment as required by their clients. The company installs electric lights, domestic exhaust fans, closed circuit video surveillance and wiring not forgetting cabling. Additionally J&J and other electrical companies do maintained and repaired electrical equipment. However in the same industry there are primary workers who are just journey electricians. The J&J company bids for both private and public projects.
Competition in the electrical companies
J&J Electrical Company faced stiff competition in the year 2005. Some of its competitors included Helix Electric, Morrow Meadows and the Bergelectric Corporation. J&J did not actually compete directly with these bigger firms though most operated across the United States and were generally situated to contend for jobs both nationally and locally. J&J electrical firm on the other hand competed locally and mostly along the Inland Empire region of Southern California. Some of the local competitors that it faced were McBride Electric, Buck Electric, Power Plus among others. The following table shows competitive strength that J&J Electrical Company faced.
Competitive analysis
* Competition undermined J&J company through the following:
* Low barriers to entry
* Many competitors were the basis of competition
* Price [esp. public sector], Quality and reputation
* Very few large national competitors go after large contracts
* More direct competitors include Buck Electric, Power Plus!, Daniel`s Electrical Construction Co., McBride Electric, and Champion Electric where Buck Electric and specializes in solar photovoltaic
* Most competitors are doing residential construction field, whereas J & J Electric is focused more on commercial and public sector [classrooms]
COMPETITIVE STRENGTH
Success factors

Weight

Rating

Product

Financial strength

10

0.5

4.0

Management

15

0.7

10.5

Customer service

25

1.0

25.0

Marketing

20

0.5

10

Brand Image

35

0.7

24.6

Totals

100

-

74.1

The following table also below gives the industry attractiveness in the local marketINDUSTRY ATTRACTIVENESS
Factors

Weight

Rating

Product

Degree of regulation

10

0.5

2.5

Size of potential market

20

0.8

16.0

Intensity of competition

30

0.1

3.0

Degree of technological Innovation

15

0.6

9.0

Industry growth rate

30

0.7

21.0

Totals

100

-

51.5

Market Analysis
* The target market is all residential, commercial, industrial, and public-sector electrical-contracting work in the Inland Empire
* Price-sensitivity is high, especially in public-sector bidding
* Growth rate was high in residential construction in mid-2000s
* Current customer needs are: quality, price, on-time completion, initial installation, bringing public buildings up to code, and energy conservation incentives
* Future customer needs are renovations and add-ons
Emerging issues in J&J J&J had been experiencing high growth rate and high profits but after the NIAT taxes stared to decline highly and limiting i...