Solutions to Organizational Challenges: a Capstone Experience Essay
Solutions to Organizational Challenges: a Capstone Experience
CSI 3000 is a small construction company that was founded in 2010 by Rey Rivera, a Project Manager with a broad range of construction experience. CSI 3000, Inc. was founded on a commitment to become the leading Minority-Owned Contractor in the Chicago-land Region. From inception, their focus has been entirely client based so as to ensure that their customers are completely satisfied from concept to completion of the project. Their goal is to create a superior Minority Business Enterprise (MBE) option for owners by building a company that understands the business of construction. Describe the target customer for the product/service in terms of relevant characteristics that impact the marketing strategy, including location (how it is reached) and buying habits. CSI 3000’s target market includes large general contractors who need dependable solutions to fulfill MBE requirements and fulfill diversity goals. Servicing the Governmental, Industrial, Residential, Civil, & Commercial Sectors that need a reliable concrete company to get the job done within budget and on time. By achieving this, CSI 3000 has an office in the Pilsen community within the city of Chicago.
They are centralized within the city so that they have are able to access any project within the city or surrounding suburban areas. CSI 3000 has a variety of equipment and tools such as dump trucks, bobcats, excavators, hydraulic booms, and various concrete compactors. With access to this equipment, they have been able to compete with other well known contractors by being able to keep their costs down. Being signatory to a several unions gives CSI 3000 another competitive advantage by having a team of highly skilled and trained professionals with various engineering, project management, estimating and trade backgrounds. Employing a staff with 15-40 years of experience CSI 3000 stresses the importance of continuing site and safety training to all staff, as well as integration of new technological advances into their daily work. Identify each customer segment’s specific wants and needs. Explain why they buy your company’s product or service, or a competing product or service. CSI 3000’s customers are from residential, government, industrial, and commercial industries and have a wide range of needs for our work. Development companies will use their services for new home construction such as new sidewalks, garage pads, curbs, and gutters. The government sector currently uses our services for additions to universities and public office spaces which can include new foundations, piers, curbing and slabs to digging for that new space. CSI 3000 has an extensive list of relationships with material suppliers for ready mix, hauling services, tools, and equipment to keep our cost at an all time low. All of these industries have a viable use for our services and with our extensive experience along with our competitive prices CSI 3000 is becoming one of the leading concrete construction companies in the Chicagoland region. Justify how well your product/service satisfies customer wants and needs. Identify any wants and needs that are not met by your product/service. To justify their services CSI 3000 asks others to contact their current and past clients for referrals and recommendations. They have met all of the needs of their clients, and have gone above and beyond to ensure that the work is done within the time allotted and within budget. CSI 3000 has been able to save their clients money by using their relationships with suppliers and keep cost at a low market price. In April, 2012, CSI 3000 became part of a joint venture with Abbey Paving. They both agreed to an investment deal that would give CSI 3000 the financial stability and strength to service their client’s needs without having to worry about finding funding for projects.
Analyze your product’s position in relation to the competition. Identify 3–5 main competitors. Explain how your product differs in terms features, function, quality, price, availability, brand image, etc. Explain why this differentiation is important to your customers. CSI 3000 has been able to compete with similar companies in this industry. Mr. Rivera stated that in order to stay competitive and make money one must create relationships. They have to like you in order to keep hiring you. (Rivera, 2013) When you find a way to save a client money, they will be your friend for a long time. In the past Mr. Rivera was a Project Manager at a non-profit organization that
helped construction companies grow their businesses, while working with larger companies. While in this position he was able to create relationships with other contractors such as Walsh Construction, Wight Construction, and F.H. Paschen (just to name a few) and became their friend. When he decided to leave his position at this other organization he had the support of these large contractors that were willing to give him a chance. It is not easy to get a meeting with these companies let alone consider you for a project, but because of the relationships he built CSI 3000 was able to compete with other well know concrete companies such as Scurto Construction, DeGraf Builders, and Reliable Construction. This is just a few companies that CSI 3000 competes with, but within a 3 year period this company is already as well known as these other companies that have been in business for several years. Though this may not be an important factor for their customers, but it is able to help keep costs low and know that the job will be done correctly. Describe the source of competitive advantage for your product. Evaluate sustainability of this source of advantage. •CSI 3000 has been able to build strong relationships with major contractors (i.e. Wight, Skender, Paschen and others) as a dependable, high quality MBE contractor. •CSI 3000 has entered the 2013 construction season virtually debt free. •CSI has a strong working capital position built on reliable resources and current relationships to keep them competitive within the construction industry. Assess the long-term sustainability of the source of differentiation and competitive advantage. CSI 3000’s strategy is to stay focused on the market and the type of work that they know best. They will continue to confirm viability of their business concept every year. This is important because without being an asset to others, they must re-strategize their business model. They will continue to identify reputable partnerships within the industry so that they continue to stay competitive in the changing market. Demonstrate the ability to deliver quality construction and financial results for a secure business model and possibly create the foundation for more traditional financing relationships. Apply the five “P’s” of marketing to your product analysis. Product CSI 3000 is known as the concrete contractor of choice to not only provide a valuable subcontracting service, but does so at ensuring quality, productivity, and the ability to meet the necessary project goals that are demanded by the
Price: CSI 3000 is known as a quality concrete contractor, we are also recognized as a Minority Business Enterprise within the City of Chicago. As there are limited companies that can provide quality service and help clients meet project goals, CSI 3000 services come at a premium. General Contractors will gladly pay for quality service from a minority business enterprise.
Place: CSI 3000 is fortunate to have a number of owners and general contractors who seek the service of CSI 3000. We are readily available to our clients, and our name and number is passed along to other members within the companies in which we work. We provide our services within the Chicagoland region and have found an abundance of work to pursue.
Promotion: CSI 3000 has a company website to give information about CSI 3000 services, past clients, safety records and the ability to reach us directly. In some instances CSI 3000 focuses on direct contact with our clients either through email, or phone call.
People: CSI 3000 staff continues to stress the positive relationship with our clients and the key valuable service that we provide. Our one on one interactions and direct relationship with clients play a vital role in future business development.
Market Position Analysis: Product Position versus Competitor Product Position
Needs of the ConsumerRating of Your Product
(Use a scale of 0–2*)Rating of Competing
(Use a scale of 0–2*) Rating of Competing
(Use a scale of 0–2*)Rating of the Competing
(Use a scale of 0–2*)
Our prices are hard to beat. But because we are a newer company our image is not as known as our competition.Comes significantly close to our prices, but are unavailable during winter months. Known in the industry. Low prices, work is consistent, but is known to drive up prices during construction. Change OrdersHave been in business for several years. Family owned and known in the industry. Prices are high but known for their good work.
* On the scale of 0–2: 0 indicates “need not met,” 1 “indicates need partially met”, and 2 indicates “need fully met.”
CSI 3000. (n.d.). CSI3000 Tres Mil “Creating Concrete Possibilities”. Retrieved September 11, 2013, from CSI3000 Tres Mil: http://www.csi3000.com/Pages/default.aspx Rivera, R. (2013, September 10). CEO. (B. Arteaga, Interviewer)