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Susan Dovi is a single, 31-year-old wife and mother, who wants to start her own company....

Susan Dovi is a single, 31-year-old wife and mother, who wants to start her own company. She has no previous business experience but has an idea for marketing a mobile animal-grooming service with an approach similar to that used for pizza delivery. When a customer calls, Susan will arrive in a van in less than 30 minutes and will provide the grooming service. Many of her friends think the idea has promise but dismiss her efforts to seriously discuss the venture. However, Susan is not discouraged; she plans to purchase the van and the necessary grooming equipment. She is hopeful that her business loan will be financed through her local bank where she has maintained a relationship for several years. Susan would like to hear your suggestions and recommendations. Question 3: What will her "competitive advantage" be over existing grooming businesses? Question 4: What might two of her variable cost be, and two of her fixed cost be to run this business.

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Question 3: What will her "competitive advantage" be over existing grooming businesses?

In doing mobile animal grooming business, Susan Dovi has to consider/bring competitive advantages following way as stated below,

  • As this service need vehicle and grooming tools and equipments, so she need to provide timely and on call services as when requested by the customers who look for such services
  • She need to bring distinction in providing such services by offering distinct features of her services with reasonable or competitive pricing
  • She need to monitor customer feedback to bring several improvements in her business, those specifically demanded by large number of customers,
  • She should focus on increasing distribution area, and check for significant target market, thus such market can give her more call, which will help her to consider competitive advantages
  • She should focus on advertising efforts and campaigning efforts for her services and understand customers pain area along with gain her effort with implementing positioning approach, which can bring higher competitive advantages in providing the services,

Question 4: What might two of her variable cost be, and two of her fixed cost be to run this business.

Fixed Cost:

  • Cost associated with the Vehicle Purchase
  • Cost associated with the Tools and Equipment Purchases
  • Cost associated with getting the business licenses

Variable Cost:

  • Maintenance and Repair Cost of Vehicle
  • Insurance premium as applicable over various Months or Year for different category of premium,
  • Waste handling cost
  • Energy and Utility cost like fuel Expanses
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