Situation anaylsis Essay Example

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Introduction the business of building pergolas and decks in the industry of building and construction is one that intends to be one of the best in terms of service provision in the areas of its environs. This is with regard to the availability of demand for its services. The company intends to operate on the basis of a management philosophy of collective mutual responsibility as well as respect for fellow employees and customers. Decks and pergolas building industry intends to be locate at the local area for ease of accessibility of the services by the local residents as well as enhanced service provision efficiency to its customers. The ownership as well as the management of this business involves experts who have been in it for the last six years.

Size of the total industry

The industry intends to begin with not so big umber of management and personnel members but is surely going to grow with time. The increase in size of the company focuses on not just management and personnel but also in terms of production, sales and turn over. In the area where the company intends to locate its operations of service delivery, there exist several competitors who are also targeting the same market. The presence of the competitors only serves to ensure that the business operations and service delivery are enhanced and made effective. The effectiveness of the services delivered is able to offer good competing grounds for the company.


Production will involve the manufacture or construction of pergolas and decks ranging from small, medium and also to big ones depending with the customer requirement. The production of such structure as the pergolas and decks will require materials that are reasonably not expensive as well as basic tools and basic skills in carpentry. However, for production or construction of bigger and more complex pergolas structures sophisticated tools as well as the services of professional experts will be involved. The company also intends to be involved in construction of other products that are similar or related to the pergolas and decks since they will all require almost similar expertise and tool to produce. Other than that the company still positions itself to be able to offer production of services as well. These services will range from consultancy to structure repairing services to consultancy services.

The sales of the products from the company are forecasted and expected to meet the demands of the available customers. Even though the level of sales is expected to begin on a low level it is estimated that it is pick up an upward moving trend. The sales are generally going to include the exchange of products produced by the company for many most of which are going to be timber products such as the decks and the pergolas. There is also going to the sales of the services offered by the professional consultants and technical artisans hired by the company. The professionals experts, technical artisans together with the management team are expected to form the personnel staff.


It is through hiring of the management team, professionals as well as the skilled and the unskilled labor that this building and construction company will be able to create employment. The employment opportunities are expected to largely benefit the locals. This is because the company intends to give priority to them in relation to their proximity to the working which will enhance the efficiency of the operations.

Uncontrollable environment of the building and construction industry

This industry, just like other industries, is subject to influence by uncontrollable factors. This are factors that are associated with the environment in which this industry in operating and they include the uncontrollable decrease in availability of materials and consequent rise in the prices of these materials. This building and construction highly depends on raw materials used in the production of its products and carrying out of its construction services (Buckshon, 2010) Reduction in supply of these materials in most cases is something that happens beyond the control of the company as from time in memorial the cost of materials has always gone up and sometimes it goes up rapidly. This then means that the company experiences a decrease in its production which is really against its aims and objectives. The other uncontrollable factor that influences the company includes the fact that the business attracts several competitors who are actually a threat to the company and also beyond its control.

Major Competitors

The major competitors of the company in this industry include the companies that offer products and services that are similar to the ones offered by the company and are located in the same locality or very close to that locality. The major competitors also influence the market share of the company by reducing it since they compete with the company to meet similar demands (Denlick and Skinner, 2009). However the importers who are involved in the same industry are not so much of competitors because the prices and products that they deliver to the customers are very different from the ones offered by the pergolas and decks building and construction company even though they may be serving the same population. This particular company intends to position itself at a better place in comparison to its major competitors by offering the best of products and services in the most effective manner the addresses the needs of the customers.

Trends in the industry and consumer behavior

The development of this industry involving the construction pergolas and decks, has been largely affected by the technological developments which have enhanced the efficiency and ease of its operation, the government policies which have laid down the framework, rules and regulations that are useful for the operation if this business both locally and internationally (Kazi, 2004). The consumer behavior towards the products and services offered in his industry has also served to influence the development of trends in this industry. This is because the consumers have always preferred new developments in the industry.

Target markets

The pergolas and decks building and construction business intends to capture both domestic and industrial consumers as its target market. The segmentation of this target market will however depend on the size and composition of the consumer as the segmentation variables. The market with regard to consumption of services and products offered by this industry has been strengthening for the last decade (Kodis, 2004). This record has set for new comers in the business which is intended to ensure that flexibility in production of products and services is introduced to meet the requirements of market segmentation.


BUCKSHON, M. (2010). Construction marketing ideas: practical strategies and resources to attract and retain profitable clients for your architectural, engineering or construction business. Ottawa, Asset Beam Pub.

DENLICK, T., & SKINNER, T. (2009). The big book of gazebos, pergolas, and other backyard architecture. Atglen, PA, Schiffer Pub. Ltd.

KAZI, A. S. (2004). Knowledge management in the construction industry a socio-technical perspective. Hershey Pa, Idea Group Pub.

KODIS, M. (2004). Fresh tracts. Salt Lake City, Utah, Gibbs Smith.