It is important to conduct a competitive analysis when embarking on a business opportunity of any size. Like a SWOT analysis a competitive analysis concentrates on the strengths and weaknesses of the company's competition. In this competitive analysis you will find essential information that our carpet installation business needs to gain a competitive advantage. We will explain the results of the competitive analysis that is supported by our research, explain the characteristics of the market next to which the service will be targeted, provide recommendations of bran characteristics that will support the total products value, specify the overall values proposition of the total product, and recommend you need product characteristics that will appeal to the target market niche.
Competitive analysis results
The residential carpet business expands when the housing market is healthy. In 2013 consumer confidence helped spark a 10% gain in the housing market each quarter up until the third quarter. In the carpet installation business (which consists of residential and business) competition is fierce because hard surface flooring has been selected over carpet in residential homes in recent years. Many are not choosing carpeting and area rugs and it is estimated to have declined to 50.9 percent in dollars and 55.7 percent in square feet in the third quarter of 2013, according to Catalina. Still, the report tallies carpet and rugs dollar sales (shipments minus exports plus imports) for the first three quarters of 2013 up 4.2 percent with a 2.9 percent gain in square foot sales. (Herlihy, 2013)
(Herlihy, J., 2013) 2013 Residential Carpet Buoyed by Housing Trends retrieved from http://www.floorcoveringweekly.com/Main/Archives/2013-residential-carpet-buoyed-by-housing-trends-4336.aspx