Pool Doctor

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Competitive Analysis

As defined in this industry, there are two pool servicing categories

- Independents

- Pool stores

In Winnipeg, there are only two pool stores that directly affect the competition of the Pool Doctor, and they are Krevco and Aqua Pleasure, and the market share for these two pool stores are 9.9% and 5.1% respectively. Compare that to the Pool Doctor, the share difference is 8.5% (Krevco) and 13.3% (Aqua Pleasure). Since the pool stores are more concerned about the sales (pool) and installations, chemical sales, any repair work, and pool openings and closings, this allows for their market share to actually decline because customers are not satisfied with the cleaning, and the prices. With the Pool Doctor being in business for 2 years, now, it allows the Pool Doctor to pick up the sales from these two competitors through successful marketing campaigns. In the situation of competition for the Pool Doctor, they should be concerned with the “Other” companies, because they show the most dominance against all other competitors with a market share of 28.3% and also have 100 full time customers. They are indirect competition in that Krevco and Aqua Pleasure focus more on sales side of things, and less so on the maintenance due to the thought that the returns from maintenance did not justify the additional effort.

Moreover, CVB and Aqua-Clear have market shares of 7.1% and 8.5%, respectively. Both companies mainly compete with each other, and rarely compete directly with the Pool Doctor. On the other hand, The Pool Clinic, who has a 8.5% market share, competes directly with the Pool Doctor, and had 30 full time customers in 1989. The main difference between both of these companies is that The Pool Clinic focused more on the “once a week service” whereas the Pool Doctor, serviced pools 3 times a week. This is something that the Pool Doctor should consider when making the changes for the 1990 season. If Mr. Golfman’s teams are going out and cleaning pools 3x a week, the business should be advertising itself on the vehicles that are being used, so while they’re in the different neighborhoods, they can campaign while the vehicle is sitting. By taking this measure, The Pool Clinic will lose customers when the prospective customer calls the Pool Doctor, and hears about the lower prices and number of times they clean, people will be attracted to that. While both companies offer pool openings and closings, and repairs, the Pool Doctor would gain if they changed the price of their service. Duguay Pool Services (Duguay) had been in business for many years, performs the same work as the Pool Doctor, but did not focus on the same areas as the Pool Doctor and vice versa. This is direct competition, however it is minimal since the Pool Doctor is not in these areas. In the event the Pool Doctor would want to enter these areas, the competition will more than likely be stiff because they have a stronghold on these customers, and be very difficult for those people to change, due to the fact that Duguay has been in business longer than the Pool Doctor.

An interesting competition that can arise, and has arisen for the Pool Doctor was the event when an employee left the Pool Doctor to start his own business called “The Pool Pros”, which performs the same services as Pool Doctor. Though the company was able to build it’s client list to 20 customers during ’89, they were expected to continue operations during the 1990 season. In this situation, a benefit that was come out of it for the Pool Doctor is that The Pool Pros wasn’t’ able to take any business, but a drawback would be a loss of a valuable employee because clearly, they know what to do in order to operate the business, and build a client list, most likely, from the clients he or she served individually. Clearly, this business affects the Pool Doctor directly since it is the same services being performed. In the even that The Pool Pros do take away market share from the Pool Doctor, it will affect them because they are losing revenue due to competition. One way the Pool Doctor can make more money and gain market share instead of the competition, would be to have advertising that is directly to the existing pool owner because they will be the ones who will see the business as something beneficial since they are already using it.

External Analysis

Political Factors

Some of the political factors that the Pool Doctor has to consider are the changing laws in safety, and the way businesses regulate. As well, the Pool Doctor has to consider the taxation laws as well because the higher taxes go for businesses, the lower the profit will be.

Economic Factors

The stage in the business cycle for the Pool Doctor appears to be in the first stage, since their business is booming and have not yet hit a trough yet. This means that people are spending more money because now there are two people in the family producing income for the household, leaving more money to be invested back into the economy by having services provided by the Pool Doctor.

Social Factors

For the Pool Doctor, the typical consumer was a dual income family with children, and this means that more people will be having parties for their families because at this point, parents are more likely to have pool parties for their kids’ birthday’s. With the swimming pool being a major leisure aspect in life, people who are going to be working more may be more inclined to get the pool cleaned in order to keep it clean so they can enjoy it more, which means more revenue for the Pool Doctor in the 1990 season.

Technological Factors

As technology advances, the changes in the pumps for chlorine-free pools will also change, and will also go up in price since they will be new products. By implementing these changes in the business properly, and managing the change for the client, there is a higher probability that they will continue to go to the Pool Doctor because they keep up ahead of its competitors, and provide optimal service every time.

Corporate Capabilities

The capabilities of Mr. Golfman when looking at it from a marketing perspective, the direct mail fliers were not as successful as maybe intended, but the rest of the marketing activities that served as strengths including the survey, were successful because they gave valuable input on where the business can grow and where it needs to improve.