Executive Summary of Case
External Environment Analysis
Opportunities
Threat of new entrants:
The barriers to entry are high due to high fixed costs, lack of history in the local community, zoning regulation, and “not-in-my-back-yard” protests.
Power of suppliers:
Funeral consolidators such as Loewen group can put a great deal of pressure on suppliers to reduce prices.
Power of buyers:
The funeral home is usually the buyers first point of contact, therefore the funeral home has first chance at selling all related services and supplies.
Product substitutes:
The small family owned funeral homes cannot compete with
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Threats
Threat of new entrants:
Not a great threat due to high barriers of entry into the market.
Power of suppliers:
Because of the Internet, suppliers can now sell their products online directly to the consumer virtually eliminating the funeral home from the bereavement process.
Power of buyers:
Buyers are becoming a lot more educated in the costs of funeral homes and itemized expenses. Because of this funeral homes cannot mark-up their costs the way they used to.
Product substitutes:
Today there are companies that offer caskets that one can make by themselves. They can use the casket as a coffee table until it needs to be used for its other purpose.
Intensity of rivalry:
The threat of being bought out by SCI is very intense and the price they were offering shows how greatly they wanted to incorporate Loewen Group into SCI.
Competitor general analysis:
a. Future Objectives:
b. Current Strategy:
c. Assumptions:
d. Capabilities:
Economic:
Because of the increasing education of the consumer, many may choose to bypass the funeral home as a way of lowering costs.
For the past 150 years, American funerals have consisted of traditional burial practices which include interment of the entire body with the use of embalming in impenetrable wood or metal caskets with concrete vaults and liners (Harris, p.13). It involves the pumping of embalming fluid, mainly formaldehyde, into to the body to slow decay (Harker 2012). The assumption
The story of the origin of this thriving business dates back to some 34 years after the establishment of one of the first, if not the first funeral undertaker or mortician, who was appointed for the town of Boston, Mass., by the Boston Board of Health in June 1816.
In this competitive market a well properly executed business needs to have a well-chosen, well-crafted business level strategy (Hill, et al, 2015). With that in place the company will gain a competitive advantage and over their rivals. Brookdale is focusing on expanding their organization through merging with other assisted living to gain more profit, but the residence in the assisted living needs should be properly looked after. For a company to sustain a competitive advantage in the market industry, they must well implement their company’s business level strategy (Hill, et al, 2015). Since Brookdale is far ahead of its competitors their needs sustaining their advantage was not in a critical position; then, their stock price dropped by fifty
This concept also interferes with the usual funeral or memorial service because these events serve as a major point for bringing closure to the people who are coming to terms with the death of their loved one by allowing them to express their grief (Hooyman & Kiyak, 2011). As stated within Chapter 13, funerals “allow the family to demonstrate cohesion through sharing rituals, food, and drink” (Hooyman & Kiyak, 2011). If there is a drive-through, then families would not be able to share rituals which can help with the grieving process. Additionally, as mentioned within Chapter 13, most people think highly of funeral ceremonies as the ceremonies provide a meaningful way for survivors to handle the grief, and the ceremonies make the reality of
Curiously enough, this article, was doing exactly what the book, Epic Content Marketing, was instructing businesses to implement when marketing. They wrote an article describing five different ways in which the funeral homes could reach out to consumers, without having to spend thousands on advertising. They offered advice about reaching consumers, by providing follow-up care after a funeral, sponsoring a local sport’s team, using social media, and educating the customers. Basically, offer something of value to the community, so they can reward you with their loyalty. Homesteaders Life Company is hoping that by helping your funeral home market, you will decide to fund your pre-need funeral program through their life
A lot of people are paying for insurance by which a great part of the payment goes for covering the expenses for their funerals all together with goods and services connected with it. Moreover, these costs are very high not only in the Balkans, but in every country where there is not a crematorium built. (D.J, 2014). The average cost of funeral services, today costs considerably more than 1000 $ here in the Balkans while in the US, UK , Japan, Canada and many other countries the price can reach up to 6,500 $. On the other hand the average costs of cremation including a basic memorial service costs from 1600 $ to 3000 $ but the prices vary which means that they can be lowered to 800 or 600 $ since you can choose the quality material of the casket and the services provided along with it. Nonetheless, basic cremation is very simple, much less expensive and you don`t have to add the cost of hearse, embalming, paper work, casket and grave purchase. With cremation, you only have to pay for the service, casket the urn and everything is resolved.
Funeral Planning Merchandise: You want your loved one’s funeral service or memorial to reflect their
When a loved one dies, people naturally look for a funeral home. Also referred to as mortuaries, these businesses are involved with managing the activities surrounding funerals. Mortuaries offer an assortment of services for the deceased as well as the family and friends who wish to pay their respects. Each mortuary is different. The types of services offered can vary, affecting the quality of service and total price.
Source: Banks, Dwayne A. "The Economics Of Death? A Descriptive Study Of The Impact Of Funeral And Cremation Costs On U.s. Households." This article is relevant to the main moral issue in this case because it explains the high cost of funerals. This article helps the main point by stating multiple facts about the the increasing cost of cemetery burial cost. This article also explains the impact of funeral cost to the average household.
Worrying about money is the last thing a family wants to do in the event of a death but it is one of the realities that everyone must inevitably face. It is because of this need that more and more people avail of funeral insurance policies to secure their families from financial woes in the event of their death. With funeral expenses costing thousands of dollars, choosing an insurance company becomes a one of the most important decisions one has to make after deciding on purchasing a policy. Here are some things to keep in mind before choosing which company to sign up with.
After you pass away, your remains are going to need to be transported to the funeral home that will take care of your cremation. Your remains will have to be transported from where ever you are to the funeral home that you choose. If you are trying to plan your funeral and burial out in advance, you are going to need to look into the cost of transportation for bodies.
The average American probably does not know what exactly goes into a funeral regarding materials and also the
There may be few buyers of the product, which could mean that forces down prices and dictate business terms. If there are many buyers and sellers may decide not to provide a few, because other buyers. An example is the grocery sector since the warehouse want to maintain power over suppliers due to price of products they express its terms and set prices and can work over it anytime.
Not everyone has money on hand to arrange a funeral that can cost in the high thousands. Having a little time to save up money and prepare financially lets a person relax during funeral arranging. It avoids having to be stressed out about paying bills and conducting their regular life on top of another large financial obligation. It also allows a family to arrange a stress-free payment plan for all the funeral costs.