Service business analysis

For the past twenty years, the geoengineering industry has been growing at a very fast rate. MGA believes that the biggest risk currently is in new market entrants who want to capitalize on this high-growth sector. The most probable entrants will be fresh, tiny consulting firms with fewer than ten staff.

The one major drawback for new entrants, however, is that all companies involved in contracting with geoengineering companies face important switching expenses when bringing a consultant partner. In addition, MGA recognizes that there is a substantial learning curve in this sector that generates, decreasing ” unit” expenses as a company gains more cumulative experience in the sector itself and specifically with long-term customers.

Rivalry between distinct geotechnical firms is comparatively mild as much of the potential rivalry is absorbed by the elevated growth rate. Many competitors can improve profitability simply by keeping up with industry growth. Potential customers ‘ power in this industry is very great because most customers are very concentrated in our geographical area.

In addition, due to the elevated price of our services, customers tend to ” shop around” for the best package of services and costs. Finally, some of our market segments, such as governments, have ” profitability” constraints that put pressure on geotechnical firms for superior terms


Competition involves all prospective geotechnical businesses in our geographic region of operation. The geoengineering industry is highly fragmented, with a large number of small firms dealing mainly with small firms and a few large firms seeking the largest contracts.

Our most severe rivals are SMEC Botswana and Geotechnics International Botswana (pty) ltd. Geotechnics International Botswana (pty) ltd is an established firm with a fine track record of quality job that has been in service for the previous ten years. This business is similar to MGA in terms of size, capacities, services and projected revenues.

SMEC Botswana is one of the largest and best known geotechnical firms in the country. It has hundreds of staff consultants and financial backing that can be used to counter any kind of competitive move.

Buying Patterns and Needs

Companies usually enter into contracts with geotechnical companies based on their reputation forprofessionalismand quality of services rendered in the past. This reputation is hard to acquire from fresh firms unless, as we are, its staff take it with them from past firms. Price and scope are also significant factors to accept agreements, particularly if the business is small.

Marketing Strategy

MGA will start to contact promising organizations and give free consultations and an initial agreement at decreased rates in order to attract customers. These promotions will allow us to start making our reputation. In addition, Mr. Motshabi and Mr. Disang will travel to six conventions across the eastern part of the country during the first year of operations where we will have booths to advertise our service. Finally, we will set up calls to prospective customers and have half- and full-page ads in multiple journals that address the requirements of our customers.

Service Provission Processes

Client contact can be created in several aspects: at the start of the business operation, the company will need direct contact (through e-mail, private visits) . Thiscommunicationmay come from the client later, who will already understand about our services and will come for more detail about a specific service. It is essential to assess their requirements after having established contact with the client, either on our behalf or on their behalf.

This assessment will rely on the type of service provided. Once the customers ‘ needs are recognized, the business will prepare a proposition according to their characteristics. The customer’s assessment of the proposal is essential because if he is not satisfied, it would be essential to alter the proposal.

As soon as the proposal is completed it is essential to draw up a budget including a comprehensive quotation of services as well as the implications and variation of services due to changes in the requirements of the customer. Once the budget has been drawn up, the job will be carried out ; it will vary depending on the service to be provided, as well as the likelihood of variations in the type of assistance and therefore in the budget. Once the job is completed, the client will be presented with the outcomes acquired with the services they have contracted