Answer

Case Study of Frumherji Limited Company

Frumherji Limited Company enjoys a greater market share, owing to the fact that it has been granted the responsibility of offering the mandatory private vehicles inspection and in Iceland. Due to protection which this company receives from the government in enjoys almost monopolistic powers. However, with the trend in the market, there is need to change the company’s strategy, so as to be able to continue occupying the market apex.

Nature of the Industry and Financial Performance

The industry in which the company operates has been protected indirectly through regulations.  This has consequently discouraged private investors, hence enabling Frumherji to have monopolistic powers.  The nature of the industry is however, duopolistic, owing to the fact that the company has one main competitor. For instance, private companies are required to undergo a compulsory accreditation according to the International Standards in the ISO/IEC 17000 series. Getting this accreditation is not only expensive, but also cumbersome.   Besides, the manager of a company which intends to join the industry must be a certified engineer, and the inspectors must a one-month training and pass the examinations for them to be allowed to practice.  The government has also set as a requirement that, companies which are to be allowed to join this industry must met high level of competency, integrity, independence and impartiality. These regulations have protected Frumherji Limited Company from fair market competition.  As a result of this, the company’s services are on high demand., making it to realize high revenues in the past years. However, this is progressively changing with changes in the external market witnessed in the past few years.

Operational, Marketing and Growth Performance Assessment Using 5P’s

The 5P’s are marketing product, price, promotion, place and people elements, which can be used in strategically planning for the success of a business. These elements are also known as marketing mix, as they are used to ensure that customers satisfaction is optimized.  Frumherji Limited Company has continued to continue to ensure that it offers quality services, by employing qualified inspectors. Besides, the company has been historically managed by qualified engineers.  The company has managed to reduce errors in inspection process to 0.8. The company’s engineers are committed to reduce the errors even further. The company consistently lay emphasis on quality service.  In terms of price, Frumherji Limited has ensured that it does not misuse its market competitiveness to exploit customers.  This is the reason as to why many customers flock the company for inspection, especially on F Thursdays and Fridays.  Friendly price has enabled the company to cover a greater percentage of the market, as compared to its competitor, Adalskodun Limited Company.

Owing to the market share that the company has currently, very minimal efforts towards promotion. It is generally assumed that the company’s products have unprecedented market, which is not the case, as some customers have started to prefer other companies.  The place in which the company is put, as well as the place for service offering is very strategic, which has boosted its access and performance thereof.  However, the company has not been able to manage people properly. Currently, the company is understaffed, and a number of customers are forced to queue for long before being served. Those who are not patient enough, even give up. Besides, the working space for the company’s staffs is not enough to enable them discharge their duties amicably.

Conclusion and Recommendations

Based on this analysis, it is possible to conclude that the company’s performance and market is at limbo unless quick measures are taken to improve the current state. The company should work towards increasing the space it occupies. Besides, it should employ more staff to enable to it serve its current big number of customers.  Promotion should also be done, so as to make customers aware of the improvements in the company’s products.