SWOT ANALYSIS & RECOMMENDATIONS:
Laundry Shop
(TURBOWASH, La Paz, Iloilo City)
A Case Study Presented to
Mrs. Helen H. Capileño
In Partial Fulfillment
of the Requirements for the Subject
Strategic Management (BA 321)
by
Cabacaba, Sharlyn Faith C.
Daniel, Joriel Anne C.
Espulgar, Janella Carille
Pastrana, Jee-Anne C.
(Bachelor of Science in Accountancy)
October 2024
Abstract
According to the case study, Turbowash wants to implement a multiband strategy
to compete in the local laundry shop industry. Based on the case study, we
conducted a comprehensive analysis of the business to determine its SWOT
(strengths, weaknesses, opportunities, and threats) analysis. Following the
completion of this analysis, we made recommendations that might help the
company become stronger and increase its chances of competing in the local
laundry shop industry in Iloilo City.
Strengths
1. Constant Demand: Laundry is a basic necessity, ensuring a steady
customer base throughout the year. TurboWash Laundry Shop in Lapaz likely
has constant demand due to its convenience, quality service, affordable
prices, strategic location, effective marketing, additional services, and
reliable service. People consistently need laundry services, regardless of the
season or economic conditions. Laundry is a fundamental human need,
similar to food or shelter. It is everyday necessity that people need clean
clothes for work, school, social events, and everyday activities and even
during economic downturns, people still need to do laundry. It's a basic
necessity that most people cannot afford to neglect. As a result, laundry
shops can expect a steady stream of customers throughout the year.
Price: Starts at 50 per kilo (wash, dry, and fold). They also offer self-service; price
starts at 70 per 10 kg.
Location: Easily accessible and have sufficient parking or public transportation
options, near residential areas, commercial districts, and universities.
Additional Services: They offer free pick up and same day delivery.
2. Recurring Revenue: Customers often return on a regular basis, providing a
predictable income stream. In the context of a laundry shop, customers often
have a need for laundry services on a weekly or bi-weekly basis. This
predictable pattern of repeat business provides a reliable and consistent
income stream. So some of the strategies for recurring revenue of Turbowash
Laundry Shop is implementing rewards programs or discounts for frequent
customers and ensure consistent, high-quality service to encourage customer
satisfaction and loyalty. By fostering recurring revenue, laundry shops can
create a sustainable business model and reduce financial uncertainty.
Rewards programs or discounts:
o Drop off 15 kilos or more of laundry at Turbowash, and you will have a 15%
discount on all services at Sibling Nail & Lash Studio for its collab promo.
o Students have ₱20.00 discount if they present their school ID's.
3. Flexible Hours: They can operate during various hours to accommodate
different customer schedules. They are offering a wider range of operating
hours, Turbowash laundry shop can cater to customers who work irregular
shifts, have busy lifestyles, or need to do laundry outside of traditional
business hours. Some of the strategies are consider offering both weekday
and weekend hours to accommodate customers with different schedules and
provide self-service laundry facilities that are accessible 7:30 AM to 8:00 PM
to offer even more flexibility. By offering flexible hours, laundry shops can
improve customer satisfaction, attract a wider customer base, and enhance
their overall business operations.
4. Quick and convenient: They offer a quick and convenient service in order
to save a customer’s time. Turbowash laundry shop offers quick and
convenient service that would be able to wash, dry, and fold your clothes
efficiently, and pick up and deliver you laundry within a day, saving you time
and effort. This could mean having your laundry ready within a short
timeframe, such as an hour or two. They invest high-quality, efficient washing
machines and dryers that can significantly reduce turnaround times, and they
organize the workflows and procedures so that it can help to ensure that
laundry is processed quickly and accurately. By providing quick and
convenient service, laundry shops can make it easier for customers to get
their laundry done and improve their overall customer experience
5. Cost-Effectiveness: For busy individuals or those without laundry facilities
at home near Turbowash laundry shop, using a laundry shop can be a more
cost-effective solution than doing laundry themselves, especially considering
the time and energy saved. This means that for many people, using a laundry
shop can be a more economical option than doing laundry themselves.
Overall, while there may be initial costs associated with using a laundry shop,
the time and money saved can make it a more cost-effective option for many
people, especially those with busy lifestyles or limited resources.
6. Multiple Locations: Turbowash laundry shop has multiple locations in
different areas in Iloilo. This expansion can be a powerful way for successful
laundry shops to grow their business and reach a wider customer base. By
opening additional locations, laundry shops can serve a larger geographic
area and attract customers from different neighborhoods or communities.
One of the strategies is to Choose locations that are easily accessible and
have sufficient parking or public transportation options, near residential
areas, commercial districts, or universities. By carefully considering these
factors, laundry shops can successfully expand to multiple locations and
capitalize on the opportunities for growth and profitability.
Branches in Iloilo: Turbowash La Paz, Turbowash Jaro, Turbowash Mandurriao,
Turbowash Villa, Turbowash Pavia, Turbowash Molo.
7. Waiting Area: A TurboWash laundry shop with a waiting area offers
significant convenience for customers who can drop off their laundry and wait
comfortably while it is cleaned quickly. The waiting area can be designed to
enhance the customer experience, providing seating, making it a pleasant
place to spend time. Engaging with customers in this space helps build
rapport and loyalty, encouraging repeat visits. Additional amenities like
promotional materials or family-friendly areas can further attract diverse
clientele and make the shop a community hub. Overall, this combination of
speed, comfort, and engagement creates a unique laundromat experience
that stands out from competitors.
8. Online Presence: An online presence enhances TurboWash Laundry Shop's
visibility, making it easier for potential customers to find and learn about its
services. It allows for effective marketing through social media and digital
advertising, reaching a broader audience beyond the local community.
Additionally, customer reviews and testimonials shared online can build trust
and credibility, influencing prospective buyers. Finally, an active online
presence can foster customer engagement, encouraging loyalty and repeat
business through regular communication and promotions.
Weaknesses
1. High Operating Costs. High operating costs is a critical weakness in the
laundry business because they directly impact profitability. Laundromats
incur substantial expenses such as rent, utilities (water & electricity), labor,
and the cost of maintaining and repairing equipment. These costs can be
particularly burdensome in high-rent areas or during times of economic
downturn.
2. Equipment Maintenance and Repair. Equipment maintenance and repair
is a crucial weakness for laundry businesses because of the high costs and
significant operational disruptions involved. Maintaining and fixing
commercial laundry machines is pricey and can quickly eat into profits. When
machines break down, they can’t be used, causing disruption on operations,
leading to finding skilled repair technicians that might be both difficult and
expensive. Sometimes, repairs aren’t possible, necessitating costly
replacements. All these factors combined can strain a laundry business’s
finances and operations.
3. Intense Competition. Intense competition is a significant weakness for
TurboWash because it makes it hard to stand out and attract a loyal
customer base. With many laundromats offering similar services around
Burgos Ext. La Paz, businesses often engage in price wars, which can erode
profit. Intense competition means customers have numerous options, making
it difficult to retain them when competitors are constantly enticing them with
better deals or services. Additionally, differentiation becomes a challenge as
innovative offerings can be easily replicated by other.
Moreover, while TurboWash is situated at Burgos Ext, La Paz, there are several
possible competitors around the area. These includes:
o Laundry Lab Express Washhouse
o New Laundry King
o DAZZLING BUBBLES Laundry Hub
o Laundry Lab
Opportunities
1. Partnership and collaboration: Turbo Wash La Paz should collaborate with
local businesses or apartment complexes for mutually beneficial
partnerships. Since, Turbo Wash is near at the ISAT University, various
apartments and boarding houses they could offer partnerships that gives
discounts for students and residents or joint promotional activities (referrals,
loyalty programs and etc.).
Example:
Skyleigh Apartelle
Berniz Apartment
De Lucila
NJM Aprtment
2. Increase Value-Added Services: Expanding into services beyond basic
laundry (Wash, Dry and Fold), Turbo Wash could also offer dry cleaning,
ironing, or garment repair where it allows them to grow their business and
drive more revenue. They could also offer special services for large items or
delicate fabric care. There is a good technique in building more services.
Interrelated services are like an onion. In laundry, the core service (core of an
onion) is wash – that’s the essential offer. One layer of the onion is drying.
People who wash their clothes need drying services. Other layers can be
folding, pick-up, and delivery. What other layers of the onion (services) could
support the core that would make sense for customers? They should be
creative and make sure they add value.
3. Green Initiatives: Capitalizing on the growing demand for eco-friendly
practices by adopting energy-efficient equipment and promoting
sustainability is a great way to market their laundromat as “green” and
attract environmentally conscious consumers. They could start using energy-
efficient machines and promoting green detergents, appeals to
environmentally conscious customers.
4. Hybrid laundromat- this idea comes down to combining a laundromat with
another business idea to create a two-in-one combo that makes it more
appealing to customers. A few different hybrid laundromat ideas include:
o Laundromat Café
o Laundromat Coffee Shop
o Laundromat Bakery
o Laundromat Convenience Store
The laundry business exists to take the sting out of a necessary chore, and
allowing customers to relax with a drink or a pastry while they wait for their
cycles to finish is a great way to improve the customer experience. This idea
also could open up a larger customer base. Getting more purchases from
existing customers is a great way to increase revenue, and a great hybrid
combination could attract new customers and keep them coming back.
Threats
1. Emerging competitors: The presence of the new competitors or new
established laundry shop entering the market with modern facilities and
innovative services can pose a challenge, as it attracts costumers due to its
convenience, affordable prices and the quality of their service. Especially that
Turbo Wash is near ISAT U, students will choose according to their
preferences.
Other Competitors that exist near Turbo Wash:
o Laundry Lab Express Washhouse
o New Laundry King
o DAZZLING BUBBLES Laundry Hub
o Laundry Lab
2. Technological Disruptions: One of the significant challenges in the laundry
businesses is keeping up with technological advancements. From smart
washing machines to automated dryers, staying updated with the latest
equipment can be daunting. Lack of skilled manpower, compared to the
increasing workload, makes it crucial to adopt new technology and this
existing equipment may lead to a higher maintenance cost. Laundry
businesses must invest in ongoing training for their staff, ensuring they are
well-versed in operating and maintaining the latest laundry technology.
3. Regulatory changes: New regulations or increased taxes can significantly
impact the profitability of a laundry shop like Turbowash. These changes can
lead to higher operational costs, such as increased compliance costs, higher
taxes, higher labor costs, and increased utility costs. These added expenses
can reduce the shop's profit margins and make it more challenging to
compete in the market.
4. Negative Publicity and Reputation Damage: Negative publicity and
reputation damage can significantly impact the Turbowash laundry shop's
business. Negative reviews or social media posts can spread quickly,
deterring potential customers and damaging the shop's reputation. Similarly,
poor customer service or quality issues can lead to negative word-of-mouth,
which can be even more damaging as it spreads through personal
recommendations and referrals. To mitigate these risks, it is crucial for
laundry shops to prioritize excellent customer service, address customer
complaints promptly, and actively monitor their online reputation.
Recommendations
Eco-friendly practices: Implementing eco-friendly practices, such as using
energy-efficient machines and biodegradable detergents, is crucial for
attracting environmentally conscious customers and standing out in a
competitive market. These practices not only reduce carbon footprints and
operational costs, promoting sustainability and financial savings, but also
minimize harmful chemical runoff, benefiting community health. Focusing on
eco-friendly initiatives enhances the brand's reputation, fostering customer
loyalty while addressing growing consumer demand for sustainable services.
Ultimately, these strategies contribute positively to both the environment and
the business's profitability.
Offer additional services: Consider providing complementary services,
such as dry cleaning, ironing, alterations, to meet the diverse needs of the
customers.
Additional Loyalty Program. Offering additional customer loyalty program
like giving free laundry service after a certain number of visits. This could
encourage long-term relationship with the customer.
