Daimaru Competition
Now Viewing Daimaru's competition in: Architects Offices
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How does the firm find new customers? - Personal contacts and referrals are important sources of business.
How much of the firm's work is for repeat clients? - In small firms this can be over 50 percent.
How much of the firm's work is from selective competition? - Big firms often get more than 50 percent of their business this way; smaller firms usually less.
Does the firm collaborate with other firms to bid on projects? - Small firms often collaborate on big projects.
Does the firm advertise? - Firms may advertise in specialized trade journals.
How does the firm estimate pricing for a particular project? - Many firms use specialized computer programs to estimate costs.
Competitive Landscape
Demand for architects' services depends heavily on the volume of residential and commercial construction. Because most costs are fixed, profitability depends on a constant inflow of work. Architectural firms are often small because there are few economies of scale in the industry: architectural design can be done as well, and for the same cost, by a small or large company.
Business Challenges
CRITICAL ISSUES
Dependence on Construction Activity - The industry greatly depends on the amount of building construction in the US, which often changes in multi-year cycles. The value of new nonresidential construction in the US increased 54 percent from 1995 to 2000, then fell 20 percent during the 2001 recession. Construction rebounded but fell again during the late 2000s recession. Demand in specific segments, like schools or office buildings, can be even more volatile.
Dependence on Skilled Labor - Many architectural firms depend heavily on the reputation of a single partner and on personnel trained to operate various CAD systems. Because design skills are also in demand in other industries, many firms have trouble finding and keeping technical and design staff. Because of the difficulty of finding skilled workers, firms often keep all workers even when business is slow.
Industries Where Daimaru Competes
- Retail
- Department Stores(primary)
- Apparel & Accessories Retail
- Construction
- Construction & Design Services
- Financial Services
