Service Corporation International Competition
Now Viewing Service Corporation International's competition in: Funeral Operations (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What types of marketing does the company use? - Advertising in newspapers and Yellow Pages is common.
Does the company appeal to a particular religious denomination? - Many religions have specific death care traditions and requirements.
Who are the company’s competitors? Are the competitors local, regional, or owned by a national consolidator? - The funeral home business is largely local.
Does the company have competition from funeral merchandise stores? - Funeral merchandise stores generate less than 2 percent of industry sales nationally, according to the Casket and Funeral Supply Association.
How does the company distinguish itself from competitors? - Consumers are beginning to comparison shop for funeral services.
How long has the company been in the community? What name recognition does it have? - An established company’s name recognition and community heritage are key barriers to entry for competitors.
What types of additional services and products does the company offer? - Decorator caskets, unusual personalized services, memorial Websites, legal assistance, bereavement counseling, and family archiving are additional services that may appeal to customers and add revenue.
Competitive Landscape
Demand for services is driven mainly by the number of older Americans. The profitability of individual companies depends on sales and marketing and efficient operations, because local demand is relatively fixed. The main advantage of large companies is their ability to share resources (limos and hearses, embalmers, and marketing costs) among clusters of funeral homes. Small operators can compete successfully with national companies because the funeral business is intensely local. The industry is labor-intensive: annual revenue per employee is around $130,000.
Business Challenges
CRITICAL ISSUES
Competition from Low-Cost Cremations - An increasing percentage of funerals involve cremation rather than the more expensive traditional casket and burial. The percentage of funerals with cremation doubled in the past two decades and is expected to increase to 39 percent by 2010, according to the Cremation Association of North America.
Market Growth Depends on Local Mortality Rates - The funeral services industry is largely local, and depends upon local mortality rates. Advances in healthcare and the current age mix of the population indicate that the national mortality rate will be flat for a couple of decades, then rise rapidly due to aging baby boomers. In some retirement markets, the death rate exceeds the birth rate. Currently, about 2.4 million deaths occur in the US each year.
Industries Where Service Corporation International Competes
- Consumer Services
- Death Care Products & Services(primary)
Service Corporation International Industry Codes (SIC & NAICS)
