Running Head: For the Love of Laundry Internal Analysis 1

For the Love of Laundry Internal Analysis

Professor’s Name

Students’ Name

Institution.

Date.
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Firm Overview

For the love of Laundry (FTLOL), is a social enterprise founded by Melissa power. It’s a

company that produces eco-friendly soaps, the profits gotten from the sales of this product goes

towards Power’s Social mission which is to provide free laundry facilities to the community. The

main vision for the love of Laundry (FTLOL), was to essentially build healthier communities by

providing affordable laundry services to families whose income is low. The company started in

2014 and has assisted more than 800 people to wash their clothes there by saving families

$15000 in costs that would be needed for laundry. Over the past three years the company’s

profits have grown immensely and in the coming year they are projecting $30,000 sales in soaps,

which is a good indication of how well the company is doing (Jane, 2015).

Competitive Advantage

These is the company ability to produce goods and services more efficiently when

compared to its competitors, this will mean that it would have greater profit margins than the

competitors (Bochenek et al, 2014). FTLOL company has several abilities that make it to stand

out amongst the many soap producing companies in London. The main competitive advantages it

has is environmentally friendly products and positive social impact.

Environmentally Friendly Products

One of the advantages FTLOL has over its competitors is the use of environmentally

friendly products. The soap that FTLOL produces contains no harmful chemical or additives and

it’s naturally produced using Power’s own formulae. According to Split he found out that

scented laundry detergents were mostly responsible for the release of harmful compounds to the
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air. Most of the competitors produce detergents that are made by chemicals which is not the case

to FTLOL company. This then gives the company an edge over competitors.

Positive Social Impact

The other competitive advantage of FTLOL is that it was giving back to the community

through the profits it got. Many studies have shown that people experience satisfaction when

they are able to give back to society. So, by the company hosting laundry services to enable low-

income families to be clean offered a sense of gratification for FTLOL’S clients something

which other companies were not doing.

V.R.I.N.E Analysis

Financial Resources

The first analysis based on the VRIO framework is the company’s financial position. We

can use FTLOL’S financial resources to assess the firm potential growth in the future. In the year

2016 FTLOL had $22000 in sales and $30000 were projected in the year 2017. Over the years

the company has kept Its expenses minimal because of the startup costs associated with this

specific companies. Based on the financial position and financial resources the firm has a

positive future since they are projecting growth in terms of sales and profits in the upcoming

years.

Production and Supply chain

Production is done manually using Power’s formulae. Most of the production is done

locally which greatly assist in reducing production cost associated with producing soaps. FTLOL

strong competitive advantage is that it has an efficient supply chain. It advertises it products
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using various online platforms and other retail stores something which will enable the firm to

enjoy greater profitability because of the increase of sales using the various platforms.

Production Innovation

Soaps are made naturally using Power’s formulae, something which has made them to

offer environmentally friendly products to the society giving them a comparative advantage over

the other companies. Power has invested heavily in innovating new products to the market such

as production of new detergents and dryer balls. This will greatly assist in increasing sales for the

upcoming years.

V.R.I.N.E TABLE

FTLOL Valuable Rare Imitable Non- Exploitable

Substitutable

Financial Yes Yes Yes Yes Realized Sustainable

Resources Competitive advantage

Production Yes Yes Yes Yes Realized Sustainable

and supply Competitive advantage

chain

Innovation Yes Yes Yes Yes Realized Temporary

(production) Competitive advantage

FTLOL SWOT Analysis

Strengths  One of the major strengths of their

soaps is that it’s environmentally

friendly meaning it has no harmful

chemicals

 Unique compared to other soaps in the

market.

 Has got a social impact. Profits Is

channeled into a good course.

 Affordable Price

Weaknesses  Limited stocks because of a few

production team

 Not fully expanded to other regions.

Opportunities  Most research has shown that

many people have an interest in

natural soaps and are willing to

buy meaning that there is a market

for the company.

Threats  Limited financial resources

 Competition from emerging similar

firms.

References

Bochenek, M., & Pomaskow, J. (2014). THE USE OF THE BRAND TO BUILD A

COMPETITIVE ADVANTAGE OF CONTEMPORARY COMPANIES. Ekonomia i

Prawo, 13(2), 285. doi:10.12775/eip.2014.021

Spitz, L. (2004). The History of Soaps and Detergents. Sodeopec.

doi:10.1201/9781439822326.ch1

Jane Sims, “For the Love of Laundry,” London Free Press, May 31, 2015, accessed August 23,

2017, www.lfpress.com/2015/05/31/social-enterprise-founded-by-former-single-mom-

allows-less-fortunate-individuals-to-do-their- laundry-for-free.