Table of Contents
1.1 Company Overview.
1.2 Competitive advantages of the businesses.
1.3 Assess the opportunities available to CityLink Limos Ltd.
1.4 Evaluate the opportunities for growth of CityLink Limos Ltd by applying growth Ansoff’s matrix
1.5 Assess the potential sources of funding available to CityLink Limos Ltd and discuss the benefits and drawbacks of each source.
1.6 Provide a series of recommendations for CityLink Limos Ltd.
SME stands for Small and Medium Enterprise. The SME sectors have a great impact on the development of the economic condition of a country, especially in the UK. Susman (2017) mentioned that SME firms are those firms that commencing their business operation in a small or medium area. The number of employees in the SME Company is not below 205 and the profit of the firm is 50 million pounds. The main aim of the report is to prepare a business plan for improving the growth of SME sectors.
In this report, an SME company has selected the name “City Link Limos Ltd”. This paper has four tasks that include the evaluation of growth opportunities. The financing and investing activities are mentioned in part 2. In the 3rd part, business planning is mentioned that includes business mission, vision, aims, and objectives, and budgets. The fourth section of the report may recommend various exits ways for the business.
1.1 Company Overview
In this report, an SME company has selected the name “CityLink Limos Ltd”. CityLink Limos Ltd is the professional limousine hires company available in Luton, Watford, Herts, Enfield, St Albans, and surrounding areas. The main address of the firm is “49 Slades Hill, Enfield EN2 7DN, UK”. The main services of CityLink Limos Ltd include wedding services, children’s parties, nights out, stag & hen, school prom, birthday, airport services. They provide only a transport services facility to the above programs.
CityLink Limos Ltd is a popular and largest transport hire company in the UK. This firm always tries to attract potential passengers thorough offering attractive travel services. This company has an attractive website by which customers can easily order their transport necessity and know the information about the services of CityLink Limos Ltd. The main competitors of CityLink Limos Ltd are Badger & Fox, Elite London Events, Amore Weddings & Events Planners, and Lindy Dowling Wedding & Event Planners (City Links Limo, 2019).
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1.2 Competitive advantages of the businesses
It is the day of the competition. Each firm competes with others for them every moment of time. Therefore, Competitive advantage is a very important term in the business field. It can be defined as the favorable and attractive position of a firm in the marketplace. Without a competitive advantage, the firm can’t be maintained its profitability and liquidity in the market (McGrath, 2016). In the case of City Link Limos, competitive advantage largely affects profitability and liquidity position. There is a positive relationship between competitive advantage and growth of the firm because the higher the competitive advantage, the higher the growth of the firm.
On the other hand, the lower the competitive advantage, the lower the growth of the firm. As Godin (2016) notes, the competitive advantage of the firm depends on the product quality, business performance, competition level, and the customers’ satisfaction. The implementation of new and digital technology also affects the competitive advantage of small and medium firms.
Porter’s five forces analysis
The level of competitive advantage of a firm can be evaluated by analyzing the Porter Five Forces. These are described below:
Bargaining power of suppliers: This factor affects the competitive advantages of small and medium firms. It indicates the power of suppliers with the firm at the time of supplying input to the firm (Michaux, 2016). Small and medium firms like CityLink Limos Ltd have less bargaining power with suppliers that increase the rate of input.
Bargaining power of buyers: This factor affects the competitive advantage of small and medium firms (Michaux, 2016). It is very identical to the bargaining power of suppliers. It is not easy for getting identical goods and products if the bargaining power of buyers is low. CityLink Limos Ltd has the opportunity for the buyers to Bargain.
The threat of new entrants: This factor affects the competitive advantage of small and medium firms (Michaux, 2016). It indicates the barriers that are faced by new companies to enter the market. CityLink Limos Ltd also faces the threat of new competitors.
The threat of substitute products: it is the opportunity for the customers to select one product instead of another (Michaux, 2016). It enhances customers’ power to buy any products. Due to substitute products, there is an existence of a perfectly competitive market. Therefore, small firms like CityLink Limos Ltd face the threat of substitute products.
Competitive rivalry: it is the potential conflicts among the firms in a competition that also affect the competitive advantage of the small and medium firms…………………….