A market analysis of single-house renovation services in Finland : a customer-oriented service and business development
Helppolainen, Jouni (2013)
Helppolainen, Jouni
Lahden ammattikorkeakoulu
2013
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2013112918964
https://urn.fi/URN:NBN:fi:amk-2013112918964
Tiivistelmä
Finnish privatly owned residential single-house renovations are forecasted to increase heavily in the following decades. A major part of single-houses have been built between 1940-1990, this are now in need of renovation. Even though the depth of repairs is increasing, companies that provide such renovation services to customers are not clearly addressing the main issues behind this situation.
The purpose of the study was to investigate the connection between the market potential as well as the needs and challenges of the consumers. One target was to create a new service development-process model for business renovation services. Hence, the literature review combines service and business development processes into one process.
The consumer study was applied in this research. The data was collected from private house owners by a web-questionnaire. The analysis and results of the answers supported the existing knowledge and status of the renovation market. Existing service concepts operate rather well, but those need to be developed to meet up with the consumer’s future requirements. The increasing competition in the renovation market will challenge companies to find out new ways to sustain their profitability and market shares in the future.
According to the research, companies should know their customers more closely in the service business. Customers need to be taken in consideration with service development processes among company organisations. Companies need to offer more value for their customers; customers aren’t eager to pay any extra to get services. At the same time, companies must remember to create more profit for themselves. In addition, new service concepts must be designed in such way that customers understand the benefits and value of their own activities; the new value proposition needs to be displayed in a more attractive manner to the eyes of customers. Also, new developed service concepts need to be fitted in the existing company strategies, resources and skills; extra employee costs aren’t usually the solution for creating more value.
The purpose of the study was to investigate the connection between the market potential as well as the needs and challenges of the consumers. One target was to create a new service development-process model for business renovation services. Hence, the literature review combines service and business development processes into one process.
The consumer study was applied in this research. The data was collected from private house owners by a web-questionnaire. The analysis and results of the answers supported the existing knowledge and status of the renovation market. Existing service concepts operate rather well, but those need to be developed to meet up with the consumer’s future requirements. The increasing competition in the renovation market will challenge companies to find out new ways to sustain their profitability and market shares in the future.
According to the research, companies should know their customers more closely in the service business. Customers need to be taken in consideration with service development processes among company organisations. Companies need to offer more value for their customers; customers aren’t eager to pay any extra to get services. At the same time, companies must remember to create more profit for themselves. In addition, new service concepts must be designed in such way that customers understand the benefits and value of their own activities; the new value proposition needs to be displayed in a more attractive manner to the eyes of customers. Also, new developed service concepts need to be fitted in the existing company strategies, resources and skills; extra employee costs aren’t usually the solution for creating more value.