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Competition creates specialization


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Old 08-21-2006, 07:48 PM
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Here is an article talking about how more competition forces businesses to become specialized to survive. Have you found yourself specializing more as you are in business longer?

Competition creates specialization - Along with the industry, the number of landscape businesses have grown as well.

"There are essentially very low barriers to entry in the business," O'Donnell said. "Anyone who mows lawns or any handyman can become a landscaper. There's infinite competition in the business."

The intense competition in the business has generated even necessitated specialization, said Bill Prysi, owner of Conceptus.

"The boom forces specialization. You have to have architects that plan and design something, someone else installs it and a third person maintains it," Prysi said. "No one person can do it all."

Prysi and others such as Chad Elkins, co-owner of Genus Loci studio only do design. Pelletier and other firms like his install the features. Although Pelletier's company does design landscapes, he and other similar companies don't do any maintenance work. That falls to a different category of companies.
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Old 08-22-2006, 01:51 PM
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I have found a little bit of both works.

For example, if you want to charge top dollar, yet do things a low cost to you the business owner, specializing in one service is great.

But for the customers that are looking for an all in one service company to handle everything, it's good sometimes to be very broad. But I have found out that you can not always charge top dollar for those type of services when grouped all together.
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