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The strategic choice of a niche architecture firm is to have deep expertise in one building type. The central varying choices are to hire experienced professionals in a particular niche, to locate the office in an area with more opportunities, and to use best software for the budget. The unique choice is to speak and write for client groups.
Hiring staff who have experience in the niche leads to positive consequences such as using their connections to get new projects, and satisfying clients’ needs of project type expertise. However, there is a risk of staff taking away the clients, so this firm type also needs strong employee retention policies through a reinforcing choice. Locating the office in the area with more opportunities will obviously lead to having more projects as well as to finding niche experts to hire. A laboratory is an example of a niche building type and firms that have expertise designing laboratories should locate near universities and research centers. It will enable them to also fulfill the unique choice of speaking and writing to client groups and be published in technical journals to get reputation and thus get new projects. Obviously, being in the same geographical area gives a niche firm access to local clients. The reputation of the area will eventually spread to other parts of the world, and clients from the outside will seek help from niche experts located in the area of high opportunities for the building type.
The virtuous cycle consequences resulting from making the central and reinforcing choices in this niche lead to gaining better reputation and more projects. This leads to more revenue and profit. As a firm’s reputation grows and the expertise increases the clients’ risk of the building not working properly is lowered. This leads to less elasticity in demand, allowing this firm type to raise their prices for better quality service and increase profits.
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