Reference no: EM133446623

Hangers vs. P&G Case

FOUNDED in 2004, Hangers Cleaners of Kansas City, Mo., was started as an environmentally-safe dry cleaner. It uses colorless, odorless liquid carbon dioxide instead of the aggressive chemicals applied at traditional dry cleaners. It has 35 employees and 2009 revenue of $1.6 million. And then, in 2008, the MNC Procter & Gamble opened an eco-friendly dry cleaner about 1.5 miles from Hangers' headquarters. Using Kansas City as a test market, P&G offered drive-through service, an on-site tailor and traditional "wet" cleaning, as well. "They're spending tons of money marketing and undercutting price," says Mr. Runyan, founder of Hangers. "How do we overcome the gorilla down the road?"

Background

While Mr. Runyan's business plan had called for 12 to 14 storefronts and drive-through counters throughout the city, pick-up-and-delivery vans emerged as Hangers' most effective sales channel. At a storefront, customers might forget to retrieve garments, and Mr. Runyan might never get paid. His six vans, however, picked up and delivered clothes in waterproof bags from patrons' porches or garages twice a week. Upon delivery, Mr. Runyan immediately charged his customers' credit cards. He didn't charge extra for the service, but he said, "It's so much less expensive to roll a van." It's one more errand people don't have to run."

However, P&G's competing new service in Kansas City was an unexpected event. Clearly, it was the main challenge facing Hangers, making it necessary to differentiate the local firm from all other competition especially P&G.

1) Propose a vision statement for this company

2) Propose a mission statement for this company.

3) Perform an external audit and construct a CPM +EFE matrix

4) Perform an internal audit and construct IFE matrix.