Motivations and achievements

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Mr Kuldip Singh opened up a small business in Smethwick, West Midlands in the summer of 1998. However, this was not an unfamiliar market or type of work for him. Four years prior to opening up his own business he was a partner in the business ‘M.K Textiles’ until he decided to go solo. There he gained experience about the work and got to know people (potential customers) and eventually decided to open up his own business without any help.

In the summer of 1994, sales were working on a loss but in the winter of the same year the business picked up and Kuldip decided that his work was definitely seasonal. Although between 1998 and the end of 1999 business was going steady and a profit was being made, Kuldip was not satisfied because in the summer the company was never doing that well. As a result he decided to carry out market research to see which product was not seasonal.

From the results from the research, Kuldip came to a solution that purchasing an embroidery machine would be the answer. He eventually purchased it and, up to date, it has proved to be a phenomenal asset to the company. In the year 2000, Midland Quilters became a limited company. Up to the company has been performing excellently and the future looks bright for Kuldip Singh.The business is in an established market with many competitors. MQL is a fairly large company that has grown rapidly over recent years and it is now one of the leading quilting manufacturing company’s in the Midlands. It employs about 30 workers and is situated in Smethwick, West Midlands.

At the moment the company only operates in the Midlands but the proprietor is considering expansion to other parts of the company. His objectives for the business, apart from maximisation of profits, is to make MQL a large recognisable company with a good reputation. He feels that there are three steps that he needs to take. Firstly, to expand to other parts of the England. Secondly, expands to all parts of the England and finally, begin exporting goods to other parts of Europe. However, this process will take a long time.

The Market

The quilting and manufacturing market in which MQL operates in is an established one as it has been running for many years. However, the amount of people entering the market does seem to be levelling off. A few years ago, there were many people entering the market and as a result the market was growing. However, in recent years, there have not been many people prepared to enter the market. I went around and asked a few owners of businesses in the market and they all seem to agree that there probably wont be a large amount of people entering the market.

Most young people nowadays tend to go on the computers side and not the quilting and manufacturing side. On the whole there does not seem to be a very big future in the market once the current crop of company’s decide to stop as many owners will find that they cannot pass it on to their children as they are not prepared to do it. On the bright side the market is going pretty well at the moment due to there being many competitors.

In the market, you will very rarely find one-off customers, there is a lot of loyalty in the market as customers tend to stick to their own suppliers as long as the goods produced are of good quality. If the goods are not up to the standard required then customers will find a new supplier mainly through ‘word of mouth’ and not investigation of the quality of the goods and service.

The Competitors

MQL has many competitors in the market and that means that quality of the goods and service must be high if they want to survive in the market. MQL have seen many competitors fail in the market due to lack of quality and due to the fact that they were unable to compete with other established rivals like MQL. Due to the level of competition being great, MQL must keep a close eye on all its rivals to monitor any activities that they do to try and get customers. For example, price cuts, promotional activities etc. If any rivals do any marketing activities then MQL must act accordingly to keep customers.

The majority of MQL’s rivals are situated extremely close to each other- in Smethwick. This would make it easier for company’s to monitor each others progress. This increased competition is good news for customers and for the past 3 or 4 years, MQL have managed to beat off rivals and attract customers and gain a good reputation which has seen them emerge as an established company. For the past 2 years, there has only been approximately 2 newcomers in the market apart from that the company’s competing have been the same which means this competition has become more and more fierce.

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