Business Strategy

Industry Overview and Profitability

The roofing industry is essential for construction and infrastructure maintenance. It experiences steady demand but faces competitive pressures. The industry's profitability is moderate, influenced by competition, material costs, and market demand.

Five Forces Analysis

Force Name	Rating (H/M/L)	Explanation	Impact on Profitability
Threat of New Entrants	Medium	New competitors require significant capital but need to establish reputations.	Increased competition can reduce margins.
Bargaining Power of Suppliers	High	Specialized materials and limited supplier options increase dependency.	High costs reduce profitability.
Bargaining Power of Buyers	Medium	Buyers can negotiate prices, but demand for quality limits their leverage.	Competitive pricing impacts profits.
Threat of Substitutes	Low	Few alternatives to roofing services reduce the substitution risk.	Minimal impact on profitability.
Industry Rivalry	High	Intense competition among established firms drives pricing and service innovation.	Reduces margins but fosters differentiation.

Overall, the roofing industry is moderately profitable due to consistent demand but requires strategic management to mitigate competitive pressures.

Competitive Strategy

Midpoint Roofing Company's differentiation strategy focuses on superior service quality, sustainability, and reliability.

Addressing the Five Forces:

●      Threat of New Entrants: Differentiation through a strong reputation and customer trust creates barriers.

●      Supplier Bargaining Power: Establishing long-term relationships with key suppliers helps mitigate risks.

●      Buyer Bargaining Power: By offering added value (e.g., sustainable materials), Midpoint Roofing reduces price sensitivity.

●      Threat of Substitutes: Innovative roofing solutions and warranties strengthen customer retention.

●      Industry Rivalry: High-quality services and competitive pricing foster customer loyalty, minimizing impact.

Primary Activities in the Value Chain

Midpoint Roofing’s value chain includes inbound logistics (material sourcing), operations (roofing installation and repairs), outbound logistics (service delivery), marketing and sales, and after-sales services (warranties).

Selected Business Processes:

●      Structured Process: Production

The structured process focuses on a step-by-step methodology to standardize workflows during roofing installation and repairs. 

●      Dynamic Process: Sales.                                                                                       

Engages customers through digital advertising and local outreach to drive demand.

Examples of Information Systems (IS)

Midpoint Roofing integrates information systems to streamline processes and enhance customer engagement.

Process	Chosen IS	Explanation
Structured Process	Production Management System	Oversees resource allocation and progress tracking for roofing projects, including managing permits, materials, and scheduling.
Dynamic Process	Customer Relationship IS	​​Tracks interactions with potential clients, supports tailored proposals, and manages follow-ups to secure contracts effectively.

 

These implementations improve customer satisfaction, increase operational efficiency, and differentiate Midpoint Roofing in a competitive market.