Case scenario-Competitor analysis

You’ll now look at a competitor of New Fire Ltd.

Burnace and Flast is a much bigger company than New Fire and operates just in the furnace sector of the market. It designs and builds furnaces as well as refurbishing and maintaining them. Design and build doesn’t have to cope with the seasonal issues faced by the refurbishment market. This accounts for 80 per cent of the company’s work, while refurbishment and maintenance accounts for just 20 per cent. Due to the large-scale capital nature of its core market it can demand pre-payment on large projects. Burnace and Flast employs world-class project managers and has a technically competent sales team. However, 80 per cent of the direct work is sub-contracted. New Fire is one of its subcontractors. Although based in the UK Burnace and Flast has an international reputation, which has protected it from some of the commercial and seasonal issues in the UK. The current-year comparative financial analysis is shown below.