Case Name :      J&J Electrical Contractors, Inc.: Remaining Viable in a Highly Competitive Industry

Authors :           Olukemi Sawyerr, Stanley Abraham

Source :             North American Case Research Association (NACRA)

Case ID :            NA0023

Discipline :        Strategy

Case Length :    18 pages

Solution sample availability : YES

Plagiarism : NO (100% Original work)

The J&J Electrical Contractors case is an example of a small regional family business that has found a way to compete against the larger and more comprehensive electrical contractors in the industry and be successful. The company is currently run by a husband-and-wife team, John and Jean Abernathy, with John serving as CEO and Jean as CFO. The Abernathys took the company to 2005 revenues of $5.22 million, a growth of 75.2% over revenues of $2.98 million in 2001. However, despite increasing revenues, profit margins have eroded over the past four years. The case describes the electrical-contracting industry, the type of work done by the firms in the industry and the forces acting in the industry such as the high cost of homes, especially in Southern California, increasing the demand for remodeling and the continued increases in energy costs and metal prices, many of which are critical in performing electrical contracting work. The case ends with the need for the Abernathys to improve the company’s deteriorating profitability and a number of possible future directions the company could take to accomplish that. The case has benefited from extensive interviews and complete access to the company and its principals. Several excerpts from interviews with them give a good account of what it’s like managing a small growing company. The case will challenge students to integrate industry and competitive dynamics with regulatory and market demands to devise a set of worthy strategic alternatives to help revive J&J’s flagging profitability.