This business imports linens from India, Pakistan, and China. The linens are sold to commercial laundries who in turn rent those linens to hospitals and healthcare providers. The business is run virtually from a home office. The true competitive advantage is the quality of linens and the ability to deliver in less than 48 hours. The linens are received and inventoried in 3rd-party warehouses who also handle all fulfillment. An administrator logs all orders and forwards the information to the 3rd party warehouse who does fulfillment. The use of 3rd party warehouses gives the business a very easy path to entering new geographic markets. The virtual operation eliminates overhead that competitors face so with lower overhead, the business can easily match competitors’ pricing while still maintaining strong margins. The market for healthcare linens in the U.S.A. is $2.4 billion and growing faster that the economy. The path to growth is adding to the salesforce and more concerted marketing effort to independent laundries who dominate the industry.
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