BY: Miguel A. Virgen (August 27, 2017)
Industry description and outlook
The paralegal service industry in California has grown in size and become highly competitive with many players. In California, the paralegal services industry is estimated to have a growth rate of 17% (Paralegal411, n.d). It is expected that California will take a large share of the 46,900 paralegal service opportunities, which will be created by the year 2022 in the entire United States of America. It is vital to observe the fact that California had 30,060 paralegals employed by the year 2014 (Paralegal411, n.d). The general growth and expansion of the paralegal service industry and its established existence in California make many players be bullish about the future business prospects.
Notably, the largest groups of clients for paralegal services in California are the corporate firms and the immigrants. The number of corporate firms is increasing in California hence bringing positive indicators about the future demand level for the paralegal services. This prospect has made many law firms to start diversifying their departments with the aim exploiting this lucrative opportunity. A lot of the business corporations are based in San Francisco (Paralegal411, n.d). Moreover, this area is known for its good prices charged from the clients because of the booming paralegal service business owing to increasing number of corporations.
The paralegal industry is an established one, with a substantial share of the United States GDP. The strength of this industry is that it is not affected by economic and market shocks. Therefore, as most industries get slowed down by economic difficulties caused by the oil prices and negative movements of the interest rates, the paralegal services sector does not feel any fluctuations.
The target market focused by MVLUX is the corporate business clients. These business clients come to legal aid for various court cases and other issues such as writing business contract agreements, drafting amendments for corporate changes, and filing the paperwork to incorporate business entities for entrepreneurs. The corporate clients in California require paralegal services during the making of business contracts. However, this service is quite rare in San Francisco hence their demand is not satisfied and the decision to open an office in San Francisco would carry a low risk and high potential for profitability in regards to attaining clients that are starting up their own business and need the help to draft the documents needed with the Secretary of State and Internal Revenue Services.
Size of the primary target market
The prospects for the corporate clients are positive considering the rise of business firms and more entrepreneurs migrating to San Francisco to develop their start-up. Therefore, the size of the primary corporate target market is quite large and growing at a high rate (Omachonu, Haar & Berg, 2016). Corporate clients spend huge sums of money on paying paralegal fees considering the fact that life in San Francisco is quite expensive. California is rated among the highest paying places for the paralegal professionals and the forecasted market growth for the corporate is about 12%.
How much market share can be gained?
MVLUX projects to gain at least 25% of the corporate target market in San Francisco. Moreover, with a rich network of corporate prospects in the San Francisco area puts MVLUX at an upper hand of gaining a significant share of the business field market (Paralegal411, n.d). The reason for the high focus on the corporate clients is because the service prices for this market segment are high., hence making it be a lucrative area (Lewis & Brown, 2012). A window of opportunity would be setting up an office in San Francisco. It is important to observe the fact that lack of quality personnel to recruit in MVLUX is the major barrier to the California market.
Lewis, M. A., & Brown, A. D. (2012). How different is professional service operations management?. Journal of Operations Management, 30(1), 1-11.
Omachonu, V., Haar, J., & Berg, D. (2016). Assessing quality in professional services: a framework for gap analysis. International Journal of Transitions and Innovation Systems, 5(1), 4-19.
Paralegal411 (n.d). California Paralegal Career Guide. Available at https://www.paralegal411.org/careers/california/.
Schmidt, S. J. (2016). Marketing the law firm: business development techniques. Law Journal Press.
Trilling, F. L. (1998). The Strategic Application of Business Methods to the Practice of Law. Washburn LJ, 38, 13.