In 2011 Rich Piltch, founder and CEO of ARS, a full-service restoration and reconstruction company based in New England, and the owners of three other restoration and reconstruction companies founded Restoration Affiliates (RA), a network of independent, full-service disaster restoration companies. With 21 members by the fall of 2013, RA represented the attempt of smaller regional restoration and reconstruction companies to compete against the big national players by providing a national service solution for their customers. But while forming a national affiliation gave members the geographic reach they lacked when operating on their own, Piltch was well aware that there were many issues to resolve in order to ensure RA’s long-term success.
To illustrate core issues in corporate strategy — how to achieve a high level of coordination and initiative within a diversified entity; demonstrate the inherent challenges in building a network rather than a firm even when all involved have a common objective; and, evaluate RA’s strategy in creating value for customers and capturing value for its members.
COULD BE TAUGHT IN THE FOLLOWING COURSE(S)
strategy, operations management
*An educator (non-watermarked) copy of this case is available only to individuals who hold teaching positions at academic institutions and want to use the case in a course.