Supportworks’ shifting ground in the foundation repair industry: imitation and consolidation

Research methodology

The authors conducted research using the following sources: Primary data collection – interviews with individuals at Supportworks and secondary sources such as IBIS World, Mergent Online, trade magazines and websites. In addition, the authors successfully piloted the case with more than 200 undergraduate students enrolled in a business and corporate strategy course.

Case overview/synopsis

Foundation Supportworks, a pioneer in the US residential foundation repair industry, built its success on an innovative business-to-business dealership model. Through exclusive dealer partnerships, proprietary products and comprehensive business support services, Supportworks helped independent contractors grow their businesses while creating a differentiated position within a fragmented industry.

The company’s success, however, attracted intense competition. Groundworks, a private equity-backed rival, has imitated many elements of Supportworks’ business model, from its products and dealer support systems to its branding, while simultaneously consolidating the industry by acquiring independent contractors, including several former Supportworks dealers. At the same time, broader environmental and industry forces such as labor shortages, rising operating costs, changing homeowner demographics, and increasing consolidation continue to reshape the competitive landscape.

President Amanda Harrington faces several strategic questions:

The case guides students through an integrated strategic management process by applying external (PESTEL), internal (VRIO) and competitive positioning (Strategy Canvas/Blue Ocean) analyses before developing strategically grounded recommendations. Designed using a modular approach, the case allows instructors to emphasize different analytical frameworks depending on course objectives, course sequencing and student experience.

Complexity academic level

This case is best suited for a class in strategic management at either the undergraduate or graduate levels. While the case can be used to teach both the external and internal frameworks, the direct imitation of Supportworks’ value proposition makes this an ideal case for developing and refining students’ ability to conduct internal analyses and interpret findings (i.e. VRIO analysis). Instructors will also find that the case can be used to explore the effects of a long-term (Supportworks) vs short-term (Groundworks) strategic orientation on a company’s time horizon, strategic goals and decision-making.

This case was intentionally designed using a modular approach, allowing instructors to emphasize different theoretical perspectives depending on course objectives and where the case is positioned within the curriculum. For example, instructors introducing strategic management may focus primarily on external (PESTEL) and internal (VRIO) analyses, while those using the case later in the semester may devote greater attention to strategic positioning and formulation through the Strategy Canvas, Blue Ocean Strategy and strategic recommendations. Consequently, the case does not require every framework to be covered in a single class session. Rather, the analytical frameworks are presented as complementary lenses that instructors can selectively use to achieve different learning objectives. Additional guidance on alternative teaching approaches is provided in the Teaching Strategy section.