Sharing the roads: keeping up with the new legal traffic

With the emergence of alternative business structures opening the door for large, established brands to provide legal services, how can smaller, more traditional firms compete? asks Michael Gough
There are many who firmly believe that consumers do not want to get their will or divorce from the local supermarket, a breakdown recovery service, or, even less, a logistics company famous for its iconic red and green lorries. There are concerns that these new players have a 'pile them high, sell them fast' approach that undermines the value of client care and quality of service. However, there is no debating the fact that alternative business structures (ABSs) are accelerating change in the legal sector at an unprecedented rate - these new entrants are exactly what ABSs were set up to deliver. So, are the criticisms fair and reasonable? And, as the juggernauts of companies such as the Stobart Group grow in their potential to dominate the legal landscape, is there a danger of smaller firms being forced ?off the roads?
CONSUMER PERSPECTIVE
Let's start by taking a step back to look at this from the consumer's perspective. The value of brands ?in legal services is thought to be a contentious ?one, but having run a branding agency for 14 ?years, I'm interested in how a company can be positioned to make the most of their authentically competitive advantage.
The Stobart Group is recognised as a UK super brand, based on independent research taken from the opinions of thousands of British consumers, marketing experts and business professionals. According to the 2013 Superbrand report: "the iconic 'Eddie Stobart' name is one of the brand's greatest strengths. Highly competitive pricing and renowned levels of customer service and efficiency, combined with 95% brand recognition throughout the UK, have ensured that Eddie Stobart is not only keeping pace but expanding and increasing in profitability."
The company is listed on the London Stock Exchange and in the last financial year had pre-tax profits of £36m, up 23 per cent. Stobart Transport and Distribution is trusted to deliver over 150,000 containers a year, Stobart Air to manage Southend Airport, and Stobart Infrastructure and Civils to maintain rail networks. No business expands its brand without carefully considering the risk of overextending and damaging their core business. So it's extremely unlikely that Stobart's legal offering will fail to deliver to the same high standards of quality, reliability and distinction; its shareholders wouldn't stand for anything less.
With a reported third of the UK's 12,500 self-employed barristers having already sought instruction from them, Stobart Barristers, and their newly born sibling, One Legal Ltd, are likely to become significant players in the supply of legal services. As these new ventures enter the market they have captive audiences to work with, making use of their existing client relationships - the legal challenges encountered by transport and haulage will no doubt keep Stobart's new legal business very busy in the short term.



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