2 Responses - U3DB

Response 1:

 

March / 06 / 2018

Two competitors in the market:

After many hours of meeting with Mike and Tiffany, we have realized that ANEES Upholstery and Pacific Hospitality Design Inc are the two international competitors. For the past years these two has built a repetition globally.

ANEES Upholstery as we all may know is an establishment that is well known for it unique taste and style in producing some of the finest furniture globally. (ANEES Upholstery, 2012).

Pacific Hospitality Design Inc, is consider one of the classic furniture designer globally, they are top of the line competitor with in the furniture industry, they produce all type of furniture from home to offices as well décor and costume furnishing. (pacific hospitality design, 2012).

SWOT ANALYSIS

SWOT- (ANEES Upholstery)

Strength – well known traditional establishment that produces extraordinary custom furniture, due to the fact that this business has been around for a lengthy time, it has a large sum of capital to explore and expand the organization.

Weakness – because of their tradition of producing or manufacturing custom furniture, prices of the furniture are very high which of course decrease the sale volumes as well as production.

Opportunities – because of the large sum of capital there is an opportunity of exploring some new channels of distribution globally. Social media and online marketing is a great opportunity for the business to established.

Threats – due to the fact that there is mass new comer into the furniture market, costumer will shift to lower prices due to economies scale. As we all know there is always a serious competitor with in the market.

SWOT – Pacific Hospitality Design Inc

Strength –  well known top of the line furniture designs, create luxury furnishing style to lure customer. Because of its luxury style, the company has created a niche in manufacturing custom furniture and has a solid strategic market segmentation that include home offices, small business and corporations.

Weaknesses – the company has not taking a large portion of the market share, with new technology presence becoming very essential in relation to advertisement, other firm are taking advantage of this and this might be a challenge.

Opportunity – create and avenue for middle class and explore the option to sell online through social media. Explore a new channel of distribution.

Threats – organization with new market strategy will move up the ladder and established globally.

Why they are direct competitors

I believe that both of the business mention previously are direct competitors due to the fact that they have established themselves in the furniture business for a long period of time in term of luxury and traditional style.

What is their competitive advantage

As we all may know, when it comes to manufacturing custom furniture, you are most likely venturing into a niche market which is increasing on a consistent basic. Being an organization that has position itself for the past years with in the market has contribute towards the successful growth of the business. Because the products are built traditionally, the price tag are high as compare to that of the mass production that does not engage in custom and traditional style. Because of this business strategy, they are advantageous in that they price the product higher that give them a better margin.

Corporative Strategy

As a new business, I am strategizing the opportunity to break through the furniture market, so I am convinced there is room to engage on my competitors in relation to corporative strategies and merge or established some form of join venture in term of producing luxurious and traditional furniture, that will give me an opportunity to break through the furniture market. In this light we will share SWOT analysis to advance further.

Competitive market profile

I am convinced that competitive market profile enables a business to understand the unique behavior or characteristics of your group of customers, it reveals a complete picture whom you are doing business with and what are the attribute. nevertheless, a good profile will enable business owners to separate prospect from those who aren’t interested in your product. (marketing guides 2018). So, in this light, I will focus on low price which is providing lower price than it can be found in the market place. Low price base on a high volume with low margin product to bring cost leadership as its competitive advantage.

Balanced Scorecard

When we engage the thought concerning balanced scorecard, it is a performance that is used in business in relation to strategic management to recognize and ameliorate various internal function of a business and their resulting external outcome.

Response 2:

 

Top 2 Global Competitors

 Our top two global competitors in the furniture industry are IKEA and Williams-Sonoma. IKEA is a multi-product company, selling décor, storage, cabinets, appliances, and whole home furniture with over 1000 suppliers in 51 countries. Williams-Sonoma is also a multi-channel retailer with third party sellers. They have a global market but also have a very strong domestic market with over 600 stores in over 43 states (Technavio, 2017).

SWOT Analysis on IKEA and Williams-Sonoma

 IKEA’s strengths begin with being the world’s largest furniture retailer, they have achieved this by having attractive, quality furniture at a low price. IKEA hit some brand image issues in 2013 and 2013 that have proven to be a weakness for them. Opportunities are viewed at IKEA as needing to increase their presence in developing countries and adding premium product options to their portfolio. Threats are seen as a decline in consumer income and the emerging organizations from Asia Dudovisky, 2017).

 Williams-Sonoma sees its strengths as being a leader in upper-class, higher-end products and consumers. Weaknesses for the organization is that other organizations offer similar products at lower process. Williams-Sonoma has a large online ordering site, and they have ample opportunity to expand their stores for in-person sales. A major threat for this company is the tarnishing of the brand image. Any negativity could have a great impact on sales and profit (SWOT, n.d).

Why They are Competition

 IKEA and Williams-Sonoma are competition for our organization because they are established globally and have had great success. Their products are of quality and fit the needs and wants of the consumers. While IKEA offers low prices, Williams-Sonoma offers luxury pricing. Pricing strategy is what will attract a certain target audience and IKEA and Williams-Sonoma have done an amazing job at this. Both of these organizations have a target population that we want to reach.

IKEA and Williams-Sonoma’s Competitive Advantages

 IKEA’s competitive advantages include low pricing, diverse products, and international markets (Dudovisky, 2017). Williams-Sonoma has competitive advantage with the strength of their multiple brands and their very successful eCommerce platform (Suredividend.com, 2017).

Cooperative Strategy?

 Forming a cooperative strategy or alliance with IKEA or Williams-Sonoma would not be a bad idea. Both of these organizations have successful online platforms, and both offer a variety of furniture products. Teaming up with an already globally successful organization can help with brand awareness, brand loyalty, resources, market knowledge and skills or assets (University of Birmingham, n.d). An agreement with IKEA may consist of featuring our products or a collaboration of products in their stores. Williams-Sonoma can also feature our products or a collaboration of products on their website.

Competitive Market Strategy

 In order to build a competitive market strategy, we will first build a strong brand and loyal customer base by providing quality products at a reasonable market price. Utilizing an online selling point may encourage consumers to visit stores and make additional purchases. Pricing and product diversity will factor into the wants and needs of market areas.

Balanced Scorecard

 A scorecard is “a reporting approach that aligns market outcomes with business objectives. The Balanced Scorecard by Kaplan and Norton includes financial, internal processes, customer, and learning and growth sections (Genroe.com, n.d). This tool is a way to evaluate internal functions of the organization that result in external outcomes by analyzing each of the four areas. The scorecard is used to develop initiatives and objectives. This tool highlights good behaviors and identify behaviors that may be hindering performance (Investopedia, 2015).