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Week 3

According to Stewart,2016 “Luxury Furniture Market is expected to garner $27.01 billion by 2020, registering a CAGR of 4.1% during the forecast period 2015-2020” (para. 3). It is important for the company to investigate and know well its top competitors (Stewart, 2016). For this analysis the company has looked at the global market within Germany and the top two signal manufactures within the country. The top two market-place competitor companies are IKEA and Dänisches Bettenlager. Dänisches Bettenlager is by far gaining momentum with the global marketplace and IKEA remains the biggest marketplace contender for retail and furniture within Germany (Bellini, 2017).

For the company to understand why these are the two top competing companies, a SWOT analysis will capture competitive information to ensure the company understand how to gain a competitive advantage. It has been studied that the company have to analyze the strength, weakness, opportunities and threats for each competing company.

IKEA-SWOT

Strengths

Customer satisfaction

Customization

Vast Global Expansion

Well organized sector online retailing

Well Established Targeted Audience

Kit and Assemble Furniture

Large inventory by warehouse design (Business Case Study, 2015-2018).

Weakness

Rapid growth of proportions and measure of its global business can reduce quality of products standards

Lack of legislation controlling work conditions in some countries

A weak linking in IKEA's supply system, persuading purchaser outlooks of IKEA's goods (Business Case Study, 2015-2018).

Opportunities

Growing demands worldwide for greener products

Interest for diminished water utilization and lower carbon footprint (Business Case Study, 2015-2018).

Threats

Social patterns, for example, the reduction in first time purchasers entering the lodging market.

Marketplace controls: additional competitors joining furniture markets.

(Business Case Study, 2015-2018).

Dänisches Bettenlager SWOT

Strengths

Customization

Marketplace expansion throughout Germany-13 retail furniture stores

Online footprint

(Bellini, 2017).

Weakness

Lack of Skilled workers

Increasing cost of raw materials (Bellini, 2017).

Opportunities

Growing demands worldwide for greener products

Optimizing expensive commercial space. (Bellini, 2017).

Threats

In the last two quarters the growth of the economy

Investments in property expansion remains decreased (Bellini, 2017).

Producing innovative and creative furniture product-lines are the strengths for both the companies. A “Cooperative Strategy may very well be what Ferrer Furniture needs to establish with at least 1of it top competitors, especially with IKEA. A cooperative strategy is a way companies form business value. This strategy will potentially benefit both companies as well as shareholders and stakeholders. Ferrer Furniture should use this strategy with IKEA because as IKEA grows so does its global footprint. Europe has accounted for over 80% of the company’s revenues (Business Case Study, 2015-2018). IKEA is an outstanding international product with numerous locations globally. Thus, to increase implementation, if Ferrer Furniture forms an agreeable cooperative strategy procedure and cross-supply their product offering inside IKEA, it grows its competitive and external position. This will expose the significant opportunities the company must achieve and the hazards necessary oversee. Through this helpful methodology, Ferrer Furniture will, at this point, generate the real progress it wishes to grasp a genuine quality in the marketplace (Business Case Study, 2015-2018).

To create and build a competitive market profile Ferrer Furniture will focus on the size, competitors and stage of growth of the company. Also, a strong focus is placed on customer segments. One strategy is to look at a competitive analysis and create a SWOT for the company. Lastly, Communication of the information. A balanced scorecard will also assist with the company’s market profile. A balance scorecard is system for managing and planning within an organization (BSCB, n.d). The system’s usage focuses on communication of why and what needs to be accomplished. The BSC brings together the labor and goal of the company to a strategy for completion of the work at hand. More importantly, the BSC puts projects in a hierarchy of products, services, completion and the monitors the progression in line with strategic benchmarks and milestones (BSCB, n.d).

Balanced Scorecard Basics. (n.d.). Retrieved from Balanced Scorecard: http://www.balancedscorecard.org/BSC-Basics/About-the-Balanced-Scorecard

Bellini, J. (2017). Ranking of the most popular furniture retailers (purchase in the last two years) in Germany from 2014 to 2017. https://www.statista.com/statistics/503268/most-popular-furniture-retailers-in-germany/

Business Case Study (2015-2018). SWOT analysis and sustainable business planning. An IKEA case study. Retrieved from https://businesscasestudies.co.uk/ikea/swot-analysis-and-sustainable-business-planning/introduction.

Stewart, C. (2016). 5 Top Trends in the Furniture Industry. Retrieved from https://blog.marketresearch.com/5-top-trends-in-the-furniture-industry