European Business : Furniture Industry

This paper aims to demonstrate a detailed description of the elements of ‘IKEA’ company based on its famous name in the furniture industry.

As previously stated the buyers in the furniture manufacturing industry are furniture retailers. Therefore they will require furniture to continue business. There are no substitutes that provide the same use as furniture. In relation to the furniture industry as a whole, there are still very little substitutes to furniture aside from a higher use of closet space or unorthodox measures by consumers. An example of this would be one's choice to live without furniture, which in most cases is very unlikely. Furniture has become a household necessity and consumers have little or no desire to change their lifestyles by eliminating that need. Therefore the threat of substitutes to the furniture manufacturing industry is very low to the point where it is almost non-existent.

Bob’s Discount Furniture can be defined in one word, “innovative”. In almost every aspect of their business, Bob’s is setting the standard for the furniture industry. Founded in 1991 in Newington, Connecticut, Bob Kaufman had a dream to build a successful company. This dream stemmed from his own experiences. In 1976, Bob was involved in a motorcycle accident that left one of his legs partially paralyzed. He was sent to bed to recuperate from his injuries, where he then found the benefits of the waterbed in his recovery. This experience inspired Bob to become a waterbed salesman. He sold waterbeds in 24 stores across New England.

Today’s world is facing strong influence of globalization in each and every aspect of our lives. It is expressed through: free trade agreements, foreign direct investments, international trade, facilitated movement of labour, capital and resources, as well as a strong competition that eventually gives more power to customers. In addition, it resulted in the economic boom of the developing countries, with substantial dominance of China that mainly benefit from their massive labour force, its low cost and high comparative efficiency. This phenomenon has impacted all industries around the world. In particular, furniture production is going through a trend of moving to China that “in 2002

Furniture is considered in economic terms as an ‘elastic commodity’ and is very sensitive to economic changes. It is an export oriented industry with 53% of production being shipped outside Canada and 95% of exports going to the US. Canada is the 5th largest exporter of furniture in the world operating at various

I figured being a furniture salesman would be a smooth, and easy job while I was studying for a degree in intelligence. I learned very quickly, that the area that I am currently in is not so friendly on the furniture market. People use furniture every day; when you wake up in your bed in the morning, sit at a table to have breakfast, or relax on the couch after a long day, it is scattered all over your house. In 2013, the furniture industry sold over $101 billion, making it one of the most popular, and best-selling commodities in the United States (U.S. Furniture Retail, n.d.). The market for this product can be a very interesting, and dependent market, especially in my area, Fort Myers, Florida (Southwest, Florida or SWFL).

This is an introduction to the case study of Somerset Furniture. The main talk of the event would be about global supply chain and its impact towards Somerset furniture. In this case study we reverse the history, background, and anatomy of Somerset Furniture. From the introduction of the company we learn about the journey needed in developing and manufacturing the product lines. The journey of Somerset Furniture will dictate on why the company started to outsource and also learn about the time frame involving in planning, processing, developing, shipment and manufacturing of the product lines.

The services and products offered by IKEA provide value to its customers in various ways. For one, the products and services are very affordable. The products and services are not priced highly and therefore, the average customer can enjoy them. At the same time, the products are of high quality. From IKEA’s slogan “low prices but not at any price”, it is clear that the company prices its products lowly but that does not mean that the quality is compromised. IKEA satisfying its customer’s needs through providing them value for their money as they provide quality products that will last for a long time, and at affordable costs. The fact that the company has set the minimum acceptable standards for its wood, implies that it is also keen on quality and on the environmental impact of its action of making furniture ( Edvardsson, Enquist & Hay, 2006).

IKEA is considered to be a low cost, high quality producer in the furniture industry, therefore it is important to

I decided to choose ABYAT Furniture Company for my Assignment . In this paper, I am going to talk about ABYAT's history, structure and what services that they provide. Moreover, I am going to talk about achieving the six strategic, In addition, I am going to know about the threats type in ABYAT Company, also I will mention how supporting these levels through information Systems, how managers can affect build and use information systems the success of their company and how achieve operational excellence in terms of customer relationship management.

The cost of production of furniture are pretty low at the moment and so, new competitor will surface and it don’t take as much money as it did in the past to set up a furniture company. Economy recession is another factor that will threaten IKEA status as lesser people will be spending their money to replace their existing furniture.

The stores have restaurant, childcare facilities and plenty of parking. Customers can drop off their kids at the playroom and have delicious meal when they are tired. All of these not only provide customer with a comfortable shopping environment but also let them make an ‘IKEA trip’ and enjoy the fun of buying. Besides, IKEA’s distinctive show rooms help creating differentiation. Products are strategically placed in different small spaces like rooms which allow customers imaging this furniture in their own home. This makes everything looks more attractive.

In PEST analysis, we will look into what will be affect by the business environment. It includes political environment, economical environment, social environment and technological environment.

In august 2008, IKEA had total 253 stores where 560 million people visited. Here the total sales became 23 billion Euros. Considering 20% sales profit here IKEA’s average customer per store and cost per store are given below:

IKEA was founded in Sweden by Ingvar Kamprad in 1943. IKEA has been established around the world in 26 different countries. Within these countries IKEA has a total of 303 stores. This business is effective in adapting to change through the use of the four key business functions; operations, finance, marketing, and human resources.