Filmore Furniture Case

3071 WordsMar 22, 201513 Pages
Filmore Furniture Case By: Hamaza Azam, Kavan Grewal, Deep Dave, Carl Ribeiro and Austin Mathews Key Events: Fred Filmore opened Filmore Furniture in 1970, a company that manufactures small colonial furniture. After 13 years, he retired and sold his business to his son Phil Filmore who was an aggressive manager, strategist and modernized in introducing new product designs and new marketing skills. Phil owns 63% of the business, shareholders own another 31%, and some employees account for the other 6%. His marketing strategies and skills with his engineer Jean Lechaise brought business and increased sales income to 5,100,000 in 1993. His annual salary amounted to 80,000 and he earned another $20,000 on dividends from shares. He died in a…show more content…
These suppliers have slightly more bargaining power because of the differentiation between their work. However the need for these suppliers can be eliminated if furniture manufacturers produce every piece of their products themselves. A furniture manufacturer will only outsource production of parts if it proves to be cost effective for their company. Since the price of materials is consistent market and the outsourcing of production is unnecessary, suppliers have low bargaining power in the furniture manufacturing industry. Power of Substitutes – VERY LOW 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. Threat of

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