Filmore Furniture Ltd

1266 Words Mar 1st, 2013 6 Pages
Filmore Furniture Ltd

Company Background * Incorporated in 1970 by Fred Filmore, a sole proprietor. * In 1983, Phil obtained his father’s furniture business and acquired the management of the business. * In 10 years the sales income increased to $5,100,000 and employed 58 full-time employees. * He is an aggressive manager and strategist. * During 1986 to 1993, Filmore Furniture modernized its manufacturing facilities. * Phil owned 63% of the share, 31% the five investors and the rest is retained by the employees of the company.
Problem
She is having a tough time choosing between whether she should sell the business, or manage the business herself.
Objectives
Choose the best option that will favor in
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* Other furniture suppliers do not possess considerable barging power, due to many factories over the world that has the ability to provide the same product. * They can gain profit by charging for freight , and storage space

The bargaining power of Buyers:- * Price sensitivity * It is strong, as the competition is intense * They have many alternatives suppliers to get the product they desire. * Customer seek FAB (Feature, Advantages and Benefits)

Threat of new entrants:- * The threat of new entrants in to the industry is moderate * A significant amount of financial investments is needed to manage furniture retailers. * Furniture industry comes under an oligopoly market, where there are a limited number of sellers. * Outlet stores can distribute similar furniture items for lower discounted price Threat of substitutes: * There is a low level of substitutions, due to few similar products and service replacing. * There are other competitor firms such as Leon’s, Bricks, Ikea, etc. * Buyers try to switch cost because of the same product available at other retail stores. * Suppliers may not continue the supply due to company’s past performance.
SWOT Analysis
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