Herman Miller Business Strategy

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Case Three Herman Miller: A Case of Reinvention and Renewal Herman Miller is a high-end furniture store. It was established in 1905 as Michigan Star Furniture Company. In 1919, it was renamed to be Herman Miller and the name has stuck since. In 1942, Herman Miller produced its first office furniture, before that, Herman Miller only manufactured bedroom suites. Ever since, Herman Miller has been manufacturing high-end office furniture. In the 1950’s, Herman Miller expanded internationally and in 1970 it went public. Although it has had its ups and downs, overall, Herman Miller has been doing very well and today is valued at $1.3 billion. Herman Miller has a set of unique principles and practices that distinguish it from most other…show more content…
Even early on in 1942, Herman Miller was producing new furniture that people had not seen before. The fact that it kept hiring new designers and experimenting with different designs shows its innovation. Customer Responsiveness: The case does not give us a lot of information on customer responsiveness to the products. However, we do know that because more and more employees are spending so much time in front of computers, the need for ergonomically accurate chairs are in high demand. Mostly through efficiency, quality and innovation has Herman Miller been able to create a sustainable competitive advantage in relation to other competitors. Although the case does not give us much information about competitors it is clear that a lot of the practices and principles that Herman Miller adheres to are unique to it. Porters Five Forces 1. Risk of Entry Herman Miller does have a cost advantage in using their just-in-time system. This makes output more efficient and saves them money. Brand loyalty can be acquired for customers who have frequently purchased products from Herman Miller and have gotten used to the quality and style of their particular products. There is no economy of scale or switching cost and nothing has been said about government regulations. Overall, the risk of entry of competitors is not extremely high within this industry. 2. Rivalry We are not told much information about rivalry within the case. Herman Millers top three

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