Herman Miller

An industry product can be substituted by a substitute product which has the same or similar function by a different means. A substitute can limit industry profitability and growth. Porter (2008) gives several key elements on determining the threat.

The research findings have been crucial to IKEA’s success in global expansion, having pointed out many differences in homes worldwide, that IKEA has integrated into their product mix to new markets. For instance, it found that in China their sofas were being used as a backrest when people sat on the floor (FORTUNE, 2015). The company could then adjust the product to this specific use in order to improve its quality for Chinese customers. Additionally, research has shown that in cheap labour markets, such as China, the famous DIY-approach of IKEA is not as popular as it proved to be in Europe. IKEA responded by putting a focus on lowering the price of their assembly service. (MILLER, Paula M.,

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.

Most of the competitors offer custom furniture in specific styles or with limited choices. Doe Furniture needs to emphasize the custom nature of their work. They can offer to build specific pieces to order based on a picture a customer brings in, on the size and design of a room, or a customer may suggest the functionality needed for a piece and a piece will be designed for them.

5) Threat of substitutes is low, in comparison with technology that constantly evolves, furniture cannot be easily substituted. But its insignificant impact is fully neutralized by high competition problem.

By end of 90’s the company was dominant in many of the categories it competed in. The challenge was found in whether it can continue its dominance in it’s new, expanding product ranges and could maintain its dominance and synergy in its all categories on low and high price offering in hardware, home furnishings, office and house ware, while maintaining its management and corporate structures.

The office supplies industry in 1985 is highly fragmented and the market scope is broad. On the manufacturer level, there are various groups of companies that provide different categories of office supplies. On the wholesaler level, wholesalers, who are mostly large in size while few smaller ones exist, are the main distributors to big business clients and small retailers who buy in bulks either through direct channel or a network of dealers. Dealers, who vary in size, also sell directly to businesses while some dealers have retail presence. On

Office Depot achieves its strategy by offering products that are less expensive than its competitors. This allows Office Depot to make sales to the largest possible consumer base and yet, at the same, still differentiating itself by providing more of the problem solving, and innovativeness desired by many corporate and some retail customers. Over the past twenty five years, Office Depot has been able to enter into various global locations and develop or maintained its competitive advantage by following this strategy. In fact, this strategy has paid off well over the past several years. Office Depot consistently ranks high in terms of customer recall of office supplies and business solutions. This quantitative measurement may be used by Office Depot to quantify the Company’s growth in this area.

Buyers (consumers) have a great deal of bargaining power because the buyer has a variety of brands to choose from and a lot of options to choose from such as precook, fresh, roasted and boneless.

Bargaining power of suppliers. Suppliers have the ability to leverage, control, and negotiate the cost of their products (Hill et al., 2015, p. 56). In the case of the suppliers of the office supplies industry, more so for Staples, the bargaining power is weak and is considered to be low. The reason for its power being weak is a result of large companies having several suppliers that will easily compete against each other to provide the lowest cost of products.

This is where you are able to determine the price with your suppliers. This can happen if there are a large amount of suppliers and you are buying in bulk. This may force suppliers into a price war.

Despite decades of success in producing and distributing high-quality mattresses, Four Star Industries has seen its competitive position dwindle in recent years due to an influx of new companies and products into the market. As a result, Four Star has witnessed increased stress in an already volatile and unpredictable industry. The company has attempted to mimic the operational procedures of larger companies at the demand of dealers, but has not found success with this approach. To maintain competitiveness within the industry, managers must explore the issues holistically and adopt an integrated strategy to reducing costs while continuing to meet the needs of its customers. Fortunately, its reputation of success and potential for direct access to consumers may serve as advantages that can help rectify their situation. This paper explores the various issues impacting Four Star 's competitiveness and presents a range of potential solutions.

The Guillermo Furniture Company has realized that their business strategy is no longer sustainable. The external environment has changed significantly and the company is facing pressure from oversees firms that have automated much of their furniture production and manufacturing. Despite the fact that Guillermo Furniture has access to relatively inexpensive Mexican labor, the company is still struggling to be competitive in the market due to foreign competition. Therefore, Guillermo has identified various alternative strategies that it wishes to consider in order to reinvent its business and become more competitive. It is recommended that Guillermo invest in new equipment that can modernize its manufacturing capabilities. An investment in a computerized lathe shows a worthwhile return on the company's investment and will also position them for future growth.

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

The power of buyers is high because this company depends of the businesses and consumers’ demand. This is because they can decide where to buy