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The Future of Tempur Pedic
Tempur Pedic is the world’s largest bedding provider that manufactures and distributes various luxury products made of viscoelastic memory foam. The company was founded in 1992 by Fagerdala World Foams in Denmark. In the 1980s, Fagerdala acquired the formula to create a stable, durable and commercially viable product from the National Aeronautics and Space Administration (NASA). In the early 1970s, NASA had developed this pressure-absorbing material to help cushion and support astronauts during lift-off. Fagerdala spent years perfecting NASA’s process; once completed, their consumer version of the foam was given the name Tempur. The first product released by the company was the Tempur-Pedic Swedish Mattress in
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The main weakness of Tempur Pedic is the cost of the elite products, which remains expensive because of the unique patented formula and the high-end materials used. Also, Tempur assumed Sealy’s debt in the acquisition. External opportunities include a more economical version of the best-selling Tempur products; more affordable merchandise promises an influx of average customers instead of appealing only to the wealthy. Tempur also has the opportunity to bring accessory production to the United States; currently, many Tempur components, such as netting and covers, are made in foreign countries, including Mexico, Taiwan, and China. “Made in the USA” is a powerful statement not many companies can make. A major threat to Tempur is copy-cat companies that promise equal quality at a lower cost in this struggling economy. Also, trendy customers may be attracted to the most cutting-edge technologies in bedding. For example, Tempa gel and Serta air mattresses are currently being touted as new and superior bedding options. Tempur Pedic’s current target market is older and elite upper-end customers. The company’s expensive luxury products are known for their better quality at a higher price. A generic bedding system’s average cost is just over a thousand dollars, while a typical Tempur Pedic bedding system
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