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Paper about Strategy Competition, conducting analysis for presentation on manufacturers of furniture

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Strategy Competition

1. TOP 2 GLOBAL COMPETITORS IN THE MARKET:

As per the analysis of the conversation it can be analysed that Mike and Tiffany are conducting analysis for presentation on manufacturers of furniture. The top two global competitors of furniture manufacturing are:

• Ashley Furniture Industries: It is a leading home furnishing company that have two major subsidiaries and this company also provides custom manufacturing of furniture.

• La-z Boy: This is a leading company in furnishings which is among the largest retailers of e-commerce and a biggest specialist in multi-channel. 

The Global Competitors have to be considered while conducting analysis as because the policies and procedures needs to be framed accordingly.

2. STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) ANALYSIS OF EACH COMPETITORS:

A. ASHLEY FURNITURE INDUSTRIES:

The STRENGTHS of the company Ashley Furniture is as below:

• The market of the company in which it operate is focused on domestic market

• The company plans and focuses on reducing its labour cost

• The network of sales and distribution of the company is very strong

• The units of the business of the company are highly experienced

• The growth rate of the company as per the analysis is very high.

The WEAKNESS of the company Ashley Furniture is as below:

• The structure of the cost of the company is not appropriate

• It is assumed that the future ratings of its debt is decreasing

• The business units of the company are small

• There is possibility of loan rates go up

• The company is not spending enough on improvisation i.e. research and development

The OPPORTUNITIES of the company Ashley Furniture is as below:

• The company can have expansion if it focus on acquiring small and medium sized furniture manufacturers

• The company can even go beyond domestic market and spread globally

The THREATS of the company Ashley Furniture is as below:

• There is possibility of increase in the overall cost because of rise in the cost of raw materials

• There exists business risk of the company externally

• The company can have problems coping with the technology

• The amendments of the law and regulations of the regulator can affect the company adversely

B. LA-Z BOY:

The STRENGTHS of the company La-Z Boy is as below:

• There can be no entry of new company

• The company plans and focuses on reducing its labour cost

• The network of sales and distribution of the company is very strong

• The units of the business of the company are highly experienced

• The growth rate of the company as per the analysis is very high.

The WEAKNESS of the company La-Z Boy is as below:

• The structure of the tax of the company is not appropriate

• Competitive market exists so it is very challenging 

• The company cost is going up

The OPPORTUNITIES of the company La-Z Boy is as below:

• The company can have expansion if it focus on venture capital

• The company can even go beyond to meet the increasing demands.

The THREATS of the company La-Z Boy is as below:

• There exists business risk of the company externally

• The company can have problems coping with the technology

3. DIRECT COMPETITORS:

The direct competitors of Ashley Furniture are Sims Furniture, Leon’s and Schneiderman.

The direct competitors of La-Z-Boy are majorly three companies viz. Ethan Allen, Furniture Brands International and Natuzzi.

4. COMPETITIVE ADVANTAGE:

The competitive advantage that can be gained by companies are laid as below:

• Customers at top priority

• Continuous research and development

• Quality of Raw Materials

• Staff Training

5. COOPERATIVE STRATEGY WITH COMPETITOR:

Cooperative Strategy can be formed with the competitors to attain certain goals that are common in nature. The formation of the same can be via any of the levels such as Vertical Integration, Horizontal Integration, Joint Venture, etc.

In case of the furniture company’s the cooperative strategy is possible by way of Joint Venture wherein a special order or customized order is being executed by two or more furniture manufacturing company coming together and achieving the goals.

6. STRATEGIES FOR BUILDING A COMPETITIVE MARKET PROFILE:

The strategies that should be used for building a market profile which is competitive in nature is as follows:

• The size, growth stage and the competitors needs to be analysed

• The prospective customers demands needs to be analysed

• The SWOT Analysis has to be conducted 

• High level values should be delivered.

7. BALANCED SCORECARD:

A balanced scorecard is a tool for performance management wherein the mission and the vision of the organisation are combined along with the core values of the company. It helps the managers in maintaining track of activities that are being executed and thereby help in monitoring the same effectively.

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