Filmore Furniture Ltd

Filmore Furniture Ltd

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 ... Show more content on Helpwriting.net ...* 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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