been a major contributor to organizations that build houses for people
in need.
One of their primary strengths is their vertical integration. They have
a team of in-house designers saving the company design costs and
allowing the flexibility to rapidly change designs as the market
changes. Their products have been featured on several prominent
home design and gardening shows and have been endorsed by several
well-known designers.
Because of the recent housing market sales decline (8% from 2005–
2006), home renovations have slowed significantly. This has
impacted the amount of furniture and fixture sales and continues to
impact revenue. Furniture sales in the United States have decreased
significantly, and John and Deborah have recently been discussing the
possibility of global expansion.
Another potential threat to their company is that many higher-end
brands have been marketing aggressively and creating lines for
popular retail stores. These allow the lower-income consumers to
have access to high-end brands at a much lower price point. So far,
these lines have been incredibly successful and have significantly
increased profits for competitors. Many of these competitors have
also had great success in the global marketplace with these lower cost
replicas.
John and Deborah know that it is time to seriously consider expanding
their business. They want to be able to make it through the economic
crisis and rely on other ways to increase sales and business. They are
open to looking into the global market, but they want to be sure that it
is the right move for the business. They have requested an advisory
board meeting next month in which you will present the global
marketing strategy. As the market strategist, you will play a key role
in helping the board decide if this is the right move for the company.
The Problem