People and Problems

627 Words2 Pages

INTRODUCTION

Domoral A.E. is a carpet dealer with stores in Thessaloniki and Athens. Eleftherios Eleftheriades founded the company in 1922 when he moved his family and business from Asia Minor to Thessaloniki. At that time Mr. Eleftheriades brought over 100 looms with him and set up a carpet factory. The carpets were sold primarily wholesale to clients in North America and Northern Europe. The export business flourished until the early 1980’s when inflation and inappropriate government fiscal policies led to the dramatic increase in costs that drove the Greek carpet manufacturing industry out of the market. By that time Eleftherios’ son John assumed management of the company and began to import hand made carpets from Iran. By the early 1990’s, John had established Domoral as one of the leading wholesale carpet distributors in Greece. In 1996 he opened a new store in Athens where he hoped to establish Domoral as one of the leading retail carpet distributors in Greece. Although for the first 3 or 4 years retail sales steadily increased, over the last 5 years the Athens store has been suffering declining sales. There are various contributing factors but one of the most crucial factors is the relatively poor customer service provided. This can be justified by virtue of the fact that Mr. Eleftheriades and his staff were always more in tuned with servicing wholesale clients rather than retail customers.

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