5. SWOT Analysis of Indonesia’s Furniture Industry This section describes the strengths, weaknesses, opportunities and threats (SWOT) analysis of Indonesia’s furniture industry to identify the competitiveness of Indonesian furniture product and the condition of Indonesian furniture industry to meet EU market access requirements. Based on study that was conducted by Lord, Oktaviani and Ruehe (2010), the strengths, weaknesses, opportunities and threats of Indonesia’s furniture industry are as follows: 1. Strengths Natural resources abundant is one of the most competitive advantage which is own by Indonesia’s furniture industry. Supply of raw materials such as wood, bamboo and rattan are available and very easy to get. Moreover, labour cost for this industry is also low, good workmanship especially in carpentry and manual carving become another great advantages for this industry. Furthermore, this industry also has a furniture association (ASMINDO) which has large network to import destination countries. 2. Weaknesses Indonesia’s furniture industry needs relatively long time in delivering its product to international buyer. This could be caused …show more content…
The EU market for furniture product is expanding, demand for furniture import especially from third countries is growing by an average of 9 percent over the next ten years. The Indonesian furniture industry has a great opportunity to expand market share by focussing in two segment. Firstly, medium and large enterprises which has a capacity in networking and in producing low price products can serve the low-end market by making ready-to-assemble furniture. These kind of products are suitable for mass consumption. Secondly, smaller producer which has an ability in carving can serve the high end market by producing artisanal and traditional furniture made of solid
It is never enough to create a great product; it has to be coupled with a desire for that product. The competitive advantage that Wedgwood brought to his company was the ability to create demand for goods. He was able to see the needs of the market before the market did and then cultivating market demand to satisfy those needs with his goods. A differentiation strategy was put into place by Wedgwood for his products as there were already a number of pottery options available on the market. Instead of the low quality, irregular options that were available on the market, Wedgwood’s pottery was made from clay, rather than wood, and was a more uniform finished product. A method of increasing demand by raising the perceived value of the pottery is to drive up demand by the high affluent. One of the ways that he accomplished this was through a technique called inertia selling. By putting a high quality and reputable product in the hands of the elite with no penalty, Wedgwood can display first-hand his high-end craftsmanship and design. With the working class working in the homes of...
At the same time, the custom furniture making company will provide a list of various designs and styles to help you decide your design for the furniture. On the other hands, these facilities are not available when it comes to buying readymade furniture from the shops.
This written assignment will be based on how various organisations engage in finding and developing talented individuals to the point at which fully capable employees are born. The two companies that are selected would be IKEA and Walmart. IKEA and Walmart were chosen as there are various unique ways in which talented individuals are developed in these organisations. Walmart was established in 1962 by Sam Walton and was first opened in Rogers, Ark. In the 1970’s, Walmart went international through the establishment of The Walmart Foundation. They had become America’s Top Retailer in a span of 20 years from 1971. As of today, over 2.2 million associates worldwide are employed in 11,000 stores around 27 countries. The idea of IKEA began in the 1920’s when 5 year old Ingvar Kamprad started selling matches to his neighbours. In 1940’s, Ingvar Kamprad started developing IKEA into a furniture retailer. 20 years later, the IKEA concept started to take shape wherein hero product developed such as
Demographic segmentation -Age: American Apparel mainly targets young adults of 20-35. They steer away from the under-18 age. They also choose not to go after the popular 35-45 age bracket and people over the age of 45. -Gender: female and male -Income: related to the age of the target, the company knows many of this target market have entry-level jobs which means they are not making six-digit figures, but they are making less than $100,000 a year.
IKEA is one of the huge successful retailers in the world whereby has 280 stores in 26 countries by the year 2010 and had been visited by 580 million shoppers. IKEA has elegant designed products with low priced. IKEA’s sale has increased from 4.4 billion in 1994 to 23.5 billion in 2010. The author has attached the sales report in appendix 1 and 2. The founder was Ingvar Kamprad whereby he is still a dynamic advice-giver of IKEA despite his age reached 80. IKEA had influence worldwide market widely with a good strategic marketing tool. IKEA products are cheaper 30%-40% compare to other retailers. Besides that, Asian market convinced with their economical western product that has complete household products. In this chapter, the author had explained on the overall IKEA’s history. In the next chapter, had explained on four important macro elements followed by the macro elements effect towards the organization, and also given suggestions to manage the organization according to the macro elements.
Traditionally, Dansk Designs followed a strategy of differentiation. When a firm follows this strategy, they create differences in the firm’s product or service by creating something that is perceived as unique and valued by customers. Differentiation can take many forms, including prestige or brand image, which Dansk decided to implement. Their product line consists of eight product categories, which include flatware, china, linen, glass, decorator cookware, and wooden bowls and trays. Their products are of high quality and are highly priced. Dansk was able to achieve a differentiation advantage because their price premiums exceeded the extra costs of being unique. Dansk is able to create these unique products because of the talented designers they employ, including Jens Quisrgaard, Niels Refsgaard, and Gunnar Cyren. Another competitive advantage of a strategy of differentiation is the ability to deal with supplier power. There is a certain amount of status associated with being the supplier to a producer of differentiated products. Dansk’s principal supplier, Richard Nissen, has enjoyed working with Dansk because he believes they have been able to “preserve the handcrafted nature of the products”.
Ingvar Kamprad believes that a company's "identity", company guidelines, profile, selection, quantity, quality and price are critical to the success a company will have in the furniture business. Another factor that could add to the success of a company in the furniture business is internet marketing and selling along with catalogs of the company's merchandise.
Woodworking is one hobby that can also be a rewarding profession if you love to work with your hands and build beautiful pieces of furniture from wood. When you learn the woodworking crafts and become a fine woodworking craftsman, you will be able to build all kinds of furniture, (table, beds, and chairs), with ease. You can then sell your completed woodworking projects and make a handsome profit.
DataMonitor, 2007. IKEA major retail competition in the US are: Furniture Brands International Inc., Office Depot Inc., Sauder Woodworking Co., Stanley Furniture Company, Inc., and Staples , Inc. This paper will identify the key macroeconomic variables that affect IKEA and the retail industry as a whole. To better understand the effects of such variables upon the industry, two specific variables will be developed further.
The world is developing every day and we continue to discover new and innovative ways to better our quality of life. A trend that everyone seems to be focused on is saving the environment, which is also known as sustainable living. Not only does this apply to our lifestyle and environment, but it also translates into design. Sustainable living is becoming more popular around the world and is a lifestyle using skillful and sensitive design. It eliminates negative environmental impact and requires renewable resources. We each have decided to research different furniture companies to broaden our knowledge of the innovative practices used in each company. Throughout our paper we will introduce each of our companies and the products and practices they use to produce sustainable furniture. Our research will show that sustainable furniture design is beneficial to consumers by allowing them to live a more environmentally friendly lifestyle as their manufacturers develop innovative ways to make renewable furniture.
Another example of IKEA’s international strategy in building good relationships with suppliers is in Asia, especially in Vietnam, where IKEA expanded its own supply base. Vietnam manufacturers offers low cost labor force and not expensive raw materials, while IKEA provides the view of creating a long-term, high-volume business relationship, and advice on finding the best according to the price raw materials, setting up and bulding factories, choosing what machines, equipments
This section provides an overview regarding the role of Indonesia’s furniture industry for its economy, also general information about the type of furniture products that have been exported to EU market and some furniture exporter countries which become the major competitor for Indonesia.
Relocating parts of company’s manufacturing plant from New Zealand to Malaysia would definitely have cost reducing effect on company’s manufacturing operations due to cheaper labour cost and plant. However, there are downsides to what seems like a utopia for manufacturers. This essay will cover some important market and non-market environments in Malaysia that would have an impact on firm’s manufacturing operations.
To conclude, this paper represents the success of the IKEA group when they apply the appropriate organizational structure to its firm. The firm has no doubt that gains advantages by using decentralized structure, include increase the speed of making decision and form a simple layers of management arrangement. Nonetheless, the business can also expand their centralized control by using modern technology devices in order to get maximum outputs. Despite the current problems for them, IKEA has brought a lot of great design that suitable for many families.
IKEA is more than a furniture store they are a company driven by values (IKEA, 2014). The company seeks to make their consumers lives easier by providing them with modern, innovative, inexpensive products which they use to tackle daily home activities. IKEA Group has 298 stores in 26 different countries (IKEA, 2014). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1). Using innovative techniques for creating, producing, and marketing their products IKEA can provide consumers with durable products for reason...