Changes in the global environment in conjunction with the deepest and most prolonged economic downturn since the Great Depression have started what I believe is a sea change in the domestic mattress industry. Factors such as declining new home sales, tightening of consumer credit, the consumer confidence index still well below pre-recessionary levels (Wang, 2010) and unemployment hovering near 10% have all contributed to the end of conspicuous consumption for big-ticket items like mattresses and foundations (‘mattresses’). Mattress manufacturers will need to lower material and manufacturing costs, develop products that differentiate them from their competitors, or develop new channels of distribution in order to remain viable in rapidly changing global and task environments.
Domestic production of mattresses in 2010 will be slightly below $6 billion, and almost 16% less than the peak mattress production of 2007. (International Sleep Products Association, 2010). Many consumers have lost confidence in the economic state of the country and therefore have begun to believe that, as Newt Gingrich said recently, "if you can’t afford to buy a house, don’t buy it." (Gingrich, 2010). The economic downturn has signaled the end of conspicuous consumption, defined as “the act or practice of spending money on expensive things that are not necessary in order to impress other people”. (Merrian-Webster's Leaner's Dictionary, 2010).
Identify functional and dysfunctional control systems within your own organization
I am currently a Senior Vice-President of Sales for King Koil Licensing Company (KKLC). KKLC is a company who licenses mattress-manufacturing facilities, called licensees, both domestically a...
... middle of paper ...
King Koil Licensing Company. (2010, December). YOUR identity, YOUR comfort, YOUR sleep . Retrieved December 28, 2010, from comfortsolutions.com: YOUR identity, YOUR comfort, YOUR sleep
Merrian-Webster's Leaner's Dictionary. (2010, December). Retrieved December 26, 2101, from Merrian-Webster's Leaner's Dictionary: http://east.merriam-webster.com/dictionary/conspicuous%20consumption
Michael J. Breus, P. (2006, March 15). Sleep Disorders Guide. Retrieved December 27, 2010, from WebMd.com: http://www.webmd.com/sleep-disorders/guide/important-sleep-habits?page=2
Perry, D. (2010, June 21). Top Bedding Producers. Furniture Today , pp. 12-13.
Wang, H. (2010, July 27). The Consumer Confidence Index hit an all-time low of 25.3 in February 2009. Retrieved December 25, 2010, from Sparxoo: http://sparxoo.com/market-stats/consumer-confidence-index-february-2009/
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Changes in the global environment, in conjunction with the deepest and most prolonged economic downturn since the Great Depression, have started a sea change in the domestic mattress industry. The end of conspicuous consumption for big-ticket items such as mattresses and foundations, is the result of declining new home sales, tightening of consumer credit, the consumer confidence index still well below pre-recessionary levels (Wang, 2010), and unemployment hovering near 10%. In order to remain viable in rapidly changing global and task environments, mattress manufacturers will need to lower material and manufacturing costs, develop products that differentiate them from their competitors, or... [tags: Economy, Economic Downturn]
2579 words (7.4 pages)
- Introduction With the advancement in communication technology, transportation and other technologies the world has shrink into a global village. Products developed in a country are now widely accepted in other regions of the globe as well. Many companies have been developing marketing strategies to fulfill the need, in an increasingly globalize market, for several years. There are a number of companies that are being recognized by and whose brand names are familiar to most of the people in every region of the world.... [tags: globalization, marketing, costs]
1313 words (3.8 pages)
- A graduate from Yale University had thoughts of becoming a lawyer, but he needed a job urgently. After a tutoring job fell through, he accepted a position on a plantation in Georgia. His employer, Catherine Green, saw much talent in him and encouraged him to find a way to make cotton profitable. He promptly began working on a solution to the problem of separating the seeds from the cotton. On March 14, 1794, Eli Whitney was granted a patent for the cotton gin.1 The cotton gin impacted American industry and slavery changing the course of American history.... [tags: American Industry]
745 words (2.1 pages)
- so much the size of the resource, but the rate of production of that resource and the reasons why that rate must eventually decline” (Micu 98). There is no timing of when or how peak oil will come; however, it is predicted it will begin by 2030 (Bosman). With the knowledge of past production and the current trends of today’s production, oil and gas technological developments have made countless anticipations for the years to come. Since the beginning of the modern era of oil, technology has played a crucial role in supporting the efficient production of hydrocarbons.... [tags: Peak oil, Petroleum, Technology]
991 words (2.8 pages)
- Introduction Founded in 1904 as Bank of Italy, and after a name change and merger, it soon became known as Bank of America (BofA). After several acquisitions, the corporation had grown significantly; covering over 82% of U.S. markets, with revenues exceeding $119 billion, and over 250,000 employees.1 As the adoption of mobile and smart phones grew, Bank of America realized the potential of a mobile app and the competitive advantage and value it would bring to its firm and customers. Mobile banking was initially introduced in the U.S.... [tags: Bank, Economics, Smartphone, Bank of America]
1011 words (2.9 pages)
- When a 25-year-old becomes pregnant, she needs to make some daunting decisions regarding her lifestyle. One of those decisions is whether or not to replace her ten-year-old car. It has been making some ominous rattling sounds and doesn 't like to go over hills. She 's always thought it had “character”, but are those quirks safe for her baby. How will she know what kind of vehicle she needs for the lifestyle she is going to be living. The American auto industry has managed to innovate along with the changing tides of American culture.... [tags: Automotive industry, Automobile]
1196 words (3.4 pages)
- Global competition in the industry The Automotive Industry in the United Stated was the market leader until the early 60s, however, many countries have begun to invest in the car industry, in particular, the countries of Europe. Despite the American automotive industry has been a market leader in the beginning of the century, the United States opened a new period in the history of the American automotive industry through an efficient production model invented by Henry Ford. The cars were manufactured on a large scale which led to the reduction in costs.... [tags: Automotive industry, Internal combustion engine]
1062 words (3 pages)
- Changing America The United States was only a country for about 15 years before the basic way of life for people in the country changed drastically. We developed politically and economically, expanded westward and divided along sectional borders. However, these are not the only characteristics that define this time. 1790-1860 was a period of rapid industrialization, market revolution and changing social order. This was largely due to advanced methods of transportation, mechanization and the changes in women’s roles.... [tags: Economy, Economics, Industrial Revolution]
1716 words (4.9 pages)
- Environmental Challenges in American Auto University of the People The American auto industry has grown due to job gains, lower gasoline prices, and available credit to the customers. More people have been willing to take out loans to buy cars. (O’Leary, 2014). With an already large and continuously changing industry, the American auto industry faces some environmental challenges. Cars and trucks make up about one-fifth of all global warming emissions in the United States. Fuel-efficient automobiles and electric cars and trucks can help lower these emissions, slowing the pace of global warming.... [tags: Automotive industry, Automobile, Greenhouse gas]
952 words (2.7 pages)
- IT Industry Industry Background Information Technology (IT) industry is one of the most robust industries in the world. More than any other industry or economic facet, this industry has an increased productivity, particularly in the developed world, and therefore is a key driver of global economic growth. Economies of scale and insatiable demand from both consumers and enterprises characterize this rapidly growing sector. Both software development and the hardware involved in the IT industry include everything from computer systems, to the design, implementation, study and development of IT and management systems.... [tags: Market Industry Analysis]
1149 words (3.3 pages)