Furniture industry analysis Essay Example | Topics and Well Written Essays - 750 words

Furniture industry analysis - Essay Example Therefore, our business will aim at closing the gap by providing them with well refurbished furniture at a lower cost. With the increasing level of globalization that is being pushed by the liberalization of markets, efficient flow of information, and integration of competition, any industry is at a higher threat of new entrants (Hooley, Piercy, and Nicoulaud 65). This aspect has opened up the market for the multinational companies which have a huge financial base to segment the market, position their products strategically in the market, and attract customer loyalty towards their products. With the increasing number of people who are attaining a middle income status, the demand for furniture is likely to increase tremendously (Pfeffer 76). However, there are only few suppliers in the market. Therefore, these people are likely to look for second products that are well refurbished. This will attract the interests of new investors who will be eyes a share in the market. With the increasing demand for the furniture, more companies will try to outsource their operations to countries with cheap labor and easily accessible raw materials to make high quality furniture (Lawrence and Weber 19). These products will be cheap despite being first hand. This is likely to threaten the competitive advantage of this business because customers are likely to shift towards these products. With the increasing numbers of competitors in the furniture business, the customers will have a stronger say in the market (Keller 87). This is because every firm will be trying to win the customers’ loyalty. Therefore, the customers are likely to dictate the prices of the commodities in the market. Furthermore, the entry of cheaper products once the companies start to outsource their operations to different parts of the world will increase the bargaining power of the customers. This will make it hard for the firm to dominate the