BUSINESS PLAN PART 2
BUSINESS PLAN PART 2
Executive Summary
The "Your House, Your Design" company has the goal to compete in the North American market, where several companies offer design and manufacturing of home furniture. The offering of a platform where the client has participation in the design is a feature that gives a competitive differentiation from the rest of the competition. The possibility to offer the product in Canada, United States of America and Mexico using company representations in the three countries avoiding custom costs open the possibilities of the company to be a leader in the design and manufacturing of home furniture.
Market Analysis
The company "Your House, Your Design" has a defined market according to the type of products and services the company offers. First of all, the company defines the market geographically in the North American market, that is, Canada, the United States of America (48 states) and Mexico. The geography includes the different languages areas that are, English, French and Spanish areas. The company offers three versions of the website in different languages and the physical locations in the three countries.
The North American market has inside the structure two important consumer groups, the institutional and final consumer groups.
The institutional group is represented by organizations, companies and institutions that have requirements in offices installation and remodeling. The advantage of the institutional consumers is that they don't have problems in the flexibility price, but they impose other payment conditions that are not favorable to the company.
The final consumer group is represented by individuals that require remodeling services in houses and small offices. The advantage of the final consumer group is the payment conditions favorable to the company but they are not flexible with the price, and the competition pushes the prices down.
Competitor Analysis:
The Company has several competitors in the three countries, but it is important to consider that most of that competitors offer services locally and not to the country of the North American region. There are eight competitors that "Your House, Your Design" has in a direct or indirect way:
■ Ashley Furniture: The Company was founded in 1945 by Ronald Wanek, and its current Chief Executive Officer is Todd Wanek. The company has its headquarters in Arcadia, Wisconsin and offers design, manufacturing, and installation of sofas, loveseats, beds, tables and chairs for the state of Wisconsin and surrounding states. They have an Ashley Showroom and an online showroom.
■ Rooms to Go: The Company was founded in 1990 by Jeffrey Seaman. Currently, he is the CEO. The company has its headquarters in Seffner, Florida and offers design, manufacturing, and installation of bedroom and furniture. They have stores in Florida and Georgia. They don't have an extensive online showroom, but they have more than 15 physical showrooms in Georgia and Florida.
■ Williams-Sonoma Products and Services: The Company is specialized in kitchen solutions from furniture to equipment, wines, and agrarian products. The company has stores in the Great Lakes area: Ontario, New York, Michigan and Saskatchewan. They do not offer installation services; only sell the pre-designed furniture to be installed by the client responsibility.
■ American Signature: The Company was founded in 1948 by Jay L Schottenstein. The company has its headquarters in Columbus, Ohio and offers design, manufacturing of living room, dining room, bedroom, mattresses, accents and patio furniture. They don't have local stores, but they offer promotions over 2000 USD order with free delivery to the lower 48 states of the United States of America. The company does not have an online showroom.
■ Raymour and Flanigan Furniture: The Company was founded in 1967 by John Raymour and Stephen Flanigan. The company has its headquarters in New York and offers design and manufacturing of furniture, mattress and design tips for the clients. They have a physical showroom in New York City and offers delivery service on the east coast of the United States of America and The Ontario Province. The company does not have an online showroom.
■ Pier 1 Imports: The Company offers imported furniture for outdoor, rugs & curtain, pillows, bed & bath, décor, and lighting. The company has a central showroom in Fort Worth, Texas. The company uses the franchise system having more than 100 stores and associates in the United States of America and the Ontario province.
■ La-Z-Boy Products and Services: The Company designs and manufactures recliners, chairs, sofas, sectionals, ottomans and loveseats in the United States of America from small shops in more than ten locations. The company offers free shipping for 500 USD orders. They don't have physical showrooms.
■ Sleepy's: The Company specializes in mattresses design and manufacturing. The company distributes imported furniture for beds and living room. They work with more than 60 franchises in the United States of America and the British Columbia Province (Sleepy's, 2016).
Advertising:
The advertising strategy starts with a powerful website with a dynamic showroom and the possibility to create an order with the website, without the use of phone operators. Once the website is robust and available in the three countries of North America, the advertising strategy is using social networks like Facebook, Instagram, and the Google Ad Sense feature to concentrate the message of the company to a specific public: women from 25 to 40 years old, according to the location of the potential client and the nearest store. The previous strategy is complemented working with real estate developers and banks offering personalized designs and manufacture of furniture to new houses or remodeling services.
Pricing
The price has two approaches; the first approach is related to the considered competition and the second approach depends on of the payment conditions offered to the client. The company may use two price structures, one in cash payment and the other with credit payment. With the use of the three representations in the three countries, there is no need to consider extra custom costs to the clients.
Delivery and payment
The delivery conditions offered to the client are five labor days after the order payment. The company will use the cheapest delivery country that serves to the client. The payment of the furniture will be using traditional electronic platforms as Visa, MasterCard, American Express, Diners Club and Discover; new payment services as PayPal and Alipay and check by mail.
Reference List
Sleepy's. (2016). The Mattress Professionals. Obtenido de Sleepy's: http://store.sleepys.com/?_ga=1.1361137.1122450823.1465159203
