BS Assignment 2

BS Gradable Assignment 2 Assignment 2: Case of “The Living Room: Redefining the Furniture Industry”

(Case Reference from the Text Book: Strategic Management by Hitt, Ireland, Hoskisson and Manikutty

1.

Identify the elements of its current corporate strategy in terms of (i) the kind of business, the company is in (ii) the current products’ scope for the next 4 years

2.

List down the company’s strengths and weaknesses 3.

Examine the growth options for the company in terms of (i) Product Range – Existing and New (ii) Customers Targeted – Current Customers and the for the New Products (iii) Geographic Coverage – Current areas and Proposed New areas

Abstract: The central issue in this case relates to the expansion plan (growth option) of a traditional furniture company in the contract of growing options in the Indian furniture industry. The case provides adequate details on the growth and evolution of the firm, the competitor’s profile, and the consumer expectations by a survey. The decision options to the firm are expansion within Bombay or expansion to other cities. The cases can also be used to illustrate the concept of mass customization.

Identify the elements of TLR’s marketing strategy, in terms of (i) Product (ii) Pricing (iii)Promotion (iv) Distribution (v) Customers (vi) CompetitionAnswer: TLR made products to cater to middle class homes where there is space and finance constraint and small offices which did not have the sufficient volume to buy from institutional sellers. They invented “sofa-cum-bed” which was an instant hit. They started introd ucing new models in this category with different price. The customization was also possible based on the customer requirements. The core feature for all the products of TLR is space maximum utilization and the ir innovations were not only for living room but it expanded to bedroom, kitchen, wardrobes etc. The pric ing of these products were also in affordable ranges which a budgeted customer won’t have trouble in pay ing as for example instead of buying individually single bed and sofa at hefty price, customer can get 2 in one sofa-cum-bed in much cheaper price with VAT included.TLR insisted on transparency in all its proces ses related to customer. The price was set at a reasonable level and disclosed at the beginning of communi cation. There were no hidden costs, no discounts or bargains. The quality of the product and long life of t he furniture was the core of all the TLR products. With this TLR was successfully able to establish brand image in the furniture industry as a symbol of quality, trust, value for money ---

Answer: TLR made products to cater to middle class homes where there is space and finance co nstraint and small offices which did not have the sufficient volume to buy from institutional selle rs. They invented “sofa-cumbed” which was an instant hit. They started introducing new models in this category with different price. The customization was also possible based on the customer r

equirements. The core feature for all the products of TLR is space maximum utilization and their innovations were not only for living room but it expanded to bedroom, kitchen, wardrobes etc. T he pricing of these products were also in affordable ranges which a budgeted customer won’t hav e trouble in paying as for example instead of buying individually single bed and sofa at hefty pric e, customer can get 2 in one sofa-cum bed in much cheaper price with VAT included. TLR insisted on transparency in all its processes related to customer. The price was set at a reaso nable level and disclosed at the beginning of communication. There were no hidden costs, no dis counts or bargains. The quality of the product and long life of the furniture was the core of all the TLR products. With this TLR was successfully able to establish brand image in the furniture ind

.

ustry as a symbol of quality, trust, value for money

(i) ±he kind of business, The company is in? TRL is furniture manufacturing and retailing to consumer directly. (ii) ±he producT scope All the products a middle and upper middle class house needs. And also furniture for smalloFces. TLR provides good quality, long las±ng and value for money furniture. (iii) The markeT scope The middle class and upper middle class of Mumbai, Pune and Goa. (iv) The growTh rate The growth rate should be substan±ally highdue to di²erent reason as CGPA is increasing, largeyoung popula±on(who prefers to have one stop shop than tradi±onal way), increasing expenditure on furniture etc .2.Identfy The company’s sTrengThs and weaknessesAnswer: STrengTh TLR has a large number of loyal customer bases who comes over to TLR repeatedly. Evennext genera±on also prefer to come over for any furniture. Quality n long lyf