Furniture Shopping

Add references….

Chapter 7, Application Problem 3
The following facts characterize the furniture industry in the United States:39

Don't use plagiarized sources. Get Your Custom Essay on
Furniture Shopping
GET AN ESSAY WRITTEN FOR YOU FROM AS LOW AS $13/PAGE
Order Essay

39 James R. Hagerty and Robert Berner, “Ever Wondered Why Furniture Shopping Can Be Such a Pain?” Wall Street Journal, November 2, 1998; Dan Morse, “U.S. Furniture Makers Seek Tariffs on Chinese Imports,” Wall Street Journal, November 3, 2003; and Mark H. Drayse, “Globalization and Regional Change in the U.S. Furniture Industry,” Growth and Change 39 (June 2008): 252–82.

a. The industry has been very fragmented, so that few companies have the financial backing to make heavy investments in new technology and equipment.

b. In 1998, only three U.S. furniture manufacturers had annual sales exceeding $1 billion. These firms accounted for only 20 percent of the market share, with the remainder split among 1,000 other manufacturers.

c. Capital spending at one manufacturer, Furniture Brands, was only 2.2 percent of sales compared with 6.6 percent at Ford Motor Company. Outdated, labor-intensive production techniques were still being used by many firms.

d. Furniture manufacturing involves a huge number of options to satisfy consumer preferences, but this extensive set of choices slows production and raises costs.

e- Small competitors can enter the industry because large manufacturers have not built up any overwhelming advantage in efficiency.

f. The American Furniture Manufacturers Association has prepared a public relations campaign to “encourage consumers to part with more of their disposable income on furniture.”

g. In fall 2003, a group of 28 U.S. furniture manufacturers asked the U.S. government to impose antidumping trade duties on Chinese-made bedroom furniture, alleging unfair pricing.

h. The globalization of the furniture industry since the 1980s has resulted from technological innovations, governmental implementation of economic development strategies and regulatory regimes that favor global investment and trade, and the emergence of furniture manufacturers and retailers with a capacity to develop global production and distribution networks. The development of global production networks using Chinese subcontractors has accelerated globalization in recent years.

 

Chapter 8, Application Problem 4

The following discussion describes recent changes in the strategy of Parker Pen Co.80 80 Cameron McWhirter and Laurie Burkitt, “In China, the Pen Is Mightier When It’s Pricier,” Wall Street Journal (Online), November 2, 2011.

Although consumer interest in fine writing pens in the United States may seem equivalent to consumer response to Kodak film and cameras in the opening case of this chapter, Parker Pen Co., which is owned by Newell Rubbermaid Co., developed a strategy to build its presence in China where there is increased income and strong preferences for fine writing pens as part of China’s gift-giving business culture. Executives in other parts of the world may have substituted smartphones and tablets for expensive pens, but Chinese professionals are often willing to pay thousands of dollars for them. In response, Parker Pen Co. has darkened its pens’ ink to appeal to writers of Chinese characters and added a special Chinese character meaning prosperity and good luck to the pens’ heads. These changes have increased sales from 30% to 50% in many of China’s department stores. See more details at https://en.wikipedia.org/wiki/Furniture

Order Now

The number of Chinese earning a household income of more than one million yuan (approximately $156,000) increased 20% from 2010 to 2011. Pens are an affordable luxury, but also serve as a means for people to display their new wealth. Parker’s pens sales had been declining in North America and Europe, so the company turned to China and adopted a higher pricing policy to emphasize the status of the pens. Parker does have competition for its expensive pens from Montblanc, which has opened stores to sell its pens and other products. However, Parker pens contribute “substantially” to overall sales growth for Newell Rubbermaid.

a.  Discuss the role of consumer demand in influencing Parker Pen’s strategies.

b. Do you think Parker will be able to maintain its market power in China? Explain.

 

Grand Paper Writers
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All papers are written by the best professional writers to ensure 100% originality. We always provide plagiarism reports whenever we deliver completed papers.

Free Revisions

All papers by Grand Paper Writers are completed and submitted on time. This timely delivery of papers gives you time to go through the paper before the official deadline.

Title-page

As an additional service, we will provide a title page that precedes the contents of your paper. Here, you will provide your personal details.

Bibliography

We also ensure that we provide an extra page for the references or bibliographies following referencing rules.

Originality & Security

At Grandpaperwriters.com, we guarantee students for the provision of security and original work. All your personal information is handled with confidentiality and is not shared with third parties. Additionally, we ensure that we provide original content with accompanying plagiarism reports to show originality.

24/7 Customer Support

Our customer support team is always available 24/7 to provide instant responses to any queries raised by students.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Grandpaperwriters.com has the best professional essay writers for quality services.

Pricing

Flexible Pricing

Here, a Grandpaperwriters.com, we do not compromise on the time of our clients. We always deliver all completed papers on or before the deadlines.

Communication

Admission Help & Client-Writer Contact

Grandpaperwriters.com provides an interactive portal where students can communicate directly to their writers.

Deadlines

Paper Submission

Here, a Grandpaperwriters.com, we do not compromise on the time of our clients. We always deliver all completed papers on or before the deadlines.

Reviews

Customer Feedback

Grandpaperwriters.com appreciates feedback from our clients to help us improve the delivery of essay writing services. As such, we are constantly changing our policies to ensure maximum customer and writer satisfaction.