Guillermo Furniture Store Recommendation

Guillermo Furniture Store Recommendation

Hugo Haro, Rena Baker, Kimberly Smith, George Kirbyson

FIN 571

May 25, 2012

Jeremy Alessandro

Guillermo Furniture Store Recommendation

Introduction

Furniture has a very long history and continues to change with time from style, design, and value. For centuries there were not many characteristics that would make furniture makers unique from one builder to the other. However, until the early 18th century, furniture makers begin to label and sign their finished products. Given that furniture has gone through changes based on society’s wants and needs for a specific type, style, and design of furniture. One advantage concerning furniture is how, when, and why it was built. For instance, in today’s market hand-made furniture versus production furniture using technological advancements has a higher value. Most people look at hand made furniture as a work of art because it was created by an individual with an artistic imagination. However, this type of furniture does not have much marketability because it is considered a niche market in current society.

Guillermo’s Alternatives within the Industry

Guillermo’s furniture business has had success for the past decade but as society changes, trends change, including their buying habits. For this reason, Guillermo’s Furniture Business has experienced shrinking profit margins which has made him re-evaluate his current business strategy. He understands that times are changing and competition will not be leaving anytime soon. First, Guillermo will need to consider options that are available that strongly affect his market competitors’ success to stay in business. For instance, let us look at the options available, including the pros and cons for each, including what is needed to make the necessary changes (See figure 1).

Figure 1

Options for Guillermo |...