Corporate Strategy

1. Identify the elements of its corporate strategy in terms of(i) the kind of business, the company is in (ii) the product scope (iii) the market scope (iv) the growth rate

The Living Room was positioned as a susbstitute for the family carpenter who offered a product that was easy to purchase ,good in design , genuine and trustworthy in quality.

TLR had a large varity of models in all its products.They were recogonised as a pioneer in Sofa-cum-bed . Designing was done in house after studying the market trend and customer feedback.The designs were standardised , how ever product dimensions could be changed based on customer requirement.Besides style, utility was the most important aspect in the design.

Product Scope: The Living Room made a wide varity of home furnitures. The products included Sofa sets – 30%,beds,wadrobes,dressing tables and other accessories :25%; dining sets-20%;kitchen cabinets,wall units and study tables:25%. TLR also introduced office furniture like workstations ,office tables ,chairs,running tables ,side runners etc… They more focused on customised requirement of customers initially and later acquired more market.

The market scope was huge:TLR catered to small offices,which did not have the sufficient volumes to buy from institutional sellers.Quality and long life of the furniture were the core strengths of all TLR products.This was ensured by high standards in manufacturing, workmanship and quality components. Indian furniture industry was in a boom and TLR had huge opportunity to acquire the market with its brand value.

The Growth Rate: Indian furniture industry was ruled by the unrecongonised local brnads. With the FDI regulations expected there were chances of foreign investments. TLR did not have the market exposure to get. So they had to use the services of interor decorator. In this case the the company was likely to face challenges in keeping the relationship with the clients. TLR now was strongly entrenched as a...