An Analysis of Kitea & the Furniture Industry in Africa

An Analysis of Kitea & the Furniture Industry in Africa

ABSTRACT

The objective of this paper is to analyze the success strategy of Kitea to gain an understanding of how the company has established itself as the leading retail furniture company in Morocco. In addition, the paper offers recommendations on future strategies for Kitea to maintain its position as the market leader while continuing to grow and create value for its shareholders. An analysis of the furniture retail industry on a national scale is conducted through the use of Porter’s Five Forces Model providing a further understanding of the furniture retail industry within continental Africa. Utilizing A SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis the paper assesses the current internal and external factors affecting the future potential of the company. Combining the results of the analysis, this paper concludes that Kitea should move forward improving its sustainability development strategy, focus its efforts on penetrating emerging countries in Africa and make improvements to the company’s ecommerce applications in order to sustain its business and facilitate growth.

INTRODUCTION

Throughout the last decade the Moroccan retail sector has witnessed significant growth (Oxford Business Group, 2012). Trade agreements with the EU and other African countries make it a preferred regional business center. Furthermore, the country’s accessible location, rising gross domestic product, modernizing social stability, and skilled labor pool all contribute to making the retail furniture industry attractive for domestic business owners in Morocco. The industry’s leading company, Kitea, was founded in the 1990s and now controls more than 16 percent of the market (Lahrach, 2012). Kitea is a home products company that retails ready-to-assemble furniture such as chairs, beds, desks, appliances and other home accessories (Kitea Group, 2012). The company has evolved since its immediate...