Seeing the Big Picture

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Strategy in the news

Keeping your eye on the news is essential to having an up-to-date strategy. Read all the news and then use it to decide on a strategy.

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Richard is a product manager at Wilmont Brothers, a mid-sized manufacturer of low-end furniture looking to improve profits. Richard is considering how some changes in the company's strategy might affect profitability. The market data in today's newspaper might provide some useful information.

Article One: NEW HOMEBUYERS LOOKING FOR STYLE. The popularity of cable shows dedicated to home improvement has heightened consumer interest in high-end designer furniture . . .

Article Two: SWEDISH FURNITURE GIANT AIMS FOR THE MASSES. Jokeean, the number-one furniture retailer worldwide, has decided to focus primarily on low-cost furniture for the mass market . . .

Article Three: FURNITURE MAKERS FIND PROFITS IN NICHE MARKETS. With large manufacturers dominating the market for low-cost furniture, smaller companies are seeking out niches to stay profitable . . .

Article Four: HOME BUILDERS LOOKING TO CUT COSTS. A buyer's market in homes has led construction firms to reduce their construction costs as much as possible . . .

Which of the following strategies best balances all the available information about Wilmont's customers, competitors, and industry?

Not the best choice. With evidence to suggest that some buyers are looking for more style than bargain furniture has to offer, this choice would pit Wilmont against the industry leader in a market the competition already dominates.


Correct choice. While major competitors favor cheap and mass-produced furniture options, it may be worth the expense for Wilmont to contract with well-known designers in order to capitalize on an underserved high-end market.


Not the best choice. Pre-furnished homes account for only a small piece of a market that is already suffering. Additionally, this choice ignores the indication that there are profitable markets available among furniture shoppers, and that style-conscious customers are looking for options.


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