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Copy of Two-in-one furniture company
Transcript of Copy of Two-in-one furniture company
Supplied: wall units, kitchen cabinets
Subcontracted: bedroom sets and dining sets
• owned by Mr. Chua, Mr. Leong, and Mr. Lim
• Aside from the usual local suppliers, Dahlia turned towards imported furniture from France,Japan, and Belgium.
• Perceived customers are those middle and upper income group with a taste in western designs
• Due to its imported
furniture being displayed, Dahlia’s image improved as a high quality furniture store.
DAHLIA'S FURNITURE PRIVATE LIMITED
AREAS OF CONSIDERATIONS
Own Production (Orchard)
The Furniture Industry
STATEMENT OF THE PROBLEM
Furniture began as a natural extension of sawmilling
Turned into a leading local industry with market estimated at $300 million
How will Dahlia Furniture Private Ltd. maintain its sales in a highly competitive market?
Increase importation of furniture.
Uphold the image of being high quality retailer
Purchase of Sales by Retail Outlets
Plan of Action
Trends on consumer preference
Assign general manager with expertise
Establish Marketing Strategy
Monitoring and Controlling
Expanding its production unit
• Good reputation and good image
• Incomparable to local producers
• Owners are risk-takers
• Good at foreign furniture retailing
• Furniture can be prepared on order
• Increase sales in importing furniture
• Young generation tends to change their furniture every 2-5 years.
How did Dahlia's Furniture entered the market?
1979 - 1981
1978 - 1982
Found to be unsuitable because of:
HIGH QUALITY AND PRICE
PEOPLE RESIDING WERE MAINLY FROM LOWER INCOME GROUP
$4 per square foot (rent was more expensive)
Orders come in very quickly
Turnover reached $5 million per annum
ANG MO KIO AND UPPER THOMSON
Ang Mo Kio cost $400,000
-rented out on a monthly basis to furniture makers
-dining sets and custom-made kitchen cabinets
Upper Thomson cost $300,000
BUKIT TIMAH AND UPPER THOMPSON
acquired 2 more Showrooms
Dahlia Furniture wants Strategies on how to sustain:
Expand production=more workers
Could turn out costly if the imported furniture took a longer time to sell (incur cost overtime for storage)
Not be able to cater to the mass market.
Growing demand and growing number of people who could afford imported furniture
Generate higher profits to the company
The image of being high quality will retain
Free from the problems posed by hiring additional labor
Difficult to manage
Training is time-consuming
Additional overhead cost will be incurred
Cater to the mass market
Create sales for Dahlia
Quality of furniture will be assured
• Lim’s management wasn't good enough
• Needs better management
• No job regularization
• Competition is high
• Threat on foreign firms
Categories of Sources of Income
Area: 2,500 ft.^2
Rent: $13,000 per month
% of Sales: 60%
Bukit Timah area
Upper Thomson area
Area: 900 ft.^2
Rent: $2,500 per month
% of Sales: 30%
Area: 1,130 ft.^2
Rent: $2,700 per month
% of Sales: 10%
PLAN OF ACTION