Globalization contributes to the emergence of a large number of companies, which is the result of increased competition. This aspect is not an exception to the production of office furniture. Thus, there are conditions under which some furniture companies thrive when custom furniture manufacturers are experiencing significant difficulties. This work will explore two competitors in the chosen field, such as Ikea and Fortner, as representatives of global and custom organizations.
First of all, it is necessary to investigate the advantages of the companies that have been selected for analysis. Ikea is a global furniture manufacturer and “operates 422 stores in more than 50 markets” (“Ikea,” 2022, para. 1). Thus, it is very popular among the population due to the availability of products and a large assortment. On the other hand, furniture manufacturer Fortner provides a narrower list of furniture products and provides custom services for customers. The organization is aimed at individual work with customers and providing the highest quality and customer satisfaction.
The next step is to conduct a SWOT (strengths, weaknesses, opportunities, and threats) analysis of the companies. Hence, the strength of Ikea is a high degree of customer loyalty due to the long history of the company’s activities. At the same time, the main weakness of the manufacturer is the declining quality of furniture and the increasing number of complaints about the life expectancy of products. Regarding the possibilities, furniture manufacturers need to expand further into developing economies. The last but no less important aspect is the consideration of threats to Ikea. Thus, this is the growth of consumers’ wages; that is, with the growth of financial opportunities, they can turn to manufacturers of higher-quality furniture.
The main strength of the custom manufacturer Fortner is the uniqueness of the products provided. This helps attract solvent buyers who value quality and reliability. However, this can also be a weakness since uniqueness implies a limited number of audiences. An opportunity for a custom manufacturer may be to increase the number of services provided. The main threat is greater competition in the market by finding companies that provide cheaper goods.
As part of the study of office furniture manufacturers, an important aspect is the construction of a competitive market profile. It “reveals the unique characteristics of your typical customer and customer groups and it paints a picture of whom you are selling to and what your typical customer looks like” (“Competitive positioning: Start with a market profile,” n.d., para. 1). Thus, the strategy should include building a demographic profile of buyers and studying their needs and desires. The next step is to define the goals and missions of the companies, which will become the main driving force for development in the market. Research stated that manufacturers must “align their goals with customers so that they can communicate on the same page” (Wroblewski, 2020, para. 6). Following this strategy will provide companies with more effective and efficient development.
In conclusion, at the moment there is a lot of competition in the production of office furniture. This aspect concerns both global and custom organizations. This work investigated such manufacturers as Ikea and Fortner and analyzed their strengths, weaknesses, opportunities, and threats. This provided an understanding of areas that require attention from companies and strategies that will help form a competitive market profile.
References
Competitive positioning: Start with a market profile. (n.d.). Marketing Mo. Web.
Wroblewski, M.T. (2020). How to create a target market profile and positioning statement. Chron. Web.