Name of company: Sals Hardwood Flooring.
Business Description
Mission Statement
Sals Hardwood Flooring company is a competitive representative of the flooring industry. The company’s mission is to provide the customers with flooring products of high quality and design. Sals Hardwood Flooring strives for the compromise between exclusive designs and qualities and the best price of the products.
Company History & Structure
The history of the company goes back to the 1995 when its founder Billy Sals decided to go to West Virginia to buy unused and antique furniture for the construction of a new house. Here and there Jack found the old wood and additional uses for it. He proceeded to build the company using antique wood to turn it into what is now known as the masterpieces of antique flooring in the world. Being founded as a company that found, procured and milled the antique wood, now it is proud to provide the customers with wood, hardwood, laminate, engineering, vynil, walnut flooring and laminate tiles.
Sals Hardwood Flooring is headed in Vancouver, British Columbia, it owns a wide range of flooring businesses supplied with manufacturing and distribution facilities located in Washington, British Columbia, Alberta, Saskatchewan and Manitoba.
Business Concept
The products and services offered: maintaining a complete inventory of products to install, sand, and finish wood flooring;
Customer: companies and individuals interested in flooring products and services;
The value proposition:
- The best combination of price and quality;
- Superior Customer Service;
- An easily accessible location for customer convenience;
- Products and services offered;
- Collaborations with partners involved in the industry;
Delivery to the customer: the products are delivered by a special delivery team of professionals who do not simply install the flooring but give useful pieces of advice as far as design and floor protection are concerned.
Industry Analysis
Product
The company offers a variety of high-quality flooring products. The company’s collection embraces oak, walnut, pine, cherry, beech, ash, maple and the hardwood floors. Suitable wood floor protection products are also the focus of the company’s concern.
Economic/Legal Issues
Interest and exchange rate affect the consumer spending and this could affect profitability of the firm. Once the purchasing power of the citizens comes down then the company in operation will reduce profitability. The interest rate and inflation rate prevailing in the economy affects also the purchasing power of citizens. On average income distribution and disposable income available among American citizens is fair as compared to other parts of the world. The U.S. and Canada is a multicultural country which has stable balance of payment and low foreign exchange rate thus any business operating in the U.S. and Canada will be stable business. With such environment, investment in flooring industry will be of great concept and viable in the long run.
Competition Analysis
Players
- The Harwood Flooring Company;
- Anderson Hardwood;
- Torlys;
- Bruce Harwood Floors;
- Superior Floor Company, Inc;
- Robbins Harwood Floors;
- HomerWood Corporation;
- Broad-Axe Flooring;
- Gammapar.
Capacity/Value
Anderson Hardwood is America’s leading manufacturers of refinished hardwood floors. Torlys is Canada’s leader in Specialty Floor covering – they appear to be the main competitors in the industry. Sals Hardwood Flooring company is committed and profitable, capable of providing the most innovative and stylish flooring products with the highest level of service; therefore, it is highly competitive.
Market Analysis
SWOT matrix
Strengths
- It will be one among not numerous companies that provide flooring products of various types within one area; therefore customer confidence will be high.
- They will grow through the use of strategic alliances with members of various industries requiring their services.
- Low cost of setting up because the partners in the business are young trained professionals in various fields.
- There will be high operational matching and reduced risks relating to profitability.
Opportunities
- There is potential for growth through the increase of market share if the strategic alliances, mergers and acquisitions strategies are adapted.
- The new services developed are linking the changing lifestyles of people in the world therefore attracting the large market.
- The company has opportunity of entering increasing target market.
Weaknesses
- The company will experience barriers to enter foreign markets because of regulations to protect homemade companies.
- Licensing problems will be experienced.
Threats
- There will appear more and more competitors in the market.
- Rules and regulations of different countries differ.
- Interest rates and inflation rates are increasing.
Marketing Mix
- PRICE – the company will offer services from initial design concept to the completion of the wood floor required as well as the needed advice designing the correct wood flooring system that meets the highest customer’s demands and budget. To supply individuals and companies with affordable products is the main goal of the company.
- PROMOTION – there will be promotional adverts made on TVs, online services and government agencies. This will increase the market share.
- PLACE – the company will be eventually a multinational with a center based in Canada, it will be situated in a strategic position in the city center and it will have manufacturing and distribution facilities located throughout Canada and the U.S.
- PEOPLE – the company will have talented staff, highly skilled and experienced. Although the directors or partners will be fresh from college.
Operational Issues
Location
The company is headquartered in Vancouver with subdivisions throughout Canada and the U.S.
Components/elements
Sals Hardwood Flooring is wholly owned by the descendants of Sals and operates out of seven locations. The locations employ 56 outside salespeople, over 50 customer service contacts and a staff operating delivery vehicles.
Learning curve/development
Important factors that influence the company’s development are:
- Seasonal instability in the company’s sale;
- Changes in the cost of raw materials;
- Changes in consumer preferences;
- Competitiveness of other companies engaged in manufacturing flooring products and distribution;
- New law regulations might affect the company’s business and operations.