Five_Forces_Exhibit - (Hi Luxury Automobiles/Electronics...

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Industry Rivalry Suppliers Buyers Potential Entrants Substitutes Power of Suppliers  (Lo)   Saw Mills, Lumber Importers, Finishing  Materials Company   • Commodity Items • Non-Contractual – Lowest Bidder • Many other Options Threat of Entry  (Lo) •Capital Intense to produce Volume • Substantial learning curve • Current Excess Capacity Extent of Rivalry  (Hi)   Baker, Century, Hickory White • Excess Capacity • Small and Shrinking Market • Long Product Life Power of Buyers   (Lo) Boyles Furniture, Local Retailers • Strong Name Brand, Desired availability • Exclusivity granted and retractable at  Henredon’s Discretion • Ease of storage and long shelf  life/however high carrying cost Threat of Substitutes
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Unformatted text preview: (Hi) Luxury Automobiles/Electronics, Travel, Antique Furniture •High Price= High opportunity cost to purchaser • Easy to postpone by using old furniture or Knock Down Furniture • High Fashion Item so depends on current trends Overall assessment of industry environment : The environment is a mixed bag because while suppliers, buyers and threat of entry are all low, the market size is shrinking and the end consumers have many substitutes to pursue. Name of your Firm : Henredon Furniture Company Description of its Industry : High-End Luxury Furniture (+$25,000 dining room sets) BUSI 698 Assignment 1 Exhibit 1 – Five Forces Analysis:...
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This document was uploaded on 11/04/2011 for the course BUSI 698 at UNC.

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