Company Biography
In January of 2002, John Ferrer and his wife Deborah started their own corporation, a large custom furniture
manufacturer located in Boston, MA. Their initial accounts were in the Northeastern region of the United States,
and they annually observed a constant profit increase. By March of 2006, they were able to grow the company
enough to go from five distribution and manufacturing plants to 10 to allow shipping to 48 states. Although they
have two retail stores, one located in Phoenix and one in Boston, their primary source of revenue is online catalog
sales. They have 10 manufacturing plants and distribution centers throughout the country.
John and Deborah’s corporation is known throughout the industry for its exceptional customer service and
superior quality. The contemporary designs lend themselves to a younger market, and the customer base is
predominantly upper-middle class because it is one of the highest priced furniture companies in the market. Part
of the appeal of John and Deborah’s brand is their consistent involvement with the local communities to create
green gardens. They have also been a major contributor to organizations that build houses for people in need.
One of their primary strengths is their vertical integration. They have a team of in-house designers saving the
company design costs and allowing the flexibility to rapidly change designs as the market changes. Their products
have been featured on several prominent home design and gardening shows and have been endorsed by several
well-known designers.
Because of the recent housing market sales decline (8% from 2005–2006), home renovations have slowed
significantly. This has impacted the amount of furniture and fixture sales and continues to impact revenue.
Furniture sales in the United States have decreased significantly, and John and Deborah have recently been
discussing the possibility of global expansion.
Another potential threat to their company is that many higher-end brands have been marketing aggressively and
creating lines for popular retail stores. These allow the lower-income consumers to have access to high-end brands
at a much lower price point. So far, these lines have been incredibly successful and have significantly increased
profits for competitors. Many of these competitors have also had great success in the global marketplace with
these lower cost replicas.
John and Deborah know that it is time to seriously consider expanding their business. They want to be able to
make it through the economic crisis and rely on other ways to increase sales and business. They are open to
looking into the global market, but they want to be sure that it is the right move for the business. They have
requested an advisory board meeting next month in which you will present the global marketing strategy. As the
market strategist, you will play a key role in helping the board decide if this is the right move for the company.
The Problem
You are sitting in Deborah Ferrer’s office. After the customary small talk, Deborah sits forward and states, “I am
very impressed with the work that you have done as the strategic marketing manager. Since John and I started this
company in Boston, we have seen continuous growth, but nothing like what we have seen since you started.
However, the housing market is really starting to impact our profits. This last quarter’s numbers were not looking
good.”
You reply, “The crisis has really hit us hard. We have some stiff competition, too, with the other brands creating
retail knock-offs.”
She counters, “We’ve had great success with your strategies in the domestic markets, but we do need to think of a
new approach and strategy. I have complete faith in your abilities to take this company exactly where it needs to
go. I must say that we are really counting on you, and I know that you will follow through.”
“I will make sure that we do well. Do you have any new projects for me?” you ask.
Deborah smiles and says, “You know me well. I do have a new project for you. I sent you an e-mail just before our
meeting. I’m curious if expanding in a global market would be a good move for our company. I would like you to
look into this for me.”
“Our team is definitely up for the challenge,” you say with enthusiasm.
Deborah shakes hands with you warmly, and you make your way out of the meeting. As you drive out of the
parking garage, you think about your success with the company. You cannot wait to get started.
Running Head: INDUSTRY ANALYSIS
Albert Einstein said that “the environment is everything that is not me” ("PEST and
SWOT Analysis for Business Industry & Competitive Analysis", 2018). Therefore, just it is
essential for us to be aware and watchful of our environment so should we be conversant with
our business’s environment. The trends, the market size, competitors and much more are some of
the factors that need to be analyzed in a business environment ("PEST and SWOT Analysis for
Business Industry & Competitive Analysis", 2018). In this paper, I shall explore the tools best fit
to make such an analysis and most precisely determine the competitive dynamics of the industry.
There are several business tools that are majorly used for this purpose. The SWOT
analyses, PEST analysis, and Competitive Forces Model are some of the widely used methods of
industry analysis today. Other techniques include organic ranking data, Google ads, keyword
research, back-links, content ideas, influencer and trending topics, email, social media, Alexa (an
Amazon) and many others ("13 Competitor Analysis Tools You Need to Stay Ahead [2018
Update]", 2018).
Now let us focus on the majorly used analytical tools, SWOT and PEST. SWOT is an
abbreviation of Strengths, Weaknesses, Opportunities, and Threats ("Industry Analysis - Top 3
Methods to Assess and Analyze an Industry", 2018). With that, you break the industry into the
four classes and compare it against the competitor. Strengths are the factors that give your
enterprise an advantage when compared to its competitors. Weaknesses are the factors in which
your company is disadvantaged relative to its competitors. Opportunities are the fundamentals
INDUSTRY ANALYSIS
2
that found in the external environment of your business that increases the possibility of success
of your enterprise’s strategies thus growing benefits. Threats, on the other hand, are elements
found that endanger the profitability and the integrity of the company and they are also found in
the external environment of the business. In this analysis, it should be known that external
factors are unexpected occurrences whose probability of happening has been projected as well as
the magnitude of their effect to the company ("Industry Analysis - Top 3 Methods to Assess and
Analyze an Industry", 2018).
Let’s now take a look at PEST which is also known as Broad Factors Analysis. The
abbreviation stands for Political, Economic, Social and Technological and it most suits in
external elements analysis ("Industry Analysis - Top 3 Methods to Assess and Analyze an
Industry", 2018). When analyzing Political factors, you consider regulations and policies related
to labor laws, taxes and tariffs, environmental regulations, trade policies and the country’s
political stability as a whole. Secondly, Economic factors are forces that affect businesses like
the growth rates of GDP, interest rates, exchange rates, inflation as well as the state of the capital
market. Social factors are now the effects of trends like demographics, behaviors like fashion and
health as well as the growth of the population. Technological results, on the other hand, are
developments and advancements that affect the operations of business and way of life ("Industry
Analysis - Top 3 Methods to Assess and Analyze an Industry", 2018).
SWOT analysis is best in analyzing the business since it gives us a better understanding
of the company by addressing its strengths and weaknesses (Frue, 2018). By knowing this, we
can capitalize on our opportunities and make use of our powers maximally to maximize
profitability. Another benefit of SWOT analysis is the knowledge of future opportunities and
threats (Frue, 2018). As a result, the business can formulate appropriate goals and the best
INDUSTRY ANALYSIS
3
manner of reaching them. PEST analysis, on the other hand, is cost useful. The most significant
investment in this analysis is time since it requires research and an understanding of trends. This
analysis also gives business owners a deeper understanding of the external indirect environment
like the law which is significantly impactful to the business undertakings ("Benefits and
limitations of SWOT analysis | Business Queensland", 2018). It also develops the alertness of the
business owners thus increasing the chances of opportunity exploitation ("Benefits and
limitations of SWOT analysis | Business Queensland", 2018). Business opportunities will always
be in the external environment, and since this analysis gives you a deeper understanding of this
environment, it is easy to spot these opportunities. With all this information, our business plan is
going to have a broader and more precise model.
INDUSTRY ANALYSIS
4
References
PEST and SWOT Analysis for Business Industry & Competitive Analysis. (2018). Retrieved
from https://www.shopify.com/guides/businessplan/the-industry
Industry Analysis - Top 3 Methods to Assess and Analyze an Industry. (2018). Retrieved from
https://corporatefinanceinstitute.com/resources/knowledge/strategy/industry-analysismethods/
13 Competitor Analysis Tools You Need to Stay Ahead [2018 Update]. (2018). Retrieved from
https://engeniusweb.com/articles/5-competitor-analysis-tools/
Frue, K. (2018). The Advantages of PESTLE Analysis. Retrieved from
http://pestleanalysis.com/advantages-of-pestle-analysis/
Benefits and limitations of SWOT analysis | Business Queensland. (2018). Retrieved from
https://www.business.qld.gov.au/starting-business/planning/market-customerresearch/swot-analysis/benefits-limitations
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