Company Name: Areeka Furniture
Notice! For understanding of the company only:
Company S.W.O.T Analysis:-
Strength:- High budget, high customer service, low fixed cost (due to no rent payment, storerooms + showroom owned), biggest showroom, multi sector (office furniture, home furniture, accessories, lighting).
Weakness:- Low innovation, private owned restricts capital, no e-commerce, low recognition compared to In&Out, low cost
Opportunities:- E-commerce, expand across cities, promotions, marketing, brand recognition
Threats:- Competitors - direct (furniture stores), Rising commodity & shipping prices and import rules and taxes
Company History and background:-
AREEKA FURNITURE’S (HURGHADA)
Established in 2007, privately owned, Areeka furniture still to date has the largest furniture showroom in Hurghada, what was supposed to have started off as a partnership soon went sideways and had to be re-started. With the mixture of high, medium range and affordable price tags and higher quality, the company invites multiple different classes to visit the store. For those who are budget oriented or quality or a mixture of both it is all available. A company that first started only an in home furniture showroom has now expanded to all sorts of furniture related items such as office furniture, lighting, accessories and related paraphernalia.
“Sofa approx. 7000 LE”
1. Levels of competition:-
a. Product form category
In&out, Antre, Ambiance, Divano, ElKot, Azhary, Aboud Sons, Essa furniture, Taleb furniture, Magdy Shanshan furniture, Al Rashad furniture, Alexandria International T&H furniture, Reem Elgaml
b. Product category competition
bedroom, office desks, office chairs, dining tables, sofa’s, tea tables, room dividers , side tables, cabinets, personal computer desks, dressing tables , fitted wardrobes, light stands, kitchen cabinets, book shelves, center and side table sets
c. Generic competition
Doors, freezer, fridge, boiler, cooker, printers, dishwasher, clothes dryer, washing machine, microwave, water heating system ,split unit air conditioners, television set
d. Budget comparison
Laptops, stereo, flight ticket, TV, hotel room, vacation, leisure activities eg cinemas, Amusement parks, mobile phones
1. Aggregate market factors:-
a. Category size:-
the category size of furniture includes everyone, since we are not focusing on differentiating between types of people (i.e. left handed, right handed, tall, short, thin or not) our market pretty much includes everyone that can afford reasonably well priced furniture. There is a variety of furniture’s for every type of social class regardless at affordable prices as Areeka furniture’s caters to a wide range of loyal and prospective customers.
b. Category growth & Stage in product life cycle:- The category growth of furniture is always in the early to late maturity stage, but, since furniture is a necessity and not a commodity the maturity stage is pretty much endless. Even with furniture's life span, which on average is about 3-6 years and renewal, modernizing or upgrading, it’s a never ending product. Even with depreciation, business can slow down drastically but it will never stop since it is inevitable that every household or work space requires some sort of furniture.
c. Seasonality & Sales cyclisty:-
The furniture market is season friendly as furniture is a necessity in every home. Areeka experiences an increase in demand of its furniture’s in the summer time due to the high influx of tourist coming into Egypt for the summer holidays. A lot of real estate developers purchase furniture’s used in furnishing accommodations for prospective clients, and such accommodations...