HISTORY AND DEVELOPMENT1
EVALUATION OF SWOT ANALYSIS3
FIGURE 1: CANADEL'S ORGANIZATIONAL STRUCTURE13
FIGURE 2: PORTER'S FIVE FORCES MODEL (PRESENT SITUATION)16
FIGURE 3: PORTER'S FIVE FORCES MODEL (FUTURE SITUATION)17
History and Development
Canadel is a privately owned, quickly growing, customized furniture manufacturer that specialized in designing, assembling, finishing, and marketing casual dining furniture. With a University background in Accounting, Guy Deveault founded the company in 1982 by using his father's previous furniture company's contacts. He funded the money from friends and family with promises of repayment upon success of the company. By 1985, both of Guy's brothers, Michel and Jean, had joined the company as Operations Manager and Sales and Marketing Manager respectively. By 1991, Canadel established the image of being a supplier of high-quality furniture. They differentiated themselves by focusing on the casual-dining market which became the number one contributing factor to their rapid success. With this success, Canadel decided to enter the U.S. market in 1992, securing a few large U.S. retailers almost immediately. The same year, Canadel introduced the "workshop" concept which allowed customers to visualize and order the customized furniture they desired. This concept put them technically ahead of their competitors and allowed them to attract more valuable, high volume retailers. The company currently holds a strong position in the market, with over 50 per cent of the entire dining room market.
Canadel is a privately owned, consumer focused, customized furniture assembler. Its financial position is currently reasonably stable, with constant significant increases in sales and revenues. From the years 1998 to 1999, Canadel's sales increased by 25 per cent and are expected to increase by another 21 per cent by the year 2000. They put forth great efforts into cutting costs and have no stockholders making them a debt-free company. Canadel's operations run smoothly through sequential interdependence between channel members. Meaning that each department has different procedures, on which their outputs are dependent by another department. The company is targeting the casual dining furniture market with a customer focused orientation. The use of the workshop has enabled Canadel to allow their consumers to have their furniture the way they want it; maintaining customer satisfaction and increased loyalty. With policies such as "customer satisfaction, but not at the expense of employee relations" and the open-door policy, Canadel had been able to create a low power distance between management and the employees. The company also has unique hiring procedures compared to other large competitors in the market. By holding frequent company activities and parties, Canadel has been able to motivate and retain their employees by showing their appreciation.
Canadel's supporting activities in its value chain appear to be relatively strong; however there appears to be a few weaknesses in its primary activities including research and development. As well, its current resources seem to be weak as they are not very valuable, easy to imitate, not rare, and are not unique to the organization as they can and have been copied. These two problems can be viewed as two of their current main weaknesses.
The Canadian casual dining furniture industry has many competitors which operate in this saturated market. The industry is in the maturity stage of the life cycle and firms needs to continually introduce new technologically advanced production methods in order to stay...