Panda Furniture123
AGSB
PANDA FURNITURE
STEFAN LIJESKIC
INTERNATIONAL BUSINESS STRATEGY
When Jan Hendrick Winkler took over his father company he faced many challenges. Panda Furniture is company based in Belgium, family business with long tradition and wide range of products. Company product line is based on Matrasses, Bedding and Furniture.
After research Jan conclude that company faced many serious issues. Firstly many company’s costumers start making their own metal springs, shortage of workers, British company which panda create joint venture is on the way to bankruptcy and lastly polyether foam was starting to be inroads into the company’s market and Panda know nothing about this new technology. First changes Jan make 1971 the company had bought joint venture partners and entered new joint venture with polyester producer and start producing new furniture. These changes bring to Panda significant increase in sale. From 1975 until 1981 Panda increase sales for 50% in all product lines.
Inspired with growth of the company and increasing of sales Jan wanted to expand in other markets with more potential and opportunities. First country for Jan was United States, country with better market, more population and more stable economy. Having previously lived in the US, Winkler saw an opportunity there, and depending on various factors, he decided to look further into it, until he was convinced: The United States of America is Panda’s best choice to expand although the market wasn’t looking particularly good as the giants in the market were already well established therefor required creating a brand name. He also found the bedding business to be unattractive and out of reach. However, Winkler found some positives, which fed a hope that he could overcome the discouraging news: The interest rates were low, but getting higher so he had to move quickly, the companies dealing with the foam filled furniture business were small, and therefor this area of work would be worth a try.
PANDA FURNITURE
STEFAN LIJESKIC
INTERNATIONAL BUSINESS STRATEGY
When Jan Hendrick Winkler took over his father company he faced many challenges. Panda Furniture is company based in Belgium, family business with long tradition and wide range of products. Company product line is based on Matrasses, Bedding and Furniture.
After research Jan conclude that company faced many serious issues. Firstly many company’s costumers start making their own metal springs, shortage of workers, British company which panda create joint venture is on the way to bankruptcy and lastly polyether foam was starting to be inroads into the company’s market and Panda know nothing about this new technology. First changes Jan make 1971 the company had bought joint venture partners and entered new joint venture with polyester producer and start producing new furniture. These changes bring to Panda significant increase in sale. From 1975 until 1981 Panda increase sales for 50% in all product lines.
Inspired with growth of the company and increasing of sales Jan wanted to expand in other markets with more potential and opportunities. First country for Jan was United States, country with better market, more population and more stable economy. Having previously lived in the US, Winkler saw an opportunity there, and depending on various factors, he decided to look further into it, until he was convinced: The United States of America is Panda’s best choice to expand although the market wasn’t looking particularly good as the giants in the market were already well established therefor required creating a brand name. He also found the bedding business to be unattractive and out of reach. However, Winkler found some positives, which fed a hope that he could overcome the discouraging news: The interest rates were low, but getting higher so he had to move quickly, the companies dealing with the foam filled furniture business were small, and therefor this area of work would be worth a try.