Retailing and Dahlia Furniture

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Dahlia Furniture Private Limited

Time Context:Third Quarter of 1984

Point of View: Mr. Chua Boon Kang and Mr. Leong Sim Lam, owners of the Dahlia Furniture

Main Problem:

Dahlia Furniture Pte Ltd. Main Problem is that in way they’re going to maintain their sales growth since large foreign manufacturers and retailers are competing with them?

Secondary Problems:

➢ Intense competition both in local and foreign retailers.

➢ Unsatisfactory management under Peter Lim in 1982. It lowered down the sales until 1983.

➢ Most of the production workers who were doing subcontracting orders for Dahlia had resigned due to poor company performance in 1982.

➢ Mr. Lim was using his contacts in Dahlia to benefit his upholstery business possibly at the sacrifice of Dahlia.

Company Objectives:

Mr. Chua Boon Kang and Mr. Leong Sim Lam are concerned over maintaining sales growth in a highly competitive industry.

Areas of Consideration:

SWOT Analysis:

Strengths

➢ Dahlia Furniture line was of a higher quality and price than those of other retailers.

➢ Dahlia’s furniture line is more for those who want exclusivity.

➢ Retail outlets are now carrying wider range of furniture.

Weaknesses

➢ All three owners had commitments to their own custom-made furniture business.

➢ Unpredictable pricing.

➢ Some retailers have been reported selling below cost.

➢ The owners are doubtful about the long-term direction of the company.

Opportunities

➢ Domestic demands for furniture rise by about twelve percent annually.

➢ Increasing demand in exports to United States, Australia, Canada, Western Europe and in the Middle East.

➢ Singaporeans are more willing to spend money to decorate their homes.

Threats

➢ Intense competition between domestic U.S. manufacturers.

➢ Many workers resigned due to Ang Mo Kio Factory’s failure...
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