Herman Miller Case Study

Powerful Essays
Herman Miller

1. Do a 5 Forces analysis of the office furniture industry.
In Porter’s Five Forces Model, the forces are listed as Risk of Entry, Bargaining Power of Suppliers, Bargaining Power of Buyers, Threat of Substitutes, and Rivalry among Established Firms. For Herman Miller, the rivalry between the established firms is high, and the most important force in their industry. Design is the key feature in the furniture industry, so the company that can come out with new and favored designs will win out in market share and profits. The company that is able to continually win the design battle will have the opportunity to establish brand loyalty and clout, creating a buffer for future downfalls in the economy, entry of new firms, and threat of substitutes.
The furniture industry is in its mature stages, and in the current U.S. market, it is relatively low-tech and has little room for extravagant profits and returns. This allows for high barriers to entry because any prospective entrants would be coming into a well-established industry that is barely growing, and could soon to be going into decline thanks to telecommuting and the falling of the traditional office. The bargaining power of the suppliers can be low- to- moderate depending on the future of the industry. Where the firms stand now, suppliers have low bargaining power because there are many viable sources for the raw materials needed in Herman Miller’s furniture. If the industry grows into high-tech fabrics, additional technologies integration, or other sweeping advancements, then supplier bargaining power could drastically rise due to lack of suppliers capable of offering such unique products. Conversely, the bargaining power of buyers is high due to the large- volume nature of most office furnishing purchases. When the buyer of an industry is capable of huge, frequent purchases, their negotiating power is high because without those revenues the industry would be reduced immensely. And



Cited: "Herman Miller Store." Herman Miller Official Store. N.p., 2013. Web. 02 Apr. 2013. Hill, Charles W. L., and Gareth R. Jones. Strategic Management: An Integrated Approach. 10th ed. Boston: Houghton Mifflin, 2008. Print. "Stock Analysis Made Simple." Vuru.com. N.p., 2013. Web. 02 Apr. 2013.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Herman Miller Case Study

    • 1037 Words
    • 5 Pages

    NAME: Koray Kendir CASE 7: Herman Miller Inc.: The Reinvention and Renewal of an Iconic Manufacturer of Office Furniture 1. BACKGROUND INFORMATION |Timeframe |Country(s) Involved |Key Individuals & Titles |Company Type & Size | | | | | | |1905 to present |United States |Brian Walker…

    • 1037 Words
    • 5 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Herman Miller Case Study

    • 774 Words
    • 4 Pages

    Herman Miller, a West Michigan based furniture manufacturer has embarked on a project to create products that are "green" and a methodology to ensure that the products are ecologically friendly from beginning to end. Like Friar Tucker, Herman Miller must follow a pathway to successfully design and implement this project. The initial parameters were for a new evaluation process to determine just how ecologically friendly the raw materials for use were. "To evaluate the extent to which a product…

    • 774 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Herman Miller Case

    • 604 Words
    • 3 Pages

    Herman Miller, Inc. Case – Page C-319 Herman Miller, Inc. is a company that specializes in the production and manufacture of modern office furniture. The company began its reputation through product innovation and production processes which started in the 1920’s. In the path of their success, Herman Miller, Inc. has been able to pursue a path distinctively marked by reinvention and by renewal. I would say that in the beginning the company pursued a focused low-cost strategy. The initial items…

    • 604 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Herman Miller Case

    • 362 Words
    • 2 Pages

    1. What are the main elements of Herman Miller’s history, design philosophy, and corporate values? How have they influenced the company’s success? History: furniture manufacturer, began with smaller bedroom items during the Great Depression then moved to office items, started off as a family run business Design philosophy: innovative new designs, highly driven by the ideas of the designers, variety, customization, researched customer needs to solve real world problems Corporate Values: thinking…

    • 362 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Case Herman Miller

    • 962 Words
    • 4 Pages

    Introduction Herman Miller is an American company that was founded in 1905 in Zeeland, Michigan as the Star Furniture Co. They are the major American company of office furniture and equipment. In 1919 Dirk Jan De Pree became the president of the company and renamed the company The Michigan Star Furniture Co. Then Dirk and his father Herman Miller buy 51% of the company in 1923 and renamed Herman Miller Furniture Company, and in 1960 became Herman Miller Inc. They started selling quality furniture…

    • 962 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Herman Miller Case

    • 2876 Words
    • 5 Pages

    Operations Design Analysis: Herman Miller | Gavin P Smith | Global Media Marketing Journalism Voiceovers Web Design Consulting Entrepreneurship… Follow Gavin P Smith on Social Home Bio | Resume Consulting Guest Blogs Journalism Audio Marketing Graphics  Academia Testimonials Advocacy Contact Operations Design Analysis: Herman Miller By: Gavin P. Smith with teammates Christy Kollmar, Stephen Land, Fernando Tarafa and Mei­Shu Chang CRADLE­TO­CRADLE DESIGN AT HERMAN MILLER I. EXECUTIVE SUMMARY…

    • 2876 Words
    • 5 Pages
    Powerful Essays
  • Better Essays

    Herman Miller

    • 880 Words
    • 4 Pages

    Herman Miller Case Study Herman Miller focuses on a growth strategy through innovative products, production processes and reinvention and renewal. They survived the Great Depression and multiple recessions, recovered from the dot-com bust and were able to continue expanding overseas. They adapted to save the company, by introducing new designs. They run their business more on a decentralized structure where the employees are able to have a voice within the company. The company believes…

    • 880 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Herman Miller

    • 1492 Words
    • 6 Pages

    Section 1: Problem Statement When Mike Volkema, CEO of Herman Miller, abruptly attempted to appoint Gary Van Spronsen to executive vice president of offer development and marketing, Volkema was hesitant to get involved. Since 1992, Van Spronsen had worked feverishly to build a leader in the office furniture industry in the Herman Miller subsidiary SQA. Not only did Van Spronsen create the traction that prompted better customer service, a tailored product line and design process, but he also transformed…

    • 1492 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Herman Miller.

    • 886 Words
    • 4 Pages

    Herman Miller: Role Model in Employee and Environmental Relations Case Summary and Questions for debate • The company had been a model for almost 70 years – until the 1990's EMPLOYEE RELATIONS • Used as example of superb employee relations in business text books like o A Passion for Excellence o The 100 Best Companies to Work For in America • Interesting point of how the founder named the company after his father-in-law, giving honor to him who supported the business both in financial…

    • 886 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Herman Miller

    • 1058 Words
    • 5 Pages

    CASE ANALYSIS Herman Miller’s Overall Strategy: Herman Miller Inc. focuses on growth, by introducing innovative products. The company believes that in order to achieve operational excellence, the company needs to focus on employees’ motivation and problem solving process. Herman Miller concentrates on producing high quality products. The company is trying to reduce fixed manufacturing cost by outsourcing with their strategic suppliers, which helps controlling the company’s overall cost structure…

    • 1058 Words
    • 5 Pages
    Powerful Essays