GOD is now a fast-growing furniture and furnishings company brand in Hong Kong. They describe them as "More Than Just a Furniture Store". GOD is the phonetic sound of the Cantonese slang "to live better" which a basic human desire all around the world. The founder of GOD - Douglas Young and Benjamin Lau opened the first GOD store at Ap Lei Chau in 1996. Within 2 years, two more shops opened in Central and Tsim Sha Tsui respectively. In 2001, GOD has opened a 20,000 sq.ft. flagship store in Causeway Bay.
The mission of GOD has always been "to define a new Hong Kong identity" - by exploring age-old oriental traditions and updating them with modern consumers in mind, their demonstrations of the techniques and wisdom of past generations in the east still has a place in the future world.
Most of the furniture of GOD is made in China to their stringent standards of quality and workmanship. Their products range from furniture, bathware, kitchenware to even lighting and carpets. Among these various products, furniture occupies the highest proportion of sales revenues.
What makes GOD different from other convectional furniture and furnishing company is that all of their furniture is designed by local designers. The company is strongly against today's mass produced and soulless products. The main theme of their furniture is creative, comfortable, and multifunctional. In order to surprise their customers, GOD constantly turns out new items on a weekly basis. Because the marketing strategy in GOD is so clear that make the company become one of the few furniture companies that can still make a profit, and even expand their business, in the time of economy downturn in HK these years.
Situation Analysis: 1. SWOT Analysis:
Internally, GOD has a management team with designing knowledge which could perfectly apply to the daily management in the company. Small size of management team also benefits the company with the efficient division of labor. Despite the fact of having numerous competitors with lower price, G.O.D. is still taking the leading role in the industry with its unique offerings of the oriental tradition Asian design in products, as well as the extraordinary decoration in each branch . G.OD is expanding its market share by connecting to other different industries, so as to attract more customers from different aspects. The diversification of production and also the "custom made" strategy contribute to the company as it prevent excess inventory. Moreover, its own R&D team takes a big responsibility in fulfilling the demand of the customers in having a better quality.
Other than all those favorable circumstances, G.OD is still encountering certain weaknesses. Due to the short history of establishment, G.O.D. is lack of experience and specialization. Its relatively high price and narrow choice of products has also prevented the visit and purchase of customers. Also, due to the limited capital inflow in the company, GOD is still not able to develop a large R&D team; it also regards advertisement as a big burden for the company. Regardless of the success of the manufacturing approach, it, on the other hand, has lead to the high cost of production as it could not achieve the economy of scale.
Favorable external factors include the increasing upscale market which people are more concerned about quality of life, there are only few and not well-established local competitors, and as the economic is recovering, there are more opportunities. Ergonomics is one of the most popular topics in furniture industry because the customer's perceived value can be raised by introducing it.
Unfavorable external factors include the taste of customers which people like international culture more, like Japan. In addition, the favorable investment condition attracts competitor from foreign countries.
2. Industry analysis:
The furniture and furnishing industry has a long history in Hong Kong. It includes...
Please join StudyMode to read the full document