Batesmanor Case Study

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How would you characterize the household wood furniture industry and BatesManor’s relative position in this industry? In 2007, the wood furniture industry accounted for 12.4 billion dollars. Total furniture industry sales in 2007 were estimated to be $31 billion at manufacturers’ prices. Household upholstered furniture sales represent 50 percent of total household furniture sales, followed by wood furniture at 40 percent, and other forms at 10 percent. Growth in the furniture industry is found in wood furniture manufacturing. By increasing their emphasis on improving quality controls and stressing price points and basic styling features, manufacturers’ dollar sales grew by 2.5 percent in 2007. Dollar sales were forecasted to increase by 4 percent in 2008. The size of the industry is relatively small with only about 1,000 furniture manufacturers operating in the United States. Ten U.S. manufacturers, representing about one-third of furniture industry dollar sales, account for about 28 percent of total industry sales. While exports are not a major factor in the U.S. household wood furniture industry, imports (bedroom furniture from Asia mostly), represent about 30 percent of industry sales. Many U.S. furniture manufacturers outsource their furniture manufacturing. Imports have driven down wood furniture prices by as much as 30 percent in some categories, causing many U.S. furniture manufacturers to downsize significantly, closing more than 100 domestic furniture manufacturing plants between 2000 and 2007. In 2007, BatesManor accounted for roughly one percent of the household wood manufacturing industry dollar sales with year-end net sales totaling $75 million. In 2006, the top ten U.S. furniture manufacturers each had estimated revenues averaging $1,063.4 billion. BatesManor is a high-end furniture manufacturer, providing high quality products to the U.S. The

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