Globalization Strategy Report for South Shore Furniture Company

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Added on  2019/09/30

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This report analyzes the globalization strategy of South Shore Furniture, a company aiming to expand its operations internationally. The report suggests entering neighboring countries to establish a market presence and leverage existing supplier networks. Key strategies include adapting marketing campaigns, identifying target customer segments, and creating culturally relevant slogans. The report highlights the company's strengths, such as a clear mission, cost-effective product assembly, and strong supplier relationships. It also discusses product design, emphasizing affordable, high-quality furniture tailored for limited spaces. The report recommends using total quality management and six sigma methods to improve product quality. Furthermore, it proposes a grid and spine layout for store design and a hybrid model to become a cost leader, focusing on popular products like beds and tables to gain initial market traction. The report references sources such as Scott (2006), Forker et al. (2006), Pinto Wilsten & Shayan (2007), and South Shore Furniture (2017).
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Globalization strategy
South Shore should enter the neighborhood countries in order to expand its operations and sell the
products internationally. This will help the company to create more networks with the suppliers, and the
South Shore will be able to analyze that what the competitive market of that country is demanding.
Further, the company should use the successful campaign of marketing in order to attract the customers
and identifying the targeted segment of the customers in order to sell the products of furniture. The
South Shore should create a slogan which should be accepted by the people of various countries as this
will help the company to attract the customers more quickly. This will help the company to manage the
diversity of culture and further the company will be able to attain a strong market presence along with
the generation of the revenues to a great extent (Scott, A. J. 2006).
The reasons which show that the South Shore should globalize are as follows:
The company is having a clear mission and the vision and is focused to achieve the goals and
objectives by satisfying the needs of the customers irrespective to the conditions of the market.
The customers can assemble the products by themselves which leads to humungous reductions in
the cost to a great extent, and this helps the South Shore to develop a base of customer loyalty as
well.
The South Shore uses the indicators of the key performance in order to identify the strength of
their performance and identifying that the resources are being used adequately and the long term
relations are developed with the suppliers.
The South Shore is having the focused range of the products of furniture along with the attractive
design of the products which helps the company to attract the customers and retain them for a
longer period of time.
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The South Shore is also offering the products through online which is helping the company to
maximize the sales to a great extent (South Shore Furniture 2017). Also, the company is
generating profits rapidly.
Product quality and design
The product design strategy of the South Shore can start with the understanding of the everyday
requirements of people at office and home mainly those who have restricted spaces for living and the
reduced incomes. This will help the South Shore in order to succeed in providing high quality and the
well -designed products of furniture to the customers at the affordable prices so that the people can make
maximum purchases of the furniture. Initially, the structure of the organization should not include much
employees at the new place in order to reduce the overall cost. The designing team of South Shore
should start with the making of sketches of the products by keeping in mind the requirements of the
customers then the sketches should be turned into 3D printing in order to understand the nature of the
product before it is finally implemented for the usage of the customers (Forker, L. B., Vickery, S. K., &
Droge, C. L. 2006). Furthermore, the issues which might arise in this product design and quality in the
new country are difficulty in attracting the customers towards the products due to lack of flexibility in
the sizes of the products and the difficulty in attaining sustainability in the competitive market.
Moreover, the South Shore will be using the tool of total quality management in order to manage the
quality of the products. The company will be using the strategy of quality management effectively in
order to identify the defects during the process of implementation, and the corrective measures will be
taken immediately. Initially, the South Shore was not using any strategy for the management of quality,
and this led to the various losses to the company. Furthermore, the South Shore will be taking two
initiatives for the control of the quality i.e. usage of the total quality management tool and the six sigma
method for the employees. Therefore, this will help the South Shore in order to grow the productivity
and the effectiveness to a great extent.
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Layout design and process
It can be suggested that the South Shore can use the layout of the grid and the spine in order to avoid the
chaos and confusion among the organization. Also, the layout will help the South Shore to attract more
customers and attain sustainability in the new markets by the uniqueness in the working structure and
the development of the products. Also, the South Shore can use distinct layouts at every store in order to
avoid the wastage of the space and further utilize them effectively and efficiently. The South Shore will
be able to utilize the resources appropriately. The spine and the grid layout will help the company to
showcase all the products for the customers and it will also help in attracting the customers to a great
extent and can further retain them by satisfying their requirements by offering high-quality products at
the affordable prices (Pinto Wilsten, J., & Shayan, E. 2007). Further, the appropriate design and the
process of the layout will help the employees to work effectively and efficiently, and the products will
be developed more precisely.
The hybrid model will help the South Shore in order to become the cost leader in the competitive
market, and the customers will be able to differentiate among the products of furniture provided by
South Shore and the various companies. The products which are highly in demand are the beds,
nightstand, cabinets and the table of craft. Further, the South Shore can focus on these products initially
in order to attain the sustainability in the new market by using the hybrid model with the aim to sell the
products globally.
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REFERENCES
Forker, L. B., Vickery, S. K., & Droge, C. L. (2006). The contribution of quality to business
performance. International Journal of Operations & Production Management, 16(8), 44-62.
Pinto Wilsten, J., & Shayan, E. (2007). Layout design of a furniture production line using formal
methods. Journal of Industrial and Systems Engineering, 1(1), 81-96.
Scott, A. J. (2006). The changing global geography of low-technology, labor-intensive industry:
clothing, footwear, and furniture. World Development, 34(9), 1517-1536.
South Shore Furniture - Canada - Furniture for sale designed and manufactured in North America.
(2017). South Shore Canada. Retrieved 7 March 2017, from https://www.southshorefurniture.com
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