MKT600 Marketing Report: Progressive Office Furniture Analysis

This report provides a detailed marketing analysis of Progressive Office Furniture, a leading company specializing in office space design and furniture. The analysis covers various aspects of the company's strategies, including its value proposition, core brand values, and buyer behavior. It delves into the competitive landscape using Porter's Five Forces, examining the bargaining power of suppliers and consumers, threats from substitutes and new entrants, and the level of competitive rivalry. A PESTLE analysis evaluates the political, economic, social, technological, legal, and environmental factors affecting the company. The report also includes a SWOT analysis to identify strengths, weaknesses, opportunities, and threats, followed by a TOWS analysis to formulate strategic recommendations. The report concludes with a summary of the company's market position and strategic direction.

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Marketing
Student Name
3/21/2020

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Contents
Introduction.................................................................................................................................................3
Value Proposition........................................................................................................................................3
Core Brand Value.........................................................................................................................................3
Buyer Behavior............................................................................................................................................4
Porter Five Forces Analysis..........................................................................................................................4
Bargaining power of Suppliers.................................................................................................................4
Bargaining Power of Consumers..............................................................................................................5
Threat from Substitute products.............................................................................................................5
Threat from New Entrants.......................................................................................................................5
Level of Competitive Rivalry....................................................................................................................5
PESTLE Analysis...........................................................................................................................................5
Political Factor:........................................................................................................................................5
Economical Factor:..................................................................................................................................5
Social Factor............................................................................................................................................5
Technological Factor................................................................................................................................5
Legal........................................................................................................................................................6
Environmental Factor..............................................................................................................................6
SWOT Analysis.............................................................................................................................................6
Strengths.................................................................................................................................................6
Weaknesses.............................................................................................................................................7
Opportunities..........................................................................................................................................7
Threats.....................................................................................................................................................7
TOWS Analysis.............................................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

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Introduction
Progressive Office Furniture is one of the leading companies that is specialized in the
design of spaces for improved production of workers, maximizes performance, minimizes
tension, and creates a prime impression on the client. Progressive seeks to maximize the office
space for performance through the purchase, manufacture and fit-out of quality office furniture.
The business has built our reputation on providing outstanding, tailor-made enterprise furniture
solutions from a range of industries (Armstrong et al., 2018).
In the following part there will be detailed analysis of the strategies that is adopted by the
company that is adopted by the company which help them to grow in the competitive market in
an effective and efficient manner.
Value Proposition
Progressive Office Furniture is a blend of the finest quality furnishings and new
technologies, at a comparatively cheap price to a pragmatic personal computer consumer who is
concerned for architecture, quality furnishings and the nature of work space.Progressive is
attempts at maximizing the efficiency in the workplace. The success of the company has been
focused on the supply to businesses from varied sectors with outstanding and tailor-made
solutions for corporate furniture (Baldassarre et al., 2017)
Core Brand Value
Any organization’s performance relies around its shared beliefs and the organization’s
corresponding community. Throughout this context, Progressive Furniture community and
industry are founded on fundamental principles held by its leaders. In Progressive furniture, the
mutual interest controlling actions and service are given as follows:
 Progressive furniture is reputed to be a modest company, particularly in its treatment of
suppliers and customers, in terms of its business operations. Their ability to lead, change
and accomplish something will represent the strength of their will (Chaffey et al., 2019).

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 Progressive furniture leaders and managers trust the central principle of guiding their
staff by establishing expectations by example.
 A main feature of the innovative furniture industry is its distinction principle and the
company's valuation is deemed growing. Often old approaches are tested, although fresh
design alternatives are still evaluated.
 Cost knowledge is also a key concept, and a vital component of Progressive furniture
policy, in relation to the application of the everyday core principles of progressive
furniture. Therefore, innovative furniture may be utilized easily and reliably to provide
the value to the consumer and retain low cost (Gottfried et al., 2018).
Buyer Behavior
In order to analyze the buying behavior of the consumers towards Progressive Furniture,
it has been analyzed that the small and medium scale companies with large organizations in
Australia prefer to use the furniture of Progressive Furniture. The price and quality of the product
attract maximum number of consumers towardsuchbrand to the certain extent that help the
company to grow in the market and cover maximum number of consumers in an effective and
efficient manner. The consumers are constantly exposed to Progressive Furniture in business
across the country, as many iconic products have been sold across Australia for the years (Min,
Liangwen, & Yue, 2018).
Porter Five Forces Analysis
Bargaining power of Suppliers
Progressive furniture vendors have poor negotiating power because, although the amount
of them is high, they do not have enough effect on their limited scale and weak financial role.
Progressive furniture will simply be moving from one manufacturer to another, whereas losing
business with Progressive Furniture will make it tough for a manufacturer. As a consequence,
advanced furniture will determine the rules of the game and its suppliers will obey (Min,
Liangwen, & Yue, 2018).

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Bargaining Power of Consumers
Although in terms of innovative furniture, the selling influence of individual purchasers
is negligible, they have a tremendous effect as a collective, such that buyers are both drawn and
kept. Throughout the 21st century, consumers in all markets were improved. Beyond rising
rivalry, this transition has been triggered by technological development. The dynamic is already
in the customer's favor. The concentration on advertisement and advertising is also on
revolutionary furniture. While its quality plan is customized to the consumers ' desires, it also
concentrates on digital media and ecommerce for an enhanced shopping experience. All in all,
buyers ' bargaining strength is low to moderate (Chaffey, & Ellis-Chadwick, 2019).
Threat from Substitute products
The threat of substituting goods for Progressive Furniture is weak. There are a variety of
factors that mitigate this threat. Some of them is the logo of the company. Throughout the years,
revolutionary furniture has established a trustworthy brand identity where the degree of
confidence with the consumers and the company is strong. The competitive price policy and
customer support also the challenge of competing goods.
Threat from New Entrants
There are just a low to moderate threat of new market entrants and loss of market share.
New companies may enter on a smaller scale, but then they will have no significant effect on the
Progressive Furniture market. There are many players in the home furnishings, several of them
little ones. When a new company joins the industry, it can take time, energy and commitment to
develop into a big brand and gain a significant market share(Moreno-Izquierdo, Ramón-
Rodríguez,& Perles-Ribes, 2016).
Level of Competitive Rivalry
Economic competition is relatively strong in the office furniture industry. The battle for
market share is not as strong as in many other markets but there are still significant numbers of
rivals in Progressive Furniture. The main competitors of Progressive Company are IKEA, Storm
Russo, Advanta as well as Fury’s. They provide variety of quality product at reasonable prices
that enhance the level of competition to the certain extent.

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PESTLE Analysis
Political Factor:
The Commonwealth of Nations and Canada, the Imf, the G20 and the World Trade
Organization. Australia's leaders have a very close relationship with the US. The climate is
healthy and secure. Australia, however, has made a variety of points of critique. The Justice
Minister of New Zealand, for example, opposed Australia's rule on immigration. The UN has
frequently condemned Australia for its shortcomings in fields such as human rights security,
indigenous rights, and refugee care. Therefore, it provides a healthy opportunity for the
Progressive Furniture to grow in the market in an effective and efficient manner (Nandonde,
2019).
Economical Factor:
Australia is the world's thirteenth largest economy. In the year 2017, the GDP grew by
2.4%, below estimates. In 2018, though, it is projected to rise by around 3%. Corporate spending,
household wages and inflation will thus slowly rise. Australia's official income tax threshold is
30%. The inferior corporation tax rate of 27.5 percent is applicable for a base-rate organization
with net revenue of less than 25 million dollars. However, the increase fear of corona virus
affected the overall economy of Australia which directly affected the revenue and sales of
Progressive Furniture to the certain extent (Nandonde, 2019).
Social Factor
By comparison to other global economies, Australia has a relatively low population of
22.9 million. Men are 80 years old, and women are 84. Nevertheless, seeing more displaced
people and fewer working men is a matter of concern for the world. Australia is one of the most
multicultural and multiracial states in the world.The overall employment opportune is also high
that help in increasing overall sales of Progressive Furniture to the certain extent.
Technological Factor
Australia is one of the most technologically developed countries in the world. The
development of new technology is seen as quicker than many other developed economies. The

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country's seen tremendous technological development over the years. Electronics revenues will
rise by 4 per cent to $63 billion in 2018 and $65 billion in 2019.It provide new opportunity to the
Progressive Furniture to grow updated technology in their business (Phadermrod,
Crowder,&Wills, 2019).
Legal
The legal framework of the country is the last thing to be addressed in the PESTEL
review of Australia. Australia provides free trade agreements, antitrust guidelines and
environmental legislation to promote fair trading for all businesses and consumers. The Fair Pay
Act 2009 is the first piece of work legislation in the world.Data privacy regulations also deal
with the way businesses treat their customers ' personal records. The company is required to
maintain and follow such law that can affect the overall cost of the company to the certain extent.
Environmental Factor
Australia confronts regional threats. Australia is the driest inhabited continent on earth,
for example. Environmental change is a big challenge too. A recent Senate poll showed that
climate change is a "true and immediate threat to Australia's national security. Some of the future
impacts of climate change include water scarcity, infectious diseases, and regional food,
electricity, and soil conflicts.Consequently, the company is required to focus over the
environmental is due and run its business according to sustainable manner that could affect its
overall revenue to the certain extent (Nandonde, 2019).
SWOT Analysis
Strengths
 The company enjoy rand reputation for low cost office furniture
 Integrated approach to manufacturing as well as supply chain
 The company enjoy revenue growth as well as profitability
 The company manages numerous networks of companies (Sarsby, 2016).

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Weaknesses
 The company face controversiesregarding durability as well as safety of furniture
 The store is located away from the city centers
 Standard portfolio across the globe
 High led time for planning of new stores (Rastogi, & Trivedi, 2016)
Opportunities
 Extension to evolving economies with potential for low cost manufacturing.
 Exploring locally sourced raw material
 Attractiveness of E-commerce as well as picked up setups
Threats
 Wars related to price as well as diversification of strategies of competitors.
 Competition from e-commerce as well as furniture rental services that can affect the
overall sales of the company.
 Entry barriers, law as well as regulations in unexplored markets (Bull et al., 2016).
TOWS Analysis
O T
S  Low cost, high quality and environmentally
friendly goods rising in quantity
 Expansion of available products
 Progressive Office Furniture will manufacture
goods that do not affect the climate, while still
selling fashion goods Because Progressive Office
Furniture is the industry leader in retail
furnishings.
 Recession proof
 Highly experienced
research and design
team in making chic
luxury furniture at
incredibly low cost
 Progressive Office
Furniture will use this
to reduce crisis rates
and achieve a larger

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market share; 20 and
40 percent low cost tan
furniture rivals.
W  To order to target other markets, Progressive Office
Furniture has to offer better quality, more costly
goods and services.
 Progressive Office Furniture would be able to
reduce pressure on sales networks by opening up
the internet market.
 Study and create
adaptive systems
periodically to tailor
the rapid transition to
the national climate
 To produce goods that
are not
environmentally
harmful
Conclusion
From the above analysis it can be concluded thatProgressive Office Furniture is one of
the leading company in Australia.It provides designer office furniture to the small, medium and
leading companies that made them possible to grow in the competitive market to the certain
extent. It provides valuable service. The level of competition in such industry is high whereas the
bargaining power of consumer sand suppliers is moderate and low that make the market more
competitive. The external environment also affected the overall revenue of the company.
Thecompany maintains high brand value that can help them to grow in the market. However, the
increase in the level of competition affects the cost of the company to the certain extent.

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References
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Carter-Silk, E. (2016). Strengths, Weaknesses, Opportunities and Threats: A SWOT
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Chaffey, D., & Ellis-Chadwick, F. (2019). Digital marketing. Pearson UK.
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Perera, R. (2017). The PESTLE analysis. Sri Lanka: Nerdynaut.

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Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based
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Rastogi, N. I. T. A. N. K., & Trivedi, M. K. (2016). PESTLE technique–a tool to identify
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