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Steven Adamaitis - Borislava Ashikova - Jason Byrnes - Bryant Hernandez Matthew Ing - Ashley McKinnie - Mike Minogue - Chris Venturini. Problem. How can Walter E. Smithe guarantee continued success in the future? Questions include: - What changes are required/needed? - PowerPoint PPT Presentation
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Steven Adamaitis - Borislava Ashikova - Jason Byrnes - Bryant Hernandez Matthew Ing - Ashley McKinnie - Mike Minogue - Chris Venturini
ProblemHow can Walter E. Smithe guarantee continued success in the future?
Questions include:- What changes are required/needed?- Has the brand outgrown the geographic area?- Who/What are the most notable threats?
Contents• Company Overview and
History• SWOT Analysis• Porter’s 5 Forces• Finance and Industry Analysis• Recommendations• Conclusion
Company Overview & History
Bryant Hernandez & Chris Venturini
Company History• Smithe and Shanahan form partnership in 1945 known as
Tone Appliances and Furniture
• WWII comes to end
• Name changed to Smithe & Shanahan
• Shanahan sells his share to Charles Smithe
Company History• During the 1960’s Walter Jr. introduced custom order
upholstery
• Late 70’s early 80’s the Smithe
brothers Walter, Tim and
Mark join the company
• Sell strictly furniture
Company Overview● Furniture company based in
Itasca, Illinois
● “You Dream It, We Build It”
● 11 Different Showrooms
● Over 400 employees
Bryant Hernandez
Company Overview Cont.● Makes, sells, and repairs furniture, specializing in custom
upholstery● Services
- Textile combining- Color consultation - Space planning- Accessory placement
● Partnered with over 200 designers
Bryant Hernandez
SWOT AnalysisSteven Adamaitis & Jason Byrnes
Strengths• Economic Initiatives
• Social Responsibility
• Marketingo “You dream it we build
it”
• Quality Products and Selection
• “SmitheCard”
Weaknesses• Store Locations
o Only 10 Chicagoland stores and 1 Indiana store.
• Private Company
• Furniture is too expensive??
Opportunities• Expand out of Chicagoland
area.
• Enter the low-end industry as well.
• Hire real estate agents to help market their furniture to new home buyers.
Threats• Two main competitors in high-end furniture:
• Ethan Allen• William Sonoma
• Competition in low-end as well• IKEA
Porter’s Five ForcesBorislava Ashikova
Financials & Industry AnalysisAshley McKinnie
Revenues
• Currently, revenue is about $102 million
Industry Comparison
• According to an article by Chicagobusiness.com, Walter E Smithe has been increasing sales by 6%
Competitors
• Ethan Allen• William
Sonoma• Crate and
Barrel• Pottery Barn
RecommendationsMike Minogue
Recommendation #1Local Expansion “Where is the money?”
Local Expansion - Current Locations
Local Expansion - Population• Need to open up in
a populated area to insure long term sustainability
Local Expansion - Income
Percentage of households with income more than $200,000
Median Income
Local Expansion - Belvidere, IL• Relatively high income
(~$50,000 median household)
• 25,585 residents
• Rockford extremely close
• I-90 convenience
Recommendation #2Florida Expansion “Where is grandma?”
Florida ExpansionAge Map
Population Map
Florida Expansion - Sarasota, FL • Part of Sarasota
County
• 52,211 residents
• Access to Tampa via I-75
• Brand recognition from retirees
Recommendation #3Real Estate Partnership “Where is our furniture?”
Real Estate Partnership• Furnish old and new homes
with great furniture
• Baird & Warner, Coldwell Banker, RE/MAX
• Give agents incentives for recommending Walter E. Smithe
ConclusionWalter E. Smithe’s continued success will be guaranteed through utilizing its strongest assets: Brand reputation and mastered business model:● Walter E. Smithe has a solid reputation and brand image that
should not be altered● The business model can be successfully implemented in other
geographic markets ● Partnering with others in related fields (real estate)
The recommendations discussed in this presentation do exactly that