DAHLIA FURNITURE PRIVATE LIMITED I. FACTS OF THE CASE Dahlia Furniture, owned by Mr. Chua, Mr.

Mr. Leong, and Mr. Lim, made its entrance into the furniture industry in 1972 and supplied mainly wall units and kitchen cabinets. Bedroom sets and dining sets were subcontracted out or obtained from local suppliers. Dahlias furniture line was of higher quality and price than t hose of other retailers. However, the people living near the area of Dahlias location were mainly from lower income group. Aside from the usual local suppliers, Dahlia turned towards imported furniture from France, Japan, and Belgium. It was perceived by the owners that Dahlias clientele are those customers who are in the middle and upper income group with a taste in western designs. Due to its imported furniture being displayed, Dahlias image improved as a high quality furniture store.

II.

POINT OF VIEW Mr. Chua and Mr. Leong, the owners of Dahlia Furniture Private Limited

III.

PROBLEM How will Dahlia Furniture Private Ltd. maintain its sales in a highly competitive market?

IV.

OBJECTIVE To identify ways and means in which Dahlia Furniture Private Limited may be able to maintain or increase its sales and keep the company afloat.

V.

AREAS OF CONSIDERATION The furniture industry is very competitive as shown by the recent advertisements, fairs, and price slashes. Dahlias furniture line is more for those customers who want exclusivity and quality. Dahlias clientele are perceived to be those who belong in the middle and upper income groups. The owners felt that there was a good market for Dahlia judging by the growing demand for imported furniture and the growing number of families who could afford and were willing to pay for such furniture.

VI.

ALTERNATIVE COURSES OF ACTION 1. Increase importation of furniture. Advantage(s): a. The owners of the company may not need to worry with the growing complications of overhead costs. b. The company can make use of the growing demand for imported furniture and the growing number of people who could afford imported furniture. c. The companys image, such of being a high quality retailer of furniture, will be retained. d. The company will be free from the problems posed by hiring additional labor. Disadvantage(s): a. Increase in importation could turn out costly if the imported furniture took a longer time to sell. b. The company will not be able to cater to the mass market. 2. Expand its production unit by hiring more labor. Advantage(s): a. The company will be able to cater to the mass market considering that the furniture produced by the said company is sold at a cheaper rate. Disadvantage(s): a. Hiring more labor in their production unit could prove to be expensive and difficult. b. Additional overhead cost will be incurred. c. The government has a strict policy in discouraging the use of foreign labor.

VII.

CONCLUSION AND RECOMMENDATION Due to the growing demand for imported furniture as well as the growing number of people who can afford the same, it is wise for the company, Dahlia Furniture Private Limited, to exploit the said good market by increasing the companys importation of furniture. Increasing the role of imports, as stated in the first alternative course of action, can help the company uphold its newly found image of being a high quality furniture retailer. The mass market, however, will not be entertained in this course of action. But there will come a time, as evidenced by the increase in the peoples ability to pay, that the mass market will have the ability to buy imported furniture. In view of the foregoing, the group recommends the first alternative course of action which is for Dahlia Furniture Private Limited to increase importation of furniture.