BS Gradable Assignment 2

Assignment 2: Case of The Living Room: Redefining the Furniture Industry

(Case Reference from the Text Book: Strategic Management by Hitt, Ireland, Hoskisson and Manikutty

1.

Identify the elements of its current corporate strategy in terms of (i) the kind of business, the company is in (ii) the
current products scope for the next 4 years

2.

List down the companys strengths and weaknesses

3.

Examine the growth options for the company in terms of (i) Product Range Existing and New (ii)
Customers Targeted Current Customers and the for the New Products (iii) Geographic Coverage
Current areas and Proposed New areas

Abstract:
The central issue in this case relates to the expansion plan (growth option) of a traditional furniture
company in the contract of growing options in the Indian furniture industry. The case provides adequate
details on the growth and evolution of the firm, the competitors profile, and the consumer expectations by
a survey. The decision options to the firm are expansion within Bombay or expansion to other cities. The
cases can also be used to illustrate the concept of mass customization.

Identify the elements of TLRs marketing strategy, in terms of (i) Product (ii) Pricing (iii)Promotion (iv)
Distribution (v) Customers (vi) CompetitionAnswer: TLR made products to cater to middle class homes
where there is space and finance constraint and small offices which did not have the sufficient volume to
buy from institutional sellers. They invented sofa-cum-bed which was an instant hit. They started introd
ucing new models in this category with different price. The customization was also possible based on the
customer requirements. The core feature for all the products of TLR is space maximum utilization and the
ir innovations were not only for living room but it expanded to bedroom, kitchen, wardrobes etc. The pric
ing of these products were also in affordable ranges which a budgeted customer wont have trouble in pay
ing as for example instead of buying individually single bed and sofa at hefty price, customer can get 2 in
one sofa-cum-bed in much cheaper price with VAT included.TLR insisted on transparency in all its proces
ses related to customer. The price was set at a reasonable level and disclosed at the beginning of communi
cation. There were no hidden costs, no discounts or bargains. The quality of the product and long life of t
he furniture was the core of all the TLR products. With this TLR was successfully able to establish brand
image in the furniture industry as a symbol of quality, trust, value for money
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Answer: TLR made products to cater to middle class homes where there is space and finance co
nstraint and small offices which did not have the sufficient volume to buy from institutional selle
rs. They invented sofa-cumbed which was an instant hit. They started introducing new models
in this category with different price. The customization was also possible based on the customer r

equirements. The core feature for all the products of TLR is space maximum utilization and their
innovations were not only for living room but it expanded to bedroom, kitchen, wardrobes etc. T
he pricing of these products were also in affordable ranges which a budgeted customer wont hav
e trouble in paying as for example instead of buying individually single bed and sofa at hefty pric
e, customer can get 2 in one sofa-cum bed in much cheaper price with VAT included.
TLR insisted on transparency in all its processes related to customer. The price was set at a reaso
nable level and disclosed at the beginning of communication. There were no hidden costs, no dis
counts or bargains. The quality of the product and long life of the furniture was the core of all the
TLR products. With this TLR was successfully able to establish brand image in the furniture ind

ustry as a symbol of quality, trust, value for money

(i)
he kind of business, The company is in?
TRL is furniture manufacturing and retailing to consumer directly.
(ii)
he producT scope
All the products a middle and upper middle class house needs. And also furniture for
smalloFces. TLR provides good quality, long lasng and value for money furniture.
(iii)
The markeT scope
The middle class and upper middle class of Mumbai, Pune and Goa.
(iv)
The growTh rate
The growth rate should be substanally highdue to dierent reason as CGPA is increasing,
largeyoung populaon(who prefers to have one stop shop than tradional way), increasing
expenditure on furniture etc
.2.Identfy The companys sTrengThs and weaknessesAnswer:
STrengTh
TLR has a large number of loyal customer bases who comes over to TLR repeatedly.
Evennext generaon also prefer to come over for any furniture.
Quality n long lyf