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Interface Inc. Analysis 2
1. Introduction:
In 1973, Interface Inc. has started its journey through Ray C Anderson. Anderson is recognized
for the flexible floorcovering of modern environment of office. Anderson at the initial stage has
started a joint venture along with Carpet international Plc. and American investors for the
production and market modular soft surfaced floorcovering. At the time of establishment, the
company had 15 employees including Anderson. The advanced technology of CI and bonding
helped the company to sustain. In 1987, the name of company is changed to Interface Inc. Within
the carpet tiles, the company has become the world one of the famous and finest carpet product
providers. In mid of 1990’s, the chairman of Interface company who is also CEO shifted the
company strategy for redirect its industrial practices. This also includes sustainability without
sacrificing along with business goals (interfaceglobal, 2014). Currently, the company is
presented in the USA, Europe, Asia Pacific, and in Canada. The company set their vision and
mission for future in the middle of 1990 that the company will come close to the aim of the get
rid from the negative impacts. It is goal of the company that eliminates all the negative things
which the company has. Exceptional culture of the interface is broadly recognized through the
awards of the workplace. The company is listed as a best place to work in all the magazines of
the Fortune. According to their work, it is the first company which has demonstrated as a whole
industrial world. Through the influence power, the company will become restorative. The
mission of the company is that: it will be able to become the institutional as well as commercial
well as people. Interface connects experienced sales persons with engineers as it provides B2B
services. Interface gives permission to all the designers, sourcing experts, engineers to post the
The industry of Interface Inc. is the Textile industry. The stock sticker of the company within the
industry is Tiles (NASDAQ). Interface is the biggest company within the textile industry who is
manufacturing the commercial and modular carpets, carpet tiles, as well as carpet squares.
Majorly, the textile industry is providing the raw material and equipment’s related to the cotton
and fabric (Interface Inc, 2014). The major competitors of Interface company in the textile
recognized leadership within the carpeting products are the specialty of Beaulieu Company. The
company is taking the tremendous pride regarding people and products. The company is serving
for the needs of home owners, managers of property, stores and office owners within unique and
especially for personal ways. According to the perception of Bliss every room of company or
home is having its unique needs, functions as well as personality. The company has broken out
carpet selection within same way to make the findings perfect and feel relax to customers. The
company is specified and makes products such as Drama Queen, furry family, kiddie Chaos,
Party central and Private Oasis as well as Sweat Shop (blissflooring, 2014).
From 1992 to 2000, the Mohawk Company has taken the start through 12 major soft surface
acquisitions and in 2002 the Dal-Tile acquisition is established along with ceramic leading
laminate, hardwood flooring are main products of the company. The approach of company is
towards social and environmental focuses regarding the products, procedures as well as people.
The portfolio of the company is based on several products which is having the sustainable
Interface Inc. Analysis 4
attributes such as recycled and renewable products. The future goals of the company are related
(www.mohawkind.com, 2014).
Shaw floors since 1967, has been crafting beautiful and durable carpets. The company is
creating the flooring of all kinds and is known as number one regarding the quality and style.
The company is providing the flooring for celebrities and VIP’s such as Mercedes Benz star
lounge. The famous brands of company are indoor, outdoor, Ansonylon and Tuftex (shawfloors,
2014).
If Interface Company is best and leader of quality, style as well as services then the
Armstrong is a leader in the design and manufacture of floors and ceilings. The best competitor
of Interface Company is the Shaw floors as well as Armstrong who is operating 35 plants within
different eight countries. Furthermore, the company is having more than 8,700 employees
The Dixie Company is famous due to fun and win. The company is giving more values
opportunities for individual growth and development. The positive thing about associates of
company is to actively participate within the activities of government to support the decisions of
Government and sustain the workplace environment. The Dixie Company is the struggler within
the industry and tries to sustain its position within the textile industry (The Dixie Group, 2014).
There are different reasons related to the services of the company due to which the
company is compelling and customers are having believed on it due to product diversification
Interface Inc. Analysis 5
and performance of company. If the concept of valuation is considered then trading stock of the
company is $ 21.63 as compared to competitors such as Dixie and Mohawk Company which
having trading stock $13.25 and $ 125 respectively (investing.com, 2014). The company is
diversified due to the change range of the products within the Carpet as compared to the
competitors. According to each region, the company is providing best quality and stylish
products. If the company focus on the more expansion within different regions then it will be
helpful for the company to increase its performance as well as to shine its name within the
According to business trends of the textile industry, it can be said that the industry is
having great potential capability and chance to grow due to increased life style and trend of
customers as well as due to the changing choice of the customers. In addition to this the Interface
Company is having more potential of growth due to diversified and qualitative products. The
Interface Company shows consistency towards mission along with stylish and qualitative
Through the G.P of company, it can be said that the company has maintained its growth.
Furthermore, the most competitive company for the Interface Inc. are MHK, Dixie and Shaw
Floors company. These companies are giving the neck to neck competitions through the use of
technology as well as innovative ideas within the textile industry (finance.yaho, 2014). For the
margin Margin
After the great analysis of the industry, it has estimated that the Interface Inc. is conducting
and taking the steps along with great care and consistency. Due to the consistency and
sustainability theory the company has successfully maintained its position within the industry.
Furthermore, there are minimal liabilities of the company as compared to the others. According
to the most acceptable definition and views of the critical success factors, these are elements
which are influencing capabilities of the industries as well as remain successful within industry.
Through these factors or elements the company is maintaining its position within industry.
There are several factors which have contributed within the success of the company and these are
mentioned below; however there is need to improve the marketing strategies of the company
because through this the company can attain attention of the customers. If company will focus on
the marketing strategies then the sales will boost tremendously in the future. The critical success
The first success factor of the company is, it keep things simple. For example the designs
are not so much complex and the carpets materials are snots showing complexity. This is
the main reason why the people like the products of Interface Company (Sudhakar,
2012).
The textile industry is having great ability to complete the operational tasks on time and
without showing any type of complexity. The company is managing the cost through
Interface Inc. Analysis 7
designing along with small and different pieces which also show the skills and innovative
ideas of the employees and expertise. The innovative ideas and styles allow company to
save the cost through brining small and cut material in use which is expected as waste.
Interface Company also focuses on approach of Six Sigma which is most important for
the company success. It helps in design, measuring, and analysis and control budgets.
Interface Inc. is meeting challenges within R & D department. The company designs and
Furthermore, the customer’s satisfaction, high quality of services, designs, style and
quality as well as expertise are critical success factors of company (Hindle, 2005).
The Interface Company is running the business which is not as complex but the variation
within the business makes it difficult. The business of Interface includes the economic,
cooperation of Government wherever the company is running the business. It is fact the company
can be influenced by the different regional Governments within different ways. So, the
Government of each region is having great impact on company within many ways which can
increase or decrease effectiveness and efficiency of company. With the help of marketing and
This also helpful for the customers and other companies who can take the advantage to
make their homes and office stylish and pleasant. No doubt, the Government is having entire
focus on the textile industry because it is profitable sector for Government. With the lobbying
activity, a special interest goes up and down with the passage of time. It all depends how much
Interface Inc. Analysis 8
the federal Government is giving the importance to the issues. According to the 2010, the total
The external forces are having the great impact on the productivity of the company. If the
company is enjoying the continue development and the growth then economy of country will
also face the development. The introduction of new policies and regulations is for the sake of
developed economy, reduction of inflation and increased employment. Through the developed
economy, the literacy of education system will also influenced which ultimately gives benefit to
customers living styles. Despite of 2008 recession and scale back within corporate spending, the
modular remain the hot product within the interior market. Interface Company within the
recession period has 35% shares of growing worldwide modular carpet market. It gives the
desirable strategic platform for the extension of brands as well as for dependence reduction
Furthermore, the cost of the company can be increased through the Government
changing policies and duties. For example in last few years, the Government of United States
has taken decision to buy $ 40 billion per month based on mortgage backed securities.
Furthermore, the Government also connected the outlook related to key interest rates to
For the profitability and the growth of the company, the sustainability is showing most
important impact. The development of the company will be based on measuring tools. Through
measuring the tolls the company can maintain and retain the loyalty of customers.
The society or community is build up with building the relationships with family, peers,
and children. The values of cultures are showing the standards of living as well as life style of
people while living within community. People are showing great influence on society and the
prosperity of people is showing through living standards. The management skills and choices can
also be realized through the interior of the company. Fashion, living standards, income and styles
are some factors which urge the people not just to change their own look as well as the look of
the company and homes. The companies have to make more struggles to change the appearance
and image of the people. The brand image of the company can be increased through focus and
description of new ideas. The people are willing to pay to change their, homes and companies
appearance as well as to look more stylish (Bijaoui, Sultan, & Tarba, 2011).
The demand of each and every business is technology due to the changing requirement of
manufacturing as well as for sake to increase the performance. Like other companies the
Interface Company is also giving huge importance to the technological department. Through
innovations within the technological department the company is able to make innovative floor
carpet designs and show the net effects within the products.
With the help of technological requirement, the Interface Company is able to produce and
manufacture the exact requirements of customers. The textile company is based on those
companies whose primary function is innovations and expertise as well as dealing with choices
trends and managing clients requirements. Due to the last economic recession, the textile
company has to suffer tremendously. When textile industry was facing the issues of recession
then most of the companies stop to invest within innovations and research department.
Interface Inc. Analysis 10
Therefore, in past the fashion and living styles were not as glamour as industry desired. With the
help of advanced machinery and technology, the company innovate new designs and bring the
within different regions. With the help of innovative tools and innovations, the company can
retain its existing customers who through words of mouth will be helpful for the company to
attain potential customers. The research department of company can increase the performance of
the company, as the company needs easier ways to produce different and unique products and
Through the website and the external research about the company, it has been analyzed
that the corporate level strategy of the company is based on the sustainability as well as growth.
The company has started its Journey in 1994 through one person. The CEO of the company
urged the management to adopt the bold vision. For this there is requirement of new thinking
and new model for business. Throughout the Journey of the company, the passion of
sustainability and growth remains along with employees and the management of the company.
Through the statement, it can be said that the company have focus on sustainability along with
However, the intense growth is not objective of company immediately because the
management of the company knows that the immediate growth can show the possibilities of
sudden decline. The main focus of company is on roots and entire management of company
because the company wants to be leader within the textile industry through carpet flooring
Interface Inc. Analysis 11
products. According to the motives of higher management, there is need to focus on the trends
and tastes of customers because they are related to the different regions and having their own
Furthermore, the higher management explained that along with the growth strategy, there
are a lot of areas in which the company can make the innovations and grow. Through growth and
sustainability strategy, the company started to make contributions according to the fashion and
customers trends which increase business value with efficiency and effectiveness. There are
different countries that have opened their arms for the Interface Company due to the innovative
styles and growth strategy because it will be helpful for future progress of the company as well
as economy of the country in which the company will start the business (Anderson, 2010).
The business level strategy of company is to make the company position sound along
with growth. The Interface Company wants to leverage technology as well as expertise for the
provision of components, software as well as to bring attraction within new markets. The
president and CEO of Interface company has turnaround the financial interface of company from
2001. Through innovative skills, growth strategy, he reduced the overall debt of company, make
increment within profitability and show focus on core modular of company. In addition to this
the company has increased global market share. The company has led the strategy globally for
the further diversification along with focusing on corporate strategies of company. At the same
time, the company has started to work with worldwide associates for the growth of business
modular within the emerging markets such as America, India, China and Middle East. The
company within these countries invests along with technologies and different business
Interface Inc. Analysis 12
opportunities. The new management team and CEO of company now create and lead the
modular carpet worldwide which was considered niche market. Until the 2020 the company
wants to accomplish one goal which is to eliminate any type of negative impact on environment.
The activities of the economy are increased due to the variation within the demands of
customers. The consumers spending are also affected by this. The image, sustainability and
profitability of the company are entirely depended on the efficient operations of the company. If
the companies want to compete within the industry then there is only one thing which the
companies should have to focus and that is effective, innovative and effect strategies along with
innovate ideas and operation because within the textile industry innovations is having distinguish
importance because the employees and the management can attain the customers, make profits
Dixie objective is not only based on the financial performance; instead of it, the company
strategy is to provide consistent top quality products within the industry. The Dixie Company
makes successful customers through providing them extra ordinary products along with
remarkable services. In addition to this, the Mohawk Company is also sustaining its position
within the market through the sustainability strategy. The vision of the company encompasses
strategic approach based on the products, people and processes. At the initial stage the goals of
company were surrounds more environmental within nature due to the critical nature of
components. The main strategy of the company is to maximize value of shares and shareholders.
Furthermore, the Mohawk Company has set the goals and communities its progress with the
Interface Inc. Analysis 13
investors. There is utilization of life cycle approach for the continuous improvement within the
products and procedures (Our sustainability startegy for a btter world, 2014). On the other hand,
Beaulieu Company committed to quality of life which is the main strategy of company along
with creative environments. The entire focus of the company is towards employees to inspire
them and urge them to inspire the customers through their loyalty and creativity capabilities
(Beaulieu, 2014).
The Interface Global implementing the marketing strategies of put the right product at the right
place within the right time and at right price. The company created a product that a specific
group of people wanted. So in this regard company put their product on the place where the same
group of people visit on a regular basis. Usually the company sets its price at a level where it
matches with the customer’s expectation and they want to buy at that time.
Product: The product of the company is mainly the carpets. It needs to satisfy the quality of the
carpets. The company is using the attractive colors and stuff of the carpets. The different sizes
and colors are also available in the company. Moreover, the company has added the features that
can differentiate their products from the competitors. The company is maintaining low cost and
still be able to sell the products with sufficient profitability (Reijonen, 2010).
Pricing: Interface Global has implemented the tools of pricing so that the new markets of
commercial level can be captured. Besides this another pricing tool is used which allow an
individual to open customer account. The company is able to increase its profits by millions of
rupees by using these pricing tools. Since these pricing tools were introduced in the company,
Place: The Interface Global has used the exclusive strategies for its product placement. The
company has introduced its product in many pictures and movies so that the people will get
awareness about the product. Carpets and equipment are used in the interior of the houses in the
movies and films to make their product prominent in the people. Carpets for the business and
residences are designed and placed in the showrooms for the attraction of the customers.
Promotion: Company is doing promotion of its products to approach the target market. The
target market of Interface Global is house residents, offices, marriage banquets etc. the company
approach them by advertising their product through TV channels, or by radio commercials and
placing the promotional tags of the product on the billboards. Best time to promote the product
for the company is when new offices are opening and they need new carpets at that time for the
decorating of the offices. The company has also an eye on the promotion strategy of its
Interface Company is having the strong financial position as the total assets of the
company are increasing with the sustainable and sufficient growth. At the end of 2011, the total
assets of Interface company was 393089 but at the end of 2012 the total assets of company are
about 430651 which is depicting slow and steady growth. The liabilities of the company due to
change in strategies is also reduced and this show that the company is applying good strategies
and within right direction. At the end of 2011, the total liabilities of the company were 506561
and fortunately at the end of 2012 total liabilities are 493665. Due to some financial hurdles and
the policies changing the company faced a decline in 2011 but in 2012 the Interface companies
the due to best quality able to increase its net income (Interface Inc., 2014).
Interface Inc. Analysis 15
The main focus of the company is to provide efficient products along with style and
design which enhance the customer’s rooms separately and give the innovative look to individual
room. For effective financial position, the company is maintain investments for the growth
within the research and technology department as well as the company is having more than
30000 employees along with different expertise and culture know-how. For sustaining the
financial position the company is interested in the sales, services and support customers through
reaching them within different regions. The more interest of company is innovative designs,
The Interface Company is developed for provision of products and services in design
sectors and innovating products for the research and measurements in the highly changing
environment. The company is offering different kind of products with the help of research and
technology such as3D designs of carpets, net effects, net-works, interface, FLOR and different
innovative designs to show innovative ideas. The product line of the company is for increase life
standards of customers and according to the fashion. The company has gain the success within
the production department through sustained commitment and development of competitive and
superior products.
The conversation and manufacturing cost of the company also reduce due to technology
expertise without compromising on defect detection capability. The designing and innovations
within products is becoming complex across various industries and at the same time, the
customers are demanding the quality of products. With effective production procedure, the
company detects defects during production which bring higher results in the end product quality
Interface Inc. Analysis 16
as well as there will be low warranty repair and scrap costs. Under the head of SCM, the
selection of suppliers is also important for company management. The suppliers have to meet
quality and reliability standards set by the Interface Company (Interface Inc., 2014).
The main and effective strategy of the company is focusing on sustainability, growth and
diversity. Therefore, the company is utilizing expertise skills and adopting their ideas because
their ideas are based on the different culture schemes which are admired by customers. The
positions of employees are change within different regions; so the employees can share new
ways to build carpet along with designs. The current strategy of company is the sustainability,
expansion within different regions and diversity in the products and innovation related to the
products; therefore, company invest for the training and development of employees; so that there
will be more innovative products. For the motivation of employees, the company is introducing
different system such as intrinsic rewards and extrinsic rewards system. For the health and
security of employees the company is offering different programs. The entire infrastructure of
company is highly structured and developed. Furthermore, the company is highly emphasizing
on information and technology systems to compete the peers within industry (Alagaraja, 2013).
16. Strengths
Interface Company has the spanning presence in the American market as well as Canada,
Asia-Pacific and EMEA. The company is driving more than its 50% revenues from this
marketplace. This has increased the strength of the company to run their business
successively and the company has strong financial position due to this revenue part.
Interface Inc. Analysis 17
The company has a strong brand image across the world as its products are being used
over the world and the consumers regarded the carpet brand in well mannered. The
company is enjoying higher level of brand awareness as this making the customers up-to-
date about the new products that the company invents for its customers and the customers
increase the demand because of the brand image. The brand image of the Interface
Company has enabled the company to created strong barriers across the industry for the
new entries.
The Interface Company is providing higher quality products to its customers, as the
company knows the customers’ demands and requirements. The company is giving
preference to its customers as they knows that the customers are the life blood for any
organization and the business of the organization depends upon their customer’s loyalty.
The company is earning higher profitability and productivity just because of its
customers. The company is inventing more and more new products to make its customers
17. Weaknesses
In the recent survey, the company has earned low returns as compare to its assets and the
company is facing lower investment. In 2005, the company has earned 4.7% assets and
the company’s average assets on the investments are 6.7% that were significantly lower
than its average. The return rate is the weakness of the company as the company is facing
somehow lower profitability due to its return rate. Low weak return on assets and equity
The prices of the company are unjustified, as the company is producing new and unique
products but the company is offering higher prices to its customers than the other
Interface Inc. Analysis 18
companies. The customers can easily opt to the other companies that are providing same
quality of products and same features at comparatively lower prices. The higher prices
are the weakness of the company as this is leading the company towards losing its
customers.
The Interface Company is also facing low market shares because of its products that the
company is inventing; such as the company has recently introduced INTERFACE, the
product has not enough changes from the last innovation. This has decreased the market
shares of the Interface Company and this reduced the revenues as well as the profitability
18. Opportunities
The Interface Company has opportunity to run strong advertisement campaigns as this
can make aware more customers and the demand of the company’s products will
increased ultimately. The company has opportunity to increase its profitability as well as
its productivity by awarding more customers about new innovations that the company has
made and the features of these product this will encourage the customers to increase their
purchasing power as well as the customers will remain retain and new customers will
attract.
The company has also opportunity because of the increasing demand of its products such
as; NET EFFECT, INTERFACE, NET-WORKS. These products are increasing the
profitability and productivity of the Interface Company and encouraging the Interface
Company to make some more innovations like these products that are attracting more and
more customers towards these products. The Interface Company may have opportunity to
Interface Inc. Analysis 19
increase the features in the same products and change the name of these products
19. Threats
The company has threat from the increasing changes in the technology, as this is
encouraging the new companies to enter in the market and introduce good and attractive
products that are designed according to the advanced technology. Now the companies are
producing 3D carpets and flouring goods that are attracting new customers. The
advancement in the technology can disturb the business of the Interface Company at large
scale.
The competition in the industry is increasing day by day and the company is facing
threats from its competitors. The competitors are adopting effective and efficient
strategies to compete the company and the company’s business may influenced by the
increasing performance of the competitors. The Interface Company is facing threat from
its competitors as the new companies can also enter in the industry because there are no
effective barriers for the new entries and this is increasing competition.
Furthermore, the US and Euro Zone is facing down fall (Interface Inc., 2014).
For the Interface Company there are different strategic alternatives and these alternatives
will be more beneficial for company. If strategies of the company will be according to strategic
alternative then the revenue of the company will be increased as well as there is reduction within
the liabilities of the company. Furthermore, the company will gain the sound image within the
different regions of the world where the company exists. There are some strategic alternatives
which are available for the company and through this the company can compete within the
Interface Inc. Analysis 20
industry. The purchasing infrastructure of the company is not easy and simples instead of it, it is
complex. Due to this reason the comp any has to face the huge cost despite of utilization of
technology and R and D sector. Due to this reason, the company should focus on the programs
related to cost reduction; so that the liabilities of the company will reduce. The main strategies of
the company to motivate the employees are rewarding them; along with it, the company should
motivate employees through allowing the and providing them opportunities to work with seniors,
peers and juniors, through this, company do not have to pay externally for coaching and training
of employees. The marketing strategies sector of the company is weak and entire focus of the
emphasis on marketing strategies such as marketing campaigns as well as should utilize the other
resources such as print media and electronic media. No doubt, the company is having its
existence within several regions but the company should make sure that all the products are
The above each one specified system of the organization is carrying the critical effect and
additionally profit for the organization. The first method dependent upon lessening of expense
can build and recovery the plan of organization. The second methodology is inspiration of
workers through working nearly with them; this supports representatives. Particularly in the
organization case, the organization has phenomenal summon on enhancements particularly in the
plans, style, quality and estimations. Through concentrating on the advertising methodologies,
the organization can pick up the sufficient comes about and draw in more clients through
showcasing systems. By stressing on the promoting techniques, the organization can improve the
items emphasizes and highlight the significance of items administrations, which can encourage
Interface Inc. Analysis 21
the clients. On opposite, through changing the position of workers and working with unique
representatives, the workers may be de-persuaded by imagining that there is eye check see on
them and their proficiencies. Through putting resources into different areas, the organization
might misfortune its focus in essential segment because of which the organization is celebrated
There are two best plans for the association, which could be executed in the association
for taking point of interest in the industry. These options are worker inspiration and advertising
techniques. These two best plan must be seeking after in light of the fact that through stressing
on the showcasing procedures, there is critical effect on the bargains, income and picture of the
organization. Besides, advertising methods will be accommodating in getting best brand picture.
Through inspirations, the workers can think and encounter diversely. The administration of
organization must leave the representatives unabashedly to do whatever they need identified with
The usage of both systems might be carried out in the association quite effortlessly as
these obliged duties for execution. For the workers positive inspiration, the organization must
make objectives on top of given time and allocate them to representatives. After that, the
administration might as well improve correspondence arrange and demonstrate a few bearings
for the representatives to decrease the trouble level of workers. After that, the administration
may as well allot the sufficient assets on top of obligations and parts. Through this, the workers
feel free and strong by the organization administration and this will sway them to get or fulfill
Interface Inc. Analysis 22
targets. For the other elective identified with showcasing methodologies, the organization after
improvement of item highlights or improve it through Guerilla promoting and in addition take
For controlling the alternatives in the organization first identification there is need of
what will be measured is necessary. For example, when small areas of operations are
consolidated or combined then the performance for collection and transfer of waste should be
increased without extra cost or time. If performance for collection and transfer of waste needs
more cost or time then the alternative is not suitable for the organization. For the measurement of
employees performance and grating them awards, there is need to set standards; because just
leave employees freely is not effective way. For marketing strategies, the company must invest
in each media and overview the performance each media by evaluating the performance.
The company first has to face and anticipate with the economic crisis in the entire world.
If the economic recession will dominated within the advanced countries then it will take longer
period. Due to the economic crisis, there will be changes within the living styles, buying
behavior and the purchasing power of the country. On the other hand, the social infrastructure,
technological changes within the industry is another challenging event for the company. Every
company has to face the Government rules, regulations, and policies, which are changing with
The company is conducting operations within various product lines and within different regions.
At present the company decides to vast and wide its research for the development and facilitates
the clients as compared to the company competitors. The company can enhance and bring the
innovation within many sectors of business due to having strong capabilities within technology
and innovations. It can increase the investment within textile industry. Furthermore, many
countries are also an open market for the organization and these countries can open their arms for
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Interface Inc. Analysis 25
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