West Lake Home Furnishings Limited
Executive Brief summary
The CEO at Western Lake Furniture LTD, Charles Bowman, came across with a pitch of minimizing the retail price of the signature line of decorative lamps from $69. 99 to $29. 99 for a period of one year. This customer includes a large U. S. structured retail string accounted for one-third of Western world Lake's low cost business 5 years ago. The company needed to adjust simply by holding higher inventory amounts in warehouses. West Lake Home Furnishings LIMITED is planning to stay at top of its organization and is incredibly eager to develop. After studying the benefits just like increase in income, growth of revenue, market transmission, effect of decreased price on other businesses and the connection with the flower nurseries, it has been chose to accept the offer. Huge and promised order to get a year may be the justification pertaining to accepting the reduced price in the provide. The main goal of the company is to increase the profit. To be able to achieve this at retail selling price of $29. 99, amount of sales will need to increase to a considerable level in order to recognize the pitch. The current circumstance in Canada, there were several significant trends in your home furnishings industry, 1 . Seniors population having a higher profits population 2 . consumers maintained to spend additional money on residence products inside the first 2 or 3 years following purchase of their home 3. fresh competitors experienced entered the industry with lower prices
Reducing the cost leads to higher demand of quantity are in favor of bigger quantity of product sales. The pitch ensures the mandatory quantity of sales.
1 ) In May 3 years ago, the CEO of West Lake Furniture LTD was analysis an offer that one of his top rated three wholesalers put on the table. List the advantages and disadvantages of the pitch. Advantages| Disadvantages
Marketplace penetration & Market Share this will likely impact in Increase in Earnings and Growth in Sales| Retailer customer had already contacted comparable suppliers in Asia who does be ready to manufacture a...