Case Study: Moda Milano Mobili' Financial Position in the Market
Introduction
Moda Milano Mobili is a medium size furniture manufacturer who primarily crafts living room sofas, chairs and dining room chairs, as well as complementary coffee tables, side tables and dining room tables. Their product style is based on contemporary designs with simple clear flowing lines without many details that using Australian cowhide and native timbers. Other than manufacture, Moda Milano Mobili retails their products through independently owned furniture stores in many cities, like Sydney, Melbourne, Brisbane and Adelaide. In addition, the company plans to open their international market, establish frequent shipping between Australia and north-east Asian to increase its international market share, satisfy the demand of customers. This article focuses on Moda Milano Mobili’s financial position and its competitive advantages in both domestic and international market.
General Environment
(1) Political
From political factors to analyse the current and next few years, the basic political situation tends to stabilized. Peace and development are the two major themes of the contemporary world. Under this situation, world furniture industry also keeps a steady growth trend. China is the biggest competitor and the potential market of Australia. By entering the World Trade Organization, China's tariff barriers have being removed. This basally becomes an opportunity of Australian furniture industry to export their products into China.
(2) Economic
Economic cycle is a response to the economy from the Boom - Decline - Recession – Recovery. According the chart, there is a sharp decline in Australian GDP in 2009 after the 2008’s boom which is not only caused by the America sub prime mortgage crisis but also caused by the significant decrease of raw and proceed materials’ price. Til the 1st and 2nd quarters this year, there is a slight recovery of Australian GDP, which gives a break to the whole Australian industries include furniture industry.
Moda Milano Mobili is a medium size furniture manufacturer who primarily crafts living room sofas, chairs and dining room chairs, as well as complementary coffee tables, side tables and dining room tables. Their product style is based on contemporary designs with simple clear flowing lines without many details that using Australian cowhide and native timbers. Other than manufacture, Moda Milano Mobili retails their products through independently owned furniture stores in many cities, like Sydney, Melbourne, Brisbane and Adelaide. In addition, the company plans to open their international market, establish frequent shipping between Australia and north-east Asian to increase its international market share, satisfy the demand of customers. This article focuses on Moda Milano Mobili’s financial position and its competitive advantages in both domestic and international market.
General Environment
(1) Political
From political factors to analyse the current and next few years, the basic political situation tends to stabilized. Peace and development are the two major themes of the contemporary world. Under this situation, world furniture industry also keeps a steady growth trend. China is the biggest competitor and the potential market of Australia. By entering the World Trade Organization, China's tariff barriers have being removed. This basally becomes an opportunity of Australian furniture industry to export their products into China.
(2) Economic
Economic cycle is a response to the economy from the Boom - Decline - Recession – Recovery. According the chart, there is a sharp decline in Australian GDP in 2009 after the 2008’s boom which is not only caused by the America sub prime mortgage crisis but also caused by the significant decrease of raw and proceed materials’ price. Til the 1st and 2nd quarters this year, there is a slight recovery of Australian GDP, which gives a break to the whole Australian industries include furniture industry.