Problem
Pyramid Door, Inc. is a privately owned regional manufacturer for residential and commercial garage doors. The company was planning a $12.6 million of sales goal for 2006, which represented a 36% increase in sales over projected 2005 year-end sales. Richard Hawly, director of sales and marketing, had to decide what distribution approach should be used to support the expanded sales goal.
SWOT Analysis
|Strengths |Weaknesses |
|Experienced company - More than 10 years |Small in scale - regional garage door manufacturers |
|Long-term relationship with dealers - 50 exclusive dealers and 300 |No cooperation with home center chains |
|independent dealers | |
|Quickly delivery - two distribution centers and a distribution facility | |
|Opportunities |Threats |
|Increasing preference toward steel garage door- 90% of industry sales |Growing barging power of the supplier - galvanized steel and insulated |
|Increasing market demands - 2.4% increase in 2006 |foam |
|Continued aging of the housing stock | |
|Product innovation - insulated steel doors etc. | |
Critical issues • The distribution approach should be