Chabot Case 
Jack Virgie
Professor Freisen
Chabot Case Study
09/11/2014
Chabot Wallpaper Case Study
The Chabot Wallpaper Company is having an issue of increasing annual revenue, meeting customer needs, and keeping up with competition. Wallpaper’s demand is gradually decreasing over time and to stay in business Chabot Wallpaper must fix these issues that they are having.
To increase annual revenue, sales need to increase. For sales to increase the customer has to demand more of the product and be satisfied with the service. Customer service is a huge issue for Chabot because they are not keeping up with product orders due to trend change in wallpaper. It takes about a month to manufacture a new pattern, ship it, and put the wallpaper on their customer’s shelf. Since the need of new patterns are changing daily, this gives Chabot no opportunity to stick with a specific wallpaper to manufacture due to the substantial amount of creation time. Additionally, the consumer often needs their wallpaper in large quantities but stores tend to keep a low amount of inventory due to a reduced turnover rates and markdown costs.
Rather than sell strictly a supplier, they need to invest in online marketing and advertising. They need to get out of the business of going through a middleman (the supplier) and directly sell to their customer. The reason being that the business of wallpaper has become more of a customized industry where custom orders seem to be what’s in demand. Taking the supplier out not only reduces cost but also resolves the issue of having to constantly change their orders and taking up time. Rather, they can make custom orders and to make more profit on their product, increase the price and minimum order. The customer would be satisfied because they would not have to leave their house’s, they can choose their pattern on-line without having to look for their specific pattern. To add to the fact, Chabot can use this money they save by cutting out the supplier to add to
Professor Freisen
Chabot Case Study
09/11/2014
Chabot Wallpaper Case Study
The Chabot Wallpaper Company is having an issue of increasing annual revenue, meeting customer needs, and keeping up with competition. Wallpaper’s demand is gradually decreasing over time and to stay in business Chabot Wallpaper must fix these issues that they are having.
To increase annual revenue, sales need to increase. For sales to increase the customer has to demand more of the product and be satisfied with the service. Customer service is a huge issue for Chabot because they are not keeping up with product orders due to trend change in wallpaper. It takes about a month to manufacture a new pattern, ship it, and put the wallpaper on their customer’s shelf. Since the need of new patterns are changing daily, this gives Chabot no opportunity to stick with a specific wallpaper to manufacture due to the substantial amount of creation time. Additionally, the consumer often needs their wallpaper in large quantities but stores tend to keep a low amount of inventory due to a reduced turnover rates and markdown costs.
Rather than sell strictly a supplier, they need to invest in online marketing and advertising. They need to get out of the business of going through a middleman (the supplier) and directly sell to their customer. The reason being that the business of wallpaper has become more of a customized industry where custom orders seem to be what’s in demand. Taking the supplier out not only reduces cost but also resolves the issue of having to constantly change their orders and taking up time. Rather, they can make custom orders and to make more profit on their product, increase the price and minimum order. The customer would be satisfied because they would not have to leave their house’s, they can choose their pattern on-line without having to look for their specific pattern. To add to the fact, Chabot can use this money they save by cutting out the supplier to add to