Meubles Canadel
Meubles Canadel Case Report
Industry
Canadel is a privately owned, consumer focused, customized furniture assembler, operating in Canadian casual dining furniture industry. The industry is in the maturity stage of the life cycle and firms need to continually introduce new technologically advanced production methods in order to stay competitive. (Exhibit A - 5 forces framework). With ever increasing costs of materials and supplies, competitively priced inputs becomes a critical success factor, which leaves room only for larger firms who can afford and budget these expenses. Sales are decreasing with the social trends of families with few or no children; creating demand for smaller table and chair orders. However, the trend of open-space architecture has increased the demand for everyday use dining room furniture. In order to remain a market leader Canadel has to play its strength and understand its weakness and take appropriate steps. A full SWOT analysis of Canadel’s current environment is shown in Exhibit B.
Resources and Capabilities (Refer Exhibit C)
An outline of Canandal’s current Resources and Capabilities are in seen in Exhibit C below which include an analysis of how resources could be used for competitive advantage.
Sustainable Competitive Advantages
Canadel’s most sustainable competitive advantages stem from the past acquisition of the Kennebec wood-mill and very close relationship with its suppliers and buyers. In tribute to these accomplishments, Canadel has managed to accomplish high quality furniture, low defect and repair cost, shorter delivery time all with a lower cost of goods sold. These sustainable competitive advantages have aided the company by lowering raw material cost, higher customer loyalty, low capital expenditure, no debt, higher ROE (at least twice higher than industry), and higher inventory turnover (45 times vs. 15 times (industry)). With continued focus on these strategic initiatives, it should allow Canadel sustain
Industry
Canadel is a privately owned, consumer focused, customized furniture assembler, operating in Canadian casual dining furniture industry. The industry is in the maturity stage of the life cycle and firms need to continually introduce new technologically advanced production methods in order to stay competitive. (Exhibit A - 5 forces framework). With ever increasing costs of materials and supplies, competitively priced inputs becomes a critical success factor, which leaves room only for larger firms who can afford and budget these expenses. Sales are decreasing with the social trends of families with few or no children; creating demand for smaller table and chair orders. However, the trend of open-space architecture has increased the demand for everyday use dining room furniture. In order to remain a market leader Canadel has to play its strength and understand its weakness and take appropriate steps. A full SWOT analysis of Canadel’s current environment is shown in Exhibit B.
Resources and Capabilities (Refer Exhibit C)
An outline of Canandal’s current Resources and Capabilities are in seen in Exhibit C below which include an analysis of how resources could be used for competitive advantage.
Sustainable Competitive Advantages
Canadel’s most sustainable competitive advantages stem from the past acquisition of the Kennebec wood-mill and very close relationship with its suppliers and buyers. In tribute to these accomplishments, Canadel has managed to accomplish high quality furniture, low defect and repair cost, shorter delivery time all with a lower cost of goods sold. These sustainable competitive advantages have aided the company by lowering raw material cost, higher customer loyalty, low capital expenditure, no debt, higher ROE (at least twice higher than industry), and higher inventory turnover (45 times vs. 15 times (industry)). With continued focus on these strategic initiatives, it should allow Canadel sustain