Crafton Industries, Inc.
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I. How might one characterize the carpet and rug industry and Crafton’s position in the industry?
Based on manufacturer sales, in 2009, the U.S.A business and consumers spent around $17 billion for floorcoverings. In the same year (2009) carpet and rug manufacturers posted the sales range of $9.36 billion. Rugs and carpet commanded about 54.5% of total U.S. which was down from 56.7% in 2007 and about 68.1% in 1999.
Crafton Industries "sales" medium priced, and high priced rugs and carpets primarily to the market residential segment. Today there are around 100 Carpet and Rugs companies but the market leader in this industry is Shaw with sales of $3025 Million in 2009. So, conversely, Crafton considered …show more content…
Summarize your analysis and conclusion/recommendation (this will be reflected in your case writing).
Perhaps there are numerous of alternative strategies which could support and bolster the sales for Crafton and ultimately increase its profits. nevertheless, as far as the most appropriate options are concerned, what can be seen is that Crafton Industries, Inc. has two options which are possibly going to solve the issues. So, the first alternative is that Crafton can integrate forward and cut the margin of wholesalers or alternatively the company can indicate enter into multiple segments while continuing with the same current facility of the distribution channel.
Lack of Wholesale experience or Be in need of Wholesale Experience: in spite of the fact that the detailed costs indicate that "direct distribution" is the profitable solution for the company, but those costs do not have an impact on the cost, both figurative, and literal of managing the wholesale operation. If Crafton Industries, Inc. had an opportunity to juncture the rollout of their wholesale operation, they would have a chance to develop this expertise. Since Crafton Industries, Inc. are faced with that situation the all-or-nothing decision, the company must instead immediately gain this expertise. Briefly, the assortment of this effort may be beyond Crafton's skills which they currently have …show more content…
The wholesalers already made it unmistakable and clear so that if Crafton moves forward with the distribution change they will No longer hold their products. So, if the distribution has changed that will Not work out for Crafton, it may not be possible to rescue or deliverance the relationships between them and the seven current wholesalers. Additionally, any an aborted attempt at the direct distribution might foster ill will with the other wholesalers which making it very expensive too, if Not impossible, to revert
…………………………………………..
I. How might one characterize the carpet and rug industry and Crafton’s position in the industry?
Based on manufacturer sales, in 2009, the U.S.A business and consumers spent around $17 billion for floorcoverings. In the same year (2009) carpet and rug manufacturers posted the sales range of $9.36 billion. Rugs and carpet commanded about 54.5% of total U.S. which was down from 56.7% in 2007 and about 68.1% in 1999.
Crafton Industries "sales" medium priced, and high priced rugs and carpets primarily to the market residential segment. Today there are around 100 Carpet and Rugs companies but the market leader in this industry is Shaw with sales of $3025 Million in 2009. So, conversely, Crafton considered …show more content…
Summarize your analysis and conclusion/recommendation (this will be reflected in your case writing).
Perhaps there are numerous of alternative strategies which could support and bolster the sales for Crafton and ultimately increase its profits. nevertheless, as far as the most appropriate options are concerned, what can be seen is that Crafton Industries, Inc. has two options which are possibly going to solve the issues. So, the first alternative is that Crafton can integrate forward and cut the margin of wholesalers or alternatively the company can indicate enter into multiple segments while continuing with the same current facility of the distribution channel.
Lack of Wholesale experience or Be in need of Wholesale Experience: in spite of the fact that the detailed costs indicate that "direct distribution" is the profitable solution for the company, but those costs do not have an impact on the cost, both figurative, and literal of managing the wholesale operation. If Crafton Industries, Inc. had an opportunity to juncture the rollout of their wholesale operation, they would have a chance to develop this expertise. Since Crafton Industries, Inc. are faced with that situation the all-or-nothing decision, the company must instead immediately gain this expertise. Briefly, the assortment of this effort may be beyond Crafton's skills which they currently have …show more content…
The wholesalers already made it unmistakable and clear so that if Crafton moves forward with the distribution change they will No longer hold their products. So, if the distribution has changed that will Not work out for Crafton, it may not be possible to rescue or deliverance the relationships between them and the seven current wholesalers. Additionally, any an aborted attempt at the direct distribution might foster ill will with the other wholesalers which making it very expensive too, if Not impossible, to revert