Case Analysis of Room & Board (Strategic Management)) Essay

2406 Words Apr 30th, 2011 10 Pages
1.0 Executive Summary
Room & Board is successful in domestic furniture retailer. The American furniture retailer has initially developed based on IKEA business model by John Gabbert. He adopted different strategy from other traditional furniture industry. He focuses on high quality and design, and became popular and set a high loyal brand in the USA. Room & Board also succeed in implementing entrepreneurial strategies to create value. The company transfer its entrepreneurial ship mind-set to its employees even suppliers. Its core competency is using relationship business model, utilizing its source and capability to exploit competitive advantage to achieve above returns.
Under external and internal analysis, the external environment
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Attractive policy of encouraging foreigners’ investment is most popular in Asian countries. Economic– Slowdown growth is for local economy. The upward of economy is in Asian market. Large power of consuming capabilities is among Asian consumers. The Company, due to the economic changes and trends are adopting the strategy (relationship business model) that takes an appeal on their customers and owns the customer loyalty. It made the company have exclusive design. Therefore, the economic conditions don’t affect the company’s market performance and sales have increased from 1995 to 2007. Social – High employee turnover, using part-time employee and commission-based compensation are to lower fixed costs in the market. The Room & Board is creating an environment of collaboration and engagement. The engagement was evidence by deep relationships with customers, fellow employees, and suppliers. The company provides harmony environment to its employees and customers. The “walk the talk” has been good communicated. No rules for personal leave or sick pay and rejection of commission-based structure are for their employees. Customers pay the same price, no discount, no sales. Technological – High technological software is in tracking ordering and stock management highly used. Online shopping is a trend in the future, involved more customers. Legal – The legal compliance of the company is strictly implemented with the relevant and applicable laws and regulations

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