Haefren Baum is a high class home furniture retailer. The company carries Wiegandt’s furniture, a well known recognized name brand for its high quality. Haefren Baum has been retailing home furnishing from one location in downtown Cologne and expanded their business recently nearby Rhineland suburban areas with three additional outlet stores. Due to the economic recessions, sales of furniture slowed down, so Haefren Baum decided to decrease prices in order to main sales volume. Sales decreased by 19% in 1993 and by 5% in 1995. The recession has been improving through the years, however it does not help the furniture market since there is a high market competencieswith competitors. Haefren is having trouble maintaining their competitive
