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Guillermo Furniture Store Recommendation - Essay Example
Finance & Accounting
Pages 4 (1004 words)
Guillermo Furniture Store Analysis 20 September 2012 STRATEGIES FOR GUILLERMO GUILLERMO ALTERNATIVES To meet the competition Guillermo has following options available: Go for acquisition Change Business model with high tech solution. Brokerage option for second potential rival Switch from patented product…
High tech solution is already a part of the production process of Guillermo competitor. This technology has high level of automation that reduces the labor requirement from production process and even from movement of products across assembly line. High tech solution also has computer controlled laser lathe that gives exactly the required cut on the product, thus reducing wastage. JUSTIFICATION FOR RECOMMENDATION Cost Benefit Adoption of high tech solution would benefit Guillermo in many areas. First, Guillermo would be able to reduce price of its products. Reduction in price is the most effective tool in meeting competition. Investment in this high tech solution will increase its production by considerable size of almost 50 percent in the first year to enhance its capacity of meeting market demand and compete with foreign competitor with increase in its supply at reduced cost and prices.. Increase in production would spread the cost over greater number of units. The overall labor cost of the business would increase as labor with high technical skills will be required. ...
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