The liberal strategies adapted to this segment of customers finally bounced back as a major threat to the existence of the company.
As a production director, I should approach the above issue seriously. Drastic changes in the business strategy are necessary in Arrowhead. No organization can survive in the current extremely competitive world, either with a particular product alone or with a particular segment only as the customer base. Greg Kitson (2009) has argued that every market experiences some seasonality diversification of the customer base is the only option to stay busy throughout the year (Kitson 2009). It is suicidal to depend heavily on a particular customer base for ever to sustain a business. Avoiding customers who are volatile to market fluctuations is necessary to sustain the business prospects of Arrowhead. Arrowhead should concentrate more on building a customer base that are capable of withstanding any type of pressure exerted from the market.
The recent financial crisis has affected Arrowhead worse since most of their customer base was from the mostly affected community, the lower and middle class. The current financial crisis has not affected the upper class much because of their immense financial strengths to overcome such crisis situations. On the other hand, the rest of the community were seriously affected by the financial crisis.
Arrowhead should build high quality products in order to canvass the upper class people. The current customers of Arrowhead are not much worried about the quality of the furniture produced by arrowhead. It is quiet natural since they are getting furniture at an affordable price and that also in instalment payment basis. They cannot bargain much to reduce the price or to improve the quality of the Arrowhead products because of their obligations to the company. On the other hand, upper class people are not like that. They normally look for the quality of the product rather than the price of