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Walter E. Smithe: Ensuring Future Success Through Strategic Expansion

Explore how Walter E. Smithe can ensure continued success by expanding locally, entering new markets, and forming real estate partnerships. This analysis covers the company's history, SWOT assessment, financial standings, industry comparisons, and strategic recommendations.

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Walter E. Smithe: Ensuring Future Success Through Strategic Expansion

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  1. Steven Adamaitis - Borislava Ashikova - Jason Byrnes - Bryant Hernandez Matthew Ing - Ashley McKinnie - Mike Minogue - Chris Venturini

  2. Problem How can Walter E. Smithe guarantee continued success in the future? Questions include: - What changes are required/needed? - Has the brand outgrown the geographic area? - Who/What are the most notable threats?

  3. Contents • Company Overview and History • SWOT Analysis • Porter’s 5 Forces • Finance and Industry Analysis • Recommendations • Conclusion

  4. Company Overview & History Bryant Hernandez & Chris Venturini

  5. Company History • Smithe and Shanahan form partnership in 1945 known as Tone Appliances and Furniture • WWII comes to end • Name changed to Smithe & Shanahan • Shanahan sells his share to Charles Smithe

  6. Company History • During the 1960’s Walter Jr. introduced custom order upholstery • Late 70’s early 80’s the Smithe • brothers Walter, Tim and • Mark join the company • Sell strictly furniture

  7. Company Overview • Furniture company based in Itasca, Illinois • “You Dream It, We Build It” • 11 Different Showrooms • Over 400 employees Bryant Hernandez

  8. Company Overview Cont. • Makes, sells, and repairs furniture, specializing in custom upholstery • Services - Textile combining - Color consultation - Space planning - Accessory placement • Partnered with over 200 designers Bryant Hernandez

  9. SWOT Analysis Steven Adamaitis & Jason Byrnes

  10. Strengths • Economic Initiatives • Social Responsibility • Marketing • “You dream it we build it” • Quality Products and Selection • “SmitheCard”

  11. Weaknesses • Store Locations • Only 10 Chicagoland stores and 1 Indiana store. • Private Company • Furniture is too expensive??

  12. Opportunities • Expand out of Chicagoland area. • Enter the low-end industry as well. • Hire real estate agents to help market their furniture to new home buyers.

  13. Threats • Two main competitors in high-end furniture: • Ethan Allen • William Sonoma • Competition in low-end as well • IKEA

  14. Porter’s Five Forces Borislava Ashikova

  15. Financials & Industry Analysis Ashley McKinnie

  16. Revenues • Currently, revenue is about $102 million

  17. Industry Comparison • According to an article by Chicagobusiness.com, Walter E Smithe has been increasing sales by 6%

  18. Competitors • Ethan Allen • William Sonoma • Crate and Barrel • Pottery Barn

  19. Recommendations Mike Minogue

  20. Recommendation #1 Local Expansion “Where is the money?”

  21. Local Expansion - Current Locations

  22. Local Expansion - Population • Need to open up in a populated area to insure long term sustainability

  23. Local Expansion - Income Median Income Percentage of households with income more than $200,000

  24. Local Expansion - Belvidere, IL • Relatively high income (~$50,000 median household) • 25,585 residents • Rockford extremely close • I-90 convenience

  25. Recommendation #2 Florida Expansion “Where is grandma?”

  26. Florida Expansion Age Map Population Map

  27. Florida Expansion - Sarasota, FL • Part of Sarasota County • 52,211 residents • Access to Tampa via I-75 • Brand recognition from retirees

  28. Recommendation #3 Real Estate Partnership “Where is our furniture?”

  29. Real Estate Partnership • Furnish old and new homes with great furniture • Baird & Warner, Coldwell Banker, RE/MAX • Give agents incentives for recommending Walter E. Smithe

  30. Walter E. Smithe’s continued success will be guaranteed through utilizing its strongest assets: Brand reputation and mastered business model: • Walter E. Smithe has a solid reputation and brand image that should not be altered • The business model can be successfully implemented in other geographic markets • Partnering with others in related fields (real estate) The recommendations discussed in this presentation do exactly that Conclusion

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