Steelage Almirah

“Rhino” almirah: Michael Porter’s Five Forces: SWOT analysis: 1) Strength: (i) High quality, elegant design and a product range for different utilities which could differentiate “Rhino” almirah from the market leaders like Godrej. 2) Weakness: (i) Factory overhead cost is very high due to investment in high-priced machineries and other facilities. (ii) Labor cost to produce one almirah is more than double than in any other cheap almirah available in the market. (iii) There are demands for the superior brands like Godrej and Steelage which offer best quality for high price and demands for the cheap below-average quality almirahs.

Rhino” almirah belongs to somewhere between these two segments as far as the price and quality are concerned. 3) Opportunity: (i) Godrej stopping its sale through its dealers. “Rhino” can leverage on this opportunity. 4) Threat: (i) Rising stiff competition from the new entrants who are offering cheap substitutes. Long-term solution: 1) Segmentation, Targeting & Positioning: 2) Cost cutting on “Rhino Economy” and e-introducing it as a direct competition to Elite brand 3) Overview: 1) No clear cut USP ) No market research was done before entering the market.

3) High overhead due to the high-priced machineries and other facilities increases the cost ineffectiveness. Short-term solution: 1) Clear the remaining stock at the price the dealer is settling for. If they get a profit by selling the almirahs, then it would be equally shared by them and Mr. Basu. 2) Sort out things with Ojha Furnitures as they were very much interested in purchasing the almirahs. 3) Pay the interest to the bank on regular basis and win back the reputation with them.

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