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The Competition

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Our company faces stiff competition from various furniture houses in Boston, particularly Target, Wal-Mart, Bed and Bath, and Ikea. Despite the fact that the presence of these firms presents an obvious challenge to our company in terms of market share, it also reveals the presence of a large and strong unexploited market (Ereaut, Imms and Callingham 102). Nonetheless, our company intends to produce world-class furniture but at a competitive price.

Competitor Profiles

  1. IKEA

This is well established and internationally renowned home furnishing retailer. Recognized for its Scandinavian furniture style, IKEA has grown rapidly since it opened its doors for business in 1943.


  • IKEA has a strong brand name that attracts a selective group of loyal customers. Moreover, it promises the same quality of products and services worldwide.
  • Has a strong concept that is founded on providing a wide range of functional and well-designed products at low prices
  • Has a recognized vision that aims at creating a better life for its customers
  • Develops unique designs that are balance between quality, functionality, design and price


  • Considering the size and scale of furniture business globally, IKEA finds it hard to control quality and standards.
  • The need surging need for quality but low cost products poses a great challenge to this company.
  • Poor communication with its other stakeholders and customers that results from the scale of business that the company operates


  • Just like other furniture store, IKEA is threatened by competitors
  • New fashion, fads and culture
  • Declining economies and frequent recessions
  1. Wal-Mart

This is a retail store that sells a wide range of products, including furniture.


  • Throughout the many years of operation, Wal-Mart has been able to develop a loyal employee and customer base.
  • They sell by opening new branches in areas and countries that are often ignored by its competitors
  • Provide its employees with flexible working hours, discounts for their purchase, health insurance and competitive wages
  • Great pricing for its products


  • For the company to keep and maintain their competitive prices, they have to buy stock in large quantities
  • The company tends to keep more part time employees as compared to full time employees
  • Synonymous of carrying and maintaining large inventories
  • Trades in products from other nations with unfair labor laws


  • The impending unionization of its employees will a major impact throughout the company
  • Current economic crises and inflation
  • The rapid growth of warehouse retailers like Costco and our company

Bed Bath and Beyond

This is a company that deals with home furnishing and domestic merchandizing. This firm operates only in the United States.


  • Diversified product range
  • Market leadership
  • Strong returns


  • Stringiest legal proceeding in the U.S
  • Geographic concentration


  • Slowdown in the country’s economy
  • High interest rates in America
  • Intense competition from established customers

Competitive strategy

Considering that RoomStyle is new in this market, our competitors are better than us in brand names because of the many years of conducting business. Therefore, in order to compete favorably, our company will employ three key strategies to create a competitive edge over the above competitors;

  • Product quality, identity, and novelty
  • Excellent sale attitude and high employee motivation
  • Aggressive and innovative service options
  • Employee education and training

Each and every employee will be educated and trained not only in their fields of specialization, but also in the application and philosophy of the company’s culture. Moreover, employees shall be receiving extensive information from the manager and be informed on the progress of the firm. Emphasis is being put on the extensive research into the integrity and quality of our service delivery. The company’s systems and controls will be constantly tested to ascertain their high standards in serving the interests of the customers (Ereaut, Imms and Callingham(Ereaut, Imms and Callingham, 200 200). Inventory control and service costs will be monitored by the company’s computer system and checked on a daily basis by management.

Our strengths

  • Unlike our competitors, RoomStyle will market its products to a specific market segment that is comprised of students and young urban professionals
  • As compared to our competitors, our company is small in size, therefore it will be easy to run and maintain
  • With our store-within-store initiative, we intend to establish a strong customer base
  • Provision of a wide range of quality products at a competitive price

Our threats

  • Turbulent economic times that makes our operations difficult
  • Well established competitors like Wal-Mart, Bed Bath and IKEA. However, we shall deal with these powerhouses by aggressively marketing our products to our target markets.
  • High interest rates in America will affect our operation because we are a new company in the flooded furniture market.

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