Wood Kitchen Industry: Business Policy and Strategy

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Wood Kitchen Industry: Business Policy and Strategy

Wood kitchen industry had a strong revenue growth because of increasing growth in housing markets all over the world. Now imports have become the real threat for the wood kitchen industry. And the growth of this industry is purely dependent upon the housing market. (Wood kitchen cabinet and countertop manufacturing in the US, 2008).

Now it is seen that this industry is suffering because of decrease in the property value in US. The industry is expecting a further downward trend due to decrease in sales and collapse of new housing construction projects. (Kitchen cabinet, bathroom vanity, & countertop manufacturing US industry report, 2009).

We can see the wood kitchen industry as part of the US manufacturing sector. They produce kitchen cabinets and countertops for private residential homes. The major producers of wood kitchen cabinets in the US produce and distribute it in bulk to the wholesalers. The main product used in the production of these items is wood or wood coverings. NAICS definition- This industry comprises establishments primarily engaged in manufacturing wood or plastics laminated on wood kitchen cabinets, bathroom vanities, and countertops (except freestanding). The cabinets and counters may be made on a stock or custom basis. (USA wood kitchen cabinet and countertop manufacturing, 2007).

The worldwide wooden furniture trade in the year 2000 was estimated at us $45 billion on the basis of manufactures selling price. (Sustainable of the Asian Wooden furniture industry, 2003). Furniture is an important item in the household expenditure. Wood processing and furniture industry is an important branch of the processing industry and is established based on the long tradition of wood processing in our country. Traditionally furniture industry has been considered as labor-intensive industry which includes both local and international players. Product innovation

in the furniture industry paved the way for kitchen wood furniture. Kitchen furnitures are specialized products to be made as per the customer requirements. The wood kitchen industry has got its own importance in foreign countries because of its unique designs, resource and labor intensity. One of the key success factors in this industry is the growing environmental awareness, primarily in industrialized countries. (Kaplinsky, et al, 2003)

The industry of wood processing/furniture is represented:

(The wood /furniture industry profile, (n.d)).

The production process in the furniture industry undergoes through the following stages.

Cut of wood in forests and transformation to logs.
Sawing of trunks in sawmills and their transformation to long flat piece of wood.
Production of wood by wood processors and machines.
Final stage is the actual production of furniture that is kitchen cabinets, tables etc. When it becomes a final product producer will supply it to the retailers, wholesalers, or directly to the customers. (The wood / furniture industry profile, (n.d))

Key successful factors in wood kitchen industry

Customer satisfaction

The first and foremost factor for the success of any industry is the customer satisfaction. Customers will be satisfied only when price, quality, and design are favorable to him. The state of satisfaction depends on both psychological and physical variables which correlate with satisfaction behaviors such as return and word of mouth communication rate. The level of satisfaction can also vary depending on other options the customer may compare some products against others.

Price: price is the one thing that every customer takes into consideration before buying anything.
Quality: Consumers may focus on the specification quality of a product/service, or how it compares with competitors in the marketplace
Design: Standardized as well as customized designs will help the producers to get maximum sales and competitive advantage in the market. Now designers are taking advantage of computerized systems in the creation of furniture models. (The wood furniture industry profile, (n.d))

Internal operations

Internal operations are the operations within the organization. It consists of points such as proper inventory tracing, waste reduction techniques and stability in the supplier relationships.

Tracking- companies in the wood kitchen industry are required to have precise inventory tracking systems.
Waste reduction- companies have to adopt some waste reduction techniques to utilize waste-reducing processes
Stability: stability in the customer supplier relationship should be there for the smooth functioning of the industry.

Innovation and Growth

The capability to innovate and bring innovation successfully to a market will be a crucial determinant of the global competitiveness over others. Innovation is important to help address global challenges, such as climate change and sustainable development. We can call a product innovative and growing in the following cases

Manufacturers will find new market and set a new standard in the industry
Products have the potential quality to replace the imports
Production of environmental friendly products is an innovative move.
Brand loyal customers can make growth in the industry.

Shareholder Satisfaction

Shareholders of the company must be satisfied for the smooth running of the organization.

Stability: This means stability in the profit and distribution of dividend to its shareholders.

Financially stable

Performance: this means the financial performance.

Trained workforce

Highly trained work forces are the assets of the company. Wood kitchen industry is labor intensive in nature; so demand for trained workforce will be more. (Vlosky, & Kim, 1995).

References

Kaplinsky, Raphael., et al. (2003). The Global Wood furniture Value Chain: What Prospectus for upgrading by Developing Countries: The case of South Africa. United Nations Industrial Development Organization.

Kitchen cabinet, bathroom vanity, & countertop manufacturing US industry report. (2009). IbisWorld.

The wood /furniture industry profile. (n.d).

The sustainable of the Asian Wooden furniture industry. (2003). Holz Als Roh-und Werkstoff, 61(3), 233-237. Springer Link.

USA wood kitchen cabinet and countertop manufacturing: Wood kitchen cabinet and countertop manufacturing in USA: USA market research and industry report: Definition. (2007). DIS: Digital Information Services.

Vlosky, Richard P., & Kim, Sebin. (1995). Characteristics of value added wood products manufacturers in the U.S south.

Wood kitchen cabinet and countertop manufacturing in the US. (2008). Bharat Book Bureau: Your One Stop Shop for Business Information.

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