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Compact case
Case
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Reference no. 9B11MC103
Simplified Chinese language
Published by: Ivey Publishing
Originally published in: 2011
Version: 2011-10-28
Length: 3 pages
Data source: Field research

Abstract

This is a Simplified Chinese version. Warehouse Guys is a reseller of furniture and home luxury items such as pool tables and hot tubs based in London, Ontario. Though the company's sales continue to climb, the product mix is skewing rapidly away from furniture and much more towards hot tubs specifically. The owner of Warehouse guys must decide whether to continue with his current product mix, focus entirely on hot tubs, which would require a complete re-branding of the company or enter the 'custom kitchen' market. The custom kitchen market looks very appealing on the surface because it eliminates inventory and offers high margins but the investment needed to effectively sell the product is over $100,000. Each possibility the owner considers has its own merits and risks with it being ultimately his decision to make.
Location:
Industry:
Size:
Small
Other setting(s):
2010

About

Abstract

This is a Simplified Chinese version. Warehouse Guys is a reseller of furniture and home luxury items such as pool tables and hot tubs based in London, Ontario. Though the company's sales continue to climb, the product mix is skewing rapidly away from furniture and much more towards hot tubs specifically. The owner of Warehouse guys must decide whether to continue with his current product mix, focus entirely on hot tubs, which would require a complete re-branding of the company or enter the 'custom kitchen' market. The custom kitchen market looks very appealing on the surface because it eliminates inventory and offers high margins but the investment needed to effectively sell the product is over $100,000. Each possibility the owner considers has its own merits and risks with it being ultimately his decision to make.

Settings

Location:
Industry:
Size:
Small
Other setting(s):
2010

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