West Lake Home Furnishings Ltd, a Toronto based manufacturer of star sign goods, began its operations in 1970s. It started with hold over lamps and slowly expanded the line of operations to floor lamps and inflaming fixtures. Most production takes place overseas accounting to 90% and the remaining 10% is manufactured in Canada, to utilize bypass term orders and customized projects. West Lakes business strategy is to lead in the home furnishings industry, providing unique and innovative designs according to customers needs and in like manner to improve its internet business.
The Canadian market for lighting and lights fixtures is rattling competitive. All retailers contributed no more than 20% and in 2006, this retail market accounted for $900 million. A wide variety of lightings and fixtures were offered by the sell chains. It displays about four national brands and a private recording label line thereby letting customers choose home furnishings to their style. If there is an increase in harm from either of the competitors, customers will surrogate to the closest substitute that is less expensive. Similarly, the threat of new and true entrants with products closest to the existing company designs and reduced prices affect the outgrowth firms.
As Asia turned to be the base for low-cost production, some retailers shifted their production in China, particularly, thus providing wide ranges of products to consumers, at disappoint prices. Consumers preferred a small set of retailers when buying home goods and the large national brand stores remained top in their list. They similarly gave preference to small retailers who were specifically marketing customized designs.
Charles Bowman, the CEO of West Lake Home Furnishings, was offered a proposal on May 2007, by one of its top wholesale customer to reduce the price of decorative lamps from $69.99 to $29.99 for one year. He assures to provide a big shelf space and more unit sales.
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