Case Scenario 3: Barracuda Inc

question 89

Essay

Case Scenario 3: Barracuda Inc.
Barracuda Inc. is a lamp-fixture manufacturer that is considering an entry strategy into the U.S. home-furnishings manufacturing industry. The existing landscape consists of many players but none with a controlling share. There are currently 2,500 home furnishings firms, and only 600 of those have more than 15 employees. Average net profit after tax is between 4 and 5 percent. While the industry still primarily comprises single-business, family-run firms that manufacture furniture domestically, imports are increasing at a fairly rapid rate. Some of the European imports are leaders in contemporary design. Relatively large established firms are also diversifying into the home- furnishings industry via acquisition. Supplier firms to the home-furnishings industry are in relatively concentrated industries (such as lumber, steel, and textiles). Retailers, the intermediate customer of the home-furnishings
industry, have been traditionally very fragmented. Customers have many products to choose from, at many different price points, and few home-furnishing products have strong brands. Also, customers can switch easily among high- and low-priced furniture and other discretionary expenditures (spanning big-screen TVs to the choice of postponing any furniture purchase entirely).
-(Refer to Case Scenario 3). Using the five-forces framework,summarize the opportunities and threats facing Barracuda as it considers entry into the home-furnishings manufacturing industry. Which threats are greatest to current incumbents?

---

Definitions:

Research Ethics

The principles and guidelines that govern the conduct of research to ensure integrity, respect, and ethical treatment of all participants and data.

Beneficence

The ethical principle that entails acting in ways that promote the welfare and well-being of others, often associated with acts of kindness and charity.

Psychological Research

The scientific study of human behavior, cognition, and emotion, using systematic methods to explore and understand psychological phenomena.

Financial Remuneration

Compensation or payment given for services rendered or work done, typically in the form of money.