Steven Adamaitis - Borislava Ashikova - Jason Byrnes - Bryant Hernandez
Matthew Ing - Ashley McKinnie - Mike Minogue - Chris Venturini
Problem
How can Walter E. Smithe guarantee continued success
in the future?
Questions include:
- What changes are required/needed?
- Has the brand outgrown the geographic area?
- Who/What are the most notable threats?
Contents
•
•
•
•
•
•
Company Overview and
History
SWOT Analysis
Porter’s 5 Forces
Finance and Industry Analysis
Recommendations
Conclusion
Company Overview
& History
Bryant Hernandez & Chris Venturini
Company History
•
•
•
•
Smithe and Shanahan form partnership in 1945 known as
Tone Appliances and Furniture
WWII comes to end
Name changed to Smithe &
Shanahan
Shanahan sells his share to
Charles Smithe
Company History
•
•
During the 1960’s Walter Jr. introduced custom order
upholstery
Late 70’s early 80’s the Smithe
brothers Walter, Tim and
Mark join the company
•
Sell strictly furniture
Company Overview
● Furniture company based in
Itasca, Illinois
● “You Dream It, We Build It”
● 11 Different Showrooms
● Over 400 employees
Company Overview Cont.
● Makes, sells, and repairs furniture, specializing in custom
upholstery
● Services
- Textile combining
- Color consultation
- Space planning
- Accessory placement
● Partnered with over 200 designers
SWOT Analysis
Steven Adamaitis & Jason Byrnes
Strengths
•
•
•
•
•
Economic Initiatives
Social Responsibility
Marketing
o “You dream it we build
it”
Quality Products and
Selection
“SmitheCard”
Weaknesses
•
•
•
Store Locations
o Only 10 Chicagoland stores and 1 Indiana store.
Private Company
Furniture is too expensive??
Opportunities
•
•
•
Expand out of Chicagoland
area.
Enter the low-end industry
as well.
Hire real estate agents to
help market their furniture
to new home buyers.
Threats
•
•
Two main competitors in high-end furniture:
Ethan Allen
William Sonoma
•
•
Competition in low-end as well
IKEA
•
Porter’s Five Forces
Borislava Ashikova
Financials & Industry
Analysis
Ashley McKinnie
Revenues
•Currently, revenue is
about $102 million
Industry Comparison
• According to an
article by
Chicagobusiness.com,
Walter E Smithe has
been increasing sales
by 6%
Competitors
•Ethan Allen
•William Sonoma
•Crate and Barrel
•Pottery Barn
Recommendations
Mike Minogue
Recommendation #1
Local Expansion “Where is the money?”
Local Expansion - Current Locations
Local Expansion - Population
•Need to open up in a
populated area to
insure long term
sustainability
Local Expansion - Income
Percentage of households with
income more than $200,000
Median Income
Local Expansion - Belvidere, IL
•
•
•
•
Relatively high income
(~$50,000 median
household)
25,585 residents
Rockford extremely
close
I-90 convenience
Recommendation #2
Florida Expansion “Where is grandma?”
Florida Expansion
Age Map
Population Map
Florida Expansion - Sarasota, FL
•
•
•
•
Part of Sarasota
County
52,211 residents
Access to Tampa
via I-75
Brand recognition
from retirees
Recommendation #3
Real Estate Partnership “Where is our furniture?”
Real Estate Partnership
•
•
•
Furnish old and new homes
with great furniture
Baird & Warner, Coldwell
Banker, RE/MAX
Give agents incentives for
recommending Walter E.
Smithe
Conclusion
Walter E. Smithe’s continued success will be guaranteed through
utilizing its strongest assets: Brand reputation and mastered business
model:
● Walter E. Smithe has a solid reputation and brand image that
should not be altered
● The business model can be successfully implemented in other
geographic markets
● Partnering with others in related fields (real estate)
The recommendations discussed in this presentation do exactly that