Crafton Industry
Subanti Mortuza
MK 4900
MW 4:45- 7:15
Crafton Industries, Inc.
1. Situational Analysis
-The U.S. Flooring Industry · In 2009 businesses spent near $17 billion for floorcoverings. · The largest floor covering product is carpet and rugs followed by ceramic tile, vinyl, hardwood, stone, laminate and rubber floorings. · Residential sales accounted about 11.33 billion sales (2/ 3 of the sales) in the flooring industry and commercial accounted 5.67 billion sales. · The dollar sales of U.S. floorcoverings went down from $23,227 million in 2007 to $17,122 million in 2009 leaving a difference of $6,105 million. · In 2007 the industry sales tumbled 29% at the current prices and 27% after adjusting for inflation.
-The U.S. Carpet and Rug Industry
· The market share for carpet and rug industry went down from 68.1% in 1999 to 56.7% to 54.5% in two years between 2007 and 2009.
· The sales were down by $3,383 million. · The U.S. carpet and rug manufacturer posted sales of $9.36 billion at manufactures prices in 2009. · The low profit margin due to the cause of mergers, acquisitions and bankruptcies for Carpet and Rug manufacturers reduced down the number of companies from 300 in mid 1980s to 100 companies today. · The carpet and rug industry only spent 0.9% of its sales or $84 million in 2009 on consumer advertising while other manufactures such as household furniture spent 2.7% and household appliances spent 1.7% of its sales on advertising. · In 2009 five companies produced 75% or $6,993 million of the carpet and rug sales in U.S. The companies were: o Shaw Industries $3,025 million 32.4% o Mohawk Industries $2,479 million 26.6% o Beaulieu of America $867 million 9.2% o Interface Flooring $423 million 4.5% o The Dixie Group $199 million 2.1% o Others $2.352 million 25.2% o TOTAL $9,335 million 100% · The main three companies: Shaw
MK 4900
MW 4:45- 7:15
Crafton Industries, Inc.
1. Situational Analysis
-The U.S. Flooring Industry · In 2009 businesses spent near $17 billion for floorcoverings. · The largest floor covering product is carpet and rugs followed by ceramic tile, vinyl, hardwood, stone, laminate and rubber floorings. · Residential sales accounted about 11.33 billion sales (2/ 3 of the sales) in the flooring industry and commercial accounted 5.67 billion sales. · The dollar sales of U.S. floorcoverings went down from $23,227 million in 2007 to $17,122 million in 2009 leaving a difference of $6,105 million. · In 2007 the industry sales tumbled 29% at the current prices and 27% after adjusting for inflation.
-The U.S. Carpet and Rug Industry
· The market share for carpet and rug industry went down from 68.1% in 1999 to 56.7% to 54.5% in two years between 2007 and 2009.
· The sales were down by $3,383 million. · The U.S. carpet and rug manufacturer posted sales of $9.36 billion at manufactures prices in 2009. · The low profit margin due to the cause of mergers, acquisitions and bankruptcies for Carpet and Rug manufacturers reduced down the number of companies from 300 in mid 1980s to 100 companies today. · The carpet and rug industry only spent 0.9% of its sales or $84 million in 2009 on consumer advertising while other manufactures such as household furniture spent 2.7% and household appliances spent 1.7% of its sales on advertising. · In 2009 five companies produced 75% or $6,993 million of the carpet and rug sales in U.S. The companies were: o Shaw Industries $3,025 million 32.4% o Mohawk Industries $2,479 million 26.6% o Beaulieu of America $867 million 9.2% o Interface Flooring $423 million 4.5% o The Dixie Group $199 million 2.1% o Others $2.352 million 25.2% o TOTAL $9,335 million 100% · The main three companies: Shaw