In our previous blog, we did a comprehensive study on the SWOT Analysis of the largest broadband communication company in the United States, Spectrum. Here we will understand the SWOT Analysis of Furlenco.
Furlenco is an internet furnishings condominium platform. Living and wanting higher is less difficult now with Furlenco. Furlenco is a one of a kind type of furnishings company that allows human beings to begin residing higher than today with the aid of giving clients domestic decor and award-triumphing furnishings on rent. All the furnishings are designed with the help of experts in the furniture industry.
The fundamental awareness of Furlenco is the advertising of used Furniture. As the sector has grown to become so has advertising as well. Today digital advertising is one of the pinnacle abilities that one has to learn. If you need to study the fundamentals of digital marketing then check out our free master class on Digital marketing 101 by CEO and founder of IIED, Karan Shah.
In this case study, we will learn about the SWOT analysis of Furlenco. But first, let us know about the company and the product better.
Founded in the year 2012, when the founder of Furlenco Mr Ajith Karimpana moved back from New Jersey, the USA to Bengaluru, India. While moving back to India, he tried to sell his home furniture in the USA for which he only got 10% of what he paid while purchasing the new furniture.
That trade hurt him and he decided to release the pain of people buying and selling furniture with the help of Furlenco where one can find award-winning furnishings and domestic decor on rent.
Not only furniture but they provide decor, accessories and appliances as well. One more awesome thing is that the person can furnish their entire home with a simple click without traversing multiple stores or websites at a fraction of the time, effort and cost. They are situated in Bangalore, India and the company operates offerings in Bangalore, Mumbai, Pune and Delhi-NCR.
|No. of Employees||425+|
|Annual Revenue||Rs 100 Crore (Estimated)|
|Net Income/ Profit||Rs 7.5 Crore|
Products & Services by Furlenco
Furlenco has been active in the furniture industry for a long time and offers the following products and services:
- Bedroom Products
- Study room Products
- Kids room Products
- Living room Products
Competitors of Furlenco
Now, we have a clear picture of the company’s core business. Let’s talk about the SWOT Analysis of Furlenco.
SWOT Analysis of Furlenco
A SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like Furlenco to compare its business and performance to that of its competitors.
It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of Furlenco.
To better understand the SWOT analysis of Furlenco, refer to the infographics below:
Below is an explicit guide to the SWOT analysis of Furlenco.
Strengths of Furlenco
Furlenco, being one of the leading companies in its industry, has several benefits that help it flourish in the marketplace. These strengths not only help it retain market share in existing areas but also help it break into new ones.
- Strong Customer Relationship: From the year 2012, Furlenco has developed good relations with its customers and due to that, they have reached the majority of its potential market by providing amazing home decor facilities.
- Provide Various Products: The main PSU of this company is to provide products like bedroom, living room, electronics, appliances, fitness, full home decor etc and many more. Apart from these, many more products are provided by Furlenco.
- Strong Dealer Community: This culture encourages the dealers to promote the company’s products and services and also helps the sales team to explain the benefits of the products to the customers.
- Genuine Suppliers: It has a powerful base of reliable suppliers of raw material, thus facilitating the company to survive any supply chain bottlenecks.
- Highly Qualified Workforce: Through training and learning initiatives, Furlenco has been able to develop a highly qualified staff. Furlenco devotes significant resources to employee training and development, resulting in a team that is not just highly competent but also driven to attain greater success.
Weaknesses of Furlenco
Furlenco’s weakness is an area where he can improve. Strategy is about making important decisions, and weaknesses are areas where a company could improve with the help of a SWOT analysis.
- Competition with Brands Affecting the Market: Although Furlenco has a unique marketing strategy the new brands and other existing brands are also coming up with new strategies. But to maintain the position of best furniture products they need constant advertising, improvement in their products and this causes the majority of the expenses of the brand.
- Reliance on India Market for Major Revenue: As Furlenco has its main headquarters in India and it is providing the services more efficiently and gets major revenue from India. It is mostly dependent on India’s market and hence lacks revenue from worldwide.
- Limited International Presence: Furlenco currently operates in only eight markets around the world. It should consider operating in other countries, to expand its business and create strong brand recognition and awareness in the market.
- Less Investment in New Technologies: As the company embarks on its next phase of expansion, it needs to invest in new technologies that can help it achieve its goals. Currently, investment in technology does not meet the ideas that a company has.
- Investment in Research & Development: Investment in research and development is below the rapidly growing players in the industry. Even though Furlenco is consuming above the industry average on research and development, it has not been able to compete with the leading players in the industry regarding innovation.
- Product Marketing: Although the product is successful in terms of sales, its positioning and unique selling proposition are not clearly defined, making it vulnerable to attack from competitors in this sector.
Opportunities for Furlenco
Opportunities are possible areas for a company to consider to improve results, sales, and, ultimately, profit. Furlenco includes the following opportunities:
- New Technology: Furlenco may now use differential pricing in the new market thanks to the new technology. It will motivate the company to reinforce its existing clients via excellent service while also attracting new customers through various value-oriented offers.
- New Markets: The adoption of new technology criteria and government free trade agreements has provided Furlenco with an opportunity to enter a newly developing market.
- New Trends in Consumer Behaviour: New trends in the consumer behaviour can open up a new market for Furlenco. It gives a great opportunity for the organization to build new revenue streams and modify them into new product categories too.
- Low Transportation Cost: Decreasing the cost of transportation because of shorter shipping prices can also bring down the cost of Furlenco’s products thus providing an opportunity to the company – either to increase the profitability of the company or acceptable on the benefits to the customers to gain market share. So this is one of the biggest opportunities for Furlenco because by doing this they can save a lot of money.
- New Taxation Policy: The new taxation policy can considerably impact the way of doing business and can open new opportunities for established players such as Furlenco to increase its profitability.
Threats to Furlenco
Many factors can affect your business outside its immediate environment. Some of these include factors such as a shortage of skilled workers or a supply chain issue. The threats Furlenco is facing are as follows –
- High Competition: Furlenco’s stable profitability has increased many competitors in the industry over the last two years which has put downward pressure on not only profitability but also on overall sales, so this is one of the biggest threats for Furlenco.
- Threat from Local Distributors: Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors.
- Competitors Advance Technologies: New technologies developed by competitors or market disruptors could be a serious threat to the industry in the medium to long term future. This is because due to the new technologies developed by the competitors they would be able to do more production, and because of more production, they would be able to supply more as per the demand. New technologies also help in reducing the cost of production.
This ends our elaborative SWOT analysis of Furlenco. Let us conclude our learning below.
Furlenco is a well-known furniture company with significant global positions. During the SWOT analysis of Furlenco, we found that the company is highly dependent and enjoys strong brand awareness and trust from its customers. It has a solid logistic base and covers all markets it serves, but suffers from more active research and development from an increasing number of manufacturers and competitors in the same space.
But being such a huge brand across multiple countries, Furlenco should continue to innovate and develop more products and launch them in the market with the best possible marketing strategies.
Especially digital marketing which is vital in today’s growing and expanding world, to get better results and to remain competitive in the market. If you don’t have any idea of what digital marketing is or want to learn more about it and upgrade yourself, here is IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Furlenco has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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