This report identifies and analyses four issues that have been implemented by Freedom Group Limited in their retail furniture stores to gain competitive advantage in the past, and recommends ways in which these issues may be used in the future to overcome environmental factors and continue to provide them with a competitive edge
These issues are strategic alliances, corporate restructuring brand building and information technology. Each of these issues are intrinsically linked and as such create various synergies in the company that allow it to deliver superior customer value and obtain lower relative costs for a competitive edge in the industry. The overriding issue is one or strategic alliances in the form of joint ventures and takeovers. Competitive advantage has been gained here through Freedom's ability to constantly restructure its business units in order to maintain profitability. This is assisted through use of technology and united by the strength in the Freedom brand.
In the future it is recommended that Freedom Group enhance and adapt these issues in order to maintain a competitive advantage in the retail furniture industry. As such, the following recommendations have been made:
Strategic Alliances - Freedom Group should continue to seek out new alliance ventures. Martin Videon president of the Furnishing Industry Association of SA stated that the highly significant alliance struck between Steinhoff and Freedom Group "...is only the beginning you will see other retail chain groups doing the same thing with other manufacturers." So in order to sustain competitive advantage they must continue to expand in this way.
Brand Building - Rod Walker said that "home wares have been a bright point aimed otherwise patchy trading". In light of this, product line extension for the Guests brand through introduction of home wares may solve its problem of profitable as Guests currently...