Guillermo Furniture Store Scenario

Alandra   Shamblee
                                  Guillermo Furniture Store Concepts Paper
                                                    Corporate Finance 571
              University Of Phoenix
                                    Online Course
              Week 1

      Guillermo Navallez has realized that   he does not have the competitive economic advantage   to the new competitor from overseas who uses a high tech approach.   Guillermo also realizes that the largest retailers in the nation’s headquarters enjoy competitive economic advantage and that he has lost that competitive economic advantage because the cost of labor has increased locally.   Guillermo’s’ position against the competitors was solid until foreign competition came to Sonora, the largest competitors of Mexico decided to open shop at Sonora and lastly, the cost of labor increased drastically at Sonora (UOP, 2010).   Until these events occurred, Guillermo enjoyed the economic advantage by exploiting the local labor, market conditions and relationship to differentiate his firm from the competitors.   In order to establish competitive advantage in the future, Guillermo has three options; he can invest in new technology and make furniture automatically with no labor cost, he can become a broker for a Norway firm and coordinate the distribution for that firm or he can continue with his present business and use the new patented technique of coating furniture.
      The concept of value is when the marketer seeks to increase the benefits and usefulness of the product or service to the customer (Emery, D.R. Finnerty, J.D, & Stowe, J.D 2007).   In relation to Guillermo Navallez, the competitor from abroad is able to make and sell furniture to customers that match what the customer inquires and at great prices.   At the same time, the largest furniture firms in Mexico are able to provide greater value for money to the customers than what Guillermo is able to do.   Guillermo is also...