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Lack of choice for furniture designs the way customers want as every consumer is different with their taste. Various house sizes, flats, schools, hospitals have their own established atmosphere where certain details and not only furniture should be installed. Deficiency of style and knowledge about new furniture designs, not always knowing what would be suitable for the available space and the project.

No professionals available to install the furniture the way it should be, so furniture may not last as long as it could be, and the quality of the furniture is quite poor. Very often people try to build their desirable  furniture on their own in that case with lack of experience and knowledge they might break some parts, forget necessary screws, or underestimate the overall situation.

Lack of people who could advise the customers and suggest the best options and designs available for the project where consumers not always know what exactly they want and how to imagine the final look. Lack of knowledge how the available space should be used to its maximum volume. Clients with no expertise in the field cannot understand the importance of the space which is available for the new furniture installations.

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Customers can choose from over 500 furniture manufactures where consumers can communicate directly to manufacturers and alter their designs in the making process. Furthermore, new designs and product collections are present which gives an opportunity for clients and make their dream house, schools or any other projects come true the way they want from the smallest detail to the three-storey decoration (The Furniture Practice, 2021).

Company has fully trained staff and fitters who have professional knowledge and expertise on how correctly furniture should be installed in different parts of the building. Furthermore, the company has site supervisors available for any alterations needed and making sure that everything is done within their quality rate. All of these factors significantly reduce the risk of any furniture delivery and installations. Customers can be sure that despite the size, location, or any other circumstances everything will be done professionally (The Furniture Practice, 2021).

The company provides in-house client services, which helps consumers to get the best possible experience for the chosen product and services. They have professional consultants who can guide clients by choosing furniture, designs with the best value and accessible budget. Company is also aware about practical and aesthetic requirements as well as environmental targets which gives a warm and likable atmosphere within the company (The Furniture Practice, 2021).

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The Furniture practice has several unfair advantages that will assist them in differentiating themselves from their competitors and attracting a widespread of consumers, as well as partners and investors.

One of the main advantages is that they have a strong, competent workforce that has an astonishing 512 years of combined experience between them (thefurniturepractice.com, 2021). This is because they have many different employees that all have a relatively large amount of experience in their field.

Another advantage is the furniture practice has over 500 different manufacturers worldwide. According to (thefurniturepractice.com, 2021), it enables them to have “innovative design capabilities'', therefore their customers have many different options to choose from.

As Well as that, this company has international standards and accreditations as they have been awarded the Planet Mark Sustainability Certification. This unique award shows their consumers how practical and conscious the company is as they’ve found a good way to measure and reduce their carbon footprint (Planet Mark, 2021)

Another unfair advantage is that they were awarded the top 10 best small companies to work for in 2020 based on a survey. 97% of staff agreed that the company has good leadership skills as all prospective employees meet with senior management to ensure they “emotionally fit” well into the business.. Also, (b.co.uk, 2021) stated that 100% of staff agreed the company has good “processes, benefits and policies”. For example, they really encourage growth and development by doing workshops where the employees can share their skills, strengths and expertise. This shows their customers that the company aims to get the best out of their employees by supporting and encouraging their growth in order to get their optimum performance.

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They offer furniture consultants who are people that have an excellent knowledge of pricing specification and a wide knowledge of office furniture therefore employees that know what will best suit the office space and will complete customers satisfaction.

The furniture practice doesn't just stop at delivering the service/product they will be there for every stage of the whole product life cycle. For example they are there to shape the initial brief of the wants from the customers. They define the budget making sure that customers are happy with what they are spending their money on. The furniture practice also engages with stakeholders and so on to coordinate furniture audits, mockups, showroom tours.

They offer fully trained advisors that can give the best solutions, fabrics and finishes on furniture.

Offer a wide range of established brands in the furniture industry from custom designs and pre loved vintage pieces.

They go above and beyond to significantly reduce the risk that is involved with furniture delivery and installation by providing fully trained fitters on each job to make sure the job is done right, and they have well experienced supervisors to oversee each delivery to make sure each job has less risk.

The furniture practice also has client services to manage the needs of customers from start to finish, saving each customer valuable time and resources and making sure they are satisfied.

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Been in the industry for nearly 23 years in total therefore the furniture practice has a huge amount of experience behind them therefore they are more likely to be the favorite for new customers.

Have a combined experience of 512 years in the furniture industry meaning that not only has the business been around for a long time but the employees have been working within the industry for years, therefore they can carry out each job to its fullest satisfaction.

Successfully delivered hundreds of projects for leading businesses and organisations around the world, which has made the furniture practices reputation sky rocket. Having done hundreds of projects the furniture practices brand will be much more recognised and speak more volumes to customers than their competitors.

Another unique selling point for the furniture practice is that they support the Eden project which is an educational charity that connects everyone around the world and

explores how we can work towards a better future. They try to tackle climate change and support the Ashaninka community. The fact that the furniture practice is doing this helps increase their brand name and it also makes customers more happy to use the service that the furniture practice is offering, making them unique to their competitors.

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Customer segment involves diving potential customers into small segments which are differentiated by needs, behaviours, interests and lifestyle choices. The key variables of segmentation that has been considered by The Furniture Practice is geographic location, psychographics and type of market (Markuz, 2013).

·      The type of market: The Furniture practice operates niche market as their products are highly tailored and custom made for its customers (Gary Fox, 2021). This indicates the products are aimed at a small particular group of customers and not a mass market. The company’s customer segments are: residential owners, hospitalities, educational institutions, workplaces/offices and other small businesses.

·      Geographic segmentation refers to analysing the market and coming up with the best locations for the company’s stores. The Furniture Practice has 3 stores which are located in London, Manchester and New York (The Furniture Practice, 2018). This is effective as the company’s main customers segment are hospitalities and residential owners. These locations are urban areas and known to have large numbers of residential developments, hospitalities and offices. This means the company are able to target those customers segment. Also, the business operates in 21 different countries to reach a wider range of customers.

·       Psychographic focuses on diving customers based social class and lifestyle. The Furniture Practice operates in a niche market which means their consumers are middle and upper class that could afford to pay for the quality of the products.

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Problems and Solutions:

The Furniture Practice (2021) Expertise. Thefurniturepractice.com [online]. Available from: https://www.thefurniturepractice.com/expertise/ [Accessed 01/04/2021].

Unique Selling Points and Key Activities :

The Furniture Practice. (n.d.). The Furniture Practice. [online] Available at: https://www.thefurniturepractice.com [Accessed 2 Apr. 2021].

Cost Structure:

The Furniture Practice. (n.d.). The Furniture Practice. [online] Available at: https://www.thefurniturepractice.com [Accessed 2 Apr. 2021].

GARY FOX. 2021. Cost Structure - How To Minimize Costs And Maximize Value - Www.garyfox.co. [online] Available at: <https://www.garyfox.co/cost-structure/> [Accessed 2 April 2021].

Ashton McGill. 2021. The Business Model Canvas Series: Revenue Streams & Cost Structure - Ashton McGill. [online] Available at: <https://www.ashtonmcgill.com/business-model-canvas-series-introducing-revenue-streams-cost-structure/> [Accessed 2 April 2021].

University, W., 2021. Benefits and problems of outsourcing. [online] Procurementmanagement.pressbooks.com. Available at: <https://procurementmanagement.pressbooks.com/chapter/benefits-and-problems-of-outsourcing/> [Accessed 2 April 2021].

Find-and-update.company-information.service.gov.uk. 2021. THE FURNITURE PRACTICE LIMITED - Filing history (free information from Companies House). [online] Available at: <https://find-and-update.company-information.service.gov.uk/company/03470956/filing-history> [Accessed 2 April 2021].

Corporate Finance Institute. 2021. Economies of Scale - Definition, Types, Effects of Economies of Scale. [online] Available at: <https://corporatefinanceinstitute.com/resources/knowledge/economics/economies-of-scale/> [Accessed 3 April 2021].

Corporate Finance Institute. 2021. Economies of Scope - Learn How to Achieve Economic Efficiencies. [online] Available at: <https://corporatefinanceinstitute.com/resources/knowledge/economics/economies-of-scope/> [Accessed 3 April 2021].

Unfair Advantage:

The Furniture Practice (2021) Thefurniturepractice.com [online] Available from: https://www.thefurniturepractice.com/ [Accessed 1/04/2021]

Best Companies. (2021) The Furniture Practice Ltd Have achieved a 3 star accreditation from Best Companies!. B.co.uk [online] Available at: https://www.b.co.uk/company-profile/?the-furniture-practice-108431  [Accessed 1/04/2021]

Planetmark. (2021) Business-certification. Planetmark.com [online] Available at: https://www.planetmark.com/certification/what-we-do/business-certification  [Accessed 1/04/2021].

Channels

The Furniture Practice (2021) Thefurniturepractice.com [online] Available from: https://www.thefurniturepractice.com/ [Accessed 1/04/2021]

The Furniture Practice (2021) Expertise. Thefurniturepractice.com [online]. Available from: https://www.thefurniturepractice.com/expertise/ [Accessed 02/04/2021].

LinkedIn (2021) The Furniture Practice linkedin.com [online] Available at: https://www.linkedin.com/organization-guest/company/the-furniture-practice?challengeId=AQGU7MVYnasDlwAAAXiY84rU1sJseLzUviksYXIzsvZvhZyI74ixbdjSJjn7AyVr_8u7SXtnf553DWmV66zm-YDFrY40DoAaOQ&submissionId=e3f14711-da6b-7216-ed33-5f69bd2d443b  [Accessed 1/04/2021].

Customer Segments and Revenue Streams:

GARY FOX. 2021. Cost Structure - How To Minimize Costs And Maximize Value - Www.garyfox.co. [online] Available at: <https://www.garyfox.co/cost-structure/> [Accessed 2 April 2021].

Markuz, D., 2013. Furniture and Decorations Shop Market Segmentation. [online] Academia.edu. Available at: <https://www.academia.edu/4892486/Furniture_and_Decorations_Shop_Market_Segmentation>

The Furniture Practice. (n.d.). The Furniture Practice. [online] Available at: https://www.thefurniturepractice.com [Accessed 2 Apr. 2021].

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The furniture practice has quite a few channels to reach their customer segment.

First of foremost, their distribution channel is indirect as they have a middleman before the products reach the consumers. Their distribution includes the manufacturer, retailer and then the consumers therefore it is quite a short channel. As well as that, they have a wide distribution as they currently deliver to 21 different countries (thefurniturepractice.com, 2021). They additionally can communicate with their customers through social media platforms such as Twitter, Instagram and Linked In.

The Furniture Practice has two main sales channels which are the online website and the physical stores. They have 3 stores currently which are in London, Manchester and New York (linkedin.com, 2021).

As well as that, the company has partners they work with to gather a larger reach and more of an audience. Some partners they collaborate with are Ashurt, BASF UK and James Edmunds, Creative Lead, Legal & General Build.

They also get through to their customers through referrals and recommendations. Their partners that have enjoyed working with them will recommend other brands to them and customers that have used their products/services will refer friends/families to the business.

Another channel they have is their after sales service. This company gives on-going support to their customers beyond the project completion (thefurniturepractice.com, 2021). They have an in-house client services team that still provides you with support, care and attention after the project is finished such as if you require reconfigurations, repairs, reupholstery etc.

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There are several fixed costs needed to be paid by the company such as ; rent (company located in three locations), staff salaries (payroll), Insurance, equipment maintenance, Indirect labour (supervisor and administrator wages), business licenses, depreciation or financing payments for equipment and taxes (in 2020 annual taxation was £257,490). (Company House 2021)

In relation to the fixed cost of indirect labour if the company is going to use supervisors as mentioned in the solutions and skilled ones to observe if the products made have excellent quality it will be costly for the company. (The Furniture Practice ltd, 2021)

Some variable costs are raw materials, shipping costs, storage, equipment, delivery and direct labour. The company delivers to 21 countries so there’s high expenses having the materials made and brought to them internationally. (The Furniture Practice ltd, 2021)

Semi variable- utilities to keep the store lit such as electricity. (Ashton McGill, 2021)

Variable costs used by the company are raw material, varieties are a problem the company potentially faces as there is lack of options in terms of the style/design of furniture. Cost on raw materials will be high as consumers have over 500 manufacturers to choose from. The cost of these new designs will affect the company as they are being outsourced from several different places. (Gary Fox,2021)

Value driven methods is achieved by getting their furniture manufactured by several top companies such as B&B an Italian company who sell their products worldwide. Sourcing through other partners allows the company to save on raw materials costs and large scale of production and excellency in these products. (University, W, 2021)

A cost driven technique used to reduce costing is outsourcing this can be a plus for the company as there are over 450 manufacturers such as Boss design, Wilkhan and Benchmark. These companies help generate more revenue as customers are receiving wider variety of products and designs available. (The Furniture Practice ltd, 2021)

Economies of Scope- done through flexible manufacturing by having product diversification such as sofas, chairs and stools through the same systems of manufacturing. Also, merging with other companies allows developments in products produced. (Corporate Finance, Institute 2021)

Economies of Scale (EOS)- this can be done through purchasing and bulk buying to lower costs. Average costs can decrease and benefit by buying from special wholesalers as the company collaborates with partners such as Fritz Hansen and Knoll. Similarly, with the solutions as more experienced and skilled professional consultants are needed costs can improve by having a better employment structure. (Corporate Finance Institute, 2021)

Commissions/ affiliate payments, a lot of the furniture is outsourced the company promotes the original creator and gain a profit from the product/material sold.

Service of machinery, this has to be done regularly due to the safety guidelines to ensure they meet the correct standards and are safe to use.

Website development, new products and designs being created and added onto the website to be visible for customers

Marketing (secondary costs), relationship marketing is done through the over 500 manufacturing companies they work with.

Disposing of old materials (dispose of pallets). Sustainable sourcing is used and ways to “mitigate environmental impact.” This is so the waste generated from unwanted/ old materials is managed by working with companies such as The Planet Mark to reduce their annual carbon footprint. (The Furniture Practice Ltd,2021)

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The furniture practice main revenue stream is sales of products. However, the company also has two other revenue streams which are services provided to customers and partnerships.

·      Sales of products is an example of transaction-based revenue which is revenue earned from customers making one-time payments for the product involving a buyer and seller (Gary Fox, 2021). The Furniture Practice selling their high-quality furniture to consumers is the company’s main source of revenue.

·      The company also provide services to customers that generates revenue. A service The Furniture Practice provide is customers are able to pay for a particular to designer to design their furniture to meet their needs. The company also provides furniture consultancy that will guide customers on how to get the best value from their budget. Another service that generates revenue for the business is through their client services. This service manages the customers’ needs from start to finish which allows the customers to save valuable time and resources (The Furniture Practice, 2018).

·      The company has formed partnerships with other companies such as: Vitra, Knoll, Wilkhahn, Benchmark (The Furniture Practice, 2018). This allows the company to generate revenue from their partners paying for collaboration with the company.