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 Case Study Essay

tudyChapter 1 Procedures management

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7 can'í believe just how much we have transformed in a relativefy short time. Coming from being an inward-lookíng manufacturar, all of us became a customer-focused " deslgn and mate" operaí/on. Atow we are an integrated service provider. Most of our new buslness comes from the partnerships we have formed with design properties. In effect, we all design items jointly with consultant design residences that have a weli-known company, and offer these people a complete services of manufacturing and distribution. In many ways we are now a " business-to-business" business rafher ínan a " business-to-consumer" firm. ' (Jim Thompson, CEO, Concept Design Services (CDS)) CDS came into existence one of Europe's most lucrative rtomeware businesses. Originally founded in the 1960s, the company had shifted from producing Industrial moufcfings, mainly in the aerospace sector, and some inexpensive 'homeware' products such as and therefore and dustpans, sold underneath the 'Focus' brand name, to making very high-qualrty (expensive) stylish homewares with a large 'design value'.

The approach irrto 'Concept' products The move into higher-margin homeware had been masterminded by simply Linda Fteet, CDS's Advertising Director, who had previously worked for a large retail chain of paint and picture retailers. 'Experíence in the attractive products índustry had íaugnf me the value of fashion and product devetopment, even in mundane items such as paint. Premlum-príced shades and new textures could become popular for just one or two years, supported by appropríate promotion and feaíures in Irfestyte mags. The manufacturers and retailers who have created and supported the products wers dramatícalfy more lucrative than those who have simply provlded Standard amounts. Instinctivety, t felt that the must also connect with homeware. All of us decided to develop a whole coordinated range of this kind of Items, and to open up a brand new distribution network for them to provide upmarket shops, kitchen gear and specialty retailers. Wlthin a year of launching our fírst new range of kitchen homeware underneath the " Concept" brand name, we had over 3000 retail outlets enrolled, provided with point-of-sale display fadlities. Press insurance coverage generated a massive interest which was reinforced by the product piacement on severa! TV cooking and " lifestyte" programmes. We soon developed an entírefy new mariteí and within 2 years " Concept" products were providíng above 75 percent of our income and 90 per cent of our profíts. The retail price rea/featíon of Concept items is often hígher than for the Focus range. To hold ahead we all launched new ranges at regular periods. ' The move to lhe design house partnerships 'Over the last four years, we've been designing, making and dlstributing producfs for some of the even more prestigious design houses. This sort of business will probably grow, espedally in Europe where the design houses value our abilíty to offer a Cubic centimeters service. We can design items in conjunction with their own design staff and offer them a levei of manufacturing competence they can't acquire eisewhere. More signifícantiy, we could offer a circulation service which can be tailored to the requirements. From the customefs point of view the distribution agreements appear to participate in the design house itself. Actually they are centered exclusive/y about our own phone centre, storage place and division resources. ' The most good collaboration was with Viliessi, the Itaiian designers. Generally tt was CDS's design and style expertise that was attractive to 'design house' companions. Not only performed CDS use professionally highly regarded designers, they had also bought a popularity for being abie to translate difficult technological designs in to manuf acturable and saleable

Part One Irrtroductton products. Design home partnerships usually involved comparatively long business lead times but produced unique products with very high margins, neariy always carrying the structure house's manufacturer. This type of relatíonship p/ays to the strengfhs. Each of our design...


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