Cardon Carpet Mills Case Analysis

Cardon carpet Mills, Inc.

Case analysis

Xinyu Kang




i. Executive Summary
In early July 2000, the first step of establishing own distribution centers or wholesale operation was elevated in Cardon carpeting Mills, Inc. Thus, Suzanne Goldman, the special assistant to the president of Cardon Carpet Mills, Inc. was given a task to prepare a situation paper for the president. The lodges policy is to finance programs from internecine funds except for capital expansion. In late family 2000, just as Goldman was about o draft her fix paper for Robert Meadows, she received some stresses from their long-time co-operated wholesalers who threatened a mickle exodus from Cardon Carpet Mills once the first company warehouse operation was opened.

ii. The Industry
U.S. consumers and businesses spend about $50 gazillion annually for floorcoverings. The largest category of floorcovering is carpet and carpetings, followed by resilient coverings (vinyl), hardwood, ceramic tile, and laminates. Cardon Carpet Mills, Inc. is in the Carpet and Rug industry.

The U.S. carpet and rug industry recorded gross revenue of $11.69 billion at shapers prices in 1999. Carpet and rug retail sales were estimated to be $17.9 billion.



Industry Sales are divided amidst contract, or commercial, sales for institutions and businesses and residential sales for household replacing carpets. The carpet and rug industry was lack of marketing. A number was an erratic upward trend in dollar sales over the past decade but marginal advantageousness for the industry as a whole.

The compare of costs on consumer advertising|
Industry| costs|
Carpet and rugs industry| 2.1% of sales|
household furniture| 4.2% of sales|
household appliances| 2.5% of sales|

By 1999, it was estimated that 10 companies in the industry produced 91% of carpet and rug sales in the United States. The sales distribution in the residential segment was even more skewed. The U.S. sales attracter is Shaw...If you want to get a full essay, order it on our website: Orderessay



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