Steven Adamaitis Borislava Ashikova Jason Byrnes Bryant Hernandez

Steven Adamaitis - Borislava Ashikova - Jason Byrnes - Bryant Hernandez Matthew Ing - Ashley Mc. Kinnie - Mike Minogue - Chris Venturini

Problem How can Walter E. Smithe guarantee continued success in the future? Questions include: - What changes are required/needed? - Has the brand outgrown the geographic area? - Who/What are the most notable threats?

Contents • • • Company Overview and History SWOT Analysis Porter’s 5 Forces Finance and Industry Analysis Recommendations Conclusion

Company Overview & History Bryant Hernandez & Chris Venturini

Company History • • Smithe and Shanahan form partnership in 1945 known as Tone Appliances and Furniture WWII comes to end Name changed to Smithe & Shanahan sells his share to Charles Smithe

Company History • • During the 1960’s Walter Jr. introduced custom order upholstery Late 70’s early 80’s the Smithe brothers Walter, Tim and Mark join the company • Sell strictly furniture

Company Overview ● Furniture company based in Itasca, Illinois ● “You Dream It, We Build It” ● 11 Different Showrooms ● Over 400 employees

Company Overview Cont. ● Makes, sells, and repairs furniture, specializing in custom upholstery ● Services - Textile combining - Color consultation - Space planning - Accessory placement ● Partnered with over 200 designers

SWOT Analysis Steven Adamaitis & Jason Byrnes

Strengths • • • Economic Initiatives Social Responsibility Marketing o “You dream it we build it” Quality Products and Selection “Smithe. Card”

Weaknesses • • • Store Locations o Only 10 Chicagoland stores and 1 Indiana store. Private Company Furniture is too expensive? ?

Opportunities • • • Expand out of Chicagoland area. Enter the low-end industry as well. Hire real estate agents to help market their furniture to new home buyers.

Threats • • Two main competitors in high-end furniture: Ethan Allen William Sonoma • • Competition in low-end as well IKEA •

Porter’s Five Forces Borislava Ashikova

Financials & Industry Analysis Ashley Mc. Kinnie

Revenues • Currently, revenue is about $102 million

Industry Comparison • According to an article by Chicagobusiness. com, Walter E Smithe has been increasing sales by 6%

Competitors • Ethan Allen • William Sonoma • Crate and Barrel • Pottery Barn

Recommendations Mike Minogue

Recommendation #1 Local Expansion “Where is the money? ”

Local Expansion - Current Locations

Local Expansion - Population • Need to open up in a populated area to insure long term sustainability

Local Expansion - Income Percentage of households with income more than $200, 000 Median Income

Local Expansion - Belvidere, IL • • Relatively high income (~$50, 000 median household) 25, 585 residents Rockford extremely close I-90 convenience

Recommendation #2 Florida Expansion “Where is grandma? ”

Florida Expansion Age Map Population Map

Florida Expansion - Sarasota, FL • • Part of Sarasota County 52, 211 residents Access to Tampa via I-75 Brand recognition from retirees

Recommendation #3 Real Estate Partnership “Where is our furniture? ”

Real Estate Partnership • • • Furnish old and new homes with great furniture Baird & Warner, Coldwell Banker, RE/MAX Give agents incentives for recommending Walter E. Smithe

Conclusion Walter E. Smithe’s continued success will be guaranteed through utilizing its strongest assets: Brand reputation and mastered business model: ● Walter E. Smithe has a solid reputation and brand image that should not be altered ● The business model can be successfully implemented in other geographic markets ● Partnering with others in related fields (real estate) The recommendations discussed in this presentation do exactly that