Pallister Furniture: The Mexican Venture

Palliser Background Information. Palliser Furniture Ltd is a Canadian caller created in 1944. Started by A. Defehr with the money he make selling his car, the caller-up is currently the largest piece of furniture manufacturer in Canada. By 1964 Palliser had a 45,000 sq ft operation with 50 employees and $1 one thousand thousand CND in sales. The Canadian furniture sedulousness is hol down(p) intensive, and employs mostly immigrants who atomic number 18 skilled and semi-skilled workers. The industry is becoming to a greater extent high-tech and at that place is loss to be a shortage of qualified labour supply. The wage costs in Canada are such(prenominal) high then they are in the U.S., which is another reason for the company to look at going global. The Canadian industry is for the most part focussed on product quality, quick delivery, innovative design, client service, and price. The U.S. market on the other hand is more cerebrate towards the quality of rude(prenom inal) materials, product design, location, quality of showrooms, extent of merchandise activity, and price. It seems the Canadian market has reached its potential as seen by a much begin harvest than the rest of Canadian goods (1.5%) as well as a much, much lower growth than the furniture industry in the U.S. (3%). Another comparison indicating a lack of international competitiveness is that of the two main furniture companies in Canada.

Palliser generates 85 percent of its revenues in Canada, a low growth and originate market, whereas Dorel Industries, Ltd., its rivals, generates over 80 percent of their revenue s internationally, in which a much higher gr! owth exists. Asia and Europe likewise were going to micturate an advantage in terms of importing furniture parts, etc., because of the pass judgment reduction in tariffs in the not-so-distant future. In 1996, there were 1406 firms that made up the furniture industry with an rate product sidetrack of over 5.6... If you want to get a full essay, install it on our website: OrderCustomPaper.com

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