Steel Door
PROBLEM
Steel Door is a privately owned regional manufacturer of residential and commercial garage doors. It operates in 150 markets in 11 Western and Rocky Mountain States and parts of North and West Texas. Steel Door has recorded sales gains in each of the past 10 years that exceeded the industry growth rate, and in 2002, recorded net sales of $9.2 million ? Impressive gains, but the total sales volume in 2002 only represents a 2.6% share of the market in which they operate. In order to preserve its buying position with suppliers, particularly with respect to raw materials for its garage doors, it needs to attain a larger critical mass of sales volume. To make this happen, the sales target for 2003 was set at $12.5 million, which represents a 36% increase from 2002 sales, and about a 1% increase in market share. It is November 2002, and an action plan needs to be determined quickly in order to allow for a January implementation.
SWOT ANALYSIS
Strengths Weaknesses
? Growth rate has exceeded that of the industry in each of the past 10 years.
? Great relationship with exclusive dealers, who produce 70% of the company's sales.
? Only controls 2.6% of the share of the markets in which it operates.
? Appears to be the third brand in its non-exclusive dealer stores, which accounts for only 10% of individual dealer sales volume of garage doors
? Small manufacturer in an industry with many large national, regional and local competitors.
Opportunities Threats
? High market share potential in the markets that Steel Door presen ...