La-Z-Boy is a furniture company best known for its recliner chairs, and for furniture which has traditionally targeted older consumers in residential settings. The company has enjoyed a strategy of growth through acquisition, but has recently struggled to maintain its admittedly small market share in a highly competitive market. Today's furniture market is populated by large conglomerates for which furniture is only one business unit, and La-Z-Boy must find effective ways to market against these companies.
La-Z-Boy has strong financial statements which indicate that it should be able to obtain additional financing without difficulty; this is critical if the company is to remain a strong participant in this industry. The company needs to target younger consumers in the residential market, expand its operations to include overseas markets, and seek to expand its business segment. This requires different marketing techniques than it currently employs, and may well require that the company sacrifice some of its current financial strength in the interest of gaining long-term market share.
The company has also recently been cited as a potential takeover target; by diluting some of its financial strength to the acquisition of additional companies, La-Z-Boy will not only realize rapid entry into new markets, but will also decrease its attractiveness as a takeover target. Through this strategy and by improving its internal processes, La-Z-Boy should be able to establish a ten percent market share within five years.
La-Z-Boy is a highly successful company with a strong financial profile facing competition in a highly competitive market. The furniture industry today has been joined by conglomerates who have businesses in segments other than home furnishings, and which bring different strengths to the market than have been seen in the past. La-Z-Boy is currently a strong company in this market, but it has also been cited as a poss...