Byggematrialebranchen

Abstract

The economic crisis in Denmark has left its traces in the construction industry, rubbing off on the building material industry, which Trækompagniet is part of. Therefore, the issue of this paper is to identify ways for Trækompagniet to make economical growth within this reality, using their limited economic and organisational resources. The paper consists of three main sections. Part one describes the company’s internal situation, and the subsequent part analyses the external conditions, summarized by a SWOT analysis that clarifies the company’s strengths and weaknesses and identifies opportunities and threats. Part three is my suggestion for a strategy and action alternatives in order to generate the desired growth. Trækompagniet is a small company with six employees selling exclusive wooden floors from their two showrooms in Denmark. The company came out with a very modest profit last year and has no particular equity or much cash, making them unable to invest in major projects. The company focuses on its two main products, solid wooden floors and parquet floors. The floors are top quality and the most expensive on the market. However, the two showrooms are not reflecting this. My analysis of the external framework is dominated by the economic crisis that has now last for two years, affecting all businesses in some way. The Danish consumers are under pressure, too. They are concerned about the future and do not spend nearly as much money as earlier on. Construction projects and renovations have decreased with an obvious negative influence on the floor industry, which economically speaking has been set back to the (low) 2004 level. The prospects for the current year, 2010, do not seem any brighter. There is a general, considerable focus on nature nowadays. Consumers wish to decorate their homes using natural raw materials, which are at the same time sustainable and environmental friendly. Thus, the demand for FSC labelled wooden products has grown. Moreover, the modern consumers want experiences along with their purchases. Firstly, Trækompagniet needs to get the communication right at all stages of the buying process. This applies from the showrooms to the website. Communication should include all information important to the consumer, while the entire process must be a special and positive experience for the customer. My second action alternative suggests that Trækompagniet initiates a collaboration with Hanstholm Kitchen (an exclusive Danish kitchen company), who could display Trækompagniet’s floors in their showrooms on Sealand in Denmark. In that way, Trækompagniet would be visible to more consumers with the opportunity of increasing sales.