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Guillermo Furniture Concepts

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Guillermo Furniture Store Concepts
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Guillermo Furniture Store Concepts
Guillermo Navallez has long prospered with his furniture company, Guillermo Furniture. Guillermo enjoyed being able to run his business from his hometown of Sonora, Mexico where there was an abundance of quality timber. Sonora made for a perfect place to specialize in tables and chairs which was what made Guillermo Furniture popular among the locals. However, it wasn’t until before the turn of the century when the competition among furniture stores began to pose as a threat to his business. The problem was not just local competition, but foreign competition was threatening Guillermo Furniture with a high-tech level of design, making furniture to exact specifications at the lowest cost. What’s worse is that these foreign companies were acquiring the smaller competitors and merging them together to form a major threat to Guillermo’s company. Guillermo watched his profit margins shrink as prices fell and costs rose (University of Phoenix, 2012). In the following paragraphs, Guillermo’s business and competition will be used to describe examples of Competitive Economic Advantage, Value and Economic Efficiency, and Observing Financial Transactions.
Competitive Economic Advantage Guillermo Furniture was a very well established furniture store in Sonora, Mexico. Guillermo enjoyed being able to run a popular business in the same city as his home. The competition wasn’t really a threat until overseas competitors began pumping life into these competitors by acquiring them and combining them into bigger threats. Further, these overseas competitors passed along their technology which made furniture to exact specifications at the lowest possible cost. These competitors previously were unable to compete with Guillermo until these foreign companies merged them all…...

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