Steven Adamaitis - Borislava Ashikova - Jason Byrnes - Bryant Hernandez Matthew Ing - Ashley McKinnie - Mike Minogue - Chris Venturini

ProblemHow can Walter E. Smithe guarantee continued success in the future?

Questions include:- What changes are required/needed?- Has the brand outgrown the geographic area?- Who/What are the most notable threats?

Contents• Company Overview and

History• SWOT Analysis• Porter’s 5 Forces• Finance and Industry Analysis• Recommendations• Conclusion

Company Overview & History

Bryant Hernandez & Chris Venturini

Company History• Smithe and Shanahan form partnership in 1945 known as

Tone Appliances and Furniture

• WWII comes to end

• Name changed to Smithe & Shanahan

• Shanahan sells his share to Charles Smithe

Company History• During the 1960’s Walter Jr. introduced custom order

upholstery

• Late 70’s early 80’s the Smithe

brothers Walter, Tim and

Mark join the company

• Sell strictly furniture

Company Overview● Furniture company based in

Itasca, Illinois

● “You Dream It, We Build It”

● 11 Different Showrooms

● Over 400 employees

Bryant Hernandez

Company Overview Cont.● Makes, sells, and repairs furniture, specializing in custom

upholstery● Services

- Textile combining- Color consultation - Space planning- Accessory placement

● Partnered with over 200 designers

Bryant Hernandez

SWOT AnalysisSteven Adamaitis & Jason Byrnes

Strengths• Economic Initiatives

• Social Responsibility

• Marketingo “You dream it we build

it”

• Quality Products and Selection

• “SmitheCard”

Weaknesses• Store Locations

o Only 10 Chicagoland stores and 1 Indiana store.

• Private Company

• Furniture is too expensive??

Opportunities• Expand out of Chicagoland

area.

• Enter the low-end industry as well.

• Hire real estate agents to help market their furniture to new home buyers.

Threats• Two main competitors in high-end furniture:

• Ethan Allen• William Sonoma

• Competition in low-end as well• IKEA

Porter’s Five ForcesBorislava Ashikova

Financials & Industry AnalysisAshley McKinnie

Revenues

• Currently, revenue is about $102 million

Industry Comparison

• According to an article by Chicagobusiness.com, Walter E Smithe has been increasing sales by 6%

Competitors

• Ethan Allen• William

Sonoma• Crate and

Barrel• Pottery Barn

RecommendationsMike Minogue

Recommendation #1Local Expansion “Where is the money?”

Local Expansion - Current Locations

Local Expansion - Population• Need to open up in

a populated area to insure long term sustainability

Local Expansion - Income

Percentage of households with income more than $200,000

Median Income

Local Expansion - Belvidere, IL• Relatively high income

(~$50,000 median household)

• 25,585 residents

• Rockford extremely close

• I-90 convenience

Recommendation #2Florida Expansion “Where is grandma?”

Florida ExpansionAge Map

Population Map

Florida Expansion - Sarasota, FL • Part of Sarasota

County

• 52,211 residents

• Access to Tampa via I-75

• Brand recognition from retirees

Recommendation #3Real Estate Partnership “Where is our furniture?”

Real Estate Partnership• Furnish old and new homes

with great furniture

• Baird & Warner, Coldwell Banker, RE/MAX

• Give agents incentives for recommending Walter E. Smithe

ConclusionWalter E. Smithe’s continued success will be guaranteed through utilizing its strongest assets: Brand reputation and mastered business model:● Walter E. Smithe has a solid reputation and brand image that

should not be altered● The business model can be successfully implemented in other

geographic markets ● Partnering with others in related fields (real estate)

The recommendations discussed in this presentation do exactly that