Value Chain Project

Value chain project

Introduction

The aim of the Value Chain Project is to acquire knowledge of lifestyle industry and analyze company's value chains.

In this report we are going to collect information about a company, named Getama- furniture company that has been one of the leading businesses in a Danish furniture industry for more than 50 years. To analyze the success behind the strong brand, we are going to lean on Porter's value chain model.

In further report we are also going to find answers to the problem statements that are based on Getama's strengths, weaknesses, threats and opportunities for the future by drawing SWOT analyses. It helps us to understand that how Getama has managed to build up such a strong brand like this, but also gives us opportunity to sum up all the possibilities that the company has got and how to increase cross profit by that.

Due to the fact that there wasn't enough information about the financial background of Getama on the internet, we were unable to calculate the company's turnover or net profit. We also tried to get that information from the company directly, but it is not for public.

All the information is gained from researches on the internet or from books, but also company visit, that was held 30.10.2012.

Company description

Denmark is an outstanding player in the European furniture industry, while approx. 400 companies produce together furniture worth 13.6 billion DKK (2009). About 85 % of total output is being exported abroad.

It is said that to survive in the north requires that the products should be functional, but still well-designed. These two words are easily clarified from designers as H. J. Wegner's or Nanna Ditzel' s handwriting. Both of them have put a lot of effort into the company called Getama - that has been one of the leading furniture companies for more than 50 years for now in Denmark. This report is based on Getama's place on the furniture field by analyzing its value chain.

Getama is a Danish furniture company that was founded 1899. If in the beginning the company was specialized in selling seaweed mattresses, then nowadays besides spring mattresses and box springs, it also produces a large range of high quality furniture in contemporary design, producing furniture for homes, and public spaces.

Their high success is mainly based on long durability, quality and co-work with engineers, designers and architects. To show Getama's contribution in quality we can take a look at its suppliers that are: Kvadart, Gabriel, Danish Art Weaving, Sorensen, Deploeg and FANNYARONSEN.

Problem statement

For this project a Danish furniture company Getama was assigned to us. Through following pages we would like to present information about their development, economic situation, internal situation and products.

* How has the company developed and what is their position in a market?

* What exactly is the added value that makes Getama products so unique?

* Why is it so important for Getama to stay strictly Danish?

* How does Getama as a company differ from the other ones in furniture business?

* Which strengths and weaknesses does the company have and what kind of possibilities and threats may occur?

Organization

Getama organizes its activities on the basis of a Bureaucratic structure, which take into account both behavioral and demographic segmentations. Company's organizational structure is well structured, manages on the basis rules and policies. All employees are made aware of the vision and objectives through the company's strategy. Everyone who works in Getama is well prepared with a great experience. The company takes care of the health of employees, working conditions are harmless, fitted to work.

Partners / Suppliers:

For a number of years, 'Gabriel' has been working closely with the world's leading furniture manufacturers in the development of fabrics. 'Gabriel' develops, manufactures, sells upholstery fabrics and supplies textile to 'Getama' and other companies.

'Kvadrat' was established in Denmark in 1968 and now holds a leading position in the European market of design-textiles supplying renowned architects, designers and furniture manufacturers throughout the world, for use in upholstery and curtains.

'Danish Art Weaving' has the widest assortment in both within the retail as the contract market. Products are available in more than 80 different designs and matching accessories (cushions, throws, etc.). The company mixes tradition, innovation and quality always gets first priority. This company supplies fabrics to 'Getama'.

Sørensen Læder is well-known all over the world for its high professional standards, thorough quality checks and reliability. Furthermore, the company is always at the forefront of consumer trends and demands. The company always does utmost to work with top co-operators who meet their quality demands with regard to providing the best raw hides as well as technical specifications and demands. The company supplies leather to 'Getama'.

Stands for traditionally crafted, high-quality curtain and upholstery fabrics. The collections of woven and printed fabrics are fully coordinated. 'Deploeg' supplies fabrics to 'Getama'.

FANNYARONSEN specializes in luxurious upholstery fabrics, curtains and accessories for contemporary interiors. Whilst each FANNYARONSEN design has a distinctive individual look, all share the qualities that characterize the universe: premium quality materials, exceptional tactility and innovative colors. Products are globally available to furniture manufacturers, architects, interior designers and retailers through Kvadrat's subsidiaries all over Europe and Australia. Storage, quality control and distribution are handled by Kvadrat from their headquarters in Denmark.

Designers

Hans J. Wegner

Hans J. Wegner was one of the first Getama's