Question: Taylor owns Paoli Hardware, a mid - sized hardware store with 2 5 employees. Paoli Hardware has won best local hardware store 3 years in
Taylor owns Paoli Hardware, a midsized hardware store with employees. Paoli Hardware has won best local hardware store years in a row. Taylor would like to expand operations and has undertaken a SWOT analysis.
His most dedicated customers are generally over years old and engaged in small house projects, but his biggest revenue generator continues to be the sale of lumber. He would like to obtain more commercial customers and increase lumber sales.
One of the major complaints Taylor hears from his customers is the difficulty finding local contractors. So he is considering hiring a general contractor at the store who would also make house calls to assist customers. This will allow him to bill for labor and increase the sale of his products, but he is concerned it may increase his insurance claims and premiums.
One of the younger store enployees suggested they create a website to expand sales to online purchases and target electronic advertisements to commercial accounts. Taylor is not sure that he has the expertise to maintain a website and run the store. The employee claims to know a company that can maintain a website for Paoli at minimal cost.
Taylor believes the website is a good idea and will increase sales of lumber. To protect Paoli from increases in the cost of lumber, Taylor is considering a forward contract with the lumber yard.
Which one of Porter's Five Forces is most greatly affected by Paoli's ability to negotiate a forward contract with a lumber supplier?
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