Project of the month
"Feasibility Study for a new upholstered furniture production plant"
Basis of decisions for development of a new business segment
KEY FIGURES
2 Consultants - 2 Weeks
125,000 ft² Production Area
$22 Mio. Investment
In the 5th financial year:
$ 36 Mio. Revenue
230 Employees
260 Seating units / day
INITIAL SITUATION
- The backward integration of a real estate group already includes its own plant for the production of kitchens, bathroom furniture, built-in wardrobes and doors.
- The company is considering producing upholstered furniture itself in the future. An empty production building is available for this purpose.
- With a feasibility study, Lignum Consulting developed a comprehensive decision-making basis for the clients.
APPROACH
Determination of regional and international market potential for upholstered furniture in the B2B business. Determination of the product portfolio and the target prices based on a market price analysis. Coordination of possible distribution channels.
- Definition of the unique selling points (USP) of the plant vis-à-vis local market competitors and importers, as well as positioning of the company in the market.
- Definition of vertical integration and the processes, organization and technologies required.
- Verification of the capacity limit for the intended building and comparison with the planned production volume and variants of seating units per year.
CUSTOMER BENEFITS
- Investment overview for machinery, equipment, and infrastructure
- Structure of a planned profit and loss statement with an evaluation of results
- Development of a decision memo for consulting with the owner