Introduction Herman Miller, Inc. is primarily concentrated in the business and institutional market. Herman Miller is one of the leading players in the US office furniture industry with a 12% market share. Over the last several years, the entire industry has experienced significant declines in sales due to poor macroeconomic conditions. However, Herman Miller has managed to outperform most of its competitors in terms of profitability, illustrated through strong operating margins and return on sales. Herman Miller has a strong reputation for high quality, innovative products, strong customer service, high customization, and reliability. This strong brand equity enables the company to leverage its brand strength across different market …show more content…
Key Success Factors After performing an industry analysis, we have found areas where Herman Miller can increase their sales revenue. The key success factors include: • Very low customer switching costs • Many available substitutes for office furniture • Increasing input costs Internal Analysis
Strengths
Herman Miller has a leading market position bolstered by strong brand equity. Its strong brand equity has enabled the company to leverage its brand across multiple lines of business, extending customer reach. Herman Miller is the third largest player in the office furniture industry and has 12% market share. The company has received number one rankings in five of nine attributes surveyed by “Fortune.” These include innovation, people management, use of corporate assets, social responsibility, and quality of products and services. Herman Miller’s brands are acknowledged for their sheer design and quality. Herman Miller has a wide and diverse distribution channel covering multiple target markets. The company’s distribution channels consist of independent contract furniture dealers and licensees, independent retailers, owned contract furniture dealers, and direct customer sales. Overall, the company has 260 dealer locations in North America and 751 dealer locations nationwide. Strong and diverse distribution networks allow Herman Miller to consistently strengthen its market position through wider customer reach. It