Mattress firm holding company Business & Marketing Case Study (Case Study Sample)
a CASE STUDY PAPER ON THE MATTRESS PRODUCTION COMPANY AND ITS BUSINESS STRATEGYsource..
Mattress Firm Holding Company
Mattress firm holding company
Mattress firm holding company was founded in 1986 (Maynard, 2013). It was the first bedding retailer with more than 3600 stores in 49 states in the United State of America. This firm offers a wide collection of mattresses and bedding garnishes from chief manufacturers who include Simmons, Dream Bed and Serta. Back in the year 2016, mattress firm holding company was obtained by Steinhoff Global Holdings. The corporate strategy this company has recently acquired is expanding scope strategy (Atrill, 2009). This was aimed at for the purpose of increasing its sales markets as discussed below.
To begin with, Mattress firm holding company has made an expansion strategy possible by signing a contract with Serta Simmons Bedding, the biggest bedding manufacturer in United states for the reason of merging together in order to increase its expansion scope of market segments to its client globally (Atrill, 2009). Mattress firm holding company goes on to expand the supply of its products due to its strategic locations and benefits from large economies of scale with Serta Simmons Bedding Company. According to (Maynard, 2013), this expansion strategy has made mattress firm to produce exclusive products that have unprecedented incremental value marketing investments that has taken clients interest and awareness. Moreover, expansion strategy that is currently used by Mattress firm has assisted in reducing the cost of advertising as the expense is shared among the two companies. As a result of this partnership, values for all clients have been taken care of. This has increased demand for the company’s products hence archiving its expansion strategy globally (Atrill, 2009).
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