Smaart Home Furniture: Adding Value by Adding Services
(6 pages of text)
In 2016, the founder and managing director of Smaart Home Furniture, a furniture manufacturer in southern India, faced a dilemma. Although the business remained profitable, it was facing stiff competition from local players, branded and non-branded players, and online retail stores. The founder and managing director was considering extending his manufacturing business by also offering sofa servicing, which would require changes in the company’s production, organization, and management. It would also require a rethinking of the firm’s approach and interaction with its consumers. Should he start offering services? If so, should sofa servicing be launched as a separate entity or as part of the offerings of the existing manufacturing unit?
This case is intended for an undergraduate- or graduate-level course on general management, strategic management, or services marketing. It is also suitable for courses related to the service industry and small enterprise management. After working through the case and assignment questions, students will be able to
- demonstrate the interdependency between the manufacturing sector and the services sector;
- explain the challenges in marketing both a product and after-sales services;
- develop the service concept using the flower-of-service framework; and
- discuss the entrepreneurial business spirit needed to look beyond the obvious.
India, Small, 2016
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