New Venture Feasibility Analysis（二）.docVIP

Reader Note: This paper is provided as an example of a well-constructed VOS analysis, and is reproduced here with the permission of the authors. No portion of this report may be reproduced by any means without the express written permission of the authors. Venture Opportunity Screening Analysis Industry Name: Household and Institutional Furniture Manufacturing Members: Andy Staney, Troy Williams, Jonathan Baker, Sam Cabani, Zoraida Ruiz Course: GEB 4111 - New Venture Finance Section: Wednesdays 1:30 – 4:20 1. Industry Analysis What is the industry that addresses this market? Household and Institutional Furniture Manufacturing (NAICS) NAICS Code 33712 (NAICS) Market Capitalization This industry’s market capitalization is $31,238.8 million (“Household and” p6) Growth Rate The market grew 0.8% from 2004 to 2005 (“Household and” p5) Number of competitors The major competitors in this industry are: Ashley Furniture Industries, Inc., La-Z-Boy Incorporated, Furniture Brands International, Inc., and Herman Miller, Inc. (“Household and” p24) Relative size of competitors Ashley Furniture Industries, Inc. – 5.90% Market Share La-Z-Boy Incorporated – 5.60% Market Share Furniture Brands International, Inc. – 5.50% Market Share Herman Miller, Inc. – 2.30% Market Share (“Household and” p24) Other companies – 83.30% (“Household and” p30) What trends are important in this industry? Sociocultural trends? The industry is sensitive to: fashion trends and consumer taste (“Household and” p33) Demographic trends? The Baby Boomer generation has the largest impact on this industry Baby Boomers spend the most money in this industry (“Household Durables”) Technology trends? Technology varies based on the company’s size and level of competition New machines enable more efficient products When advances in material occur, all companies in the industry benefit (“Household and” p19) Economic trends? This industry is sensitive to: economic changes, the amount and usage of disposable inco