Subject area:                      Competitive Strategy, Corporate Level Strategy, International Business Strategy

Region:                                   Turkey, Middle East

Industry:                                Furniture

Company:                              Lazzoni Furniture

Decision Maker:                Os Berke Kababulut

Dilemma: Lazzoni, a Turkey based furniture manufacturer and a retailer, has expanded into the US market by launching their first store in Chelsea, New York City. After coming to New York City, the company quickly captured market share and generated substantial profit throughout its first 3 years. Lazzoni opened up their second store in Paramus, New Jersey in 2012. The executives had an aggressive growth plan in the US, therefore decided to open the 3rd and the 4th stores in New York City.

That’s when the company started to face issues in terms of financial and proper allocation of resources, all caused by fast and an unplanned growth with a lack of strategic planning. These issues mentioned throughout the case have troubled the high hopes of the executive team’s aim of capturing the US market. In order to achieve their goal, Lazzoni needs substantial changes in their internal environment as well as to capture and benefit potential opportunities from the external environment.

Currently, Lazzoni operates one store, the flagship store at Chelsea and has a franchise in Paramus, NJ. Their ultimate goal is to grow in the US, with the help of the Turquality program, and launch more stores in the US. The purpose of this case is to analyze the appropriate options and provide a recommendation, considering all factors, to help Lazzoni solve the issues at hand and achieve their goals.  There are three distinct strategies that have been identified, analyzed and discussed: (1) consolidation of the New York City market, (2) expansion to Boston, and (3) not expanding in the US to further develop internally.