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Authors: P. M. Smith and H. O. Ma.
Today, one of the most important issues confronting firms is international competition (Porter 1988). The growing importance of international competition should be well recognized in terms of understanding competitors and formulating competitive strategy.
The wooden furniture industry of the United States is facing growing competition from abroad. In the past, U.S. furniture manufacturers have enjoyed competitive advantages through superior production capabilities, a surplus of raw materials and favorable market proximity, knowledge and access. However, in recent years these advantages in wooden furniture have been diminished by Pacific Rim furniture manufacturers, among others.
It is the purpose of this paper to explore competitive factors, through the identification of key issues in wooden furniture trade within the Pacific Rim. Of particular interest are the U.S. as the largest furniture market in the world, Taiwan as the largest furniture exporter to the U.S., and South Korea as a potentially large player in the future.
The objectives of the study are as follows:
1) To review the trade trends of furniture by major importing/exporting countries in global markets; and
2) To analyze structural changes and identify key issues in the wooden furniture industry within the Pacific Rim countries.