Business models and design strategy: exploring small scale furniture manufacturing

Abstract

With globalization, manufacturers throughout the OECD must compete with an increasing number of imports that present price and quality differentials. These forces have been keenly felt in New Zealand, which is far from export markets, highly de-regulated, and an import target for Asian production. Businesses in New Zealand and elsewhere are increasingly relying on design for competitive advantage in this context.

The new realities are seldom recognised by smaller businesses. For example, the lack of design management in smaller manufacturing fi rms has been linked to small firm managers being "..[un]able to discern relationships between current decisions (or short-term objectives) and long-term wider business goals". The small firm's approach to business is often based on a single factor, such as a single product or a single area of expertise, which is generally production-based. This single-minded approach - with limited innovation in product, service or organisation - is unlikely to deliver growth or sustainability in a globally competitive market.