After a short period of foundation Home Essentials grow very fast and spread over different countries in various regions of the world. It can be said that the secret of this success are creating solutions for the basic problems of the sector which are high capital need, rate of return and innovations.
Due to past experience, Exline give an importance on faster rate of return in order to have an advantage ...view middle of the document...
Thus, although, other his competitors return their capitals after 12-15 months, it was taking 6 months for him. Also, due to his supplier in China he was able to rent more quality furnitures for lower prices and makes renting furniture is a good option for his potential customers. Another advantage that was used by Home Essential is that they had no competitors in new markets so they had good profit margin.
Another problem that Exline had to overcome is the need for high capital so as to open a new branch. To solve this problem Exline focus on market share. In addition to this, under favor of strong supply chain, expertise in business and reputation he had huge amount of contracts and had enough liquidity to provide expansion.
Furthermore, as a multinational company Home Essential had local managers in their offices and paid attention to cultural differences.
Briefly thanks to innovative solutions for the problem of the sector that proposed by Exline Home essentials managed to have very strong financial position which is the main reason for the company’s fast expansion.