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Herman Miller Case Study

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Herman Miller Case Study
1. Describe Herman Miller’s strategy. Is there evidence it has produced a competitive advantage and good financial performance? Explain, supporting your answer with case based evidence including financial evidence.
Herman Miller’s main focus is on growth strategy, through innovative products and production processes. Herman Miller offers inventive designs, technologies, and related services that improve the experience of working people, and people with medical problems offering products designed to heal, learn, and live. The design excellence brought the company award-winning products and services, resulting in more than 500 million in net sales in the fiscal year 2013. Analyzing the case study it looks like Herman Miller’s competitive advantage includes the company’s focus on growth, by introducing innovative products and their ability to offer problem-solving design for different workplaces, and different needs (Birchard B., 2010). The company is recognized for building in 1994 one of the most successful and best-recognized office chairs in the industry called Aeron. The company offers good financials and sells its products for a fairly cheap price in the comparison quality vs. price. (Raheja. N., 2013).
The company efforts to reduce fixed manufacturing cost by outsourcing through strategic suppliers helps controlling the company’s overall cost structure and accomplish a competitive advantage. Herman Miller Inc. used for its international expansion and not only a system of lean manufacturing techniques referred to as the Herman Miller Production System (HMPS). The company managed to maintain efficiencies and cost savings by minimizing the amount of inventory on hand through a just-in-time process. One very important step in this process was outsourcing to key suppliers. During recession times Herman Miller survived by strengthening its

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