The Changing Mattress Industry in America Essay -- Business Industry A

The Changing Mattress Industry in America Changes in the global environment in conjunction with the deepest and most prolonged economic downturn since the Great Depression have started what I believe is a sea change in the domestic mattress industry. Factors such as declining new home sales, tightening of consumer credit, the consumer confidence index still well below pre-recessionary levels (Wang, 2010) and unemployment hovering near 10% have all contributed to the end of conspicuous consumption for big-ticket items like mattresses and foundations (‘mattresses’). Mattress manufacturers will need to lower material and manufacturing costs, develop products that differentiate them from their competitors, or develop new channels of distribution in order to remain viable in rapidly changing global and task environments. Domestic production of mattresses in 2010 will be slightly below $6 billion, and almost 16% less than the peak mattress production of 2007. (International Sleep Products Association, 2010). Many consumers have lost confidence in the economic state of the country and therefore have begun to believe that, as Newt Gingrich said recently, "if you can’t afford to buy a house, don’t buy it." (Gingrich, 2010). The economic downturn has signaled the end of conspicuous consumption, defined as â€Å"the act or practice of spending money on expensive things that are not necessary in order to impress other people†. (Merrian-Webster's Leaner's Dictionary, 2010). Identify functional and dysfunctional control systems within your own organization I am currently a Senior Vice-President of Sales for King Koil Licensing Company (KKLC). KKLC is a company who licenses mattress-manufacturing facilities, called licensees, both domestically a... ...ll Irwin. King Koil Licensing Company. (2010, December). YOUR identity, YOUR comfort, YOUR sleep . Retrieved December 28, 2010, from comfortsolutions.com: YOUR identity, YOUR comfort, YOUR sleep Merrian-Webster's Leaner's Dictionary. (2010, December). Retrieved December 26, 2101, from Merrian-Webster's Leaner's Dictionary: http://east.merriam-webster.com/dictionary/conspicuous%20consumption Michael J. Breus, P. (2006, March 15). Sleep Disorders Guide. Retrieved December 27, 2010, from WebMd.com: http://www.webmd.com/sleep-disorders/guide/important-sleep-habits?page=2 Perry, D. (2010, June 21). Top Bedding Producers. Furniture Today , pp. 12-13. Wang, H. (2010, July 27). The Consumer Confidence Index hit an all-time low of 25.3 in February 2009. Retrieved December 25, 2010, from Sparxoo: http://sparxoo.com/market-stats/consumer-confidence-index-february-2009/