Company History and Ownership
Leon’s Furniture Ltd. is a Canadian Furniture company that opened its first store in Welland, Ontario. The business was launched by Ablan Leon in 1909 and has become one of the largest furniture retailers in Canada. The Leon family currently owns the company, but some of its shares are traded publicly on the Toronto Stock Exchange (“About Leon’s,” n.d.). Aside from furniture, the company specializes in the production of high-quality appliances and electronics.
Value Proposition, Revenue, Customers, and Locations
Leon’s value proposition involves its commitment to continued growth, increasing profit and sales for the benefit of its customers and stakeholders. The company also provides customers with an instant delivery service and applies advanced technologies to facilitate its procedures and practices. The company’s revenue is currently 2.24 billion CAD and the overall number of Leon’s employees is estimated at more than 10,000 throughout Canada (“Leon’s furniture stores by Province Canada,” 2020). Leon’s Furniture has stores in all provinces of the country, and in 2021, their number amounted to 306, with 128 located in Ontario (“About Leon’s,” n.d.). The company has distribution networks and franchise stores in all provinces throughout Canada as well.
SWOT Analysis
The main strengths of the company are arguably the large number of stores and wide selection of products offered. The main weaknesses are the fact that it is costly to replace existing experts in the company and that it invests insufficient funds in customer-oriented service (“Leon’s furniture stores by Province Canada,” 2020). The opportunities are accelerating technological advances and innovations to improve productivity and customer service (“About Leon’s,” n.d.). Finally, the threats include saturated urban markets and stagnated rural markets.
Key Competitors SWOT
Leon’s key competitors are HHGregg, The Brick Group, Aaron’s Inc., and Urban Barn Ltd. The characteristics that can be outlined as the main strengths of these companies include superior customer service, a talented workforce, and training opportunities. The main weaknesses are dependence on existing supply chains and major products and services the companies offer. In turn, the opportunities include platforms for developing relationships with customers and reforming flexible business processes. Finally, the threats include regulatory challenges, market disruptions, and stagnation of the economic processes. Some gaps of Leon’s Furniture that are relevant to a specific competitor, such as HHGregg, may include insufficient technological expertise of some employees and high employee turnover, resulting in the shortage of skilled human resources.
Development and Foreign Markets
Leon’s Furniture currently does not have any markets in other countries outside Canada. When the company first started in 1909, its founder, Ablan Leon, went door-to-door, selling clothes. It soon converted to selling furniture and, since then, has been developing as a franchise, growing and entering new markets (“Leon’s furniture stores by Province Canada,” 2022). The company has not had significant success entering the foreign market and still operates mainly in Canada. There are, however, several stores working in Arizona, USA.
Summary
Leon’s Furniture is a retailer that was originated by Ablan Leon in 1909 and has since opened its stores in all provinces of Canada. While the company has contributed significant funds and resources to developing its image and applying technological innovations, there are still weaknesses that can pose threats to its future growth. These include high employee turnover rates, insufficient workforce training, and a lack of investment in customer service.
References
About Leon’s. (n.d.). Leon’s. Web.
Leon’s furniture stores by province Canada. (2022). Statista. Web.