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safe of the children. Secondly, the supplier’s bargaining power is relatively strong in the baby furniture industry because the products have high requirements on materials and wood is the important resource to be controlled by the government.

Thirdly, the threat of new entrants is big in the baby furniture industry because the barriers are low for new companies to enter this market. Fourthly, the threat of substitutes is also big in the baby furniture industry because technological innovations may lead to new substitutes of baby furniture to build nursery for the child. Lastly, the competition is intensified in the baby furniture industry because low barriers and rapid growth of this market have attracted many companies to enter and compete in this market.

From the external environment analysis, stable political environment, social and cultural changes to pay more attention to the child, technological advancement and the weak buyer’s bargaining power provide opportunities to Kub Nursery. Poor economic environment, high legal and environmental requirements, strong supplier’s bargaining power, big threat of new entrants and substitutes and intensified competition produce threats to Kub Nursery.

Internal Environment

The Resource Based View model, a portfolio analysis using PLC and BCG matrix and marketing mix are used to analyze internal environment of Kub Nursery in this section. Firstly, the Resource Based View model analyzes superior performance, sustainable competitive advantage, core competencies, capabilities, tangible resources and intangible resources of an organization (Hollenson, 2010). Superior performance of Kub Nursery is that the company is market leader in the baby furniture market. Sustainable competitive advantage of Kub Nursery includes special care to the child. Core competencies of Kub Nursery include special design to grow with the child. Capabilities of Kub Nursery include special design, quality ensure, cost control and individualized services to the customers. Tangible resources of Kub Nursery include stores, technology, design, the suppliers and customer services. Intangible resources of Kub Nursery include brand, corporate values, recognition of the customers and innovation.

Secondly, a portfolio analysis of Kub Nursery is conducted based on PLC and BCG matrix. On the one hand, Product Life Cycle (PLC) divides the life of product into five main stages including introduction, growth, maturity, saturation and decline (McDonald and Wilson, 2011). The baby furniture is in the stage of growth that public awareness to the importance and necessity of baby furniture has increased greatly, sales volume of baby furniture products increases significantly, competition begins to increases with the entry of more and more new players in this market, market extends quickly and price continues to decreases due to reduced costs and the increased competition.

On the other hand, BCG matrix depends on market share and market growth to analyze market and classifies the market into four types including stars with high market share and high market growth, question marks with high market growth and low market share, cash cows with low market growth and high market share and dogs with low market share and low market growth (Gilligan and Wilson, 2003). Based on these four types of market, Kub Nursery is currently the type of stars that the baby f