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As per the case report, MN design is facing increasing revenues but lower gross profit
margins. To elaborate the challenges faced by MN design- with revenues increasing but
gross profit margins on the decline, it is evident that MN’s operating expenditures are on
the rise. Further the Trade-show industry has been going through rapid changes which not
only have the made the Trade-show industry more competitive but also changed the way
business is being done.
These changes are forcing MN design to make some very key decisions- should MN
target all market segments or focus on only one? Historically MN design has serviced all
of the various market segments within the industry. MN design is a small niche player in
a very competitive vertical market, dominated by large players. To stay afloat MN needs
to not only expand its client base and lower costs but also align a strategic long term
vision for the company. This plan can entail expanding the workforce- to bringing in
fresh new faces and infusing the company with “fresh” blood, to creating new ways to
market itself and the MN brand.
MN design’s strength lies in the fact that it is a relatively small player in a very
competitive industry dominated by both small and large players. However MN design has
carved a niche for itself by being able to service all market segments within this industry.
A “one stop shop” for the industry as they are able to adapt to differing client needs,
unlike many of their competitors who focus on standardized products. Due to the fact
they sell directly to exhibitors, MN design also has th ...