Guillermo Navallez is the owner Guillermo Furniture located in Sonora, Mexico. The name Guillermo is synonymous with quality and excellence. This was true until two unforeseen forces began to affect the business climate of Guillermo Furniture in the late 1990's. The forces at hand were a foreign competitor and a change in tastes of the residents of Sonora. The foreign competitor brought with it a high-tech approach which allowed it to mass produce furniture using a computer controlled laser lathe which created exact cuts in wood. The competitor, as a result of robotic automation, had decreased labor costs compared to Guillermo Furniture and runs production on a 24-hour basis - something which Guillermo does not do. The residents of Sonora, on the other hand, have changed demographically. Sonora, the once small town, began to grow. Laden with inexpensive housing, mild weather, uncongested roads, a new International Airport and plenty of development, an influx of people and jobs increased the cost of labor substantially (University of Phoenix, 2010). As a result of the changes of th......

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