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Created with Fabric.js 1.4.5 Basset furniture already sources 40% of it furniture from Southeast Asia 83% of Bassett employees are employed internationally 100% of sales are domestic It's time to furnish the world Shipping and logistics costs account for 35% of total landed cost Expand Bassett internationally to tap into new markets and enjoy improved cost strucure Commodity risk - Furniture manufacturing relies on the following inputs that can be price sensitive: 1. Foam - Sensitive to oil prices 2. Wood - Construction demand can inflate prices 3. Fabric - Increases in home construction increase price Entering emerging markets in Southeast Asia would greatly reduce shipping costs because these markets are closer in proximity to the manufacturing facilities. The products that are produced internationally are also more apropriatly priced for emerging market demogrpahics. Risk Factors Culture risk - Furniture is often times culturally significant. Therefore, Bassettmust conduct cultural due diligence before entering new markets. Currently, Bassett's product portfolio is entrenched in American Culture. Weight to volume ratio - Furniture does not have high weight to value ratio. This is significant given Bassett's highly globalized supply chain Prominent hedge funds Dimensional, Gamco, and Renaissance Technologies all have significant stakes in Bassett that total to around 33% of the outstanding shares. Relevant Facts
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