Mohawk Industries is a leading distributor of carpets and rugs in the United States. The company sells its carpets and rugs to locally owned, independent carpet retailers, home centers such as Home Depot and Lowe’s, and department stores such as Sears. Mohawk’s carpets are marketed under the brand names that include “Aladdin, Mohawk Home, Bigelow, Custom Weave, Durkan, Karastan, and Townhouse.”
1. List some factors that increase the demand for carpet.
2. Do you think Mohawk should view itself as a carpet or floor-covering manufacturer? Discuss the advantages and disadvantages of Mohawk viewing itself as a floor-covering manufacturer rather than just a carpet manufacturer.
3. Read Mohawk’s latest 10-K filing with the Securities and Exchange Commission by using EdgarScan (edgarscan.pwcglobal.com). Does Mohawk view itself as a carpet manufacturer or as a floor-covering manufacturer? Explain.