Blu Dot cofounders Maurice and John discovered they did not like the furniture they could afford after graduating college and could not afford the furniture they wanted. Blu Dot was conceived as a business venture to address what was perceived as a void in the U.S. furniture market. The furniture market can be segmented into several levels, ranging from the promotional level of inexpensive furniture on up to expensive, high-end furniture that is custom designed and accessible only through interior designers. The challenge for Blu Dot was to merge the affordability of the low-end furniture market with the craftsmanship and quality of the high end. Each Blu Dot product is expected to rely on a smart design composed of two components, be simple to put together, use straightforward materials and manufacturing processes, pack flat, ship efficiently, and be attractive and interesting. Blu Dot's pricing is determined on the basis of cost plus the specified profit margin needed.

Video Discussion Questions
1. What would a SWOT analysis of Blu Dot reveal to a marketing professional?
2. What are Blu Dot's strategic goals?
3. Is Blu Dot's strategy one of cost leadership, differentiation, or focus? Explain your answer.