Competitive environment in the furniture manufacturing sector in Croatia
Research subject and fields:
As regards competitiveness, the furniture manufacturing industry in the Republic of Croatia is characterized by a large number of manufacturers, depending on the category of furniture produced. The aim of this paper is to establish the market concentration of manufacturers by a category of furniture produced. A relatively highest concentration has been observed in the production of mattresses with only 5 companies on the market. Two largest of them take up to 96% of the total income and together with the third largest company their income amounts to 100% (CR3 = 99.06%). The highest market concentration has been observed in the production of kitchen furniture where out of 17 manufacturers on the market, three biggest companies take 96% of the total income in this sector. Considering a rather small number of kitchen furniture manufacturers (17), the first ten companies cover almost the whole market (CR 10 = 99.44%). A lower rate of concentration has been observed in the production of chairs, office and other furniture. In the first two sectors the concentration rate fluctuates around 50% (CR 3 = 50.38, or 50.58% respectively). It can be assumed that the lowest concentration rate is to be found in the first 10 companies manufacturing other furniture (CR 10 = 73.74%).