Guillermo Navallaz is the proud owner of Guillermos FurnitureStore located in So

Guillermo Navallaz is the proud owner of Guillermos FurnitureStore located in Sonora Mexico. He chose this area because of itsexcellent supply of timber for the variety of tables and chairsproduced by his company. Business was going well until the late1990s when two events caused a decline in Guillermos business.First a new overseas competitor entered the Sonora furnituremarket with their high-tech approach that provided furniture toexact customer specifications at low prices. The second event wasthat the community of Sonora began to grow. The increase of peopleand jobs raised the cost of labor significantly and Guillermoexperienced shrinking profit margins as prices fell and costs rose(University of Phoenix 2011).