Texts: Davro Furniture Group owns 42 of the 1500 factories that supply the retail sector. There are 300 retailers, but the sector is dominated by 6 conglomerates, each having a central buying office and together accounting for over 80% of the value of furniture bought and sold. The timber used in furniture making must be sourced through one of several agents but originates in forests that are owned by three main corporations in about equal market share. Furniture manufacturing is a low entry-barrier industry, but the premium large volume retailers tend to avoid ordering their supplies from the small 'mamma-and-pappa' factories that cannot guarantee design quality and sufficient capacity to produce large order quantities at low cost and deliver directly to their stores, which are spread across all the cities of Australia. Instead, they prefer to work with the 80 or so manufacturers that are roughly the same size as a typical Davro member company. With reference to Davro's member firms, as described, the Board of Directors is seeking your advice on how to ensure that market leadership is retained while setting the Davro brand apart from their rivals in the premium high-volume furniture manufacturing sector. In the short-term, it will be important that they maintain the strengths associated with their current 'total market - low cost' strategic competitive position, but they also want to move some of their member firms toward more innovative designs and higher-priced products. Identify and apply the relevant generic strategy model.