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This case presents turnaround alternatives for a UK-based company, Carpets International (CI), a manufacturer focused on woven carpets and suffering from the ageing equipment and resulting product quality issues during the late 1990s. The case profiles CI’s position in the UK marketplace as well as highlights the growing international competition from Europe and Mexico. Comparisons between customer’s preferences for carpeting in the USA vs the UK are included. Additionally, the case introduces first-mover advantages in the application of innovational ideas applied to a mature industry in another country.

This case study was written by the CEO of the company as the lead author. The case is not disguised.

This case is appropriate for undergraduate strategic management/business policy classes.