This paper presents an empirical study to learn more about challenges in carpet industry using factor analysis. The proposed study of this paper designs a questionnaire consists of 51 questions in Likert scale and distribute it among experts in Carpet industry. We have analyzed the data using factor analysis and deleted 10 most redundant questions. Cronbach alpha was calculated as 0.88 for the remaining questions, which is well above the minimum desirable limit. We have also managed to remove six more questions using principal axis factoring leaving 8 basic components including 35 different questions. The proposed study of this paper has categorized eight factors including specialized relationships, knowledge coordinator, knowledge tool, knowledge organization, knowledge processes, knowledge chain, knowledge hardware and Knowledge feasibility study. Investigating details of the results of each eight items could help us build better strategies to help this industry grow faster and more reliable in today & apos; s business world.