Steinhouse Knitting Mills

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Primary problem: Sine 1988 , sales had been declining steadily. Evidence: 1988 sales-$ 7.5million; 1993-$3.5 million; 1998-$2.7million. Situation Analysis A Environment 1.Low-wage developing countries with an abundant supply of labour provide tough competition to Canada. 2Growing popularity of the ‘ big and tall size’. 3 Trend to ‘dressing down’ or ‘ casual days’ 4 The weather over last few years has hurt business.( Winters were warm) 5 Fashion business usually changes fast. 6 The low value of Canadian dollar relative to the U.S dollar. Summary of environmental opportunities and threats: Opportunities: a Serving ‘big and tall size ‘customer groups and market segments; b. Low value of CDN dollar means lower price for American,…show more content…
B Make bigger push into the USA market Use the strengths of duty free, low exchange rate of CDN dollar and convenient transportation, make a bigger push into the USA. Produce a lot more ‘ Big and Tall’ size and focus on the European style which is different from USA local market. C Make a bigger step into sport-shirt manufacturing business Continue supplying traditional main products, but open a eye on potential new business partners, Based on the JMD success experiences , find out chance to enter Man`s sport T shirt manufacturing business markets. Implementations: 1 Get rid of 10 old machines and buy 10 new modern one;10 old one continue to manufacture the inventory of acrylic/wool sweaters and increase ‘Big and tall’ size;10 new ones would used to produce high-gauge sweaters and mixed cashmere sweaters. 2 Hire several in-house designers to design new styles according to different segments customers` demands; 3 Import some sweaters from low-wage countries labels the brand name Etcetera which target downmarket. 4 Import cashmere from china if the cost lower then $75($50*1.5)/ per sweater. 5 Reset the price for different brands. 6 Use multiple marketing

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