Steinhouse Knitting Mills

1083 Words Mar 16th, 2008 5 Pages
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,
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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.
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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