Steinhouse Knitting Mills - 1083 Words

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 marketingShow MoreRelatedCase Study Steinhouse Knitting Mills (Canada)1608 Words   |  7 PagesLegal: The Apparel industry in general and particularly the Sweater industry is facing problems of declining sales and increased overheads. Steinhouse operates in the higher price band and this sector is dominated by named brands such as Polo and others and departmental stores and the customers prefer such brands over the lesser-known brands such as Steinhouse. Large retailers such as Walmart, prefer to buy directly in bulk from low wage countries such as Bangladesh, China and others. The US market