Armour Garments Company: Statement of the Problem

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ARMOUR GARMENTS COMPANY

Statement of the problem

On year 60’s, armour garments company’s competitors started to produce a bad effect on agc. their products, which are same on the agc product lines beat the standard cost of undershirts of agc by lowering their product price. since middlemen were nto layal to brands, they preferred to take the chance on buying undershirts which have lower price than agc’s.

Then after ten years, compertition got worsen for more and more margial factories opened and willing to compromised on price and payment terms with the middlemen though those days, undershirts was no longer fashionable to wear.

Because of that, agc produced new product line. Aside from their traditional product line, which is marca troca and armour, they introduced blossom. This agc’s new product line sold more than their traditional product lines. Having failed to improve the market ability of its traditional product they introduced polo shirt, jeans, and printed shirts but The market response was not favorable . because of this, financial condition of agc continued to worsen.

SWOT ANALYSIS

Strength - Despite their situation, the firm still has their fair share of advantages. Agc as a stron barand is fully recognized and respected in the market all over the country. Ultimately, they are the pioneers of the production of these undershirts. No only are they pioneers, they also produce it of high quality. Because of the positive response from customers, they earned high profit as they start their operation on 1954 up to the 60’s. Aside from that, the firm also has a vast amount of manpower, which grew from 25 to 250 workers since the start of their operation and production. One good advantage of the firm compared to other competitors is that they designed their products according to that of Hong Kong undershirts, which gives it an edge among the others in the country.

Weaknesses -Sadly, in spite of its strengths, the firm also had a lot of disadvantages and drawbacks. One is that in terms of machineries, the sewing machines they had wasn’t flexible, that it was just suited and limited for making undershirts only. The firm also had a limited market, which only caters to male customers only. They also outlaying more fo thie profits than reducing costs of their products in the same way as their competitors’. And when agc started to incur lots of losses, they still prioritized their first two major brands, armour and marca troca. instead of the new one, which was doing well in the market, they still focused on their traditional product merely because of pride. This implies that agc is not havin an effective marketing strategy. Also, the product sales is seasonal. it only grows big when the monthe of june starts with openin of classes , and of December with Christmas rush.

Opportunities-Luckily, there was still hope for the firm when they were experiencing difficulties in terms of sales in the market. There are lot of new market opportunities for it that could be a way to push under armour forward. First, there was an increase in the population, which meant a growth in the potential buyers of the firm if they will take advantage of the situation. There is also a way of such exporting to be recognized not only in the county but in others also that could hhelp them raise sales and incresase their product portfolio that will move them forward. Also, since it depends primarily in wholesale, specifically in Divisoria, there were a lot of potential consumers and of their product that wwill provide a big opporturnity for under aromour to explore by the changes in the way it spend.

Expanding into other markets could be a possibility for under armour. By increasing number of retail outlets but decrease pricesof their products, their sales will result to a very satisfying condition.

Threats-There were several threats that the firm had...
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