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Case Study 1 Group Alpha

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Case Study 1 Group Alpha
Case study 1: Harrington Collection: Sizing Up the Active-Wear Market
Course: Strategic Marketing (BUAD 6300)
Presented to: Dr. Madiha
Group Name: Alpha Team
Group Members:
Fady Sobhy
Sherry Radi
Hany Guriguis
Mohamed El Kilany
Mohamed Abdou Ibrahim

Questions presented in the case in the section of “Making the Decision” as follow (4):

1- What is the potential competitive reaction?

The USA market is a highly competitive market as shown in the case study, the US retail sales of women’s apparel in 2007 reached 133$ billion, accordingly many competing brands and with the launch of the new active wear line from Harrington, the brand will compete both for market share as well as shelf space in retail stores nationwide, this will terrify the competition. The competitors will react by integrating both vertically, as well as horizontally to kill the relative new entrant Harrington in the active-wear pieces sub segment. The vertical integration of the competition will result in price based strategy competition, and also maybe a higher markups for the distribution channels that can eliminate the distribution of Harrington, and the horizontal based integration will result as a fewer shelf space areas, and limited distribution to our stores only which could result the forecasted sales could drop. Harrington has a competitive edge over the competition in their stores have specialized staff and well-equipped teams that can efficiently handle all customer queries, along with a cutting edge technology to track inventory and sales information, which allowed the manufacturing group to quickly react to the market demands and improve productivity leading to shorten the manufacturing cycles.

2- Will both department and specialty stores enthusiastically support this new product line?

The department and specialty stores will enthusiastically support this new product line as it is produced by Harrington's which support the distribution channels by following tools and

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