In order for Classic Knitwear to succeed executives, Miller, Ortiz and Chong, would essentially want to raise gross margins from 18-20% to 30-40%. Classic Knitwear must differentiate its brand to increase brand recognition. With the current and growing fears of insect-borne illness syndicated with the dissatisfaction with current insect repellents it would be a wise choice for Classic Knitwear to join alliance with Guardian. Classic Knitwear’s advantage of minimal products costs combined with Guardian’s high brand approval and their pioneered innovational product creates an opportunity for an alliance that will assist both companies develop and reach their long term goals. Matching the strengths of these two companies and the need for this product in the male outdoor enthusiasts audience creates an opportunity this unsaturated market. Innovational Product
Guardian has a patented insect repellent technology that can provide protection through seventy washes. Current insect repellent t-shirt companies only offer up to 25 washes. “Guardian claimed that its proprietary repellent formulation bound to fabric fibers more tightly and durably than existing technology”. Guardian will benefit from the partnership with Classic because they need to reach the male outdoor enthusiast market. This market may not want to carry traditional liquid repellent and this partnership will fill this need. Low Production Costs
Classic has the advantage of low production costs due to the state of the art offshore production hub in the Dominican republic. Classic also had an advantage of economies of scale from high volume, low sku production runs, which gave the company a cost advantage over other producers in the US. Competition
The branded side of the non-fashion kitwear market is controlled mainly by three marge manufacturers: JamesBrands, FlowerKnit, and Greenville Corporation’s TopTops Division. Classic was most...