Gregor Case

Topics: Marketing, Supply and demand, Cost Pages: 4 (1240 words) Published: December 12, 2012
Gregor operates in the protective garments sector and competes against a number of competitors with similar products. As a result, it was essential for them to establish a competitive advantage, which can be seen through their product line and geographical exposure. Gregor’s garments are double coated, which extends the life and level of protection; as a result their products have the highest quality in the market. Many of their products also come with features to enhance comfort such as mesh/ventilation, hoods, belts and pockets. Additionally their 15 different products come in three different colors – yellow, green, and orange. It has been seen through market research that their customers have preferences to yellow and green, depending on the sector. In an effort to meet market demand Gregor also manufactures custom products for some of their clients and offers a wider range of sizes to their clients than their competitors offer. Gregor has a strong position in the French market; they are the largest producer of protective garments and have a 22% market share in the industry. Gregor has carved out a nice segment of the market for themselves, however they have never generated a profit.

Gregor’s financial troubles begin with their desire to continue production in France. Outsourcing their production to North Africa or the east could reduce the costs however Gregor is committed to its employees and refuses to fire anyone as a cost cutting strategy. Furthermore, Gregor’s employees are unionized and leverage their collective position to negotiate for higher wages, this is a problem that Gregor’s competitors do not have. Gregor’s financial problems are not only labor related; their product line is expensive to produce. According to Gregor’s auditor their manufacturing costs are too high. It is expensive for them to ventilate their products and double coat all their products. Reducing the waterproofing or comfort of their products would allow Gregor to cut costs and...
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