Table of Contents
Business Segments and Company Products
Market Price and Greeting cards sales by category
Competitive Landscape & Market Share
Market Structure-Porter's Five Forces
Bargaining Power of Buyers
Power of Suppliers
Value Chain and Product Cycle
Threat of New Entrants
Threat of Substitutes
5.0 Market Demand Drivers
1.0 Company Overview
Founded in 1906, American Greetings Corporation and its subsidiaries operate predominantly in a single industry; the design, manufacture and sale of everyday and seasonal greeting card and other social expression products. Greeting cards, gift wraps, party goods, candles, balloons, stationery and giftware are manufactured and sold by American Greetings and/or its subsidiaries in the United States and through out the world, primarily in Canada, the United Kingdom, Mexico, Australia, New Zealand and South Africa. American Greetings is headquartered in Cleveland, Ohio and employs approximately 26,900 employees worldwide.
The major domestic greeting card brands are Carlton, American Greetings and Gibson. American Greetings Corporation services approximately 70,000 retail stores in the United States and 125,000 worldwide.
As of February 28, 2005, the corporation also owned and operated 542 card and gift shops throughout North America. The corporation's fiscal year ends in February.
In addition, AG Interactive Inc., (89.9% owned by the corporation) markets e-mail greetings, personalized printable greeting cards and other social expression products through the corporation's website, www.americangreetings.com, www.bluemountain.com and www.egreetings.com. In 2005, AG Interactive launched its AG Mobile unit which specializes in distribution of ring tones for cellular telephones, graphics, games, alerts, and other social messaging products. The company also acquired K-Mobile in May, 2004 to bolster the mobile content business in the European Market.
American Greeting subsidiary, Learning Horizons, Inc. distributes supplemental educational products.
Design licensing and Character licensing are primarily done by another subsidiary AGC Inc. and Those Characters From Cleveland Inc. respectively.
The Hatchery, LLC, another subsidiary, also develops and produces original family and children's entertainment for all media.
Chairman Morry Weiss and his family control 25% of American Greetings' voting power. Weiss stepped down as CEO in 2003, but remains on the board. His sons, Zev and Jeff, have taken on the roles of CEO and president, respectively.
2.0 Business Segments and Company Products:
The main four Business Segments are Social Expressions Products, Retail Operations, AG Interactive and Non Reportable Operating Segments.
The main products are the following:
Everyday and Seasonal Greetings Cards (Brands: American Greeting, Carlton, Gibson, John Sands, Plus Mark)
Digital and Mobile Products (E-cards and Wireless content) Specialty Products are:
AGI Schutz (retails display fixtures)
Balloon Zone - Balloons
Creatables - Paper-crafting products
DateWorks - Calendars
Designers' Collection - Stationery
DesignWare - Party goods
GuildHouse - Candles
Heirloom Collection - Ornaments
Learning Horizons - Educational products
The Get Along Gang
Mary Oku Yummy
My Pet Monster
3.0 Market Definition
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