Sine 1988 , sales had been declining steadily.
Evidence: 1988 sales-$ 7.5million; 1993-$3.5 million; 1998-$2.7million. Situation Analysis
1.Low-wage developing countries with an abundant supply of labour provide tough competition to Canada. 2Growing popularity of the ‘ big and tall size’.
3 Trend to ‘dressing down’ or ‘ casual days’
4 The weather over last few years has hurt business.( Winters were warm) 5 Fashion business usually changes fast.
6 The low value of Canadian dollar relative to the U.S dollar. Summary of environmental opportunities and threats:
Opportunities: a Serving ‘big and tall size ‘customer groups and market segments; b. Low value of CDN dollar means lower price for American, good for exportation. Threats: a Comparative high labour costs , squeeze profit margins; b The trend ‘dressing down’ shift buyers` needs and tastes away from the products c. Costly follow the fashion pace. B Industry
1.Clothing industry is labour intensive; Knitting is more capital intensive; men`s sweaters-less susceptible to style changes and quicker to embrace technological advancement 2 Sweaters will be in fashion again.
3 Competitors Analysis:
EXHIBIT 1Major competitors profiles
NameLocationAge in yearsEmployeesSales($000 000)ExportingMale product Standard Knitting LtdWinnipeg23100 Large department stores focus on the name brands like Nautica Polo Tommy Hilgiger and Point Zero; c High end of market sells Italian brands...