Armour Garments Case Analysis

Topics: Marketing, Joint venture, Supply and demand Pages: 4 (894 words) Published: September 22, 2014
I. Point of View
In this case analysis, we would take the point of view of an external adviser.

II. Timeline
1954 - Establishment of the Armour Garments Company
1954-1967 - The company grew from 50 workers in 1954 to about 250 workers in 1967 Mid 1960s - More undershirt factories opened
1972 - Market for undershirt took a downturn
- Introduction of “Blossom” which is a cheaper new product of AGC but with the same quality as “Armour” and “Marca Troca” - Ventured into the ready-to-wear business and introduced a polo shirt product line 1973 - Added jeans and printed shirts product lines

July 1975 - Considering liquidation of the business

III. Statement of the Problem
What strategies should Armour Garments Company take in the midst of increased industry competition and fluctuating market demand?

IV. Case Facts

OPPORTUNITIES
Larger potential clients from a different market base
New product lines
Business peaks during June and December
THREATS
Increased competition; fierce price war and more products offered Changing market demand
Lack of loyalty of Divisoria distributors

STRENGTHS
High quality product
Industry pioneer
Production is simple
SO Strategy
Given that the t-shirt production is simple, the company can go into other innovative product lines. ST Strategy
The company can partner with raw material suppliers to help lower production costs. WEAKNESSES
Limited product lines
High price
Weak demand forecasting
Too complacent and not proactive
No sales growth/dwindling profitability
WO Strategy
Buyout/partner with firms with specialization in line with the company’s new product line venture

WT Strategy
Look into the possibility of joint venture with other companies Open a factory outlet to lessen the mark-up cost

V. Alternative Solutions to the Problem
a. Apply partnership strategy and look into the possibility of joint ventures...
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