Steinhouse Knitting Mills
Primary problem:
Sine 1988 , sales had been declining steadily.
Evidence: 1988 sales-$ 7.5million; 1993-$3.5 million; 1998-$2.7million.
Situation Analysis
A Environment
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 1 Major competitors profiles
Name Location Age in years Employees Sales($000 000) Exporting Male product
Standard Knitting Ltd Winnipeg 23 100 <$25 Yes-U.SEurope,Latin Amer Man`s sweaters
Straton Knitting Mills Ltd Toronto 57 175 <$25 Yes-U.SJapan,Asia<$1000 000
San Remo Montreal _ 100 <$10 _
Cooper Knitting Montreal 70 50 <$10 Yes-U.S
Compatitors survive by reorienting production to suit the demands of Wal-Mart
Zellers, operate more downmarket(100%acrylic or 100%Cotton sweaters to discount stores at $12-$13 each)
4 Buyers analysis: a Largely dependent on Independent stores But they are quickly disappearing in Canada and USA b Large department stores focus on the name brands like Nautica Polo Tommy Hilgiger and Point Zero; c High end of market sells
Sine 1988 , sales had been declining steadily.
Evidence: 1988 sales-$ 7.5million; 1993-$3.5 million; 1998-$2.7million.
Situation Analysis
A Environment
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 1 Major competitors profiles
Name Location Age in years Employees Sales($000 000) Exporting Male product
Standard Knitting Ltd Winnipeg 23 100 <$25 Yes-U.SEurope,Latin Amer Man`s sweaters
Straton Knitting Mills Ltd Toronto 57 175 <$25 Yes-U.SJapan,Asia<$1000 000
San Remo Montreal _ 100 <$10 _
Cooper Knitting Montreal 70 50 <$10 Yes-U.S
Compatitors survive by reorienting production to suit the demands of Wal-Mart
Zellers, operate more downmarket(100%acrylic or 100%Cotton sweaters to discount stores at $12-$13 each)
4 Buyers analysis: a Largely dependent on Independent stores But they are quickly disappearing in Canada and USA b Large department stores focus on the name brands like Nautica Polo Tommy Hilgiger and Point Zero; c High end of market sells