Armour Garments Company (AGC) Essay

I. Central ProblemAGC should call up ways on how to revitalize the telephoner from its steady slope into worse conditions. The slew of AGC tumbling downhill were already juicy against them they just werent aw atomic number 18 that their system during good merchandise economy would non work considerably against harsh conditions, such(prenominal) as the competition boom and the excise of the undergarment commercialize during the Seventies, which occurred simultaneously. Their condition became so bad their equity shriveled up to half of what it employmentd to be.II. Statement of ObjectivesTo actualize back their customers from the competitors appeal as well as earn new ones To number ways to improve the earnings of the lodgeTo broaden the object glass marketTo use state-of-the-art equipmentIII. Areas of ConsiderationCompetition is pixilatedSelling unaccompanied to one merchant (Divisoria)Limited target earshotWas non ready for market instability parasitic on ac calle r-out saving grace output was non flexible enough to effectively craft gamey quality items Products were expressage ( unclouded undershirts)Prices were non favorable to the companyIV. secondary Courses of Action (ACAs)1.) Sell some middle-aged equipment of the company and buy useful neo equipment.A. AdvantagesGreater possibility that the company scum bag invest more flexible equipment for approach of reapingion in company.B. DisadvantagesThey go forth make up ones mind a solid time disposing the white-haired equipment due to its limited functions and the fact that its already old.2.) The selling of goods should non be limited only to one place.A. Advantages progress out to potential customers who do not frequent to Divisoria. Expand your target market.B. Disadvantages impart follow more expenses towards shipping, delivery and marketing.3.) advertise products in media and print.A. AdvantagesCreate demand for their products. ensure product and brand awareness to the public. image or brand recall.B. DisadvantagesIncur expenses in marketing and advertising.4.) Introduce products designed for women.A. AdvantagesWider audience more than customersGreater chance for lootB. DisadvantagesAdditional expenditures for research and design5.) possess benefits to middlemen (merchandisers).A. AdvantagesIncrease loyalty from merchandiser.Create a rapport between companies.B. DisadvantagesAdditional costs6.) Create products that are trending in the market.A. AdvantagesMore salesLarger target marketVariety of products to choose fromB. DisadvantagesHigher cost in production.Higher risk of put neat to waste.7.) Retain skin rash in production.A. AdvantagesHelps the company to gain back profit. get out lower class citizens with a excerption of products.B. DisadvantagesBrands Armour & Marca Troca will be provided everyplaceshadowed.Less profit (same quality precisely at a lower price).V. closing DecisionThe final decision is to counterchange the old notio ns and infuse the new, while close up retaining the quality of the product. Despite the immense hard work put into the company, changes will go on to occur, so a new manners for the company would be better fit than if it were to continue its slow downward pace.VI. slender Action PlansThe number 1 social occasion that the backup needs to do is replace the machines that establish their product. The machines are not only immovable for making garments other than undershirts, notwithstanding presume from context they are old, considering the company up to the liquidation proposition was twenty old age old. Although it will need much capital to purchase these machines, in the long haul, it is an enthronisation and it will help them broaden their product lines.A large chunk in the revision of plans situates in the products. In the noncurrent AGC, they only produced white undershirts for men. The next whole tone is the development of their product lines. It may lift out wi th research on their current and their hopeful customers and products. Expanding the brands include introducing clothing for women, designing high quality and fashionable clothing, and making them in color. The gamble is high because the company has only ever excelled in manufacturing one reconciled product, and expanding the product lines need much capital. other good call for the company is to bushel Blossom.That brand, with its good quality yet loud prices caters to those of lower income levels, which is a potential market to sell to despite numerous competitors in the price war. And although brands Armour and Marca Troca would be overlapped by the potential success of Blossom, through expanding the brands would they be able cater to a polar taste and therefore cater to a different audience. This way, the brands under AGC will not be channelisely competing for customers to buy them. with good marketing and well maintained production, AGC rouse achieve high wage from ex panding their line.Further action to broaden their target audience would be to advertise AGC. Its namesake and goodwill may definitely draw in crowds, but commercializing it in media and in prints will reach those who have not perceive closely the company and its brands. This creates demand for the product, and in turn, high sales.An influx of the new is not always a bad thing its how you respond tochange that counts. AGC withal has some fight left and with the fit strategy and taking the right opportunities, AGC can still be able to dancing back and regain what was lost.Case abridgment 3-2 Armour Garments Company (AGC)The Armour Garments Corp. (AGC) was realised in 1954 in the Philippines as a manufacturer of high quality undershirts. It had deuce frequent brands, namely Armour and Marca Troca. The company started out by copying popular styles and designs from Hongkong. The first ten years was sort of profitable. The company grew from 25 workers in 1954 to about 250 worker s in 1967. The company sells all of its products to wholesalers in Divisoria who distribute the product all over the country. The products are manufactured in white color only and are generally of superior quality cosmos double more durable than other brands in the market. Undershirts are worn as a matter of habit to avoid the direct contact of users polo shirts with the body. Product sales are seasonal. Business usually peaks twice a year in June, with the opening of classes and in December, with the Christmas rush.In the mid 60s more and more undershirt factories opened. The company faced serious threats in its public presentation since the Divisoria middlemen were not loyal to brands. All along, AGC was banking on its institutional pride and goodwill being the pioneer in the industry. While sales of the company did not decrease, it also did not substantially increase with the growth of the population. However, this did not bother management since the cash ascend was good. No major investments were made during the period. It was line of products as usual so to speak. In 1971, the market for the undershirt suddenly took a downturn. It was no longer fashionable to acquit undershirts. Moreover, more and more marginal factories germinate up and were willing to compromise on price and payment terms with the middlemen.For the first time in its history, the company was astounded. It introduced a new brand Blossom which was of barely the same product quality but priced lower to match competing products. It did not land long before Blossom was retire from the market because AGC sold more of Blossom and less of Armour and Marca Troca. Having failed to improve the marketability of its handed-downproduct lines, the company finally decided to diversify and venture into ready-to-wear business. It introduced a polo shirt line. The market response was not favorable. In 1973, the company added a tally of lines like jeans and printed shirts, these two lines also f ailed.