Timber Company

I. Point of View

The management point of view is assumed by our group since they are the one who has the authority to make decisions and implement necessary solutions to the problems faced by the whole company.

II. Analysis of the Case Situation

A. Macroenvironment analysis

Specialized sewing machines are not flexible and could not be utilized to manufacture other type of garments such as jeans and polo shirts.

In 1971, the market for undershirt took a downturn because it was no longer “fashionable”.

B. Industry Analysis

The company sells all of its products to wholesalers in Divisoria who distribute the product all over the country.

There is no direct contact with the individual customers because they do not do retailing.

In the mid 60’s, more and more undershirt factories opened. The middlemen were not loyal to brands.They are willing to sell any product for as long as the manufacturers were willing to sell at lower cost and longer credit terms.

The “Blossom” brand, a new brand of exactly the same product quality but priced lower was supported by the customers, but the other new product lines introduced by the company like polo shirt, jeans and printed shirts did not succeed.

C. Firm Analysis

The Armour Garments Company (AGC) was established in 1954 in the Philippines as a manufacturer of high quality undershirts. The company sells its products in Divisoria.

Table 1.Product lines of Armour garments Company

|Market Segment |Age Group |Product and Brand |

|Boys |2-12 |Armour T-shirt |

| | |Armour Sando |

|Grown-up Men...