Armour Garments Company

Armour Garments Company

I. Point of View

The decision-making process on this case must come from the Top Management since the main issue is more on the operational aspect.

II. Central Problem

What strategies should AGC have to take to restore their losing profitability?

III. Case Facts (SWOT)- Internal/External Factors

Internal/External | Opportunities 1. The garment industry has a huge market potential (product is being used across all ages) 2. Changing preferences of consumers (room for new products to develop) 3. Technological advancement (faster/easier to use sewing machineries to create new designs) 4. Several distribution channel other than Divisoria | Threats 1. Increasing number of competitors in the market offering lower prices 2. Strong bargaining position of middlemen (lower cost & longer credit terms) 3. Economic issues (increase in prices of raw materials being imported) 4. Government policies (tariffs`) |

Strengths 1. Pioneer in the undergarment business 2. Top selling brands before the business downturn (Armour & Marca Troca) 3. Competitive Blossom brand 4. It has 250 workers | SO Strategies 1. Strengthen product development in the undergarment segment 2. Look for other distribution channel 3. Invest more on promoting Blossom brand in the domestic market 4. Export Armour & Marco Troca | SW Strategies 1. Provide attractive payment scheme for Divisoria wholesalers granted that the profitability of the company is not sacrificed. |

Weaknesses 1. Complacency of managers in the operation of the business 2. Poor marketing strategy 3. Product line is limited to men only 4. Product sales seasonality | WO Strategies 1. Develop undergarments that would cater the women’s need as well 2. Invest & purchase new machines to modernize the factory (room for product innovation) | WT Strategies 1. Introduce other designs of shirt |

IV. Alternative Solutions

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