Paper 1

BJ Denim, Inc. now has only 19% market share in the US and global markets, down from a dominant 43% just 20 years ago. Today there are dozens of new name brands of blue jeans in the world marketplace; US sales are soaring as back to school (the second Christmas for American retailers) season is underway. Nearly 52 billion pairs of jeans are sold every year and that number is rising. (9 pairs for every person in world). Experts predict blue jean bubble must burst soon, if not eventually, the CEO and COO of BJ Denim fought off further losses by moving jean production to Mexico, Dominincan Repulic, Costa Rica, Botswana, Pakistan and India.

Other jean companies sell jeans for $40 to $300/pair.

BJ’s retail for $46 or less in chain stores.

After 150 years as an “American Icon” this company is about to fade and fray.

CEO and COO are tasked by Board to save company before it faces shut down in near future.

4 sections

Markets

Finances

Publics (stakeholders: customers, employees, investors, etc) Small groups of people who follow a particular issue very closely, well informed and have strong opinons on issues.

Competitors

BJ is historically known as the cowboy, pioneer of the industry. They need to reinvent themselves to keep up with the times. They need to become edgier by introducing higher end fashion jeans. Recruit some high level management from other fashion companies like Guess, etc.

With a possible bubble burst in the jeans industry, BJs may benefit more than others. If Calvin Klein and Guess sell jeans for $150 dollars these are inflated values from the actual price of jeans. For a while in the 2000s the social norm of high fashion, high price jeans took off worldwide. People will soon realize that denim is denim and there will be a crash. BJs will be prepared.

BJs reluctant to go public because company has been in hands of a few BJs family members for years and they are the shareholders. They think they can reduce their...