The Vermont Teddy Bear Co
...which turned out to be a slam dunk in the bear industry. The company started expanding fast and it soon became too big for Mr Sorinto to manage. In 1995, he gracefully stepped down and paved way for the new CEO. The company kept its focus mainly on soft cuddly teddy bears, which by then had become a must child toy in United States. Since inception, the company's hallmark remained its bear-gram delivery service. The company successfully implemented its marketing strategy through radio advertisements by popular disc jockeys, and catalogs. This study will carry out an environmental scanning basically to assess the elements having profound bearing on the Vermont Teddy Bear Co. Accordingly, a SWOT analysis has been conducted to identify the strategic factors (external and internal both) which will determine the future of the company (Wheelen, 2006, p. 9).
External Factors Analysis Summary Table
Factor Weight Rating Weighted Score Comments
Opportunities
Bear Grams .20 5.0 1.0 Remained Profitable
Distribution Methods .10 4.0 .40 Direct Market Strategy
Offshore Outsourcing .15 2.8 .42 To cut costs
Expansion to New Markets .05 1.5 .075 To develop over seas
Technological Advances .05 2.5 .125 Use of Internet
Threats
Disney Pooh Grams .10 2.0 .20 Bargained to share
Competitors (flowers, gifts, collectibles) .15 2.0 .30 Variety offered by competitors
Products & Services .10 2.0 .20 Costly and Expensive
Seasonal Market Demand of Product .10 3.0 .3 Sales high only on special occasions and holidays
Total 1.0 - 3.02
While considering opportunities in external factors, on top of the list is the bear grams. Despite the huge toy market, Vermont Teddy Bear Company has remained a front runner in this field. As pointed out by the Wheelen and Hunger "Bear-Grams were personalized teddy bears that were delivered directly to recipients as gifts for holidays and...
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