Armour Garments Company (AGC) Essay

I. Central ProblemAGC should rein ways on how to better the come with from its steady slope into worse mark offs. The circumstances of AGC tumbling descending(prenominal) were already stacked against them they just werent aw be that their strategy during corking market economy would not work well against harsh conditions, such(prenominal) as the competition boom and the fall of the nethergarment market during the Seventies, which occurred simultaneously. Their condition became so bad their equity shriveled up to half of what it use to be.II. Statement of ObjectivesTo earn prat their customers from the competitors appeal as well as earn untested ones To design ways to improve the earnings of the partnershipTo broaden the fall guy marketTo use state-of-the-art equipmentIII. Areas of Consideration contest is stiffSelling scarcely to one merchandiser (Divisoria)Limited target audienceWas not ready for market instabilityDependent on go with mature leaveProduction was not flex ible enough to in effect craft high prime(a) items Products were limited (white undershirts)Prices were not favorable to the social clubIV. Alternative Courses of Action (ACAs)1.) Sell some rare equipment of the company and deprave useful modern equipment.A. AdvantagesGreater possibility that the company can embellish more flexible equipment for improvement of yieldion in company.B. DisadvantagesThey will find a severe conviction disposing the old equipment due to its limited functions and the item that its already old.2.) The dealing of goods should not be limited still to one place.A. AdvantagesReach out to potential customers who do not general to Divisoria. Expand your target market.B. DisadvantagesWill costs more expenses towards shipping, delivery and marketing.3.) drive products in media and print.A. AdvantagesCreate demand for their products.Procure product and brand sentiency to the public.Name or brand recall.B. DisadvantagesIncur expenses in marketing and adve rtising.4.) confront products designed for women.A. AdvantagesWider audienceMore customersGreater chance for profitB. Disadvantages supererogatory expenditures for research and design5.) Give benefits to mid(prenominal)dlemen (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 subscribe fromB. DisadvantagesHigher cost in production.Higher risk of putting big(p) to waste.7.) Retain Blossom in production.A. AdvantagesHelps the company to gain back profit. try lower class citizens with a selection of products.B. DisadvantagesBrands Armour & Marca Troca will be further overshadowed.Less profit (same reference but at a lower price).V. Final DecisionThe final decision is to replace the old notions and infuse the new, while still retaining the quality of the product. Despite the immense har d work put into the company, miscellaneas will continue to occur, so a new life for the company would be better suited than if it were to continue its silent downward pace.VI. Detailed Action PlansThe first thing that the business ineluctably to do is replace the machines that manufacture their product. The machines are not only resolved for making garments other than undershirts, but assuming from context they are old, considering the company up to the liquidation proposition was twenty years old. Although it will remove more than capital to purchase these machines, in the long haul, it is an investment and it will help them broaden their product lines.A large chunk in the revision of plans situates in the products. In the past AGC, they only produced white undershirts for men. The next step is the development of their product lines. It may start with research on their current and their aspirant customers and products. Expanding the brands include introducing clothing for wo men, designing high quality and spruce clothing, and making them in color. The gamble is high because the company has only ever excelled in manufacturing one consistent product, and expanding the product lines need much capital. Another good call for the company is to revive Blossom.That brand, with its good quality yet cheap 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 different taste and therefore cater to a different audience. This way, the brands under AGC will not be take aimly competing for customers to buy them. Through good marketing and well maintained production, AGC can achieve high pelf from expanding their line.Further action to broaden their target audience would be to declare AGC. Its namesake and goodwill may definitely draw in crowds, but commercializing it in media and in prints will reach those who have not heard or so 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 still has some fight left and with the proper strategy and winning the right opportunities, AGC can still be able to bounce back and regain what was lost.Case Analysis 3-2 Armour Garments Company (AGC)The Armour Garments Corp. (AGC) was conventional in 1954 in the Philippines as a manufacturer of high quality undershirts. It had two popular brands, namely Armour and Marca Troca. The company started out by copying popular styles and designs from Hongkong. The first ten years was quite profitable. The company grew from 25 workers in 1954 to about 250 workers in 1967. The company sells all of its products to wholesalers in Divisoria who distribute the product all over the country. The products are manuf actured in white color only and are generally of superior quality being doubly 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 confront serious threats in its operation 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. slice sales of the company did not decrease, it also did not substantially subjoin with the growth of the population. However, this did not bother management since the cash flow was good. No major investments were made during the period. It was business as usual so to speak. In 1971, the market for the undershirt suddenly took a downturn. It was no longer fashionable to wear undershirts. Moreover, more and more marginal factories sprouted up and were volition 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 scarcely the same product quality but priced lower to match competing products. It did not take long before Blossom was withdrawn from the market because AGC exchange more of Blossom and less of Armour and Marca Troca. Having failed to improve the marketability of its traditionalproduct 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 couple of lines like jeans and printed shirts, these two lines also failed.