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Vermont Teddy Bear Company

 

            
            
             (VTB) is currently a firm that has a lot of unrealized potential. In order to reach this higher potential, VTB must find a niche in the industry that will allow it to use its strengths, decrease its weaknesses, explore current opportunities, and counteract threats.
             Strengths. The VTB name and "Made In America" trademark combine to form the company's most important strengths. The VTB name has long been recognized as one of the top producers of teddy bears in the United States. The current wave a national patriotism in the United States has made the "Made In America" trademark a much more valuable asset to the company during the previous five months.
             Weaknesses. In 1998, VTB lost an important source of product differentiation when it began offshore sourcing of raw materials. With this move the company began to look more like every other gift producer in the market and potential for setting themselves apart was lost. The high seasonality of the VTB product line is another current weakness of the company. This weakness causes sales, profits, and employment needs to fluctuate greatly from quarter to quarter during the fiscal year.
             Opportunities. VTB has the distinct opportunity to distinguish itself from all of its competitors by producing its goods in America using only American raw materials. The current wave of American patriotism makes this the perfect time to explore this opportunity.
             Threats. Currently the teddy bear market, and more generally the gift-giving market, is extremely saturated with different products and producers. Saturated markets do not lend themselves to a large growth potential for individual firms in the industry and this poses a threat to the future growth possibilities of VTB.
             RECOMMENDATION.
             As with the majority of small to medium-sized companies, VTB should explore strategies that will allow them to increase sales, profitability, and market share. These strategies should include ways for VTB to distinguish itself from its competitors in the industry.


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