Case Study The Vermont Teddy Bear Co Essay Example | Topics and Well Written Essays - 500 words

Case Study The Vermont Teddy Bear Co - Essay Example 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). 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 special occasions. Bear-Grams were gift-boxed in unique containers complete with air holes for the bear"(2006, Case 22-9). This reflects the exclusivity and distinctiveness of the product. The second factor considered is the distribution method. After having experimented various methods, the company concluded that the direct marketing strategy of Bear-Grams was the most profitable. Methods of distribution used were the company owned retail stores, direct mail catalogs, and licensing and wholesale agreements. In order to expand its product line and cut costs, the company went into offshore sourcing.