Ten Tree Apparel faces difficult decisions on how they should meet their increased demand of sales. What began as five young men selling tees in order to make a difference in the environment, quickly expanded into a well-known brand with over two hundred thousand items sold in less than five years! With the rapid growth faced, they have to decide between three options: continue to produce in North America, move production to Middle East or South Asia, or move production to China. They have to do decide which decision is the best financially and ethically. Alternative 1: North America
Ten Tree was originally founded as a business that wanted to make a difference in the environment first and foremost (Gamble et al. 1). This means they began …show more content…
If they are viewed as a company who produces through “sweatshops,” their image as a company with a high moral purpose would be ruined (Gambel et al. 10). They have to continue to market themselves as a business with a greater purpose than your run-of-the-mill clothing company. Using the “Made in America” branding markets them as a home-grown business who is doing this for more than just profits. Using this as their marketing strategy can garner them much sympathy from consumers. Wharton University of Pennsylvania notes that, from Deborah Small’s research, the best way to gain attention from the target market is to pull at the heart strings: “The researchers found that if organizations want to raise money for a charitable cause, it is far better to appeal to the heart than to the head” (Wharton). If they market to the public a way that is less broad and more concise, they can use staying in North America as an advantage. A social mission such as “saving one more child from prejudicial working conditions” could be one way to show they are a business who cares about where their clothing is made and the working conditions they are provided with along with their environmental purpose as …show more content…
In operations management, quality control as well as product differentiation are key in separating themselves from other clothing companies (Cossa et al. 305). The restrictions in North America prevent Ten Tree from selling other products like backpacks, jackets, and hats (Gamble et al. 11). This has meant that Ten Tree has been stuck selling only shirts against competitors of the same quality but also a higher price (Gamble et al. 3-4). A way to counteract this limitation is to find a North American manufacturer with similar moral beliefs as the founders that is willing to produce higher quantities of clothing for a discounted rate to neutralize the competitions advantage. They also must ensure they are getting the best quality available onshore. Product differentiation is already met by Ten Tree. Though they may not sell wide variety of high end items like retailers, experts, and consumers want, they offer a “value enhancer”: the opportunity to aid a social and environmental cause (Cossa et al. 454). Ten Tree will always have the niche market of do-good consumers, but to continue expansion and have repeat customers relies on the quality of clothing being worth the price
Ten Tree was originally founded as a business that wanted to make a difference in the environment first and foremost (Gamble et al. 1). This means they began …show more content…
If they are viewed as a company who produces through “sweatshops,” their image as a company with a high moral purpose would be ruined (Gambel et al. 10). They have to continue to market themselves as a business with a greater purpose than your run-of-the-mill clothing company. Using the “Made in America” branding markets them as a home-grown business who is doing this for more than just profits. Using this as their marketing strategy can garner them much sympathy from consumers. Wharton University of Pennsylvania notes that, from Deborah Small’s research, the best way to gain attention from the target market is to pull at the heart strings: “The researchers found that if organizations want to raise money for a charitable cause, it is far better to appeal to the heart than to the head” (Wharton). If they market to the public a way that is less broad and more concise, they can use staying in North America as an advantage. A social mission such as “saving one more child from prejudicial working conditions” could be one way to show they are a business who cares about where their clothing is made and the working conditions they are provided with along with their environmental purpose as …show more content…
In operations management, quality control as well as product differentiation are key in separating themselves from other clothing companies (Cossa et al. 305). The restrictions in North America prevent Ten Tree from selling other products like backpacks, jackets, and hats (Gamble et al. 11). This has meant that Ten Tree has been stuck selling only shirts against competitors of the same quality but also a higher price (Gamble et al. 3-4). A way to counteract this limitation is to find a North American manufacturer with similar moral beliefs as the founders that is willing to produce higher quantities of clothing for a discounted rate to neutralize the competitions advantage. They also must ensure they are getting the best quality available onshore. Product differentiation is already met by Ten Tree. Though they may not sell wide variety of high end items like retailers, experts, and consumers want, they offer a “value enhancer”: the opportunity to aid a social and environmental cause (Cossa et al. 454). Ten Tree will always have the niche market of do-good consumers, but to continue expansion and have repeat customers relies on the quality of clothing being worth the price