The paper “ The Vermont Teddy Bear Inc - Challenges the Company Would Meet, Deciding on a Site or Location, Management Issues with the Market Entry Strategies” is a spectacular example of a case study on marketing. As the years go by, there are strong forces changing the markets and significantly transforming the ways of conducting business. The increased movements of goods, companies, and people across the borders have brought about the introduction of global market segments, as well as, the growth of the internationally integrated market. Developments in the technological systems of communications and information have shrunk distances, connecting markets via flows of ideas, images, and information across the markets.
However, these patterns enhance the operations’ management on a global scale and facilitate the need for dealing effectively with the global competition. Consequently, organizations should adopt and revise strategies in order to react to these global forces, giving direction for future growth, trying to realign operations in the event of the emerging competitor and market dynamics. This paper talks about the Vermont Teddy Bear company as an organization and its attempt to go global, whereby it discusses the processes that can be followed in the event of achieving that together with the challenges, as well as future expectations. The Vermont Teddy Bear Inc.
is one of the renowned and largest companies that produce teddy bears, as well as, the largest seller of the teddy bears through the internet and mail order. The firm handcrafts all of its teddy bears and produces about five hundred thousand teddy bears every year. The firm was initially listed as ‘ BEAR’ on the NASDAQ stock exchange; however, it was privatized by a private equity firm called The Mustang Group, which is based in Boston.
This was done on September 30, 2005, in part for the purpose of avoiding the Sarbanes-Oxley Act’ s reporting requirements. The firm was founded y John Sortino in the year 1981. The founder started it by selling handcrafted teddy bears in Burlington’ s open-air market. The idea of selling and packaging of the teddy bears through the Internet and mail originally came to Sortino when a certain tourist who had visited Burlington wanted a teddy bear to be mailed to her home.
This concept was then dubbed the ‘ Bear-Gram, ’ featuring the modified teddy bear put in a box and stuffed with some other goodies. In the year 1995, the company shifted to its new headquarters in Champlain Valley in Vermont. The Vermont Teddy Bears Company has two firms; whereby one is found in Newport and another one in Shelburne. The one found in Shelburne is particularly a common tourist destination. It also served as a site for show or concert for the Vermont Mozart Festival that happens yearly.
Moreover, the company has maintained two locations of retail in Vermont- the Shelburne and another on the main road between Stowe and Waterbury. In the year 2003, the company did acquisitions of Calyx & Corolla, which was an upscale flower firm with its headquarters in Vero Beach in Florida. Paradoxically, we find that one of the company’ s marketing slogans alleged that a teddy bear is actually ‘ an imaginative or artistic alternative to sending of flowers. ’ In the year 2005, the firm introduced a new sister company known as the Gift Bag Boutique.
This newly established company dealt in offering purses together with handbags along with several other make-up accessories. Some others included the PajamaGram, which dealt in offering gift pajamas, and the TastyGram, which sold gourmet food gifts. However, the establishment of this sister company actually brought the total number of the firms that operated under the umbrella of Vermont Teddy Bear Company to five. The TastyGram and Gift Bag Boutique stopped taking orders on June 27, 2008.