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Vermont Teddy Bear Company

Vermont Teddy Bear Company

The Vermont Teddy Bear Company, Inc.

ASSESSMENT
The Vermont Teddy Bear Company, Inc. (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

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