Fit apparel
There are various success factors for Fit Apparel (FA) company. One of these factors is that most of the marketing work is shifted to the consultants. It is noted from the case study that the consultants are the ones who reach the clients on behalf of the owners of the firm, that is, Trina and Cora. This is a success factor in the sense that the owners do not use most of their time in marketing but rather use it constructively in designing and the whole creativity aspect.
Besides that, the other success factor is that the firm does not pose direct competition to its consultants in regard to marketing. The entrusting of the consultants to work for the firm is a clear indication that the firm is working pretty well. If the performance of the firm was not desirable, then it would have posed a direct competition to the consultants so as to make ends meet. Therefore, the delegation of the marketing efforts is a clear indication that the firm is operating successfully.
The other success factor is premium pricing. The owners of the firm resorted to charging premium prices for their offerings. This is after the realization that people are willing to pay more on commodities that make them feel good. Charging premium prices makes the firm to be a profitable venture, and this is one of the indicators of success. When a venture is profitable, it definitely becomes a going concern, hence it does not need to close down any soon, thus indicating that it is successful.
Apart from that, still, on the aspect of premium pricing, it is noted that the firm is able to cover all its costs. This is based on the fact that the company charges 60% higher than its costs. The pricing, in this case, is known to be very high and thus makes the product to be regarded as exclusive. The ability of the firm to cover all its operational costs is a clear indication that it is able to break even, and hence making the firm successful.
The other success factor of the firm is its target group. It is noted that F.A targets people between the age of 25 and 45. This group of persons are the ones who are active buyers. The targeted youth bracket is actively engaged in sporting activities that require the apparel in subject. This is unlike the older generation, whose focus is on health care, with the aim of boosting their longevity. Therefore, one of the critical success factors of the firm is that it targets a relevant group of consumers.
Besides that, the firm is known to have extra capacity in terms of machine-hours. It is noted from the case study that FA has a total of 5 million hours. Of this total, it only utilizes 3 million machine hours. This is a clear indication that the firm has an extra capacity to produce its offerings. This claim is based on the fact that there is no reported deficits in machine-hours, thus increasing the effectiveness in the production of the offerings by the firm.
- Profitability
Conversely, an analysis of the special order by the firm shows that it should go for it. This advice is out of the fact that the mark up is higher than the cost. In other words, the profit that the firm will yield out of the special order will be able to cater for the costs incurred. Therefore, engaging in the special order is a profitable venture that the firm should consider venturing in.
- Availability of capacity
The firm is known to have extra capacity in terms of machine-hours. This shows that it is able to meet the minimum production requirement. The excess capacity implies that the firm should go for the special order as it is able to sufficiently deliver.
It is, therefore, recommended that FA should go for the special order. This is because the venture is desirable as the firm will profit out of it. Besides that, the firm should consider the special order as it is capable of delivering based on its available capacity, which is in excess.