ompany. Currently, the company is anticipating a small profit for the current fiscal year, and is seeking capital in order to expand its operations by adding sales representatives. Since the company does not maintain inventory, it is able to work out of relatively small facilities which help it keep its overhead to a minimum.
This industry does not have a high level of risk associated with it, particularly as ITP is organized, but there is some threat to ITP from its current competition. ITP has been successful at drawing some customers away from existing suppliers, and is actively pursuing other customers. In addition, ITP is targeting smaller companies who might otherwise not be aware of this marketing strategy; this gives ITP entrance to a market segment which has traditionally not been served by this industry.
Although this is a mature industry, there is opportunity for companies such as ITP who are willing to market to the smaller company. Traditionally, promotional items have been used by large companies at trade shows and as sales tools; in recent years, advances in technology have made it possible to produce these items at substantially lower cost, making it possible for smaller companies to take advantage of promotional items in their marketing plans.
Of course, ITP is not the only company which is pursuing the promotional item market, and the biggest threat that ITP faces is the already entrenched competition, which is unlikely to sit idly by while ITP encroaches on its domain. There are currently two competitions which ITP faces, T-Square (T2) and CFB. Both of these companies have their own in-house facilities for silk screening clothing, but otherwise, they use the same vendors that ITP uses (in most cases). Both are also considerably larger than ITP in terms of employees (T2 has 22 employees while CFB has 18), and both have been in business for more than five years. However, ITP has already lured some c...