he background of the two owners: both come from industrial printing backgrounds, which means they are familiar with selling to companies and with some of the issues involved in producing the various products. While neither owner worked directly with selling promotional items in the past, they both have a passing familiarity with the process because the companies they worked for printed these items (and are now vendors to ITP).
The principal weakness at ITP is the fact that this is a relatively new organization; as such, it faces the problem of under capitalization. While the company has a favorable cost structure, it must still cover its labor expenses and the small amount of overhead that it does have. ITP expects that sales will cover its current costs, but as a new company, it has little in the way of reserves to protect itself.
The opportunities facing ITP is an increased interest in clothing and promotional items used by companies as gifts to employees. Where these items were once the nearly exclusive realm of the sales department and used to promote the company at trade shows and in person-to-person sales calls, companies are now increasingly turning to this relatively low-cost strategy as a way of providing rewards to employees for length of service, outstanding performance, or other nonfinancial incentives.
In addition, the increase in the number of small companies (fewer than 50 employees) makes "leave behind" items important for companies to help customers remember who they are. As a result, mugs, hats and similar items in which ITP specializes can be an important part of a company's marketing strategy. The ability to print logos and company names on inexpensive items, such as water bottles, also increases the allure of trade show displays where potential customers may be attracted by the giveaway and then can learn more about the company's products by the people working the booth. ITP is actively pursuing sma...