Vermont Teddy Bear Company, pointed out, ôOur competitors are the people who sell chocolates, flowers, and greeting cardsàWe thought we were in the teddy bear business. In fact, we are in the gift and personal communications businessö (Vincelette et al. 1998 12). Competitors include DisneyÆs Pooh Grams, apparently a copycat version of the Bear-Grams, 1-800-Flowers, Candygrams, and similar offerings. The Vermont Teddy Bear Company has responded to competition by offering a line of delivered flowers via its company Calyx & Corolla and delivered candy and other foods via its company TastyGrams. It also offers PajamaGrams and popular tours of its factory, where customers can see bears being made. Its products tend to be more expensive than those of its competitors but are more upscale and unique; therefore, it retains its market niche even in the face of fierce competition.
An external factor analysis summary (EFAS) table was developed from the data evaluated:
Expansion possibilities beyond Japan in other foreign countries
Already in Japan; globalization puts other countries within easy reach
Demographics favor teddy bear collectibles
Baby boomers have reached their peak collecting years, and the teddy bear collectible industry overall is doing well
Very fertile gift-gram market for expanding the companyÆs gift-gram line further
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