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The company can demand a retail price that averages about $72 for its standard.
* Unique approach in a product market dominated by strong brands and limited variety.
Pepe presented a range of jeans styles that offered a better fit than traditional 5-pocket Western
jeans (such as those made by Levi Strauss in the United States)particularly for female
customers.
* No long-term debt.
It shows that Pepe has a very healthy cash position. It can make for good investment. Pepe do not
have worry about paying off long-term debt when times are tough.
* Pepe has a very healthy cash position.
This is because of having no long-term debt. It signify financial strength of the company.
WEAKNESSES:
* Six-month order lead time
Since the fashion market was so impulsive, the current favorites were often not in vogue six
months in the future. Delay might occur out of trend and product might not the demand of
customers anymore.
* Inflexibility ordering system
Retailers were forced to order less, resulting in stockouts of particular sizes and styles.
* Reluctant for changes
They become much less of a trendsetters than in their early days.
OPPORTUNITIES:
* Good relationship with the independent retailers.
This will create attachment between retailer and agents in behalf of Pepe.
.
* Growing population
In every business the population growth will always be an opportunity that indicates that the
market is definitely growing.
Countries where there were more cost advantage and greater flexibility where the plant must be
place.
Advantages:
* Cost advantage in shipping
* Open job opportunities
* Provide the demand needs and deliver less than the usual six months.
Disadvantages:
* Purchasing new expensive machines
* Loss managerial control
* Inflexible to changes in business environment
* Political and cultural problem
RECOMMENDATION:
We recommend the Alternative Courses of Action number one (1), outsource shipping company,
and the Alternative Courses of Action number two (2), online ordering system. We choose these
two because it will help Pepe deliver their product for a very short of time than the six-month
order lead time and easy, hassle free, and convenient ordering system. In this matter, retailers be
delighted for the value that Pepe is giving.
CONCLUSION:
Our group believes that all companies must have a room for improvement and always ready for
change. These were Pepe jeans, we think, failed to have or to do despite of their enormous
growth and success. Change is one of inevitable thing to face in any kind of business. Thus,
managers/entrepreneurs must ready for the changes so that they can maintain or improve their
products/services and to have consistent customer satisfaction.
Words: 1341
Pages: 6
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