Eastwind Trading Co. (A) Harvard Case Solution & Analysis

Eastwind Trading Company (A)

Opportunity Evaluation

The product is unique that assures the long-term sustainability of Eastwind Trading Company and provides their current account of 100 stores, the US market with 14,000 stores is a huge market to expand their business. Moreover, the uniqueness of product gives a competitive advantage, which makes it a great opportunity overall but more value can be added by using the pearls in jewelry; therefore, the product can be sold at high margins due to its unique nature. Additionally, the market is in growth stage and demand for pearl buttons is increasing. Meanwhile, the venture will lead to fabric accessories trading business, which is in the growth stage. However, the uniqueness and sophistication of handmade pearl buttons and its expensive nature make its handling difficult and require specialized cost control systems.

Strategy Implementation

Business goals of Gail and Martha are to access the nation-wide untouched market of designers and clothing manufacturers through hiring competent sales force, internet marketing and incentives to retailers for selling buttons at wholesale price. Moreover, the strategy will give differentiating position by acquiring a large market size and by offering unique product; however, the inability to duplicate pearl buttons makes it a long-term competitive advantage but development of low cost manufacturing technology to produce more pearl buttons will be required. Meanwhile, the key risk for investors is unconventional nature of buttons and availability of alternative products may lower down the demand of pearl buttons, therefore, in order to raise finance, Eastwind Trading Company should include other alternative product into their portfolio in order to entertain customers’ changing behaviors.

Management

The achievement of set goals require the executives with management, marketing and sales skills, however, Gail is equipped with extensive marketing as well as business management skills and Martha has an excellent record of marketing, sales, finance and product development expertise. Therefore, the skills of two partners will effectively help in achievement of set goals through effective marketing of pearl buttons and .................................

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Two professional women considering business venture. They must assess the nature of opportunities, the possibilities it opens up, if they want to pursue the company, and how they could finance a new business. Rewritten version of the previous case. "Hide
by Howard H. Stevenson, Martha Gershun Source: Harvard Business School 13 pages. Publication Date: March 15, 1993. Prod. #: 393119-PDF-ENG

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