VERMONT TEDDY BEARS CASE ANALYSIS Harvard Case Solution & Analysis


Operating Model of VTB

The company is following the low cost and advertisement model for its core brands which are the Teddy Bears, Pajamas and Cut flowers. The company is relying heavily on advertising and giving discounts to customers on its core products while the company also gives special offers and packages in rush seasons such as winters, Christmas, Valentine’s day and mother days.
Moreover, the company is also doing a lot of advertisement via TVCs, radio advertisements and other means to create awareness among the customers for the upcoming packages and discount offers. However the company also provides special offers except in the seasons which are discussed above.

Strategic Impact Grid

The VTB stands at the strategic portion in the strategic impact grid where the company faces a high operational and strategic impact on its business.The strategic grid of the company is mentioned below.(ARTIFACTS, 2014)

 VTB’s best of breed software strategy

VTB is using a bundle of software category-wise i.e. the company has a separate software system for its every individual product and mainly for three core products which are the Teddy Bears, Pajamas and Calyx flowers. The customers are able to place orders for these products and these orders later received and maintain in the company by different software.
Pros and Cons of this strategy are discussed below


The company doesn’t have to separate the data regarding the sales and ordering of the products whereas, the company also doesn’t need to make separate arrangements for the accounting and other purposes. It also avoids the duplication of the data.


The main issue with this separated software is that whenever the merged data is needed for the purpose of strategy making forecasting and any other purpose, the company has to put a lot of time to it. However, it also requires multiple personnel to handle the data and to troubleshoot it. Moreover, when the company has to integrate with the data in order to place orders and to deliver goods to customers, the data lacks to support the relevant department.

Strategic and Entrepreneur investment Class

The investment in the ERP system in this case will be known as strategic and entrepreneur class since the installation process of ERP will incur a high cost. Moreover, the firm will have to train the employees in order to understand the new system and software. However, the ERP system will change the dynamics of the IT system and IS of the company by making integration among the departments and easy flow of data in the company.

The revolutionary change in software system in a Coercive manner

The change in the data base or the software system will be noted as a revolutionary change since it is a drastic change which is not taking place step by step or with in a timely manner. If the company changes its software system from traditional software to ERP, then it the company will have to change the overall software system and to train its employees as per the requirement of the ERP system. As far as coercive mannaer is concerned,the company is implementing the ERP system which has been suggested by the CIO of the company while the CEO is resisting implementing the ERP system and relying to stay committed with the traditional software system......................

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