Ten Tree Case Study

Ten Tree, located in North America, manufactures and sells their products locally through the continent (Gamble et al. 2). With their unique idea, Ten Tree doesn’t have much of a problem with threat of new entrants into the same market as them, although if new clothing companies flooded the market with clothing, Ten Tree would have a problem selling their products, which would result in a decrease of revenue. Although, Ten Tree did state that it has no problem with others entering the same market as them, because they said they don’t mind a decrease in sales, they would rather have more businesses selling green products (Gamble et al. 6).Ten Tree has factories located throughout America that both fit their needs, such as being environmentally friendly by running of green energy (Gamble et al. 6), as well as supplying them with t-shirts, hoodies, and sweats (Gamble et al. 1). Although, Ten Tree’s supplier’s power is really weak as they are presently maxed out with supply, this is due to the factories as they cannot produce enough shirts to fill the demand (Gamble et al. 11), this creates a problem were consumers want to buy the product but they cannot as the product is out of stock.

As Ten Tree is in a free market, they have a lot of competition, as well as the fact that ten tree is in the clothing industry. The combination of the free market and clothing industry, gives the consumer a lot of choice between brands and products. With that being said, consumers are left with the choice of either choosing ten tree products, or something similar such as a substitute product. Threat of substitute products are really high as the products that ten tree sells are all clothing, so the consumer can buy any type of clothing, thus you can substitute any shirt, pant or hoodie in the spot of a ten tree