Ten Tree Essay

Moving production to China would solve their biggest issues: demand and customization (Gamble et al. 4). Unlike the Middle Eastern options, the quality of work is less of a concern and the stitching is more fine as a result (Gamble et al. 11). This is a huge pro for Ten Tree as they can match the high volume of demand with many a variety of other products as well. The Chinese manufactures are also able to create more items, including backpacks and hats, to widen the target market and create different product lines (Gamble et al. 10-11). This is one major key in the marketing strategy, knowing the competition and creating a product mix. A product mix can be of goods or services; but, in Ten Tree’s case, is a mixture of different apparel and accessories that not all other companies can match (Cossa et al. 454). This gives Ten Tree the opportunity to spread to other markets and potential gain profits and customers.

The transportation route is not as easy as China is a landlocked country, making it more expensive for transportation fees. Also, because of the workers wages being higher, the work is not as cheap as this area and similar to the price already being paid in North America (Gamble et al. 11). Therefore, the venture to China is not saving Ten tree many dollars and, being a start up business, needs as much extra capital as they can get. Starting with little capital, and attempting to do extra business without built up capital are key mistakes of entrepreneurs that have their business fail (Cossa et al. 215). By expanding beyond their means, they are taking on extra risk in an already extremely high-risk business and are making it very difficult to continue establishing themselves as a