Cygy Garments
Statement of the Problem
After the Asian crisis, new trends developed in the Philippine garment industry. CyGy Garments, a family corporation that exclusively supplied SM Department Stores of excellent quality ladies wear, faces the threat of heightened competition. With the entrance of cheap manufactured clothes from imports, and as more entrepreneurs venture into garments manufacturing, market share of CyGy began to decrease, and its margins decline as SM demanded that it match the lower prices of its competitors. This leads us to the general problem of the group,
"How can CyGy Garments cope with the competition in the current trend of Philippine garment industry?"
We will provide answers to questions that are rather specific to address our main considerations in the case, namely, the direct customers, final buyers and the competitors. These questions;
"Is it still advantageous for CyGy to maintain its loyalty to SM or resort to supplying other direct customers (i.e. specialty boutiques)?"
"Is it necessary for CyGy to expand product line to maintain market share or is expanding its market a better proposition?"
"Is it crucial for CyGy to take part in the price wars of the industry? What alternatives may be considered?"
guide the group in conceptualizing the most appropriate marketing strategy CyGy Garments need to undertake in the short run.
Assumptions
In this case study, the group assumes the following;
Economic conditions will continue to strengthen providing more opportunities for the Philippine garment industry.
Operational processes of CyGy Garments are already efficient and standardized. Outsourcing has been the most efficient operational strategy in the industry, and local garment manufacturers obtain their raw materials from competitive suppliers.
There exists the same intensity of competition in Philippine Retailers.
Buying power of final...
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