Tomas Makinson , CEO of Tartan Enterprise, Inc. (TEI), is considering a special offer to manufacture a new line of men’s clothing for a large department store chain. TEI has specialized in designer men’s clothing sold in small, upscale retail clothing stores throughout the country. To protect the very elite brand image, TEI has not sold clothing to the large department stores. The current offer, however, might be too good to turn down. The department store is willing to commit to a large order, which would be very profitable to TEI, and the order would be renewed automatically for two more years, presumably to continue after that point.
Required:
Regardless of the current offer, identify and briefly describe the competitive strategy for Tartan (cost leadership or differentiation) and explain your choice.
Identify four disadvantages to Tartan of accepting the current offer.