<STEEPLE ANALYSIS>

• Download a STEEPLE template HERE, and use it to analysis and discuss Vinn’s decision to re-shore back to the US and to produce only individually designed jeans. [10]

--VINN JEANS--

Vinn is an American public limited company. It mass-produces jeans sold worldwide. Twelve years ago, production was offshored to China and Turkey to reduce manufacturing costs. To benefit from economies of scale, Vinn sells standardized regular-fit jeans. Vinn uses an identical marketing mix globally.

Despite the global popularity of American jeans, Vinn has experienced a significant fall in demand due to:

• customer complaints about poor quality jeans

• economic recessions in Vinn’s main markets. However, economic forecasts expect improvements within two years

• increased global competition of mass-produced clothes

• anti-globalization pressure groups. For example, a local pressure group, “B-Local”, has criticized Vinn’s undifferentiated advertising campaigns as inappropriate for all international markets and cultures.

• In addition, Vinn’s management is worried about labor costs in China rising faster than the United States (US). It also has communication problems with its offshored employees. 

Vinn’s management decided to re-shore back to the US and completely change its strategic focus. Recent market research has revealed a niche market: some customers in North America are willing to pay high prices for individually designed and produced jeans. To create a new competitive advantage, Vinn will aim for different market positioning by using highly skilled, creative fashion designers located in major American cities. Cost-effective production of individually designed jeans requires specialized technology currently available in the US. Vinn will no longer mass-produce jeans.