Executive summary Harrington collection is a manufacturer and marketer of designed women’s clothing. Known for its top in-house design staff, extensive advertising campaign, exceptional and stylish products, its brand equity label fuelled the premium prices that it captures. In the fiscal financial year 2007 and some past three years the company had posted lackluster sale, with the margins being at all time low. This called for laying down strategies, reviewing the disappointing 2007 results as well as brainstorming to reverse the negative trend once and for all. The strategic planning team gathered vital information on the market trend upon which decisions of whether to venture into a new line of product with more casual, low-priced fashions, though seen as a departure from Harrington collection’s sophisticated, high class roots yet had a big turnout was to be elucidated. The need for a fresh idea was crucial if it were to maintain its dominance in the industry. Decision Analysis Harrington needs to be sensitive on the consumer’s need, their price demand as well as putting more attention on the economic downturn, since this has an effect on product choice; most consumers have now diverted their trends towards less expensive, casual clothing due to the rising cost of living as well as diverting their discretionary dollars once earmarked for fashion into leisure activities, home design and technology products. The company is therefore, missing out on its product for its continual production of highly priced quality products. The manufacturing group should consider manufacturing private label brands; it can do this by directly liaising with the retailers. These products have since doubled their turnout for the past one decade. They could also directly sell products to retailers. Position Statement The company needs to invest in active wear-clothing with superior fabric, stylish and fit. A shift from professional looks by her loyal consumers, into something fresh and comfortable, fittings their active lifestyles has pressurized the market. Harrington collection needs to consider outsourcing labor to low cost areas, this would eliminate the need for overhead and capital spending associated with manufacturing plants, there are also low barriers to enter into such business. It will also ensure improvement on its competitiveness and financial turnout. Being sensitive to consumer demands as well as their preference and changing taste is paramount to hold onto your loyal clients. The company should ensure their products are vibrant and easily acquired across all the targeted groups, being mind full of their pocket and their preferences. The company’s departmental stores should consider pursuing consolidated strategies to boost its financial performance. This is because the merger of large department stores chain provides a more significant power of bargaining in the value chain. The company needs to integrate forward into retailing as well as involve the retail outlets in integrating backwards in the value chain. In contracting retailers directly, they could produce private label brands, these have been growing twice the rate of regular brands for a decade now. Wi