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The MEM Company, Inc. Case

A continuation of the existing product positioning strategy may constrain future growth in sales revenue at the company.

4. The MEM Company traditionally has been chary in relation to advertising expenditures. This approach to advertising and promotion has not harmed sales revenues at the company in past years; however, there are some indications that this situation is changing.

The company's strengths, weaknesses, opportunities, and threats are identified as a means of strengthening the analysis of the strategic alternatives available to the MEM Company. The SWOT analysis is as follows:

a. The company has never discontinued a product line. This factor is a strength because consumers know that they will always be able to obtain a product they prefer. This factor is also a weakness, however, when a product line is a money loser.

b. The company distributes products in all three industry price segments.

c. Consumer recognition of MEM products are high in relation to advertising expenditures. Competitors expend far more on advertising. d. The company's English Leather brand is the highest selling line in most major department store chains.

a. Threefifths of the company's sales are provided by six products marketed under the same brand name English Leather. This approach makes it difficult for the company to move more heavily into other price segments of the


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