This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
2/28/2005
Sara Lee to Remove Clothes
In the article Sara Lee to Remove Clothes, it is talking about how Sara Lee Company is going to enter into a new market of clothing. Which personally I think is different because when I here the name Sara Lee I automatically relate it to food products, coffee, and cleaners. The company plans that the clothing market is a big industry and they should enter it. I wonder if it will affect how there brand image, and if it will hurt there other products. It also brings up another question are they trying to target too many markets at once will they end up dropping one of the others. Some believe that if any are to go it will be there household cleaning products because there are some big companies to compete against like Proctor and Gamble, and Unilever.
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1 comment:
This is fairly standard practice for companies with product lines that are best thought of as mononpolistically competitive. The message of that industrial structure for managers is that (economic) profits cannot be maintained above zero forever. So it pays to both introduce new product lines (which might earn positive profits) or cut old lines (which may not lose you money, but aren't helping the bottom line either).
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