Vertical Marketing Systems - Breakout Sessions
Break Out Session 1 – Form Groups + (2hr)
Each individual person reads case and prepares answers for Break Out Session 2.
Students sit in groups to help one another understand information through dialog.
1.How would you describe Vermont Teddy Bear (VTB)’s business model (the products and services it sells, target market/s to whom it sells them, the value proposition it offers, and its financial model)?
2. How strong are VTB’s operational capabilities, given their chosen business model? What challenges do they face during so-called “peak experiences”?
3.How strong are VTB’s information systems, given their strategic and operational needs? If you were a
member of the VTB Board of Directors, what concernswould you have about the IT architecture?
4.At a time when “cash reserves were quite limited,”Bob Stetzel wants “an efficient, well organized
enterprise IT architecture that could serve as a robust platform for the company’s changing business
requirements.” Given your analysis in response to the previous questions, and any other aspects you
consider important to this case, what specific, actionable, and cost-effective advice can you suggest?
Break Out Session 2 – (2hr)
Students should use the information from Breaout Session 1 to complete this task together.
Prepare a SWOT analysis, combining an assessment of Vermont Teddy Bear’s internal assets and capabilities (Strengths/Weaknesses) with analysis of political, economic, social and technicaldevelopments in the external environment (Opportunities/Threats).
Additionally create a RVIN analysis ofeach identified strength (is this asset or capability Rare? Valuable?Inimitable?Non-substitutable?)
Break Out Session 3 – (2hr)
Students should develop brief 5 minute presentations and present to the other groups. Add relevant portions to mind map as students present.
At a time when “cash reserves were quite limited,” Bob Stetzel wants “an efficient, well organized enterprise IT architecture that could serve as a robust platformfor the company’s changing business requirements.” Given your analysis in response to the previous questions, andany other aspects you consider important to this case, what specific, actionable, and cost-effective advice canyou suggest?
Keep these Top Line Objectives in mind
Encourage repeat purchases and increase average transaction size. Leverage the data ownership to develop deeper knowledge of customer needs and wants.
Enhance experience by improving usability of website and developing tight linkages with supply chain partners. Grow brand by increasing customer awareness.
Perhaps reconsider a greater multi-channel (online andbricks and mortar) play to create synergy between them, thereby enhancing richness of experience and partnerships with other well established electronic retailers (i.e. Amazon) to increase exposure, yetdo so only after considering the implications to the existing model and brand.
Keep these Bottom Line Objectives in mind
Reduce costs of acquiring new customers by more sophisticated and directed advertising
Consider greater levels of outsourcing, specifically related to the manufacturing of Teddy Bears.
Automate operational processes to improve efficiency and lower costs