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Vermont Teddy Bear Case Analysis

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Submitted By floflo
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Case study :The Vermont Teddy Bear Company®
2013
Florine Buteau
Shenandoah University
28/02/2013

The Vermont Teddy Bear Company
Almost everybody has had a plush bear when they were young. It’s a symbol of tenderness and gentleness. I personally had different bears made in Germany, China, England…with different forms, colors and names.
Even if the teddy bear manufacturing is a saturated industry with many competitors, it has not prevented the Vermont teddy Bear Company to launch its own business.
The Vermont Teddy Bear company (VTB) was created in 1980 by John Sortino. Currently the company is located in the city of Shelburne (Vermont, USA) and counts 289 employees. Vermont Teddy Bear Company represents a “Business success story,” but how did John Sortino arrive to success by the creation of a simple stuffed bear?
After analyzing this company, I have concluded that the VTB Company has numerous opportunities to gain market share. Nevertheless, the VTB Company has had to contend with difficulties that cannot be ignored.

1. Opportunities
The main opportunities for the Vermont teddy bear company are the following: * Before its creation, there were almost no teddy bears made in USA and most of these foreign-made bears were not good quality products. John Sortino, the “Vermont teddy bear” founder, noticed this fact while playing with teddy bears with his young son. * In the past, when you wanted to offer a teddy bear, you had to go in a store to buy it and there were no complementary services with your teddy bear. John Sortino understood there was probably an opportunity for him when a customer bought a bear from him and asked to have it shipped back to her home.
These observations made by John Sortino are called Entrepreneurial alertness. It had helped him identify good opportunities and led him to opportunity recognition. Moreover, Sortino had

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