Major Case. Women’s Undergarment Factory

• a free space utilization issue
• To invest into new machinery or to renovate the old one.
• And others
2. Problem Statement
The main problem for this factory is to decide who should be their target market in the future? According to this decision they must choose how to use a free space in the center of the factory. During the Soviet times the plant mainly focused on producing knitted materials (components) that were supplied as inputs to other factories producing complete women’s undergarment. The other purpose was to produce finished goods for local sale. During these times the factory was one of the largest in producing undergarments and was not concerned about the competitors as it must do know.
3. External analysis
The former Soviet Union was the primary market of the Women’s Undergarment Factory. After the system collapsed emerged some changes with this market size: some factories, which were buying materials from this factory changed their orders by focusing on a narrower product line. As some other factories closed due to inefficiency and competition from Asian firms. After the Estonian independence WUF #8 tried to look into Western market. This market was fairly stable and proportional according to the population in each country. It means that this market was half or bigger that the old Soviet one. Western women purchased six to eight undergarments per year.
The Western market offered a much more complex setting. The primary competitors for the WUF #8 factory were Asian firms, which had a bigger experience and their quality was recognized. As the managers from Western market did not have enough knowledge about Eastern customers selling finished undergarments in the West. Also there was a problem that competitors were the customers at the same time.
4. Internal analysis
The target market of the WUF #8 was factories for women’s undergarments...

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