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Criteria for Evaluation

Following are the criteria based on which evaluation has been conducted:

1. Capital Involved: This would involve the cost that would be incurred to choose the

alternative.

2. Market Attractiveness: For the brand to sustain, the future and growth of the market has

to be considered.

3. Threat of Competition: The competition they face in the chosen alternative.

4. Ease of Implementation: The ease with which they will be able to implement the course

of action.

Evaluation of Alternatives

The alternatives evaluated against the criteria are as follows:

1. Expand in the Uniform Business: Sandhu s will stay in the uniform business and expand

into other metro cities and outskirts. This expansion would involve sufficient capital. They

would have to ramp up manufacturing, invest in more labour and acquire new customers.

Later, they would move on to uniform manufacturing for school going children. The

market attractiveness is low. With work from home taking up, the requirement for

uniforms will not grow much. The market size is still concentrated to a segment of the

apparel industry. The competition is high compared to the market size and there are large

number of small and medium players. However, as they remain in the same business, a

gradual growth with this alternative will be easier to implement.

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2. Diversify into Other Apparels: Sandhu s could diversify into manufacturing other

apparels and expand their business. The market attractiveness becomes high in this case

as they tap into the entire apparel industry. There are three expansions paths under this

diversification option:

By starting Retail Outlets This would involve sufficient capital to start outlets.

This could be done by franchise as well, but the question remains whether they are

renowned enough to foray into the apparel industry by investing so much capital.

They do not have enough brand equity yet to get franchises or set up retail outlets.

So, this may lead to a loss of investment. The competition is high, and they would

be directly competing in a new market with leading retailer. Implementation

would also be difficult, with locations to choose, labour to train and build up on

manufacturing.

By E-Commerce This would involve relatively low capital. The only capital

involved would be to hire labour and diversify the manufacture. This would also

help in growing Sandhu s as a renowned brand. This brand equity can be later

leveraged for expanding by retail outlets. Although the competition would be high,

the market and reach increases substantially as well. Implementation would be

fairly easy as they have to worry only about the manufacture.

By manufacturing for Retailers: The capital involved would be moderate. They

would have to hire labour, diversify the manufacture, and also acquire retail

customers who would be placing the orders. This does not help much in Sandhu

becoming a renowned brand as the garments would be branded by retailers. The