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Lbs Textiles Case Study

2024 words - 9 pages

LBS Textiles Case Study

LBS Textile Overview:
LBS Textiles is a firm that designs fabrics for wholesale markets in North-East America. The company has experienced a modest growth over the last three years.
LBS Textiles operates on a 300 node network system running Windows and have 400 people working on them. The firm operates on its homegrown distribution and accounting system that runs on legacy systems. It is assumed LBS Textiles has proprietary fabric designs that are used by the weaving plants to create products, which attract all demographics in the Northeast America.
Current Challenges in the market:
The following challenges lurking round LBS Textiles manifest threat of existence.
The price discounts offered by the weaving plants in China and other countries in the east, are attracting markets towards them causing shutdown of US weaving plants. This is affecting LBS Textiles because the market now tends to buy substitutes directly from the east and its clients are closing down their plants. LBS Textiles is confined to Northeast America and needs to expand to reach out for more weaving plants across the nation and around the globe. People in the company are still working on legacy systems and have no acquaintance with new technologies.
Strategic planning:
LBS Textiles’ strategy is to expand across the nation and also establish itself in the global market. The existing legacy systems hinder the ability to effectively communicate with all units and clients in the market sphere that LBS Textiles wants to expand to. Current conventional ways the firm adopts for designing and distributing the fabric to the weavers, will take longer when the span increases globally. The homegrown legacy distribution and accounting systems are outdated and need replacement.
The fact that LBS Textiles has grown considerably in the past three years indicate that it has people with expertise that know the business and the internally developed distribution and accounting system works. This trait can be leveraged to build systems on par with the new technologies. An addition of 25% of personnel, expert in modern technologies and equipments would enhance the ability of the firm to start an e-business system that would enable LBS Textiles make a global presence, capture the national and international markets. Increase in the number of clients that LBS Textiles can reach out to will increase the volume of trade. The increase in trade brings in direct returns to the company. The expansion of markets and increase in clients indirectly increases the volume of sales and aid in boosting the returns to LBS Textiles. The company needs to evaluate the demand of the various demographics across the globe and develop newer attractive designs. The Research of newer technologies or designs to attract newer markets and wider demographics will incur expenses but the successful outcomes when channelized through the development teams produce the actual product for direct...

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