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Case Analysis Cutco Corporation

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Case Analysis for Cutco Corporation

Define the problem
How the company could grow revenues to $500 million for the next five years with the ultimate goal of reaching $1 billion annually in a decade.
Decision Factors (alternatives and uncertainties)
1) Recruiting Approaches: Recruiting is an obvious driver of Vector’s revenue growth. Additional investment is required to improve the recruiting approach. * Most of Cutco Revenue comes from Direct Sales * Use of Social media for recruiting * Recruiting students for winter and spring vacation beside summer vacation * The process is costly and time consumable.
2) International Expansion: Given the state of the present global economy, it is important to capture international market and gain some shares to make more revenue. * Cutco should gain shares in countries which are having decent GDP per capita and are U.S product friendly * International brand awareness is required * There is a high risk based on the company previous experiences
3) Supplemental Sales channels: The company should use the Internet channel beside catalogs more frequently to increase revenue. * Online shopping trend has been growing significantly * It could have negative consequences for the direct selling program * Low cost to implement this alternative
Relevant Information
Consumer trends: * People buy from the individuals they like, and there is no better way to make a solid first impression than face to face. * Online shopping trend has been growing significantly
Competition:
* Three main competitors: J.A. Henckles Zwillingswerk, Inc, Wusthof-Trident and Shun Cutlery. * Henckles is the largest competition. Their retail sale is similar to Cutco. They have similar price for comparable items.
Strengths and weaknesses: * Cutco is a 60 years old company * It has

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