Tefron: The Quest for Growth

Description:

Tefron, based in the north of Israel, is one of Israel leading exporters of premium fashion apparel. It is also a world leader and pioneer of apparel based on seamless technology. The company has three main product lines, intimate apparel, mainly sold to Victoria's secret, active wear, mainly sold to Nike and swimwear, which are divided across two divisions, cut and sew and Hi-Tex (seamless). In 2006, Tefron posted sales of $188m; its objective is to increase sales to $400m in four years, with an operating margin of 20%. The challenges it faces in achieving these goals are considerable. In order to provide the solution to this dilemma, there are several possibilities. Tefron can use its existing products to expand into new geographical markets, such as Europe, or the Far East. It can also seek to expand the number of customers that it sells its products too. Equally, the company could enter new products, such as socks, etc.,. It can diversify across different market segments, targeting the mass market, for example. It can also develop further along the supply chain, creating the brands that represent the greatest added value in the industry, or even by creating a retail presence. What is certain, however, is that as with any company, Tefron has limited resources and cannot do everything at once.