California State University
Dominguez Hills
College of Business Administration and Public Policy
Carson, CA 90747
(310) 243-3548
FAX (310) 516-3664
Name: Isabel Padilla Grade: _______________
Date: 02/29/2016 _________
Case #: 3 Case Name: Vermont Teddy Bear _______
1. How would you describe VTB’s business model (the products and
services it sells, target market’s to whom it sells them, the value
proposition it o”ers, and its financial model)?
Vermont Teddy Bear is a company that sells a variety of gifts for special
occasions. Their main products are teddy bears, -owers, and pajamas. Their
target market are adults and children as well. Their value proposition consists
of giving customers the option to customize their gifts. For example, teddy
bears can be bought with a variety of costumes and accessories. Customers
are also able to make their orders by phone or online to make their purchases
easier and faster. Vermont Teddy Bear’s financial model is based on consumer
trends and customer demand. They analyze what customers are buying and
anticipate large sells on holidays like Valentine’s Day.
2. How strong are VTB’s operational capabilities, given their chosen
business model? What challenges do they face during so-called
“peak experiences”?
Vermont Teddy Bear’s operational capabilities are not as solid as they should
be. They need to update their information system and debug it to ensure that
all orders during peak experiences are ful5lled. Although to do so Bob Stetzel
would have to reorganize his IT team to work on improvements.
Unfortunately having only seven people part of the IT team is at his
