Business Strategy

W. Alboum Hat Co. faces competition within their area of expertise; however, with the quality and value for what their customers receive, they are able to stay on top. In order to assure speedy delivery W. Alboum Hat Co. uses a push method strategy and it is evident that this strategy is what works for them. While visiting the factory we saw that there were a couple of levels above the main floor with rooms filled with inventory waiting to ship out to customers who had placed orders. In addition there was inventory set aside that was prepared to be shipped for future orders which needed to be rushed. While researching, there were very few factories that had an “immediate delivery” option on their website, most of them were made-to-order and therefore a wait time was inevitable. Another factor that sets W. Alboum Hat Co aside from its competition is their product line. While researching most hat factories are in the South, more specifically Texas. These factories focus on the glitz and glam of the cowboy hat and some even give tours of their facilities. W. Alboum Hat Co. decided to go in a different direction and that was to produce a line of hats for the government such as postal service and sheriff’s hats. This was able to reach an entirely new market, not just one within a radius of the factory who might be able to enjoy a tour. The competitive capabilities possessed by this company would include their cost, quality, and time. They sell their hats at an extremely affordable price. The average hat price ranged from $200- $600. In a factory that is based out of Newark, New Jersey, their hats start off at $500 and can go over $1000. The quality of their hats is backed up by warranties and a long-lasting, successful customer base for over 70 years. The time that is put into each hat is very crucial. Although they are able to make roughly 300 hats per day, there are over 150 steps that go into each step to ensure absolute satisfaction. The overall impression was that W. Alboum Co. strives to be an order winner with great quality at affordable prices which produces long lasting customers who continue to return for more.