MGNT 450 Midterm - With the current market trend it has...

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With the current market trend, it has become increasingly hard to survive competition. Most companies strive every day, spending an incremental part of their budget in researching and developing new ideas that will be the foundation of another competitive edge to help keep the business alive. This paper studies the fundamentals of a company that uses a very unique way that has helped them to continuously add value to the company overall existence while they’ve managed to be one step ahead of competitors. At Threadless , the customer is the company. Threadless is a community-centered online apparel store founded by Jake Nickell and Jacob DeHart in 2000 with just $ 1,000. It’s a success story most of us only dream of: Think up a great idea, build a company fueled by nothing but passion and love of art and humanity, blink and suddenly you’re making millions, without compromising your ideals. Members of the Threadless community submit t-shirt designs online; the designs are then put to a public vote. A small percentage of submitted designs are selected for printing and sold through an online store and the winners receive a prize of $ 2,000 in cash, a $ 500 gift certificate (which they may trade in for $ 200 in cash), as well as an additional $ 500 for every reprint. Because community members tell the company which t-shirts to produce, Threadless never produces unsold t-shirts. This is why it generates more than $ 17,000,000 in annual sales with a 35% profit margin with a growing community. At Threadless, customers design their own t-shirts and help improve the ideas of their peers. They screen and evaluate potential designs, selecting only those that should go into production. Since customers commit themselves to purchase a favored design before it goes into production, they take over market risk as well. Customers assume responsibility for advertising, supply models and photographers for catalogues, and solicit new customers. Surprisingly, customers do not feel as though they are being exploited. In fact, they show great enthusiasm for
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MGNT 450 Midterm - With the current market trend it has...

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