To produce yoga pants in India VS Not to produce yoga pants

in India
After completing an External, Internal, and Competitive (EIC) study of All Things Yoga's
current status, several essential elements have surfaced. The yoga clothing market has
experienced intense external competition, which has reduced profit margins. Moving
production from Costa Rica to India is also possible, which may result in a 15% cost decrease.
However, because of recent occurrences like factory fires in Bangladesh, there is growing
concern about labour and safety regulations in nations like India.

Internally, All Things Yoga has developed a strong brand identity focused on environmental
causes, social responsibility, and healthy living. However, shareholders are putting more and
more pressure on the business to increase its profitability. On the operational front, the
operations team has determined that shifting manufacturing to India could result in cost
savings.
The yoga clothing market is becoming competitive, which is reducing profit margins. In the
face of increasing competition, maintaining the brand's favourable reputation and leadership in
the B Corporation movement is essential, which makes cost reduction through production in
India an alluring choice.
A SWOT analysis identifies several essential elements to take into account. The company's
strong brand image and commitment to social responsibility, which includes active
involvement in the B Corporation movement, are among its competitive advantages.
Additionally, moving production to India offers the chance to reduce costs significantly.
The brand's reputation could be tarnished if labour and safety norms in India are violated, and
narrowing profit margins due to increased competition are other concerns. Another area for
improvement is the short-term expenses associated with transition.

Opportunities include the possibility of lowering costs through Indian manufacturing and the
potential for investigating new products or market categories. Another strategy is to use the
business's commitment to social responsibility to its advantage.
Negative public opinion is one threat, especially in light of recent events in nations like
Bangladesh and Pakistan. The chance of retaliation from customers, activists, and the media
also exists. The manufacturing industry in India is also threatened by competition.
Current circumstances are predicated on the continued process of moving manufacturing to
India, which entails short-term costs. The company's reputation and dedication to social
responsibility are its most valuable assets, and recent events in Pakistan have raised public
awareness of labour and safety issues. And to satisfy shareholders, profit margins must be kept
stable.
The difficulty of balancing cost-cutting initiatives with social responsibility, increased public
perception worries as a result of recent incidents in Pakistan, managing the shift to Indian
manufacturing effectively while minimizing disruptions and costs, and finding the ideal
balance between short-term financial stress and long-term cost reduction benefits are some of
the significant issues that need to be addressed.
Several options are worthwhile taking into account, such as establishing a transparent supply
chain to monitor and enforce labour and safety standards in India, actively interacting with
local communities to improve living and working conditions for factory workers, launching a
thorough public relations campaign to highlight the company's commitment to improving
conditions in India, and researching diversification strategies, such as expanding the product
line or entering new markets.
The board and senior management decided to move through with the manufacturing relocation
to India. To successfully implement this decision, the business should set up effective
monitoring systems to make sure labour and safety standards are met in India, allocate funds
to improve the living and working conditions of factory workers there, start a public relations
campaign highlighting the business' commitment to doing so, and look into diversification
options to increase profitability. Given the demands of heightened competition and financial
constraints, the company must navigate this shift while remaining loyal to its commitment to
social responsibility. Maintaining a solid brand reputation and public trust during this process
should be of utmost importance