Swisher Mower and Machine Company Situation AnalysisA. Industry In the lawn and garden industry, 74 percent of sales in 1995 came from finished products, such as lawn mowers. Sales of ride-on lawnmowers are very seasonal. Front-engined mowers were considered by consumers to be more powerful, while rear-engined mowers were considered more capable of handling large jobs. However, front-engine mowers were the most popular. In 1995 there were ten major competitors in the industry. Sales of private-label lawnmowers were on the rise. 65-75% of the industry's total sales came from private labels. National retail chains contributed 24% of OPE.B's retail sales. CompanySMC is a relatively small manufacturer with a long history and a strong brand image. Sales had been steady for the last 5 years or so when SMC received a proposal in early 1996. They were currently selling three main mowers. A zero-turn mower, the Ride King, which accounted for 63.6% of SMC's total sales and 57.8% of total gross profit in 1995. SMC sold a trail mower, the T -44, which represented 8.2% of total sales and 13.2% of total gross profit. They also produced push mower kits, which contributed 8.2% to the total gross profit. Spare parts sales made up the remaining 20% ​​of total sales and 29% of total gross profit. SMC had the Trim-Max to introduce as a new product line. SMC currently distributed and sold to retailers, wholesalers and private brands, as well as in Europe and the South Pacific. Approximately 75% of total sales came from non-metropolitan areas. Wholesalers accounted for 30% of ride-on mower sales, and 25% of sales came from direct-to-dealer accounts. Private label sales accounted for 40% of total sales and foreign sales 5%.C. TrendsSMC could expect the steady sales trend to continue. Industry forecasts expected sales to continue to increase in the coming year. The industry continued to see growth in private label. Problem Definition Would it be more profitable for SMC to enter into a private label distribution agreement with this retail chain or continue operations in SMC's current market niche and wait for other opportunities? AlternativesA. Identification of relevant alternatives