eddit the grammar mistakes

Recent Marketing research shows that cotton used in some expensive cotton products are not premium cotton, such as Egyptian cotton and Pima cotton. On Aug. 19, Target Corp. said that 750,000 Welspun sheets that were supposedly premium-priced Egyptian cotton were made of some other material.[footnoteRef:1] Consumers need to know they are buying products that worth the prices. As a genetic variation and biological function analysis company, there is an opportunity for us to develop a new service in market area, which is test premium cotton products and tag real premium cotton with Illumina marker. [1: https://www.bloomberg.com/view/articles/2016-08-30/the-frayed-reputation-of-egyptian-cotton]

Environmental Impact Analysis

1. Environment Outside the Industry: There are estimated 40-45 million household are involved in cotton products.[footnoteRef:2] The huge consumer demand under the premium cotton substitution scandal expand huge potential market for our company. Meanwhile, we should be aware strong competitors like Applied DNA Sciences. [2: http://cottonanalytics.com/natural-fibers-and-the-world-economy/#more-189]

1. Economic Environment: In 2013, the world nature fiber is estimated 33 million tons, cotton takes 26 million of that.[footnoteRef:3] Statistics of cotton production from Index Mundi shows the world cotton productions are estimated 102,470.00lb in total, and the U.S takes 16,142lb of that[footnoteRef:4]. More products, more opportunities we have to start our DNA testing service. [3: http://cottonanalytics.com/natural-fibers-and-the-world-economy/#more-189] [4: http://www.indexmundi.com/agriculture/?commodity=cotton&graph=production]

1. Regulatory Environment: The Textile Act and Rules by Federal Trade Commission are stricter than the past. Labeling for fiber on products must be clear. For example, a trademark like "Pimalux" (a fictitious trademark) can’t be used if the textile product doesn’t contain pima cotton.[footnoteRef:5] Companies in fiber industry need technology backup from company like us. [5: https://www.ftc.gov/tips-advice/business-center/guidance/calling-it-cotton-labeling-advertising-cotton-products]

Recommendation

Based on the market research and analysis, I recommend our company take this new opportunity and consider apply the DNA testing for cotton products. (1). We could offer Illumina marker to real premium cotton. (2). We could disclose the process of how we testing cotton. (3). Lower the price at startup, sign long term contract with big company like JCPenny and Ikea. The SWOT analysis below shows possibility to gain profit from this service:

1. Strength: We have mature technology in DNA testing field, which help us easier get attention from customers. And we have competitive advantage competing with competitors such as Applied DNA Sciences. Because we will be disclosing the process of our DNA testing and lower the price of the service. While Applied DNA Sciences won’t disclose the exact cost of using its process.[footnoteRef:6] [6: http://www.bloomberg.com/news/articles/2016-09-22/dna-testing-could-put-an-end-to-fake-egyptian-cotton]

1. Weakness: We have no experiences within this area, it may take a long time before we get in the right and proper position.

1. Opportunity: There are huge potential market, consumer demand and strict government rules offer us a huge potential market to startup.

1. Threat: Even though we have competitive advantages competing with competitors, we still have to be aware strong competitors who already took big market share.

Based on the analysis and data, I recommend we consider to start apply DNA testing service.