New venture opportunity - Essay Example

HUMAN RESOURCE ESS Designs New Collection of Jackets ESS Designs is a clothing line company that will focus on having a modernand fashionable appeal to all people regardless of their gender and ages. The concept behind this new business venture is the fact that fashion and beauty have become trending aspects in the society and thus many people are investing more on looking good. As a new start-up company, there are a lot of themes that can be explored in the fashion industry. However, as a matter of preference, ESS Designs will offer its services to all people and not just a specific group. Being a clothing company, the idea behind ESS Designs is to come up with an appealing brand that will not only invoke a distinctive look in the fashion industry, but it will also offer all the clients a feel of both simplicity and class. At present the clothing/fashion industry is quite competitive and thus for ESS Designs to distinctively stand out, we will focus more on promoting each category of clothing. To start with, the company will have three categories: men’s wear, women’s wear as well as children’s wear. With a wider range of clientele the focus of ESS Designs is to effectively promote the three categories equally without any neglect on a specific category. The main aim of ESS Designs will be to provide a simple, classy and well-tailored look for all our clients. We not only want to provide a distinctive look but we also want to be recognized as a trend setter in the clothing industry. To start of the new company, the first range of product that ESS Designs will focus on will be a collection of jackets for women, men and children. Based on the research that the appointed team members of ESS Designs have conducted, there have been a lot of customer’s requests that have been made by various customers on the scarcity of jackets’ design. Therefore, building up on this, the first range of product that ESS Designs will focus on will be on a collection of jackets for all our targeted clientele. As a start-up company, ESS Designs will first operate on a small geographical region. However, it is evident that with the inception of technology our client reach may go beyond the borders. The company will be located in the United States in Pennsylvania. This is where our headquarters will be. Nevertheless, ESS Designs will embrace the use of advertising and public relation to make our new range of product known and also to build up on the image of the company. It is also worth noting that the prices of our products will be quite pocket friendly thus aside from quality will strive to ensure that our targeted consumers are well catered for with regards to the pricing range. In order to examine the impact of this new venture, a thorough SWOT analysis will be conducted on ESS Designs. A SWOT analysis is simply a well-structured planning method that is used to assess the strengths, the weaknesses, the opportunities as well as the threats that a business venture or a project may be subjected to (Pahl, 2007). SWOT Analysis: ESS Designs new collection of jackets. Strengths Current Location Pennsylvania has high traffic near the company’s main shop. This will draw more potential customers. Pocket friendly prices. High quality products with materials sourced from the best suppliers. Innovative sales techniques. Successful relationship marketing. Competitive advantage supported by the pocket friendly prices. Weaknesses Small store size. Company name is not well known. As a start-up the company’s reputation is not well built. Team members and manager have few experiences in the clothing industry. Opportunities Increase in geographical coverage. Increase in client base. Application of the use of technology like the internet to enhance the business. Competitors have high prices for their products. High demand for a collection of jackets. Threats The changing trends in fashion may tend to shift the interest of our customers to other product ranges. Change in weather may impact on our sales depending on the specific product design. Increase in the rent of the company premises may impact on our margins. Staff capacity is low in the course of having a high demand it will be difficult to deliver on time. Below is a detailed description of all the four concepts of a SWOT analysis and a further analysis into each of the factor stated in each concept: Strengths Strengths are mainly described as the various features of a business that gives it an upper hand or rather a competitive advantage against all its competitors. Strengths are a significant aspect in any business venture, as it is through them that a business can be able to increase its sales and profits (Fine, 2009). ESS Designs will focus on the collection of jackets as the first range of products in the market that will be meant to establish the brand. The strengths of this new business venture are quite wanting. To start with, ESS Designs has the best suppliers on call who will guarantee us of good quality materials for making the various designs of jackets. It is through delivery of good quality of products that we will be able to build up on customer loyalty. Being a start-up it is important that the targeted consumers are pleased with the quality of the product that will offer them. Secondly, ESS Designs will have a competitive advantage over the other similar companies because of the pocket friendly prices given to each product design. Thus ESS Design will not only focus on providing quality products but it will also ensure that the targeted consumers can easily purchase them. The use of technology has proven to be an effective tool in the retail industry, hence with the use of advertising and public relations by ESS Design whereby the adverts and PR campaigns will be conveyed through the internet it is evident that the company will have impressive sales. Therefore, based on the analysis of the strengths I believe that this venture will be worth the risk. Weaknesses Weaknesses refer to various features that mainly put the business venture or the project at a great disadvantage compared to its competitors (Fine, 2009). In this case the weaknesses that are facing the venture in this context are: small store size, company name not well known and the management team not being conversant with lots of experiences regarding the clothing industry. ESS Designs is a new start up and thus it has a small size capacity. This factor may limit its production capacity and it is possible that the company will not be in a position to take in large customer orders requests. Another factor is the based on the fact that the company’s name is not well known. This will of course make it difficult for the company to promote its product within the first months of the sales. It may take some time before the company is fully recognized on larger market platform. Additionally, the management team of the company are new to the industry and thus their experience in the fashion industry is quite limited. This analysis proves that the weaknesses of the new venture cannot be avoided though with time depending on the sales techniques used, the company will overcome the challenges. Opportunities Opportunities refer to the specific elements that a business can explore with regards to the advantages that it possess (Bohlander & Snell, 2010). ESS Designs has the capacity to increase its geographical coverage as well as its clientele base. Regardless of its small size, through the use advertising and public relations techniques on an online platform ESS Designs will be able to reach a wider range of customers from various regions beyond the local area. Additionally, based on research conducted by the management team the company will be able to have a high demand for jackets due to customer requests made previously to other companies in the industry. With regards to price and the affordability of our products the company will be able to gain a larger customer base within the first few months of its operations. This analysis thus supports the adaption of the new venture. Threats Threats refer to the elements which may cause trouble for the new business venture (Pahl, 2007). In this case there are a couple of threats that may affect the new business venture. First of all, the fashion industry is ever changing based on trends. Thus the business may face a situation of losing its customers for a new design or trend offered by another company. Secondly, jackets are usually meant for winter and rainy seasons based on many people’s perception hence during the summer season the sales of jackets may decrease drastically. Thirdly, if the rent of the company’s premises increases the margins of the sales will also be affected. Lastly, due to the small size of the company the staffs are limited and in case of an increase in the customers’ orders the company may fail to deliver the products on time. Conclusion In conclusion, based on the SWOT analysis conducted on the new business venture of ESS Designs, I believe that the strengths and opportunities are much stronger that the weaknesses and threats thus the venture will be able to flourish in the long run. The weaknesses and threats can be amicably looked at and in case of any preventable approach ESS Designs can adopt it for future purposes. Therefore, based on the thorough SWOT analysis of ESS Designs the introduction of a collection of jackets for men, women and children will be a good venture. References Bohlander, G., & Snell, S. (2010). Managing Human Resources. Mason, OH: South-Western Cengage Learning. Fine, L. (2009).The SWOT analysis: Using your strength to overcome weaknesses, using opportunities to overcome threats. S.I: Kick It. Pahl, N. (2007). SWOT Analysis: Idea, methodology and a practical approach. Munchen: Grin. Read More