New Venture Creation - Assignment Example

New Venture Creation Product Offered Due to interest in the clothing business and other wearing attires, the business adventure I will pursue will provide clothes and other attires from around the world. The need to provide people with a differing background of the needed attires has been part of my plan as a business venture. In the business, we will offer a variety of wears for different age groups, gender and occasions. We will supply men attires that match the occasions. The stores will have suits from various sources to fit a variety of taste relating to different cultures including those from designer. They will range from the Italian hand made to those locally produced with differing qualities. Men’s shirts will be another area to make our customers rely on us. In addition, our stores will supply other men’s wear including the footwear, ties and quality vests. The introduction of casual wear for men will take place later. On the women’s side, our store will have trending dresses and shoes from the latest fashions from all over the world. The variety will include clothes for official functions and casual environments. The stores will have particular areas just for the women inner clothes from various fabric producers with differing brands including panties and bras. The footwear will include most variety of the trending designs. Other ranges for women needs will include handbags, sweater and hats. To boys and girls, we will have a variety of clothes and footwear for differing brands to match their needs. These attires will include modern fashions and styles that are more preferred to young people. For the boys, attires will be similar to the men’s with the addition of casual wear in shoes, t-shirt and jeans trousers. In addition to these attires, we will also distribute backpacks with known logos to our clients through our stores. In future, the store will also supply other products such as sportswear, nightwear for men and women, towels and bed sheets. USP and Difference to Competitors Our Unique selling point for the business will read, ‘We only supply the best quality wear from around the world with a variety to choose from at affordable prices at your convenience’. We embrace diversity in providing a variety of clothes to our customers from different manufacturers and cultures around the world. A New business will never lack competitors to their business and any starting company must have unique selling point in order to succeed. The presence of competitors causes the need to have USP that enables customers to notice the business hence prosperity of the business (Sutherland and Canwell, 2008 p. 283). Most of the cloth vendors in London deal with only single brands of wears from a particular country. These departmental stores form our main competitors due to their locations and competitive prices as they can acquire their products at cheap prices. Retail shops that provide the same services offer prices that are higher than the vendors are and that is where our business comes in. As a new type of business, we will provide a variety of wearing products from different brands that vendors do not offer. Concurrently, our prices will be lower than that of other retailers who supply more than one brand line in London. The variety of products will draw customers from already established vendors while the low price and diversity will ensure that customers who like choosing from the varieties at retails find a better price than before. Our stores will provide the known product through unique services that no other distributor in London use. However, some of the products that are of high quality that we will present are not present in London but trending in other countries like USA. These will ensure the customers’ needs are met at different levels including the tourists that are visiting the city. By supplying our customers with the best wears from different cultures and manufacturers in a number of regions, we will be able to meet all our customers demand. The diversity in need and variety in fashions offer us better chances of competing in this clothes market with the possibility of expansion in future. The dynamic fashion and needs are coming from all over the world offer us a chance to have a number of products in our stores that increase the convenience of customers to buy from our stores. In addition, we will have an inspection team to different manufacturers through an agreement to check the quality of products before leaving the manufacturing sites. This strategy will ensure we only deliver reliable products and increase customer confidence in our products. The dynamic trend in technology is advantageous in solving the feedback problems and managing the inventory. The feedback will enable improvement in areas where customers have problems to suit their needs in fighting the competitors (Heidrich, Oivo, Jedlitschka and Baldassarre, 2013, p. 361). Most of the competitors already have these systems and making it easier to use will go a long way in assisting our customer in purchasing products online. The combination of variety in products, low prices and technology will help the company to gain more customers fast and retain them. How Customers Get the Products Distribution forms part of marketing strategy to any business organization in winning customers (Ferrell and Hartline, 2010 p. 11). The need to satisfy the customer needs for the prosperity of the business makes the company take various precautions and measures in acquiring and delivery of the products. We will open a number of shops in London and the surrounding environment from the start in reaching our clients. Professionals in the store will help our customers in choosing the best type of product that take care of their needs and situations will serve the customers who come to the outlets. The monitoring of the inventory system through computerized means will ensure timely delivery of products before they run out of stock. Some of the suppliers will also have access to our stock in relation to their products to ensure timely delivery of goods. To deal with this problem with supply, we will have a precaution to store goods that come from distant countries as a precaution measure to make sure that our clients do not miss anything the company supply. Systems must be present to monitor the trend of buying the products that move faster than the rest. This information is vital in timely acquiring of the products for stocking in the store. Our stocking system will also ensure that the stores do not run out of any product that the customers need. Personnel working in the stores will need training in reading the expression of customer and suggest what is best for them (Cook, 2011, p.91). Personnel will first listen to the customers need and act on them accordingly in order to retain the largest number of customers. Otherwise, clients who come with specific needs will have their products immediately without any explanation. This strategy will provide a better customer relationship between company and clients. Due to the availability of the technology system and advancement in the business system, we will supply orders made through online services to our customers at their convenience (Bluschke, 2011, p. 9). Technology also offers a good way to manage the business and get feedback from the customers. The technology will have two segments that include strategy and operational layers (Andriole, 2008 p.2). Details of the products will be present in the company website with an update on any changes, prices, colour and sizes of the attires. The system also makes it easy for our busy customers to carry out their shopping from wherever they are. Delivery of the products purchased through our online system will take place within 6 hours during the day in London. However, delivery of orders done at night will take place the following day within six hours starting from 6.00 am. Delivery for online purchase orders to other parts of the country within United Kingdom will take approximately 24hrs. This system will ensure our customers can plan with the products and get timely delivery of their products. Most of the upcountry delivery will take place through the courier systems while delivery within the city will be through our distribution system using our employees. Market Analysis Any starting company ought to know who will be their potential customer (Wenzel, 2012, p. 24) and why their customers will buy from the company and not from the competitors. Being a company dealing with wear products, virtually everybody living within London city and those who have come to visit the place. The employed personnel working in London offices have the ability to get best attires for their workplace. International university students learning in the city will have an opportunity to buy attires from their cultures. These include suits and footwear from different continents. Designing of the footwear will meet the excellent standards to maintain the high quality of the products needed by our customers. The market of the products will also extend to those living in upcountry through online trading systems. With time, other branch stores will remain opened in other parts of the country and continents after the proper establishment of the business. Other customers include the residents in the country who buy their regular clothes but need a variety and high quality. The products from some of the trusted local producers will also be available for our customers to purchase from our stores. An inclusion of local and international products will ensure that we meet the customer need, in the city and upcountry in the attires that they need. Most of the customers will buy from our stores due to a variety of brands, high-quality products and low prices in the market. The variety will assure customers that they can be able to find whatever type and brand of attire that they are in need of using. The current large stores mostly provide single brands that do not give customers a number of brands and quality to choose. In addition, some of these brand names may be expensive yet the qualities are the same. In the retail shops that have a variety of products from different manufacturers, the prices are high and most lack the delivery systems that we will offer to our customers. The Industry of Operation The industry will operate as a wear retail store with a number of branches within the city and possibility of expansion to other regions after establishment. This retailing industry has many participants including some of the one-brand stores in the city. Other participants are small retailers shops that sell a variety of products that may include what we will supply. The small number of customers is one of the biggest challenges that we are bound to face at the start of the operations. The primary participant in this industry include Mark and Spencer group that sell a number of brand attires and other products to customers with high rating in the quality standards (Plunkett, 2008, p. 1). Our intention in business is to eliminate the distribution company that raises the cost of goods by direct sourcing from the manufacturers. This strategy will ensure that we can provide our customers with the lowest prices in the market. Sourcing from the manufacturers will take place in large quantities to reduce the costs accompanied by small purchases. Distribution to our chain store will ensure that the customer can get all the products that we retail. From the stores, customers can order online shopping goods for delivery or visit the stores and pick the product by themselves. The buying pattern from our customers will determine the restocking cycle of the store depending on a particular product. Competitive Landscape In business, there is need to understand the competitor and their strategy for finding a ways of gaining customers (Gulati, Mayo and Nohria, 2013, p. 91). Knowing the competitors strategy and strength is essential to any new business in finding ways to succeed in the market by implementing better measures. The products of the competitors play a great part in the determination of the landscape. Competitors like the M&S have products that some we will supply to our customers. This type of competition leaves us with the opportunity to find other better ways in fulfilling our customers need. A vital way to deal with this is supplying the products to our customers at low prices compared to the competitors selling prices. The best way to get low prices this is through the bulk purchase of the products from the manufacturing companies and getting the lowest prices. In addition, we will source more variety of products than most of the competitors to give the customers a variety to choose. Better delivery systems than our competitors are another way that our company is looking forward to investing in to win customer loyalty. Better delivery system ensuring the customers get their products I with the required time and in well condition is necessary for customer satisfaction. Improvement in delivery time after establishment will go a long way in taking care of our customers need. At the present, there are larger companies in the market but this only offer a challenge. We must overcome all these challenges in order to succeed and have a sustainable business. Quality products will also ensure our customers keep buying from our store. Current situations require a business to meet international standards in order to survive in the market (Hoskisson, Hitt, Ireland & Harrison, 2012, p. 8). Moreover, the trained personnel and fashion designers will take care of clients in professional way to ensure meeting the customers’ need. Financial implications Every starting business or venture has financial implication in the management of the business (Jakhotiya, 2003, p. 172). The business will have high initial costs due to buying of most of everything including products and internal partition and decoration of the stores. The cost of importing products from different continent may be overwhelming. However, it is better than taking these products from other distributors who sell them at a higher price compared to importing them from manufacturing company. For products produced locally, the cost of transporting the items to the stores also will have some effects. Other costs include renting houses to have a store in areas that we do not have houses. The rented houses will need decoration to meet the standard of stores. These expenses have to come from the initial capital for starting the business. Hiring of the personnel will also cost on the account of the recruitment process that will also depend on the position of the employees (Hall, 2010, p. 1). The financials management will have to consider salaries and taxation to the company in paying all the employees. There is also cost in purchasing the transportation vehicles to deliver the product and signing contract with the courier services in upcountry delivery. These services are vital at the start in meet the customers’ demands. Lastly, the creation of an online system where the customers can be able to purchase the product, maintain inventory and management of the stores will raise the cost. There is a requirement to take care of the costs before starting a business in order to have a smooth operation in business that satisfy customers’ needs. Bibliography Andriole, Stephen. (2008). Best Practices in Business Technology Management. Boca Raton, Florida: CRC Press. Bluschke, N. (2011). Factors influencing consumers' intention to purchase clothing online. München: GRIN Verlag GmbH. Cook, S. (2011). Customer care excellence how to create an effective customer focus. London, Kogan Page Publishers. Ferrell, O.C. & Hartline, Michael. (2010). Marketing Strategy. Boston: Cengage Learning. Gulati, Rannjay., Mayo, Anthony and Nohria, Nitin. (2013). Management. Boston: Cengage Learning Hall, Josh. February 18, 2010. 5 financial implications of hiring additional staff. Simply Business. Web. April 6, 2015. Retrieved from http://www.simplybusiness.co.uk/knowledge/articles/2010/02/2010-02-18-five-financial-implications-of-hiring-additional-staff/ Heidrich, J., Oivo, M., Jedlitschka, A., & Baldassarre, M. T. (2013). Product-focused software process improvement: 14th International Conference, PROFES 2013, Paphos, Cyprus, June 12-14, 2013. Proceedings. Heidelberg : Springer Hoskisson, Robert., Hitt, Michael., Ireland, Duane., and Harrison, Jeffrey. (2012). Competing for Advantage. Boston: Cengage Learning Jakhotiya, G. P. (2003). Strategic financial management. London: Sangam Books Ltd. Plunkett, Jack W. (2008). Plunkett's Retail Industry Almanac 2009 The Only Comprehensive Guide to the Retail Industry. Houston: Plunkett Research Ltd. Sutherland, Jonathan and Canwell, Diane. (2008). Essential Business Studies A Level: AS Student Book for AQA. Dublin: Folens Limited. Wenzel, A. M. (2012). The entrepreneur's guide to market research. Santa Barbara, Calif: Praeger. Read More