1. MBA643 Project Initiation, Planning And Execution
Answer:
Introduction
The clothing industry at present is a billion-dollar industry that has helped make some of
the most crucial businesses rise to the top. With the increasing Economic Growth in the
world people's capacity to buy new clothes and indulge in New shopping-based designs has
also increased rapidly. However, the increasing amount of waste that is being caused due to
the increasing number of fast fashion brands emerging is in many ways concerning. Fast
fashion has also reached its peak, which is in general brands that sell clothes that are
created from artificial materials and are prominently cheaper in price and are replaced
regularly within the clothing brand collection (Towbin et al.2018). The ability to buy more
clothes at a cheaper price has created this issue where there is a higher amount of waste
that comes from unused clothing items which are not biodegradable. The following
operational plan is associated with the business idea that focuses on creating recycled label
clothing in the current industry in Australia. The following work will analyze the different
prospects of the industry, including its marketing as well as operations and finances to
better understand how it can survive and succeed in the current market.
Overview Of The Company And Industry It Serves
The following companies will hold the idea of creating clothing items from previously
created clothes by simply taking in the material, or in many cases taking an old piece of
clothing and giving it a new retouch of its own. This will not only ensure you utilize a
clothing item to its fullest, but will also a sure to reduce a major amount of waste that is
being made with clothing (Bugwandeen and Ungerer 2019). The brand which is purely
based in Australia in the specific zone of Queensland, intends to grow and further make this
specific business idea into a Nationwide and further global wide idea. The company and its
reach to the general form of cloth that can be recycled are done by them getting in contact
with other fast fashion brands in the market who are unable to sell many of their pieces due
to the very fact of them manufacturing extra amount of cloth which they generally through
away (Smuts, van der Merwe and Smuts 2020). The company also focuses on gaining this
specific type of clothing materials from small stores and other people around the areas who
intend to provide clothes that are not in an extremely bad condition but are not used by
2. them at the moment.
SWOT Analysis.
Strength
-Unique business idea.
The company has a distinctively unique and different business idea from any clothing brand
in the market.
-Socially sound.
Unique business idea in many ways has a specific form of positivity in itself due to the very
concept of newness that it holds along with the social concept that it promotes.
Weaknesses
- relatively new.
The business idea is relatively new and establishing it into a proper enterprise will be a
time-taking process (Elliott 2017).
- the difficulty of establishment
The idea of collecting old clothes from people and then recreating them into rare and new
pieces is a difficult idea to pull off as there is no specific supply chain process present.
Opportunities
-global growth
The brand can create very easy access if it has been able to establish itself in Australia, in
other countries, as this idea can be adopted anywhere is really.
-online growth.
If the business could reach out to people online, it could have a far superior response than it
has at present (Shi et al. 2017).
Threat.
- competition.
3. The business in its own way can have competition issues as the idea can pass from one
company to another extremely easily.
- quality issues.
Quality is something that makes or breaks a company, and if the band is unable to maintain
the same with older clothes, there is a chance of damage.
Pestle Analysis.
Political Factors.
Political forces that have dominance over decision-making in factors like the supply chain
and production can create a huge impact on the clothing industry.
Economic Factors
Economic factors can impact a business prominently (Shaik and Dhir 2021). The economic
condition of the country or the economic situation of the market itself can play a key role in
creating this issue.
Social Factors.
Social factors play a very important role in the clothing industry as the perception of the
general public is something that drives the industry completely, like fashion trends and
customer preference.
Technological Factors.
New technologies that can help create any change in the industry or new technology which
can make attaining this service different is something that is a prominent factor in the
clothing industry.
Legal Factors.
Legal factors like laws and different motions are passed to create changes in the functioning
of a specific industry.
Environmental Factors.
In recent times the factors that are driven towards creating change are a prominent aspect
for the growth of any clothing company and environmental factors play a very integral role
in making any brand within the clothing industry grow bigger and even become
environmentally friendly (Rise and Steinsbekk 2016).
4. Legal, Regulatory And Insurance Considerations.
For initiating any business within Australia there are some specific legal and regulatory
along with insurance considerations that need to be taken into account. For the following
companies overall, having proper permissions and licenses is important to establish along
with proper risk insurance to stabilize the business if any form of issue occurs. Other than
that, for the nature of the very business, there should be many legal contracts that the
company should sign with its partner brand who have given the word of providing old
clothes to the brand to recycle the same.
Business Model Canvas.
Fig-1
Company's business model Canvas is comprised of understanding factors like the key
partners which for the following company is the logistics which will not only play a key role
in delivering the product to customers but also utilizing the Logistic to bring forth clothes
from brands that can be recycled. It will also be accompanied by the idea of manufacturing.
Further ahead, the brand's key activity will be to take in older clothes and design new styles
of the same and to distribute and sell them to new customers (Plan 2017). The value
proposition is focused too, not just on bringing in customers based on the latest fashion and
creative designs but also on the experience that it creates to buy recycled cloth and a sense
of social satisfaction. Further, the company's business Canvas model is driven by the
customer segment who are environmentally aware of the factors of utilizing recycled
clothes, which are something that the brand can create as a focal point for establishing a
loyal customer base.
Marketing.
Current Target Market And Market Segmentation.
To better understand the current target market of the company, it is important to
understand the prime segmentation of the company.
There is a prominent scope of segmentation for the brand which comes from the
segmentation of Geography, which is the area and the country itself as the brand is
established in Australia and at present is focused in the territory of
Queensland (Nwachukwu and Chladkova 2019). Primary segmentation that can impact
target market understanding is a psycho-graphic market segmentation strategy. many
people make a purchase based on their values and personality, which is something that is
the driving point of the brand. The company caters to the primary concern of increasing
5. waste through clothing, which as a suggestion can be a value on which many people can
follow up . Apart from bad behavior segmentation is also something that can be the prime
prospect of market segmentation as the whole concept of behavioral segmentation focuses
on engagement and the intent it holds. People who will purchase this clothing item will have
the intention of supporting the cause and the idea of utilizing clothing to its very end.
This further puts out the idea of the target market being people who live in Queensland
along with having a sense of understanding towards the issue of increasing pollution in the
world (Margherita, Sharifi and Caforio 2021). People who have the intention of focusing on
a world where the clothing industry and fast fashion cannot become another cause of
pollution that is not biodegradable and help utilize those clothing to its very end.
Direct And Indirect Competitors Of The Brand.
Direct Competitor.
At present this idea of creating recycled clothing is still not considered a full-fledged
business idea, yet few alternatives can be seen in the market. The global fast-fashion
company h&m has recently launched an initiative by the company, recycling its old
connection and launching the same again with a new style. This collection, however, is still
not present in Australia and is in the process of being conducted in America but with the
progression of this company, this idea can come forward to Australia as well.
Indirect Competitors.
The biggest indirect competitors of the brand come from retail second-hand clothing stores,
which sell clothes to people at very cheap prices (Lee, Kim and Lee 2016). Often referred to
as thrift stores, they are already extremely popular in many cultures and have also created
an interest in Australia.
7 P Of Marketing
Product
Environmental friendly recycled clothing.
Promotion
Utilizing social media as well as traditional media in combination with creating PR with
companies that are working together with the brand in providing clothes.
Price.
The pricing will be extremely nominal as people will not invest the higher amount that is
used for old designed clothing.
6. Place
The online platform of the company and retail stores in major spaces of Queensland.
People.
Individuals who are interested in investing and believing in the idea of using clothes till the
point they have not lived their life fully.
Process.
The brand will be completely customer focused which will help it become a prominent
name in the industry (Lampaki and Papadakis 2018).
Physical Evidence.
Engagement on social media platforms will be taken into consideration as an online
experience and a positive product packaging as the company will only use biodegradable
materials for the same.
Key Strategies and tactics to use in marketing the business.
- focusing on customers, specifically young-aged customers, who are more aware of issues
like waste management.
- promote the brand idea as the next concept of the clothing industry which will be followed
by everyone.
- presenting facts around how the clothes-based industry creates major waste and non-
biodegradable content.
Business Expansion.
After covering the market of Queensland, the brand should focus on expanding itself based
on basic Market Research that recognizes that is like demography along with
psychographic and behavioral segmentation, to pull customers towards the brand and
become and create a better target market. This target market apart from Queensland can
easily be found with the demographic extension to New South Wales (Elliott 2017). The
nearby extension will help the brand save money in the process of growth as nearby
demographics and create change and can create a more systematic cycle of growth for the.
Operations.
7. Staffing Requirement.
As the company is in a very initial stage, the most important staffing requirement is
innovation. The company in its early stages will outsource people who can create new
designs and can pay every individual who creates new recycled designs with old clothing for
every piece of clothing that they rediscover. In terms of the Other internal permanent staff
were considered, most of them will be present for the idea of marketing and finances into
consideration, which will require specific training to ensure that staff understands the core
value of the company and all prospects of how the business can grow.
Technological Growth.
Technology that the brand can add will be to include an artificial intelligence chatting
system on the company's official website and social media that can help the brand interact
faster and quicker with customers and solve most of the basic problems.
Evaluation Of Business Performance.
The method to evaluate and monitor Business Performance will be to constantly compare
the financial statements of the brand (Towbin et al. 2018). Every quarter, the brand can also
come up with a more simple service system for customers to understand the brand loyalty
and customer perception around the brand and also gain perspective is what can be
changed for good.
Finances
Cash Flow Projection In The Next 3 Years.
The company's current cash flow projection is the focus for the next three years whereas
the company focuses on gaining back all the equity it has invested in the business in the
coming three years while also giving a constant profit of more than 40% in the month and
create a better scope of more initiation in the future for the brand to grow in different areas
specifically in New South Wales (Alotaibi 2019).
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