Introduction
Our business deals with clothes. There are various business advantages that our business has that will favor the potential clients. This paper will analyze the internal analysis of our company. Best Clothes Company. This is an important process that will help to understand the company better. Company and product situation analysis is the assessment of a company manufacturing a certain product for a certain industry or a certain range of goods for a specific consumption. In the process of analyzing the current market is observed, the capabilities of the company to export to new markets and the competition for the same product in the studied new market. The environment in general is looked at be in internal and external.
Best Cloths Company will begin its operations as a general cloths business but will deal with cloths basing on the environment and the climate of a given location. The types of cloths that will be sold will include men cloths, ladies wear, children wear, sports cloths, and other special cloths. Best Cloths Company is a fashion company. This is a company that has branches in several countries including France, Spain and Italy. The business that the company deals on is basically manufacturing and sells clothes that are designed. The cloths of the company are a diversified lot which range from sports war, children wear, men and ladies wear. All these are designed in France and the assembly of the product will be in China. Our products are designed so that they resist wind and water. This way, they are suited to be word during winter. They also have been designed to have anti-UV and quick dry capability during summer. They are therefore designed to suit these two weather conditions. The clothes have also been designed so that they have environmental protection materials in the fabrics. This is one aspect that makes the cloths sell in these countries. The concern to have the design take into consideration these factors is something that should be considered. The manufacturers of all these clothing designs are varied and wide, but what it does is when a company has a product it allows Best Cloths Company to sell to advertise the cloths internationally and when a customer orders the goods, the manufacturer is informed by Best Cloths Company to deliver the goods to the customer or deliver to an Best Cloths Company warehouse in the three countries for onward delivery to the customer. As it stands right now Best Cloths Company operates in the developed world and it does delivery for these countries even if it has no regional office around (Haugtvedt et al 50). In our study we will consider three countries: Italy, France and Spain.
The environmental trends
The environmental trends in the business will include the operating environment with which the business will operate. Best Cloths Company will stock cloths that are in all categories. The cloths will be used by many categories of people. The company will be operating in an environment where mail order of cloths is taking shape in Europe. This is an important environmental development that will help in analyzing the situation. This is an environmental opportunity that Best Cloths Company will make use of in the business. The cloths of the company are a diversified lot which range from sports war, children wear, men and ladies wear. All these are designed in France and the assembly of the product will be in China. Our products are designed so that they resist wind and water. This way, they are suited to be word during winter. They also have been designed to have anti-UV and quick dry capability during summer. They are therefore designed to suit these two weather conditions. The clothes have also been designed so that they have environmental protection materials in the fabrics. This is one aspect that makes the cloths sell in these countries.
Economic trends
The business will be based on the economic trends of the world and especially in the three countries. The Euro is seen to be gaining strength. This is an important factor that is seen to be enhancing the development and thriving of the business. It is important to understand this trend as it will affect the clothing business that the company is to undertake. The economic trends show that Euroland encourages imports and strives to hold domestic prices at levels which are attractive to the investors and also to the businesses. It is hard for citizens in Italy, France, and Spain because of the fact that it will be expensive to do shopping in outside countries because of the high rates of foreign exchange. There are also high unemployment rate which is something worth noting in the economic trends. This trend will mean that the wage bill will be higher. This is something which will affect the business a great deal.
Italy-the rate of internet penetration has improved with the level of literacy. The market is developing with middle class burgeoning every year. The level of unemployment is quite low with more people with more disposable income to spend.
Spain-The country is characterized by high income inequality but the country is highly industrialized with a good size of the population in the category of middle class. The rate of internet penetration is rising rapidly.
France-the country is experiencing high GDP growth rate with current account surplus. Though the rate on internet penetration is still low the rapid growth will change the landscape in the near future. The country is highly populated to support any business establishing within the country.
SWOT (company analysis)
Strengths
-With the strategies that have been laid out, it is only imaginable that the business will be profitable.
-Customer relationship management supports its business strategy.
-The proposed information technology system is highly advanced to support all customer information profiling information.
-The brand that has been chosen will serve the business well. It is global without any orientation to any country
Weaknesses
-Trying to sell merchandise without specializing on specific lines of goods like some competitors. It keeps on adding new categories to its business every day.
-Free shipping to customers might be in future a source of conflict if it reviews as a cost reduction measure.
Opportunities
-The world population is ever getting larger hence a source of future business.
-It is will be selling its expertise in online business as it has had a longer experience therefore acquiring new collaborators in overseas markets. There is the tailor-making of some technology to some retailers
-Has the financial muscle to buy competitors in emerging markets and new markets
Threats
-With success every business attracts competition and hence with similarities it will be hard to make a brand differentiation
-Some cloths are seasonal with no major activities in selling when out of season like Christmas. This means lower sales.
-Establishes local competitors unable to compete locally can get into emerging markets before Best Cloths
-With the global economic slump recently some customers lost credit cards out of over expenditure and might resort to using cash to purchase in shops.
-Hackers can get credit card numbers online and misuse them hence customer abandoning them altogether (Drake 97).
Advantages and the disadvantages
Best Cloths Company can set prices of goods at the local currency, at the base country. The local will benefit from unfavorable fluctuation in exchange rate from day to another as this will lead to wiping out their income; it is beneficial when the local currency seems to depreciate against the Dollar.
The disadvantage of this is that when cloth is imported and at the exchange market, the local currency is selling at an appreciated value against the dollar. If the prices are set on the Dollar, it might result in making locally produced goods to be more expensive.
Differentiation strategy
There will be the use of differentiation strategy. There are places where athletes will be shopping. This is common in France and Italy. For this reason, the price in France will be set higher than the other two countries. Athletes are known to favor such countries as France and Italy. This will mean that the athlete clothing will be shipped to this country. Another aspect is that athlete cloths have a different market compared to other types of cloths. There will be the use of differentiation strategy when selling this type of cloth. When shipping, there will be differentiation of the cloths and the price depending on the country which the cloth shipping will be sent.
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