Management
The selected business is of boutique of small level, in which ready-to-wear garments of Asian style that comprise of shalwar kameez, will be made available to females. The boutique is providing quality clothes with latest designs to customers.
Organizational Chart
The business of boutique is included in textile industry.
Porter’s Five Forces
Threat of New Entrants
The threat from new entrants is low. This is because; Asian style ready-to-wear requires low skilled labor, which are well aware of different styles.
Availability of Substitutes
Availability of substitutes is higher, as people may wear other clothes that are available in the market. Further, they can make an online purchase from other place.
Bargaining Power of Buyers
Bargaining Power of buyers is moderate, which is because customers at individual level have lower bargaining power in the organized retail stores. Additionally, there are many other brands that are offering clothes at different prices in the market because of which bargaining power of buyers is moderate.
Bargaining Power of Suppliers
The bargaining power of suppliers is low because of bulk buying. However, now most retailers are focusing on backward integration, and are introducing their products with private labels, which are decreasing dependence of retailers on traditional suppliers.
Competitive Rivalry
The competitive rivalry is low because there are very few players, which are making Asian style ready-to-wear at national level. But, there are local and national players that are manufacturing clothes of western style, and there is high competition between national brand and retailer’s own brand.
This is a good industry to get into because there are few boutiques that are providing Asian style clothes. This business is helpful in attracting more and more customers who prefer to wear Asian style clothes, and have to visit far off places in order to get such clothes.
Direct and Indirect Competitors
The direct competitors are the boutiques that are facilitating customers with the Asian style clothes, and are offering similar products that out boutique will provide to customers. Indirect competitors are the boutiques that are providing other clothes such as trousers and shirts to customers.
Competitive Advantage
Our boutique is focused on providing high quality clothes and value to women. However, provision of top-notch customer service and reachable retail atmosphere are most significant competitive advantage of our boutique. Further, assessment of unique style that is helpful for females for developing their personal style is also a competitive advantage of our boutique. Moreover, our unique selling proposition that consist of personal style service will help in achieving sustainable advantage. Competitive edge will be ensured by facilitating customers with on-site alternations of dresses, and preparation of dresses according to demand and style indicated by customers.
SWOT Analysis
Strengths
Strong management, which will help boutique to reach its potential by making effective use of strengths and removing weaknesses, is strength of our boutique. Further, good location, where customers can reach easily, pricing power, which allows the company to charge high price, offering affordable price, innovative culture that allows production of unique products and services that fulfill needs and requirements of customers, financial leverage that permits boutique to expand its business and improve profitability, asset leverage that will help the boutique to utilize its best operational assets for expanding its business, and improving its market share, effective supply chain for obtaining right resources from suppliers and delivering them to customers in a timely manner, and economies of scale that will allow the firm to achieve cost advantage because of its size are all strengths of our boutique.
Weaknesses
Lack of adequate technology as well as patents can play their role in hurting the capability of boutique to compete against the competitors or rivals. High staff turnover can also affect the ability of boutique to compete, and conduction of business becomes difficult for boutique because replacement of valuable staff is included in expense of boutique. Further, weak online presence can create problem for boutique because online presence is essential for providing information regarding products and for selling products, being weak brand can create problem for boutique because it will not be able to charge same price that competitors are offering. Because of the weak brand, customers will not value the brand.
Opportunities
Ensuring online presence will allow the boutique to expand its business. The boutique can, however, reach to more audience at low cost. Allowing more innovation can help the boutique to product unique products, and meet expectations of customers. Furthermore, introduction of new technology will allow the company to meet needs of customers in a better manner by providing improved products. Technology helps in building competitive barriers against the competitors. Entering into new market will allow the boutique to expand its business, and diversify its portfolio of products as well as services.
Threats
Bad economic conditions will affect purchasing power of customers which will exert negative influence on our business. Moreover, intense competition in textile industry will be a threat for our business. Political risks such as change in business regulations by government, and volatile costs are threat for the boutique business.
Competing with Direct Competitors
In order to compete with direct competitors, products will be differentiated in terms of fabric quality and designs. Customers will be provided best quality cloth and unique style dresses so that they are attracted more towards our boutique instead of competitor’s boutique. The boutique will focus on provision of value to the customers so that they can repeat their purchase, and contribute to the success of organization.
Our positioning strategy is to ensure positioning away from the competitors. This strategy is, however, significant because it will allow making an appeal to majority of customers who become tired of wearing and using same things and same styles again and again. This strategy will help the boutique to position itself as unique from the competitors, and help the customers to avoid repetition of old story by getting benefit from new designs. Further, the strategy is aimed to position the brand in a way that females are attracted to it, and for this it is decided that words ‘style studio’ will be added with name of boutique so that females can develop better idea that they can visit the boutique, can learn about themselves in a better manner, and can select the dress according to their personality and personal style. The name of boutique will make an impression of provision of exceptional service, and help for style needs of females. The name will help in creation of positive image in minds of customers.
