Written Business Plan and Presentation

Fashion Point Boutique Company

Competitive Analysis

A key competitive factor that will be used by the business to improve its share of the market is the quality of the products that will be available for purchase by customers. To ensure that the company meets the needs of customers, high-quality products from the most reliable brands in the market will be stocked by the company. This is an effective way of guaranteeing customer satisfaction and customer loyalty. The sale of high-quality products also enables the company to differentiate itself in the market and create a strong brand image that will enable it to attract more customers.

The company also intends to use pricing as a way of attracting and retaining customers. To ensure that more customers select the company at its initial stages of operation, lower prices than those set by competing stores will be set, which is an effective way of attracting consumers(Good points to differentiate) (Kokemuller, 2019). This will enable customers to get high-quality products while at the same paying less than they would have if they shopped at other stores. This is also a differentiation strategy that will significantly improve the brand reputation and image of the company.

The fact that the company will be offering consumers a variety of products is also beneficial for the company and will ensure that it minimizes loses that may be incurred from stocking a single product. The company will be offering consumers different types of fashion items meant for both men and women. This reduces the effect that loses made by low demand for a single item can have on the company, as other products will still have high demand. The company does not face a great deal of risk, as fashion items are usually in high demand at all times of the year.

SWOT Analysis

Strengths

Key strength of the company is the high demand for fashion items that will ensure the company records significantly high revenues and profits in its first year of operation. According to Amed, et al. (2019), the market for fashion items has experienced steady growth in the recent past that is expected to be maintained in the future. This means there is a high demand for the company’s products that will eventually translate to high revenues and enable the company to make profits in its first year of operation. The company is also likely to create a strong brand reputation and image as a result of the quality of products that it will be offering as well as its customer-friendly pricing strategy.

Weaknesses

A key weakness facing the company is the high competition in the fashion retail industry that it will have to deal with in its growth phase. The fashion retail industry is dominated by major brands that are already known for quality, which means the company is likely to deal with a great deal of competition that will limit the number of customers it will be able to attract in its first year. Established fashion retailers also have competitive advantages such as loyal customers and an established supply chain network that minimize their operating costs. The company may, therefore, operate less efficiently than competitors, which may reduce the speed with which it will be able to achieve growth.

Opportunities

The company has the opportunity of venturing into new markets by establishing additional stores in other locations. As revenues increase and the company attracts more customers, it can venture into new markets using the profits created and as a result achieve more growth in the long term.

Threats

The key threat facing the company is the limited (One threat would also be the competition.) capital available for expansion and the fact that the absence of competitive advantages that can reduce operating costs.

Strategic Positioning Statement

The company intends to provide high-quality fashion items at affordable prices to consumers. The main competitive advantages of the company include the quality and affordability that are meant to improve customer satisfaction and consequently the performance of the company in the long term. This will provide value to customers, value that is not offered by other stores.

The marketing strategy of the company will, therefore, focus on creating awareness about the products offered by the store as well as its pricing strategy. Marketing messages created by the company will emphasize these two key features as well as the wide variety of products that customers can be able to find at the store. The main strategic position statement that will be used by the company will be: Fashion Point Boutique offers high-quality fashion items to consumers at affordable prices.

Risk Analysis

A key risk facing the business is a decline in demand for some of the popular products that it stocks. According to Weinswig (2018), demand for fashion items tends to fluctuate in an unpredictable manner, meaning company’s operating in the industry need to be adequately prepared for changes I demand that can negatively affect(Good points here.) their operations. As a company that stocks a wide variety of fashion items, the company is susceptible to changes in demand for different products that may result in high storage costs and tie up the capital available to the company in inventory. To mitigate the chance of this risk affecting the business, the company need to carry out intensive market research that will enable it to accurately predict demand patterns and adjust operations accordingly in order to prevent loses.

A key risk facing the company is also the failure to establish an efficient supply chain network that will ensure it has products demanded by customers in stock at the right time. Establishing an effective supply chain network is costly and may require a long time to complete (Balaji, 2013). The failure by the company to design an efficient supply chain may significantly increase operating costs and reduce revenues. To reduce the probability of this risk, the company should design a highly efficient supply chain network(Goodresearch) by working closely with all supply chain partners that include companies that will act as the main suppliers for its products.

A key risk facing the company is the absence of the required managerial skills by the founders that can enable them to successfully operate the boutique. Managing the business will require a diverse set of skills in different business functions that the founders may not have. This may limit the ability of the founders to efficiently manage the business and enable it to achieve long term growth. To minimize the possibility of this risk affecting the business, the founders need to gather information on efficient business practices that can aid in the improvement of the operations of the store as well as hire skilled personnel as the business grows.

The company also faces the risk of failing to generate enough capital that can cover most of its expansion needs. Currently, the company is funded by capital contributions made by the owners as well as debt capital that could be raised using available assets as collateral. The company, however, may need additional capital in order to be able to fund potential expansion projects as it ventures into new geographical locations. There is a risk that the company may not be able to raise this capital, which can limit its growth.

References Amed, I., Balchandani, A., Beltrami, M., Berg, A., Hedrich, S., & rolkens, F. (2019). Ten trends for the fashion industry to watch in 2019. Retrieved from Mckinsey: https://www.mckinsey.com/industries/retail/our-insights/ten-trends-for-the-fashion-industry-to-watch-in-2019 Balaji, L. N. (2013). How to Reduce Costs through Supply Chain Network Optimization. Retrieved from Industry Week: https://www.industryweek.com/planning-amp-forecasting/how-reduce-costs-through-supply-chain-network-optimization Kokemuller, N. (2019). Penetration Pricing Advantages Over Skim Pricing. Retrieved from Chron: https://smallbusiness.chron.com/penetration-pricing-advantages-over-skim-pricing-62373.html Weinswig, D. (2018). Consumer Trends Support Demand For 'Made In America,' But Will Shoppers Pay Up? Retrieved from Forbes: https://www.forbes.com/sites/deborahweinswig/2018/04/27/consumer-trends-support-demand-for-made-in-america-but-will-shoppers-pay-up/#5c7371735cf1