Power point Slides
fhcmishaw27
team_b_virum_final.pptxTeam B Virum
1
Overview
Virum is a men’s apparel online retailer that offers premium quality name brand clothing. Based out of Houston, Texas, the company accepts major credit cards and Paypal and offers free one-day shipping.
Virum sources several major department chains, wholesalers and apparel distributors that provide the company with its inventories at deeply discounted costs. The product cost and Virum’s online operating strategy creates a substantial savings that benefits both the company and its customers.
2
Industry Analysis
Was the industry analysis complete? Does this industry seem appealing for an investor?
3
Operations – Day to Day in the Warehouse
Did the team clearly explain their day-to-day operations?
Where equipment, facility, human resource, and technology considerations clearly presented?
4
Executive Team and Management
Ron Phillips – Chief Executive Officer
Grace Koyama – Chief Product Officer
Bhumi Shah – Chief Marketing Officer
Shawn Fields – Chief Operations Officer
Megan Wilke – Chief Financial Officer
5
Marketing
Purchases new close out, job out, and store stock from major department stores and manufacturers at $0.10 to $0.16 on the dollar off the retail price.
Virum low-cost purchase savings creates a multiple competitive edge.
Clear articulation of product and service attributes, and point of distinction from competitors. Explanation of target market and use of appropriate promotion channels. A SWOT analysis was presented and explained.
6
Marketing - SWOT Analysis
| SWOT Analysis | |
| Strengths | Carries premium, upscale, quality name brands. Culturally diverse management team . Apparel is discount by at least 35% off retail. All items are in stock and ship within 1 business day. Free shipping |
| Weakness | Purchasing power against larger competitors: Inability to purchase large clothing lots. Competing with international online retailers in the global market. Limited availability of specific brand names and designs. Obtaining desired sales volume and maintain profit margins. |
| Opportunities | Online business are gaining market share. Attracts an innovative culture that helps promote global sales. Expansion into other countries Expansion into women's' apparel Use of social media to increase name recognition |
| Threats | Ever changing fashion trends. Shifts in consumer purchases. Economic downturn can impact consumer buying patterns. Competitors who have much wider global presence. Some competitors offer free returns, no questions on worn clothing. |
| Competitors | Tailored Brands (The Men's Warehouse) Jos. A. Bank, K & G, BHFO, Oxbloodfinery, Suits-For-All-Occasions |
7
Financial – First Year Costs
Was this tailored to the right audience (bank, private equity investors)? Was the exit strategy reasonable and realistic? Did the team understand how to value its business, and did that make sense?
8
Financial – Sales Growth
Was this tailored to the right audience (bank, private equity investors)? Was the exit strategy reasonable and realistic? Did the team understand how to value its business, and did that make sense?
9
Financial - Exit Strategy
Was this tailored to the right audience (bank, private equity investors)? Was the exit strategy reasonable and realistic? Did the team understand how to value its business, and did that make sense?
10
Appendix
Farber, M. (2016, June 08). Consumers Are Now Doing Most of Their Shopping Online. Retrieved from http://fortune.com/2016/06/08/online-shopping-increases/
Goldsmith, R.E. & Flynn, L.R. (2005) Bricks, clicks, and pix: apparel buyers’ use of stores, Internet, and catalogs compared. International Journal of Retail and Distribution Management,33, 271–283.
Holt, H. H. (2017, March 20). The Sociological Influence on Fashion. Retrieved from http://theamag.com/the-sociological-influence-on-fashion/
Jahan, S., & Mahmud, A. S. (2015, June). What is Capitalism? Finance & Development, Vol. 52, No. 2. Retrieved from http://www.imf.org/external/pubs/ft/fandd/2015/06/basics.htm
Nicolosi, P. A. (2013, February 24). What Is The Best Type Of Business Entity For E-Commerce? Retrieved MAy 18, 2017, from http://www.internetlegalattorney.com/: http://www.internetlegalattorney.com/what-is-the-best-type-of-business-entity-for-e-commerce/
Plunkett, Jack W., Plunkett, M. B., Steinberg, J. S., Faulk, J., & Snider, I. J. (2016). Introduction to the Retail Industry. Retail Industry. Retrieved from http://www.plunkettresearchonline.com.
Reagan, C. (2012, May 03). Men Are Out-Shopping Women Online. Retrieved from http://www.cnbc.com/id/47263732
Summary of the Major Laws of the Department of Labor. (2016, November 23). Retrieved from http://www.dol.gov/general/aboutdol/majorlaws
Thatcher, D. (2016, December 13). The Uncertain State of Global Fashion 2017. Retrieved from http://www.magellanlogistics.com.au/uncertain-global-fashion-2017/
11
