Business Plan Assignment: Designing Corporate Solution for Indiana Wears

Question

Task: Business Plan Assignment Instructions: You are required to develop a Business Concept Plan which provides a business solution to an opportunity which you have identified. You need to ensure that the plan demonstrates that your idea is a feasible and viable solution and something that will obtain support from an executive or management team to develop in to a business case, ultimately seeking funding and approval to develop / implement.

Consider what it is that will attract approval and funding of your idea. What it is that makes this a great opportunity and something worth developing or progressing?

Answer

1 Industry Background
The industry considered in the present context of business plan assignment is the fashion industry which is evolving immensely and to start a new business in the industry requires a lot of passion for clothing and styling. The fashion industry is one such industry that is growing continuously and changes are taking place at a rapid pace. This is because what is in fashion today may not be in fashion tomorrow and therefore the business needs to update itself daily to gain profit margins in the industry. Further, there is huge competition in the market which may be unhealthy at times.

There are diverse brands and numerous numbers of retailers already in the market.The fashion industry contributes two-thirds of the GDP of the country, Australia. The fashion industry plays a very crucial role in the economy of the country (Jin et al., 2021). The fashion industry has various opportunities available for the members associated with the industry. With low cost of entry, availability of opportunities, and tremendous opportunities for growth, this industry offers tremendous benefits.

2 Opportunity
The fashion industry is evolving continuously and there is a growing demand for an Indian wear clothing retailer shop that caters to the demands of the people particularly the youngsters belonging to the Indian community living in Australia. Although there are various stores in the market, there is a constant need for the apparel shop which particularly focuses on the Indian wear of both men and women belonging to the diverse age group. There are mainly shops for western wear for teenagers or kids but the market lacks a business venture to cater for the needs of the Indian community residing in Australia.

The main objective of this business is to provide affordable clothing under one roof to the Indian community residing in Australia as well as other Australians interested in Indian wear. This will help the business to grow in the market and achieve its own identity.

3 High-Level Solutions
The main goal is to establish a business start-up known as Indiana Wears which will cater to the needs of the Indian community residing in Australia. There are various groups of people that desire Indian traditional wear and other clothing's can be reused and at the same time cater to the needs of the people.

4 Business Model
Indiana Wearswill bea business venture that primarily focuses on providing affordable Indian traditional wear which will be made up of recyclable materials.These products will be made by considering environmental sustainability and financial affordability. This retailer shop by nature will not be selling on credit (Carvalho Lui?sa et al., 2020). This shop is expected to be growing at a moderate pace and grow slowly by gaining more profit margins by increasing the number of sales with time. This retailing business start-up will be an LLP business and the owners are going to regulate the entire management team for the retail business of this shop.

Apart from that, Indiana Wears is not going to accept any kind of cash, checks or any kind of credit card. RapidGrowthCheck Services will be used to make payments through banking and online transactions. This will help in increasing the security during the payment process and this will in turn help in ensuring more trust and faith in the customers. Moreover, this business model has planned to increase the sales by 7% after every 1 year. This will help in growing the business at a very steady rate and this will help in increasing the sales slowly and steadily.

Fig: 1: The above-represented graph presents the monthly expenses of the business
Source: Author

Fig: 2: The above graph represents the direct and indirect expenses of the business venture
Source: Author

Financial requirements for this business model consist of various direct as well as indirect expenses for sourcing the materials and manufacturing them. The existing fund and the existing assets for this business have to be utilized and kept as an emergency fund for the business. Apart from this, there are other sources of funds for this business model such as loans and other credits taken from independent financial sources. This will help in increasing thefinancial sources for the business and help the business to grow. After utilizing the appropriate sources for managing the finances of the business, the profit margins will grow exponentially.

5 Gap Analysis
In the Australian community, there is a lack of clothing shops that particularly sell Indian traditional wear and the clothing materials used are made up of recyclable materials. This will ensure environmental sustainability for the industry and help the industry to grow even more. This organization tries to align the goals and objectives of the industry through its products.

Fig: 3: The above diagram represents the gap analysis diagram of the business venture
Source: Author

6 Competitor Analysis
The fashion industry is full of competition which at times may even turn out to be unhealthy competition. The level of competition that exists in the fashion industry is immense and therefore it is important to find a good strategy for the business to gain an edge over the other competitors in the market. There are various competitors present in the market that sell clothing wearables for the people residing in Australia.

However, these competitors deal with very limited Indian wear and do not specifically focus on Indian wear which is made up of recyclable materials.

The major brands such as Hakiki, Sonaja, Klein and others are the biggest competitors in the market that may give good competition. These competitors havetheir strengths as well as their weaknesses. After analyzing the strengths and weaknesses of the competitors that are present in the market, the business can analyze and formulate itsstrategies to gain an edge over the other competitors present in the market.

COMPETITION ANALYSIS MATRIX
In the above table, the following terms have been used:

Trait 1 –Location advantage
Trait 2 –Standard of quality of product
Trait 3 –Marketing strategy
Trait 4 –Online delivery system
The below competitive analysis chart depicts ease of use of product on the vertical axis, while speed to implement on the horizontal axis for various competitors.

Figure 1: Competitive Landscape Analysis Chart
Source: Author

7 Unique Value Proposition
The goals and objectives of this particular business venture are unique. The most unique feature of this business venture which marks it different from that of the other business ventures is that it specifically focuses on a particular group of people and tends to satisfy their needs and demands instead of concentrating on varied and diverse target groups.

Another important unique value proposition is the location of the business. The location of this business proposition is that it tends to concentrate on the market in the middle of the city rather than any other place or location in the close vicinity which helps in attracting more customers. Thirdly, uniqueness of this business venture is that it uses recyclable raw materials for clothing wear. This organization promotes environmental sustainability and aligns with the goals of the industry.

Fig: 4: The above diagram represents the Unique Value Proposition diagram
Source: Author

8 Ideal Customer Profile
The primarily targeted audience group for the business venture is the people who belong to the Indian community. The main target market for this business group is, therefore, the number of people that belong to this community. Both men and women are included in this particular target group. The target group of people is very limited for this segment of people and therefore this particular target group has specific demands of specific brands and sizes which will be available in this business venture. Thus, it can be said that this business juncture concentrates on specific needs and demands.

9 Total Addressable Market
The total addressable market will be the Indian community residing across Australia.

10 Business Model Canvas
The business model canvas for the business has been depicted below. This further includes the marketing and advertisement strategies that will help in formulating the growth of the business (Carter, & Carter, 2020). The marketing strategy for this business follows the 3Ps marketing mix strategy therefore product, place and price. These are the three important elements that tend to influence the entire marketing strategy for the particular business model.

Figure 2: Business Model Canvas
Source: Author

1 VALUE PROPOSITION CANVAS

Fig: 5: The above diagram represents the concept of the value proposition canvas.

The value proposition canvas primarily consists of the number of increased gainers by using the products and services of the particular business venture. The number of gainers that are created through this particular proposition is regulated through the number of customer profiles who have availed of the products in the particular business venture. Therefore, for this particular business venture, the customer’s profiles are evaluated in-depth and then the number of customers that have increased is analyzed andcalculated.

11 References
Carter, M., & Carter, C. (2020). The creative business model canvas. Social Enterprise Journal, 16(2), 141–158. https://doi.org/10.1108/SEJ-03-2019-0018

Carvalho Lui?sa, Galina, S., &Sa?nchez-Herna?ndez M. Isabel. (2020). An international perspective of the business incubators' perception about business model canvas for startups. Business plan assignment Thunderbird International Business Review, 62(5), 503–513. https://doi.org/10.1002/tie.22112.

Jin, Y., Ji, S., Liu, L., & Wang, W. (2021). Business model innovation canvas: a visual business model innovation model. European Journal of Innovation Management, Ahead-of-print(Ahead-of-print). https://doi.org/10.1108/EJIM-02-2021-0079