The paper “ Entrepreneurial Opportunity for Pelco, Major Problems to Be Addressed, Value Proposition of the New Apparel Line” is a worthy example of a case study on the business. Pelco is an Australian apparel industry that manufactures clothing in Melbourne. The company is well known for its men’ s shirts. The company products include shirts, shorts, suits, and women wear among other apparel. The company has been able to succeed from its humble beginning to become one of the most known brands in Australia and globally (Pelaco. com, 2015). In the recent past, the apparel industry has faced a lot of criticism due to unethical supply chains.
This is one of the issues that have affected Pelco in its operations. Entrepreneurial Opportunity for PelcoWith the rise of ethical consumerism, there lies a great opportunity for business. The pressure on consumers to shop ethically is on the rise in Australia. This is due to the rising cases of exploitation in the supply chains (Carrington, Neville & Whitwell, 2014). One of the sectors that face criticism is the apparel industry. With the rise in criticism of ethical sourcing, the company can take it as an entrepreneurship opportunity and introduce a new line of products that are ethically branded.
This is through engaging in ethical sourcing in their supply chain and establishing a new ethically produced apparel brand. This is a great opportunity for the company since it will benefit from ethical consumerismMajor problems to be addressedIn order to benefit from the opportunity, the company has to address the following problems. Unethically produced apparelsThe risk of damaged reputation due to unethical sourcingProbability of child labor in their supply chainFailure to follow minimum wage laws in the supply chainEnsuring that all suppliers comply with the code of conduct and are ethical in their operationsThe poor working environment in the supply chainValue propositionThe value proposition acts as a promise of the value that is being delivered by the company.
This is through creating a reason why the customers should buy from the firm. The main aim of this value proposition is to make the customers make purchases for ethically produced apparel from the company (Anderson, Narus & Van Rossum, 2006).
Through the use of the 6 stage thinking framework, a value framework is created which acts as the core competitive advantage using the few words possible (Lumsdaine & Binks, 2003). The following is the created value proposition framework by the firm: Ethical ApparelsEthically sourced and manufactured apparelsWhy buy from PelcoThis is an ethically produced apparel brand sourced through a green supply chain. The brand ensures that the consumer is able to utilize ethically produced wear which will enhance the customer experience. The apparel line ensures that the consumer is not exposed to illegal sourcing activities such as child labor, sweatshops, and employee exploitation. Benefits and featuresEthicalAffordableFree shippingDurableHigh qualityMini casePaleo has been in the apparel industry for a long time.
Despite the success in the market especially in the male clothing sector, ethical sourcing has been a major problem. The apparel industry in Australia has been under a lot of criticism for ethics in the supply chain. A study carried out proved that some of the apparel manufacturers were engaging in unethical sourcing. This is through the use of suppliers who had links with child labor, sweatshops, and unsafe working standards.
Some of the apparel manufacturers were found to lack information on where they get their cotton. Paleo has been under an increasing threat from ethical consumerism. This is with an increase in consumers demanding goods and services produced through an ethical supply chain. The main problem with Paleo is the fact that their products may face boycott if they do not prove they are engaging in ethical sourcing (Joergens, 2006).