Trendy Felix Clothing SWOT Analysis - Case Study Example

Student’s Name: Course Code: Tutor’s Name: Date of Submission: Trendy Felix Clothing Executive Summary Trendy Felix Clothing is a new venture situated in Melbourne that was started four months ago by its two founders. Its founders and entrepreneurs Joseph Neuman and Peter Russellberg are undergraduates who have worked in the clothing industry for several years and are determined to satisfy the demands of their identified customers with the new trend of cloths cutting across both official and casual. Trendy Felix Clothing is a fashionable retail store providing high quality, trendy products at discount prices. Although the firm was opened only four months ago, and it has received greater-than-expected demand for its wears, and study has shown that the target market of sports retailers and office-minded customers would prefer buying more casual clothing as opposed to what Trendy Felix Clothing presently offers. The clothing company is also interested in expanding their product line including adding up new product lines in the future. In addition, Trendy Felix Clothing plans to try opportunities in online sales. The marketing atmosphere has been viewed as receptive to the company’s high-quality products— both official and casual clothing in trendy with colors that depict the attentions of outdoor customers across Melbourne. In the next one year, Trendy Felix Clothing looks to increase its distribution, present new cloths, and acquire new and more clientele. Table of Contents Trendy Felix Clothing 1 Executive Summary 1 2 Table of Contents 2 1.0 Introduction and Rationale 3 2.0 The problem 4 2.1 Solution 4 3.0 SWOT Analysis 4 3.1 Strengths 5 3.2 Weaknesses 6 3.3 Opportunities 6 3.4 Threats 6 4.0Competitive analysis 7 5.0 Objectives SMART 7 6.0 Target Market 8 7.0 Organizational structure/size 8 7.1 Management 9 7.2 Board/Advisors 9 8.0 Current Status 9 9.0 Funding Requirements 10 10.0 Conclusion 10 11.0 Works cited 11 1.0 Introduction and Rationale Trendy Felix Clothing’s was set up to be a leading maker and dealer of official, casual clothing for customers who are keen on the fashions. The company wants to encourage people to often go shopping for cloths with family and friends since it offers both official and casual from the age of five to 50 years. In addition, the firm strives to come up with programs for corporate social responsibility in the future which is mainly to conserve environment. This is a way of giving back to the community in which their customers comes from. Ultimately, the firm would want to create and finance its environmental plans. This program will spell out how Trendy Felix Clothing aims to initiate new products, increase its distribution, go into new markets, and carry out its CSR. It seeks to employ its key competencies to accomplish a sustainable competitive edge, in which rivals cannot offer the same value to customers that Trendy Felix Clothing does. Already, the firm has created key competencies by “providing a high-quality, branded wear whose image is familiar amongst consumers, building a united community amongst customers who buy the products, creating a reputation amongst retailers as a dependable manufacturer, distributing the demanded number of merchandises in time” (Sharp & Dawes 45). The firm plans to create these key competencies by means of marketing endeavors that increases the number of merchandise offered in addition to distribution channels. 2.0 The problem The radical changes in the clothing industry have made several clothing companies to hike prices locking many from acquiring what they want. This has also caused to review on how often they purchase; currently people take several days before shopping for cloths. As a result, many companies are trying to sustain differentiation by means of innovation whilst under pressure to be cost competitive. Whilst some clothing has increased revenue over the last three years, profitability has gone down and the market share remains stagnant. However, the entry of Trendy Felix Clothing into the market has since shown vast opportunities. It also carries various challenges that the company believes it can fulfill effectively. Just from the launch, Trendy Felix Clothing has gained the position of an innovation leader and has manufactured high quality products. 2.1 Solution The Trendy Felix Clothing was started on the premise of cutting across all income earners, both low and high. The company also targets both children and adults. With its innovation and high quality strategy the company serves fulfils the taste of most Melbourne dwellers and beyond. To ensure that it accomplishes its mission and objectives the company carried a thorough research in marketing strategies consisting of entry strategy, product innovation, pricing, promotion, differentiation and positioning in order to acquire new customers and also compete effectively. 3.0 SWOT Analysis SWOT analysis provides a thumbnail outline of the Trendy Felix Clothing’s position in the market. In just 3 months years, this firm has built some remarkable strength whilst looking ahead to new opportunities. Its committed founders, the increasing number of brand loyal clientele, and effective financial management puts Trendy Felix Clothing in a better position to expand. However, as the firm considers growing the product line and entry into new market places, Trendy Felix Clothing “will have to protect against promotion myopia (i.e. the failure to identify the business scope) and feature slippages” (Johnson, Scholes, & Whittington). As the firm finalizes strategies for new merchandises and extended online sales its management will also have to protect against rivals who tries to produce copy of its merchandise. However, creating strong relations with customers, retailers, and suppliers ought to help frustrate competitors. This situation analysis commence with evaluation of the current situation that Trendy Felix Clothing finds itself by presenting a concise strengths, weaknesses, opportunities and threats analysis. After the outline, this assessment will go into additional detail concerning the areas of sector, competition, organizational structure, management team and current status among other components. 3.1 Strengths Trendy Felix Clothing boasts of its well structures team of management who are committed to effectively serve their customers. The employees commitment, integrity and hard work keeps on supporting the Trendy Felix Clothing guarantee of a respectful place of work, open, trust, honest, creative thinking and communication. Quality and fashion forward clothing at competitive costs is what make the clientele coming back to the store. Another strength that “the firm strives of includes branding, design, market presence and its innovative marketing methods” (Johnson, Scholes & Whittington). However, the company has corporate responsibility strategy in its plans including generous contributions and being an environmentally responsive firm. This, indeed, will be one of Trendy Felix Clothing s’ many solid points. Its low price also has made the company acquire several customers. 3.2 Weaknesses While having quite number of strength, Trendy Felix Clothing also undergoes various weaknesses that include geographic locations, and several regulations that governs the industry. Trendy Felix Clothing also experience competition in the retail market in addition to a sluggish Australian economy. 3.3 Opportunities Additionally, Trendy Felix Clothing has positive opportunities like an incredibly loyal consumer base, and the reality that they are changing into a high-quality specialty store. Trendy Felix Clothing also has some opportunities that they should think taking consideration of for instance global expansion, “entering unexploited Australian markets, and keeping their expansion in private label merchandises” (Brenton & Hoppe). 3.4 Threats Some threats that Trendy Felix Clothing experiences are economic concerns. The Trendy Felix Clothing has a loyal customer base known to the founders, but owing to high manufacturing costs on different popular cloths, the prices are likely to go up and the consumer will be having a rough time rationalizing her purchase. The competition on clothing arena is massive and cut throat. Therefore, Trendy Felix Clothing will always be forced to change there strategy in targeting customers. 4.0Competitive analysis Current clothing industry trends is turning out to be more trendy, high end and competitive. In 2009 Munro stated that “Men's fashion is becoming a big business in Australia as compared to ladies who are know for fashion” (Munro). Actually CRPM reports that men's fashion business in Australia alone is value at roughly $2.7 billion a year. This shows how competitive the industry has become. Trendy Felix Clothing therefore has to strategies in terms of positioning, pricing and “targeting in order to compete favorably amongst its Melbourne competitors like Jos. A. Bank Clothiers, Men's Warehouse, Coopers Clothes Lines, Austral Clothes Hoists and Melbourne Clothesline Company among others who offer almost similar clothes” (Gogoi). However the change strategic objectives of Trendy Felix Clothing moved by using differentiation to counter competition. “The firm has kept on developing its product for the wide Melbourne and Australian domestic market, employing its differentiation approach used to offer quality brands that is exciting and will transform the experience of fashion for all consumers” (Hanson, Hitt & Hoskisson). 5.0 Objectives SMART Creating SMART objectives will enable Trendy Felix Clothing to clearly understand its roles. These objectives focus on the results to allow measure success. They are set inform of assumption as highlighted below. Key assumptions are: With the current number of customers and more still coming, we assume the company will sell over 100,000 items in its first year. We assume that that their will be a slow growth of 6 percent in the first year, and 8 percent afterwards if there is no major recession. We assume the managers will grow during the management process and this will manifest with an increase yearly cash flow. We assume that access to financing and equity capital to sustain our financial plans. We assume consistent shopping from our customers and increasing need for high quality and trendy cloths cutting across both official and casual cloths. 6.0 Target Market The Trendy Felix Clothing target market is for both young and adult population between the ages of 5 and 50. The company also targets those who work in office and also people who work in entertainment industry where casual are the order of the day. These consumers portray a demographic group of single or married and people who are raising families. Household incomes normally range between $10.000 and $120,000 yearly. With this target group, these customers are price aware and constantly seek out value for their acquisitions. However, the future objective of the firm is to target customers in the whole Australia before venturing to other markets outside Australia. 7.0 Organizational structure/size Trendy Felix Clothing’s current organization is headed by the CEO Peter Russellberg who happens to be the one of the founders while another founder Joseph Neuman is the general manager. Below are the middle level managers consisting of production, sales and marketing managers and the company chief accountant. The Organizational structure of this company portrays the top down levels of management. It’s a flat organizational structure is attributed by fairly few levels of management customers service executive being at the bottom. This kind of structure is known for its effectiveness in innovation and good customer service. 7.1 Management Prior to launching the Trendy Felix Clothing, CEO Peter Russellberg cofounded, co-owned, and operated the Trendy Felix Clothing with the general manager Joseph Neuman. They have selected a sizeable team with extensive knowledge and skill in production, sales, and marketing of cloths all of whom are anticipated to be valuable to this new venture. The coworkers bring a total of 25 years of clothing industry experience to the company. The company is headed by the CEO who is a graduate of marketing with over 12 years of experience in marketing. The management also includes the general manager who is a cofounder and a graduate of marketing with over 12 years of experience. Others in the management team members consist of production manager, sales and marketing manager. 7.2 Board/Advisors The company board of advisers is solidly constituted consisting of the CEO, the chairman, the general manager and other middle level managers. This team has studied different subjects and knowledge and experience in different factors affecting the company. In this manner they come together to adviser on various ways of handle challenges that are or will affect the company in future. 8.0 Current Status Launched with the aim of offering a competitive prices to its customers, Trendy Felix Clothing currently comes as the leading clothing manufacturer and store in Melbourne. Since its cuts across both official and casual cloths it has easily acquired customers easily in Melbourne who are known to be fans of fashion. 9.0 Funding Requirements The company will be seeking a loan to add to personal savings for a start and operation in Melbourne. The funds needed be will accomplish marketing target in all areas in Melbourne. The table below summarizes the funding requirements. The owners plan to invest $550,000 of their own money. 10.0 Conclusion With is customer after just three months the future of Trendy Felix Clothing looks bright, therefore it is recommended that management to always keeps an eye on the market trends in order to satisfy customer needs. With better customer service, position, pricing and targeting this firm will take a shorter time to break-even and dominate the market share. This will make Trendy Felix Clothing to look beyond Melbourne market and seek market entry to other markets within Australia before going global. 11.0 Works cited Gogoi, P. Men Dress for [Retail] Success, Business Week Online, Retrieved September 8, 2009, from Business Source Premier database Internet statistics, 2006. Hanson, D., Hitt, M., Ireland, R. & Hoskisson, R. Strategic Management: Competiveness and Globalisation (4th ed.). South Melbourne: Cengage Learning, 2011. Print. Johnson, G., Scholes, K., & Whittington, R. Exploring Corporate Strategy: Text and Cases (8th ed.), Prentice Hall: Pearson Education, 2008. Print. Munro, P. Men's fashion: big business. Brisbane Times, 2009. (Accessed online on 19th June 2013), http://www.brisbanetimes.com.au/executive-style/style/mens-fashion-big-business-20090622-ct2j.html Brenton, P. & Hoppe, M. Clothing and Export Diversification: still a route to growth for low income countries? World Bank Policy Research Working Paper, 4343, 2007. Centre for Research and Policy Making (CRPM). World Trends in Clothing Manufacturing, Occasional paper No.9, 2005. (Accessed online on 19th June 2013), http://www.crpm.org.mk/Papers/WORLD%20TRENDS%20IN%20CLOTHING% 20MANUFACTURING.pdf Sharp, Byron. & Dawes, John. "Is Differentiation Optional? A Critique of Porter's Generic Strategy Typology," in Management, Marketing and the Competitive Process, Peter Earl, Ed. London: Edward Elgar, 1996. Print. Read More