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Introduction : Design Of A New Global Venture
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This paper intends to discuss each fact regarding a start-up business. A joint venture of cloths is going to open in the UK market. The name of this joint venture is P&S. This company is willing to provide premium quality cloth at a reasonable price and wants to catch the retail industry. This paper also provides the elements that differentiate this company from others. On the other hand, this paper also focuses on the strategies through which this company can improve its business. This paper also provides an elaborate explanation of the nature of this business, the pattern of commercialization, targeted customers, team capacity, and structure. This study also thoroughly examined the challenges and mitigation strategies in expanding its business in the UK market as well as in the global market.
Nature of the business
This new clothing company P&S initially prepare a plan to sell male, female, and kids products. Gradually this company has the intention to sell sportswear and footwear as well. The fashion industry combines four levels such as raw materials production, designers, manufacturers, contractors, and retailers. Raw materials mainly include fiber, textiles, leather, and fur. This company primarily deals with cotton and silk material. According to Goworek et al. (2020), sustaining in the UK clothing market is very tough as there are many popular clothing brands that are already captured the majority of customers. So, this P&S company will focus mainly on the quality of products rather than the diversity. In order to make venture divers, the organization must need a huge amount of capital. At the very starting point, this company focuses on attracting customers by providing premium quality clothes and comfortable wear yet at a reasonable price. The company will examine the demand of customers as they want fashionable or traditional clothes. Then this company will design the cloth to minimize unnecessary expenses. The supply chain of this company will be very minimalistic and uncomplicated. The company will be more conscious of making kids' cloth as the skin of children is very sensitive. So, this company ensures that using its product will not harm the skin of children. Hence this company will produce more comfortable pieces of cloth. As stated by Saeli (2018), children are not willing to wear any kind of uncomfortable and rough dress. This company intends to expand its business via offline and online both. This UK-based clothing company intends to expand its business globally. So, this company will revise the choices and demands of other countries and expand its product accordingly.
Commercializing patterns
The authority of this company has decided that they want to expand their business via online and offline both. The world has seen the way of buying products has changed from offline to online after this uncertain pandemic. As opined by Ahmed et al. (2020), the threat of covid 19 bounded people to their homes and they adopted a habit of online marketing. Further Valaskova et al. (2020), also stated that the covid 19 situation forced people to choose online marketing strategies. So, the authority of this company also intended to start their business through online marketing to cope with the updated pattern. In order to expand globally, online marketing provides an immense advantage. This company doesn’t need to build shops and outlets to sell its products in the foreign market (Statista, 2022). In fact, this company only needs to maintain a warehouse in foreign markets. This strategy will help to reduce expenses. However, this company has planned to open some shops and outlets in the UK. Though the UK is very much developed in technology but it has been observed that there are some people who are not so habituated and experts in accessing online marketing.
Addressable market
This company targets all categories of buyers. This company is willing to provide a wide range of pricing models so that people from every corner of the UK can buy their products. In addition, this company will sell a high range of products to wealthy customers. However, this company will also keep a ready of low range yet quality products for those who are not economically established so much. It has been observed that there are many famous UK brands that only sell expensive products. As a result, many poor people can not access premium quality products. This strategy will help this new company sustain itself in the competition. This strategy will also increase the brand value of this company. At the very beginning of a business, a company should focus on spreading the brand value and brand name.
Facing issues to expand the business in the global market
The retail industry in the UK market has faced many types of major challenges that negatively affected their overall business growth process. Moreover, the language barrier also created a major challenge in global business. Apart from this, to operate the business smoothly, the team members are required to consider the spoken language. According to the opinion of Karthick et al. (2022), cultural differences also created issues to expand the industry in the global market. Additionally, every country has its own culture of traditions, arts, foods, and holidays. On the other hand, selecting the right countries also plays an important role in business expansion in the global market. Moreover, choosing the wrong country can impact the business profit level, as well as, it impacts their overall market revenue level as well. However, creating proper supply chain management also created a challenge for the P&S Company, and knowing the customer's requirements also created challenges for the company in the international market.
Mitigation strategies to overcome all issues
A mitigation strategy helps to overcome all challenges that face by the company and also helps develop the overall company's revenue in the overall market. Along with this, to overcome the language barrier issues, the company's team members are required to know the spoken language based on the country's requirements. Additionally, spoken language helps to operate the overall business in a smooth way in the global market. As stated by Sharma et al. (2021), the company is required to take the time that helps to understand all cultures of the country, and it also helps to conduct the overall business success. On the other hand, P&S Company firstly chooses the right country that helps to grow their business in the global market and also helps to increase the market revenue as well. Apart from this, developing a better relationship among the supplier also helps to overcome the challenges. Moreover, to reduce the supply management issue, the company is required to adopt “innovative supply chain technology” that helps to overcome these specific challenges, which faces by the company. Hence, it has been generally observed that the retail industry can be overcome by following all those mitigation strategies.
Team capacity
Team management is a pivotal part of expanding a business smoothly and flexibly. This new retailing company is initially recruiting 250 staff in its company. There are several sectors in business management. This company recruited 10 staff to manage the financial part. These staff will focus on the expanses and try to find out the strategies to minimize the expanses. This company is engaging 20 members to examine and find out the demands and requirements of its targeted customers. Another team of 70 will manage the shop and outlets in the UK market and the warehouse in foreign countries. These staff will focus on how the stores, outlets, and warehouse can be modified and how they can satisfy customers. A team of 30 staff will take responsibility for manufacturing. The four tiers of the fashion industry include the creation of raw materials, designers, manufacturers, contractors, and retailers. Among the most common raw materials are fibre, textiles, leather, and fur. This business specialises in the sale of cotton and silk fabrics. Goworek et al. (2020) claim that it is exceedingly difficult to survive in the UK apparel market because there are so many well-known clothing brands that have already snatched up the vast majority of consumers. Therefore, this P&S corporation will prioritise product quality over product diversification. This company will create a team of 20 members who will manage the SCM for this company. This team management helps in improving the business and avoiding any faults and complexity.
Analysis of competitors
The clothing industry has faced high competition in the UK retail market, and it also affected their overall business revenue. Apart from this, identifying the actual requirement of the consumers also creates some challenges for all new businesses in the UK market. However, Hobbs, Barbour, Boden, Baukjen, and Hush are the best clothing companies in the UK market. Apart from this, increasing competition creates a big challenge for the overall P&S company in the UK market. According to the opinion of Ly (2021), all company has provided many types of offers on their products, as well as, they also include some effective offer, which helps to attract their overall consumers in the UK market. On the other hand, in the UK Burberry is also one of the most challenges for the new clothing business in the UK market. On the other hand, the old competitor offers products according to the customer's requirements, and at that time, new marketers don’t know about the customer's choices, which also affected their overall business revenue. On the other hand, in the UK market, their policies also created some negative impact on their overall business growth process. Hence, it has been found that P&S Company has faced many types of challenges with these clothes and it impacted their business profitability level also.
Major challenges and recommendations
The UK's new retail industry has faced various types of challenges with their business growth level, and it affected their overall business revenue as well. Along with this, Brexit limitation has created one of the major challenges for the new opening retail industry. However, Brexit has created a transition and space in the entire UK's trade system. Additionally, it mainly affected the UK's wholesalers and it also created some issues to expand the business in the international market as well. According to the opinion of Jafari-Sadeghi et al. (2021), choosing a proper location has created major challenges for the organization, and it also created some complexity in the business environment. Along with this, selecting a proper resource also created some challenges for the company’s business growth level in the UK market. On the other hand, getting proper labor also increases the challenges for the business in the UK overall retail market. Hence, it has been observed that for a new company it has been very difficult to select a proper location and labor in the UK market, as well as, all those things also impacted their overall business profit level.
P&S Company can choose a proper location where they can implement their overall business in a better way. On the other hand, the industry also selects some experience labor that helps to know the actual requirement of all customers and also helps to develop its business in the UK market. Along with this, the company also provides some attractive offers to its consumers, which helps to develop the overall brand value in the UK market, and also helps to increase its profit as well. Hence, it has been found that the implementation of effective strategies helps to develop the company's revenue in the overall UK market.
Conclusion
It has been mainly concluded that the implementation of a new strategy helps to develop the overall organization's performance, and also helps to develop its overall revenue as well. On the other hand, offering some attractive products also helps to increase its overall profit level in the UK market. Hence, it has been observed that many types of challenges are faced by the company, and it also affected their overall brand image level. Therefore, this research there also provided some effective mitigation strategies, which help to overcome all challenges of the organization
Reference list
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Saeli, A.N., 2018. A Day in the Park: Childrens Wear Collection (Doctoral dissertation, Kent State University).
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