Business plan on Online Clothing

Business Description of clothing company

My plan is to open a clothing company that will provide services on the basis of equality. The services and products will demonstrate no gender discrimination and it will break down gender basis associated with the style and fashion in clothing. The clothing provided in our store will revolutionize the fashion industry by introducing new ambiguous styles to feature petite sizes of women. The new styles will pop up in the industry and we hope the community will accept it wholeheartedly. The main focus of services is to promote new trends in street styles. Other dresses provided in our store will include new style and trendy pants, shirts, outerwear, shorts, and slim fits. Our main concern is to use information technology and the latest technology to combine fashion with technology. Besides the brick and mortar store, we will introduce e-commerce sites. The e-commerce sites will make the new trends and styles accessible to the customers. The big pictures with a demonstration of dresses will be displayed on the front pages of the website and it will be catchy for customers. The online service of clothing with breaking down of gender basis will open a new pathway for the fashion and clothing industry. We hope this business will win the hearts of customers due to versatility and diversity in products. Besides online services, we will consider some short-term pop-up shops in different areas of Los Angeles. This will be exciting for new as well as previous loyal customers.   

Introduction of clothing company

A business report for online clothing business for the LGBT community is required for starting the business as well as the report tells in the below sections that what company mission, vision, objectives, strength, key challenges, operating procedures, targeted persons and market, the financial statements as well. The report uncovers the information about the procedures, targeted audience, as well as the key challenges and the strongest competitors in the market. For assessment and analysis, SWOT analysis, PEST analysis as well as porter’s five forces model are applied to measure and highlight the strength, weaknesses, externals factors that can affect the business and the internal or external forces too. A brief analysis of finance is also provided in this report that helps out to how much and many resources needed to start this business.

Vision of clothing company

To be the leading organization in the country to provide services and products with higher quality. We struggle to be a leader in the fashion industry by introducing innovations as well as the design for the satisfaction of the customers. We strive to make clothes for petite women to make them feel proud after buying our clothes. We struggle to become a well-managed as well as caring company for our employees, customers, and partners as well as responsible citizens for the society.

Mission of clothing company

The mission of the company is to increase, lead, and revolutionize as well as service to the targeted customers such as the LGBT community or the petite girls/ women. We struggle to make the differences in the market by our branding to the changes of the market, modern technology as well as recent fashion trends. We struggle for increasing the quality to our employees, business partners as well as the customers.

Business Objectives of clothing company

The online clothing business (TrendOn.com) has several objectives and goals to expand the business for company growth and increasing sales. Several top objectives of the company to sell clothes online are;

·         provide the product support as well as serve online to the customer,

·         Provision of corporation information

·         making the identity and the awareness of the brand,

·         The advertisement for the product or the service.

Strength & Competencies of clothing company

The strength of the company (trenon.com) is that the company is doing manufacturing the unique design of the pants, shirts, T-Shirts, as well as other related clothing products. The company is strictly focusing on bringing new innovations to produce new styles that are decent look wise as well as very attractive for the customers because of recent fashions or trends. The company focus to make new clothes according to fashion because youngsters like to buy trendy clothes. So the company is making for them that will make it more powerful.

TrendOn.com is providing online services to its potential customers and considering itself competent in the market. The company is really competent in the market because its clothes are produced at a very low cost. The company can increase it sales as well as can grab a high market share. The company is providing or selling clothes at lower prices than other companies because it has the advantage that they have no any kind of store and this thing saves the money and the resources of the company. As the company is providing or selling the clothes without having any store, due to this thing the company can save more money as well as sell clothes at lower rates and it will make a strong competition in the market. By having this kind of competition into the market, the company can give a tough time to other companies in the market.

Challenges of clothing company

There are some challenges the company can face in the market that can affect the business of the company as well as those challenges can reduce the profitability of the company. Some challenges such as maintaining the quality of the products and service, unclear time of delivery, limited payment preference, troubles in the hidden costs, missing confirmation of the payments, unclear website policies, complications in the navigations as well as the boring interfaces or boring user panels.

Long-term Focus of clothing company

The long term focus of the company is to identify the customer or consumer trends, remain a business profitable, and enhance the following of the company on social media websites or links as well as new trendy ideas or innovation. The company should focus on the new long term ideas because these long term focuses are the keys to success to the company. The company always wants to expand the business as well as it should increase the sales to make a good competition in the market. These focuses are important because the long term plans of the company can make the company stronger as well as with having the company can survive in the market.

Operating Procedures of clothing company

There are some operating procedures of trendOn.com that is focusing on selling clothes in the market to grab high selling, earn profit from the targeted market as well as to grab high market share. These procedures should be followed by the company to produce more to gain more to achieve the goals of the company. The business will focus on removing the biases of gender from the clothes the company will make. The idea of establishing a new business is really great that will be more effective and famous in the market because it will be the very first company that will make clothes for a specific community.

 Production of clothing company

The company should have to make the new innovative ideas for the new production of more clothes. The company should have to focus on the new fashions and trends in the market or famous among youngsters. The company is now actively focusing on the production of new styled and trendy clothes to grab high profit and market share.

Business Location of clothing company

The location of the business is well-known, but the customers cannot visit there because it has no stores in the market. As the company is working and delivering online products to the customers, so the location does not matter in this business. But company has its own production department or kind of unit.

Personnel of clothing company

The audience of the company is a majorly LGBT community, such as petite women. The persons are who are involved and considered good for increasing the profitability of the company.

Business Insurance of clothing company

The company’s business needs insurance for business safety as well as it can protect from the liabilities or the vulnerabilities. The insurance of the company is as follows.

·         Business liability insurance

·         Giving protection to the workers

·         Excess or umbrella liability

·         Cybercrime liability

·         The company’s personal property insurance

Market Research of clothing company

PESTLE Analysis of clothing company

Political of clothing company

The government in different countries implement various laws for supporting and restricting the businesses to perform various activities. The political stability in any country is highly important for economic growth and for the growth of the businesses. The countries where there is political instability the businesses face various restrictions. In United States there is political stability and businesses such as clothing businesses do not face any restrictions. Therefore TrendOn.com have lot of opportunities to grow in the possible future.

Economical of clothing company

The economic factor changes cause huge problems for the businesses because any change in the economic factor has huge influence on business activities. Not only the cost of the organization can increase from economic factor changes, but also the customer purchasing power can get affected. United States is among the world's largest economies and does not suffer from sudden economic changes like developing countries. Therefore TrendOn.com won’t face many economic factor changes in problems in the United States. However in future if business decided to move into other countries than the business might face economic challenges.

Social of clothing company

The preferences of the customers keep on changing with the passage of time. The taste of the customer's changes due to change in market trends. The clothing industry is heavily influenced by the preferences of the customers because the clothing trend changes rapidly and many clothing brands have to change. They are designed based on the preferences of their customers. TrendOn.com will have to focus on the needs of its customers otherwise the business might unable to generate profit. The business will only be able to generate enough profit if it focuses on the needs of its customers.

Technological of clothing company

The technological factors have a huge impact on the sales and profitability of the organizations today. The technology is becoming advance with yearly coming day, and many businesses are adopting latest technologies for improving the customers' experience and by providing them high-quality products. TrendOn.com will create such a website that will not only improve the customer experience but will also improve the quality of its products. The website of the organization will be created by keeping the needs & preferences of its target audience in mind. If the organization wants to sustain in the long run than it would have to focus on advanced technology.

Legal of clothing company

The laws of different countries are different and have a major impact on the performance and operations of the business. Some laws don’t allow businesses to perform certain activities and that is why the performance and operations of the business can get seriously affected. In United States the government laws support the clothing businesses. TrendOn.com is not performing any such activity which the government might restrict the business from doing. It can be said that the business activities of TrendOn.com are according to the laws of United States.

Environmental of clothing company

Environment protection has gained huge significance in recent years. Without environment protection the organizations today cannot sustain for longer time period. The governments of different countries have also created laws which are promoting environmental protection and creating awareness in the customers. The customers today are also purchasing products of such organizations who are socially responsible and playing their role in environmental protection. TrendOn.com will focus on environment protection by reducing energy consumption and delivering the products to its customers in an environment-friendly way. Not only the organization have the opportunity to achieve competitive advantage through environmental initiatives but also can increase its reputation up to lot of extents.

Competition of clothing company

Porter Five Force Analysis

Bargaining power of supplier of clothing company

As TrendOn.com is a startup, therefore, the bargaining power regarding the suppliers will be higher. The reason is that TrendOn.com Has not become a major brand yet, and it will take time for the business to create a brand image in the mind of the customers. Therefore, the supplier will have the upper hand on the business in the beginning. However with the passage of time the supplier power will decline up to lot of extents.

The threat of new entrants of clothing company

The news businesses can enter into online retail marketing because their hurdles for entry are lower. The population of the world is increasing which is becoming the main factor for apparel industry growth. Due to high threat of new entrants the competition in the online clothing industry will increase up to lot of extents.

Rivalry among Competitors of clothing company

There are many competitors of the organization like Amazon, Levis, and Gap, etc. who provide clothes to the customers. The rivalry among competitors will be intense because the competitors will compete with each other to grab their market share. The large organizations such as Amazon and Gap have established brand image in the mind of the customers, and it will take huge effort to grab the market share.

Bargaining power of Buyers

The power of buyers will be higher because the customers have the choice to purchase different types of clothing from various online stores. If TrenOn.com is unable to meet the expectations of its customers than the customers can easily move from TrenOn.com to another online store easily. The switching cost of customers is also lower.

The threat of substitute product of clothing company

The threat of substitute products is quite high because there are many online clothing stores in the United States that are selling somewhat identical products to the customers. Customers can switch to other brands if the organization is unable to meet the needs of the customers.

Financial Plan of clothing company

References of clothing company

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Spender, J.-C. (2014). Business Strategy: Managing Uncertainty, Opportunity, and Enterprise. OUP Oxford.