Business Analysis of Elaine

This report provides a detailed analysis of Elaine, an athletic footwear seller, including its vision, mission, corporate objectives, situational analysis, and more. The report covers topics such as PESTLE analysis, business life cycle, manufacturing locations, and recommendations.

Running Head: BUSINESS ANALYSIS OF ELAINE
Business analysis of Elaine
Name of the Student
Name of the University
Author’s Note

1BUSINESS ANALYSIS OF ELAINE
Table of Contents
1. 1. Introduction..........................................................................................................................2
2. 2. Discussion............................................................................................................................2
2.1. Vision....................................................................................................................................2
2.2. Mission.................................................................................................................................3
2.3. Corporate Objectives............................................................................................................4
3. 3. Situational Analysis..............................................................................................................4
3.1. PESTLE analysis of the company........................................................................................4
3.2. Business life cycle................................................................................................................9
The stages are as follows:............................................................................................................9
3.3. Manufacturing locations.....................................................................................................10
3.4. Porter’s Five Forces model.................................................................................................10
3.6. All the above observations may feed into the G. Panagiotou’s telescopic observation.....11
4. 4. Internal Analysis.................................................................................................................12
5. 5.1...........................................................................................................................................13
5.2 SWOT analysis of the firm..................................................................................................13
5.3 Implementation of the Marketing Strategy..........................................................................14
6.....................................................................................................................................................15
6.1. 7 P’s - Product, Place, Promotion, Price, People, Processes, Physical evidence...............15
6.2. Celebrity endorsement: brand management.......................................................................16
7. Corporate Social Responsibility and Citizenship......................................................................16
8. Recommendations......................................................................................................................16
References......................................................................................................................................18

2BUSINESS ANALYSIS OF ELAINE
1. 1. Introduction
The chosen firm for the formulation of the report is “Elaine”. According to the author
(Bailey et al., 2014), the concerning firm is an athletic footwear seller, it has not only presence
within the region of the UK boundaries but the firm is able to penetrate the consumer market
within the region of the North-America, Asia-Pacific, Europe Africa, and Latin America. On the
other hand, speaking about the competitive advantage of the firm, that it makes use to gain
advantage over the rival firms is its unique design and the quality of the raw materials that is
being used. The commodity offering of the firm is of classical design. The consumers even claim
that their product offering is kind of show stoppers.
They make use of the unique and collective raw-materials for the manufacturing process.
They even make use of the research and quality assurance team that identifies the quality
oriented products, and accordingly create unique design of the athletic shoes. This shoes are
somewhat special in terms of the design as claim by them. However, they have a number of
competitors within the consumer market, they are as Nike, Adidas, Puma, and many more.
Approximately at present, the firm has about 12 rival firms. This shop exists in the market for a
time period of twenty years. The consumer segment of the business firm is local residents, young
citizens, old citizens, Art students, actors, and that of the regulars who have visited for twenty
years and curious passers-by (Bailey et al.., 2014).
2. 2. Discussion
2.1. Vision
The firm makes a number of efforts to penetrate within the international boundaries and
to obtain the satisfaction of the potential consumers. It has the capacity and the strength to

3BUSINESS ANALYSIS OF ELAINE
transform the single warehouse into the retail store within the region of the UK (East London).
Their sole vision to obtain the satisfaction of the consumers within the footwear market and to
open a number of more stores not only within the domestic country but within the international
boundaries as well. They aim to open their official e-commerce website and a couple of more
physical stores. They want to be addressed as one of the leading stores within the region of the
UK boundaries. The firm even aims to be addressed as one of the leading dominators within the
footwear industry. On the other hand, the firm even aims at the formulation of the franchise
within the coming era of time. It is their vision that opening franchise in several parts of the
country will be one of the achievements. The business aims at creating its own unique identity as
one of the leading athletic shoe retailer into the UK and that of Sweden.
2.2. Mission
Their sole purpose is to make use of the professional designer to bring about innovation
within the product offerings. On the other hand, the firm even uses the consumer’s feedback to
make the product available with that of specific design as desired by the potential consumers of
the market. The aim at making use of the vintage art and that of the abstract design for the casual
shoes, this is being carried out to entails that the firm is different from that of the rival firm in
terms of the product offerings. These specific designers and professionals are considered as trend
experts. They are the primary assets for the firm; it is the art of the designer and that of the
professionals that makes the firm a successful business firm (Pedersen et al., 2015).
Primary business objective: their sole objective is to gain a profitable market share and to
address their firm as one of the famous well-accepted firms within the consumer market. They do
not target any specific segment among the consumers. They aim at targeting each and every
individual of the society. However, the firm does not make any efforts towards sustaining the

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environment. On the other side, the firm undertakes measure to identify the business prospects
that can be achieved by formulating new firms in different regions of the country. They care for
their employees for which they have formulated an incentive plan. This incentive plan has been
formulated to compensate the employees because of the efforts that they contribute towards the
business firm.
2.3. Corporate Objectives
Make the brand worth it among the consumer market segment: The brand aim towards
targeting each and every segment of the consumer market. They classify the entire market
consumer market based upon the design, look, and styles. On the other side, they make use of the
distinct portfolio that is being designed for the youngsters, separate portfolio for the adults and
that of the teenagers (Okonkwo et al., 2016).
Increase in the number of commodity offering for the potential consumers: A survey was
conducted by the firm where it found that within the region of the domestic country there is
about 35 kg of shoe pairs that is being rejected or recycled by the household sector of the
economy. This estimation is being done on a yearly basis. However, the business firm claims that
by making use of this rejected materials they can formulate more products such as 90 pairs of
shoes. Calculating in the overall perspective of the UK population, in terms of the 64 million
people much of the elimination will take place. The rejected shoes can be further improved into
innovate style and pull the consumer market towards the concerning business firm.

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3. 3. Situational Analysis
3.1. PESTLE analysis of the company
POLITICAL
- The concerning firm undertakes the
trading activity with that of the
overseas market for the sewing
activity. They even hire raw-materials
for different parts of the county that
entirely depends upon the nature of
the new product and that of the design.
- Companies like that of the PETA
makes it mandatory to prohibit the
product offering of the companies that
makes use of animal’s fur and skins.
- The prevailing tax-structure of the
economy keeps on changing with the
change in the market trends
(Baliamoune-Lutz et al., 2014).
- The region of the UK market is still
recovering from the phase of the
recession that took place in the early
era of the year 2008. There is a large
proportion of the consumer market
that strives for a basic employment

6BUSINESS ANALYSIS OF ELAINE
ECONOMICAL
rate; this is the low income earning
people.
- Any new trading policies as
formulated can have a positive as well
as negative effects upon the
concerning business.
- A survey was carried on. This survey
was held upon the 270 Global fashion
executive; and the obtaining result
found comprises that 42% of the
business firm claims that the
prevailing economic conditions will
not be profitable for the shoe industry
(Brito et al., 2015). Supported their
statement by claiming that within the
coming era of time in 2019 the fashion
industry will be much worse.
- The distinct portfolio of athletic
collection attracts the interest of the
potential consumers and make them
attracted towards the design.
- They arrange their shelves in an
attracting manner. Besides they make

7BUSINESS ANALYSIS OF ELAINE
SOCIAL use of the banner and logos to direct
the consumers towards the particular
segment of the product. They even
make use of the marketing
professionals that guides the
consumers of the product towards
their specific needs. This way the
customer gets satisfied and aims to
continue further business with the
concerning brand. (Henninger et al.,
2016)
TECHNOLOGICAL
- Their aim is to make use of the digital
marketing platform to reach the
international market. They even aim to
make use of the e-commerce website
in order to build their presence within
the internet platform.
- Besides, the firm makes use of the
traditional machines that are
innovative in output as compared to
that of the previous products for the
manufacturing process of the products.
- They even make use of the

8BUSINESS ANALYSIS OF ELAINE
applications to guide their nearby
consumers to their shops, this apps
also entails the consumers about the
special discounts and offers that is
being available at the present point of
the time.
- They also make use of the POS
machines and various cashless
payment machines for the ease of the
consumers.
LEGAL
- The National Minimum Wage (NMW)
law mandates that an equal and
satisfactory amount of wage is being
paid to the workers and that of the
employees. However, this wage
structure is being modified every year.
- They maintain their own copyrights
and patents of the design which
prohibits any other fashion industry
firm to make use of it (Hvass et al.,
2015).
- They denote their CSR, by making use
of the carbon friendly raw materials

9BUSINESS ANALYSIS OF ELAINE
ENVIRONMENTAL
and equipment.
- The firm even operates on recycling of
the goods objective. This is also done
to introduce efficiency within the cost
structure as formulated by them.
3.2. Business life cycle
The stages are as follows:
Start-up: The store was inaugurated as an official athletic footwear point. It is because of its
unique and classic design that the firm was able to attract the consumer’s interest because of the
designs of the shoes. Besides, the hire designers and professional but upon an agreement that
their business related concepts and ideas are not be shared with that of the rival firms.
Growth: The firm has been operating in the consumer market for a time period of more than 20
years. This has enabled the firm to formulate its own brand equity and that of the goodwill of the
firm. In the mid of the 15 years, the firm was successful to capture the interest of the consumer
market. Slowly gaining pace in the market, the number of rival firms also took place.
Expansion: By the time of 20s era the concerning firm was successful in securing a stable
position in the market. It was the design of the firm that makes them unique. On a continuous
basis, they make research and development activity for the manufacturing of new products. They
make use of the tailor-made catalogue that is being designed to make sure that each of the
consumer market segment is being targeted and targeted towards the bran. It is one of their
marketing strategies. The even make efforts by availing the product according to different time

10BUSINESS ANALYSIS OF ELAINE
zone and for the different occasion such that the user gets the advantage to purchase for the
occasion that will be conducted in the morning, or evening, or night. This helped them to
categorise their product offering. This concept helped to pull the consumers (Fernie et al., 2018).
Maturity: However, after the entry of the number of firms such as that of the Tommy Hilfiger,
Ralph Lauren, Nike, Reebok. The competition has increased within the market for which the
product selling rate has reduced to a certain level. This indicates that the concerning firm has
reached the maturity level. The rival brands are offering plus size too.
Decline: Their continuous innovative product offering is the key towards their business success.
Since, there has been a rapid increase in the firm of the firm within the footwear industry. There
is a requirement for the firm to introduce innovative products or soon the firm will be losing its
market share. On the other hand, these designers that make the business a qualitative one will
shift towards the rival brands when they feel like the concerning firm at the verge of getting
decline.
3.3. Manufacturing locations
They undertake business activities in the city of London itself, at the recent era of time
they have business points in the region of Kensington Palace, Knightsbridge, and at Mayfair.
Besides, they follow their own distinct professional for which they hire designers such as from
the professional institutions, they make use of this experts by setting up their own backup office
where the new designs are implemented and being tested in the consumer market. The new
designs are being tested upon the feedback of the arrival customers within the physical shop.
Consumers feedback are the asset for the concerning frim.

11BUSINESS ANALYSIS OF ELAINE
3.4. Porter’s Five Forces model
Bargaining power of the suppliers: The suppliers of the raw materials and that of the required
equipment’s are the one from the international boundaries along with that of the domestic
country. The exporters that provide quality oriented raw materials. However, this suppliers
provide the commodity upon the maximum pricing strategy. Since, there is huge presence of the
rival markets, the business prospects of the suppliers around the positive side. Whereas for the
business firms there are very selective suppliers for which they had to arrive at a business. Which
is feasible from the side of suppliers. On a continuous basis, the fashion industry such as that of
the concerning firm Elaine, bargain in a manner that yields satisfactory outcomes for the
suppliers (Brito et al., 2015).
The threat of substitutes: There are large number of a business firm that offers the same
product and makes use of the design that the potential to lag behind the concerning firm —
brands such as that of the Nike, Puma, Adidas.
Bargaining power of the buyers: Buyers are more concentrated as compared to that of the
sellers. Besides, the threat in regard to backward integration is high. Buyers of the consumer
market are very price sensitive; they make a number of offers that is they carry on negotiation on
a continuous basis. There is the ability of a substitute product for which the majority of the
power domains in the buyer's hand. The consumer market is educated for which they demand
only commodities that can yield maximum satisfaction for them.
The threat of new entrants: Firms like that of the Puma, Nike, and Adidas has the potential to
give a very tough competition. This brand, on the other hand, makes use of the marketing
strategies and each firm has their own specific competitive advantage. Besides, there lies huge

12BUSINESS ANALYSIS OF ELAINE
prospects for the formulation of new business firm within the footwear industry. There has been
much of the innovation in product offerings of the rival firms, for which the other rival firms
make a number of efforts for the introduction of new commodities (Gupta et al., 2014).
3.6. All the above observations may feed into the G. Panagiotou’s telescopic observation.
Counterfeits: This are the consumers that purchase on an online basis. This consumers
belong from that of the different regions of the country. They are able to view product offering at
the click of a mouse; it has made fashion items rapidly vulnerable to counterfeiting. The web has
also provided counterfeiters with direct routes to market that can be hard to trace, through
business-to-business and consumer-facing websites such as auction sites. However, if you have
the right strategy and tools in place, you can tackle this.
Social media: This platform can serve as one of the key factors for the generation of the revenue
for the firm. On the other hand, the social-media platform allows the promotion and sale of the
product offerings at free of cost. Hence, much of the cost will be saved. Besides, the consumers
are seeking information and advice online from peers and price comparison websites on all kinds
of goods, rather than from makers of the item. You need to have plans in place to react quickly
and effectively to positive and negative feedback. This requires active management. However,
there are negative facts of using the social-media, but that is a separate issue.
4. 4. Internal Analysis
The business took place with the inauguration of two specific plants located in two
specific different regions. They even have introduced hike in the wage prices by 1%. This will be
carried out to result in an increase within the productivity. The concerning firm also put much of
the efforts upon the training of the employees for which an amount of about 600$ is being
invested within the region of the North-American facility, and 400$ within the region of the

13BUSINESS ANALYSIS OF ELAINE
Asia-Pacific. A two million pair plant located within the region of the North-America, and a four
million pair plant located within the region of the Asia-pacific. The manner in which the goods
are labelled denotes their true nature (Dinnie et al., 2015).
One of the important point to be noted is that there is nothing printed upon the label
which misrepresents the goods, or it is otherwise considered as unfair or misleading for the
consumer, including in relation to price, composition or origin. Before an offer is being made for
the sole objective of sale within the region of the UK market, they adhere and comply with that
of the UK rights, and they comply with that of the relevant labelling requirements and safety
standards.
Ethical/desirable branding: Goods are more often being branded as being ethically sourced,
handmade, traded fairly or claiming origin from a particular region or place or being made out of
a particular material (e.g. British Materials). Care needs to be taken that such branding is
accurate and does not mislead the consumer.
5. 5.1.
5.2 SWOT analysis of the firm
STRENGTH
- The Unique design of the firm.
- The luxury consumer segment of the
brand.
- The brand equity that it has formulated
over the period of the time.
- They avail the insurance scheme for the
product.

14BUSINESS ANALYSIS OF ELAINE
- Research and testing team that they make
use of.
WEAKNESS
- The number of rival firms present therein.
- The dynamic pricing strategy as
implemented by that of the rival firms
such as price skimming, strategic pricing
according to the tailor-made consumer
segment (Scherer et al., 2015).
OPPORTUNITIES - By making use of the e-commerce
platform, the firm can penetrate into the
regions where the existence of the firm
fails.
THREATS
- The change in fashion taste brings the
failure of the present innovative product
(Scherer et al., 2015).
5.3 Implementation of the Marketing Strategy.
The digitalisation of sales strategies: the days when the migration of new designs from
the catwalk to the high street was via glossy magazines is long gone. Any fashion or luxury
brand will now look to digital media to maximise sales and promotions opportunity and any
acquirer will look for a strong strategy in this area.

15BUSINESS ANALYSIS OF ELAINE
Founder buy-in: the sale of a fashion business inevitably means a high degree of “buy-in”
from founders and designers to the acquiring business, something that is often of utmost
importance to acquirers, as talent acquisition and retention tend to feature prominently on their
M&A checklist when acquiring a fashion or luxury brand (Liu et al., 2017).
6.
6.1. 7 P’s - Product, Place, Promotion, Price, People, Processes, Physical evidence.
Product- Shifting within the online platform: The business firm is planning to provide product
offerings by means of an online platform.
Pop up shops: these are a great way for a fashion retailer to ‘test’ their brand in a particular
location or take advantage of periods of high footfall, such as the Christmas period.
Shop in shops: these, and concessions, are a good way to enable fashion retailers to reduce their
fit-out costs and benefit from the footfall generated by other stores.
Place- the concerning firm operates within the region of the UK. These retailers prefer to pay
lease rents which are based on a percentage of their turnover. This can be beneficial to
businesses whose sales may be impacted by market conditions. A leasehold approach offers you
more flexibility, as you can negotiate the terms of the lease. Also, taking a lease is often better
from a cash-flow perspective, without having to commit the capital required to acquire the
freehold interest (Wang et al., 2014).
Price- The company used to pay an additional cost of about 1.25$ as an incentive within the
region of North-America. The incentive of 0.75$ is being paid to the workers of the Asia Pacific
region. The pricing strategy is for the various consumer market segment. He tailor-made their
price offerings keeping in mind the diversified consumer segment.

16BUSINESS ANALYSIS OF ELAINE
Promotion- Their promotional strategy comprises of the advertisement campaigns that are
conducted by means of billboard, banners, magazines and that of the local media advertisement
partners.
6.2. Celebrity endorsement: brand management.
Since, they have lack of money they does not have the opportunity to make use of the
celebrity endorsement as much of the expenses will be incurred against the firm. This expenses
will be unfavourable for the firm. On the other hand, making use of this expenses may create a
shortage of funds for the other business plans formulated. On the other hand, because of the
shortage of financial aid, the firm was not able to arrive at a feasible point during the auction
period. The bidding was in favour of the rival firm because they were having a high amount of
investment that was capable enough of meeting the satisfactory point of the bidder (Beverland et
al., 2015). On the other hand, celebrity endorsements require a lot of money mainly because of
the promotional activities in diversified areas and by means of the diversified channels.
7. Corporate Social Responsibility and Citizenship
The firm did not take make efforts for sustaining the environment and impart its
responsibility towards the CSR. It is their estimation that taking part within the CSR programmes
result in 0 profit for them for which they does not make any effort for complying with that of the
Corporate Social Responsibility (CSR) activity. They are more of profit centric in practical. They
are more prone towards the cost structure. They found that much of the cost will incur in
comparison to that of the profit expectation from that of the CSR activity.

17BUSINESS ANALYSIS OF ELAINE
8. Recommendations
Thus after going through the entire business undertaking of the concerning firm it is
found that the firm lacks behind in terms of the CSR activity. On the other hand the firm is not
able to make use of the celebrity endorsements as a shortage of funds which is a symbol that
there is a lot of shortage of business prospects that stays in the hand of firm for which they are
not able to generate adequate amount of revenues. The firm only focuses upon the consumer
market. There is a need for the firm to understand the importance of advertising activity that will
help in obtaining much of the market exposure. Besides, the firm does not take a major role in
sustaining the environment and denote its responsibility towards the environment. The firm is
required to participate in promotional events and joint communication sessions with that of the
other firms it will help in understanding the business objective and marketing strategy.

18BUSINESS ANALYSIS OF ELAINE
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