Prospect, Opportunities and External Environment for a jewellery start-up business using the click-and-brick model

BUSINESS PLAN 2 BUSINESS PLAN BUSINESS PLAN Name of student: Name of university: Author note: Executive summary The aim of this paper is to analyze the prospect, opportunities and external environment for my jewellery start-up business using the click-and-brick model. Executive summary 1 Assessment 1 3 Introduction: 3 Discussion 3 Problem identification: Identification of the business and innovation 3 Benefits generated: 5 Proposed business model: 5 Critical success factors: 8 Evaluation of feasibility: 8 Conclusion: 8 Assessment 2 9 References

Running head: BUSINESS PLAN
BUSINESS PLAN
Name of student:
Name of university:
Author note:

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Executive summary
The aim of this paper is to analyze the prospect, opportunities and external environment for my
jewellery start-up business using the click-and-brick model. For the purpose of the research I
have delved into the market for jewellery business in Australia and that gave me the indication
regarding the potential of my business. I have discussed on the critical success factor and
evaluation of feasibility that have enabled me in understanding the pros and cons of the business.

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Table of Contents
Executive summary.........................................................................................................................1
Assessment 1...................................................................................................................................3
Introduction:....................................................................................................................................3
Discussion........................................................................................................................................3
Problem identification: Identification of the business and innovation........................................3
Benefits generated:......................................................................................................................5
Proposed business model:............................................................................................................5
Critical success factors:...............................................................................................................8
Evaluation of feasibility:..............................................................................................................8
Conclusion:......................................................................................................................................8
Assessment 2...................................................................................................................................9
References......................................................................................................................................11

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Assessment 1
Introduction:
The business that I intend to begin is that of a jewellery start-up in Perth, Australia. My
motivation behind choosing a jewellery business is that it brings back memories of the family
heirloom that was gifted to me my grandmother on my last birthday. This paper discusses about
the jewellery start-up that I would begin through the clicks and bricks model. I would also
discuss on the aspects of why this business would be an innovation, external environment of the
business, external business environment, proposed business model, critical success factors and
evaluation of feasibility.
Discussion
Problem identification: Identification of the business and innovation
I was raised by my mother who is divorced and throughput his life she had to bear the
burden of stigma for being a single mother. My mother had been committed in raising money for
providing women from the marginalized communities with the platform of earning their own
livelihood. Being an independent and ambitious woman, she always wanted to start her own
business, however due to family responsibilities she had to opt for a government job believing
that it would provide her with a secured future for the family. As were graduating from B-school
and planning on what to do next with our career, the unfulfilled desires of my mother and her
vision for the autonomy of women all inspired me to commence with my own entrepreneurial

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venture. My aim was to create business that would be of the women, for the women and by the
women. This led me to come up with the idea of establishing my handcrafted jewellery start-up
that would sell indigenous handcrafted jewellery produced by the indigenous women who have
great potential however their rate of employment in Australia is quite low. According to the
Australian Bureau of Statistics (2013), whilst half of the indigenous population in Australia aged
between 15-64 were employed, the rate of employment among the indigenous women is only 43
per cent (Avery, J., Steenburgh, Deighton & Caravella, 2012). Reports have shown that
indigenous women face multiple barriers in doing business. Some of these barriers include
poverty, lack of education and white exclusionary policies against indigenous women. To flag
off my business I would deploy the bricks and click business model. This kind of business model
has been adopted with the aim of selling my products through e retail outlet (physical location)
and through online location (www.jewelstar.com) (Bock, Opsahl, George, & Gann, 2012).
Initially the business would operate through the retail store in a shopping mall and later would
expand as a standalone store based on the popularity and annual turnover. I will name mu
entrepreneurial venture as jewelstar.
External environment of jewellery business in Australia- According to the reports the
market of fashion jewellery in Australia is expected to reach a saturation point in the by 2022.
Since there is an ever increasing demand of fashion jewellery, this gives me an opportunity to
provide something innovative to the customers in the form of local handcrafted jewellery
exuding the essence of local culture.

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Benefits generated:
The benefits that I would be able to generate are revenue as discussed in the external
environment of the jewellery business. Secondly, I would be able to gain popularity and build
my brand name among the millenials.
Proposed business model:
Branding- The advantage of using the bricks and click model is that it would allow my
jewellery retail business to leverage the advantages developed in business through an entirely
physical presence. It would my jewellery business jewelstar to establish a brand name and build
up its reputation that would translate to the internet. In case of the retail outlet. I would be able to
meet my customer and would be able to communicate to them about the vision of the brand. On
the other hand the online store would allow me to reach to customers who would not be in a
position to visit the store.
Supplier Networks- On the aspect of the supplier network, the bricks and click model
would allow me to improve on the supplier networks (Amit & Zott, 2012). The internet space
would allow me a wide a range of suppliers that would enable the ordering of new products and
equipment. In addition, it would generate competitive pricing. As observed by the scholars an
offline business would be in a position to leverage the existing relationship with the suppliers
through trust and goodwill.
Distribution- The bricks and click business model for the jewellery business would be
effective as it would allow in reaching to a wider customer base and transcend beyond the local
community (Carrigan, McEachern, Moraes & Bosangit, 2017).

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Costs- However, in terms of cost, the bricks and clicks business model will be
problematic as it has a change of increasing the overhead cost of the jewellery business
(Kanjanajootha, 2014). This is because maintaining a business through a physical space as well
as through the Internet would make me bear extra cost for the physical space as well as for the
website.
Marketing strategies for the jewellery business- To ensure that my business the
necessary mileage, I would deploy fashion bloggers by sending them statement pieces from the
jewellery line. The idea behind deploying fashion bloggers instead of a known celebrity is to cut
down the cost of paying the celebrity. I will offer monthly subscription box that would comprise
of customizable jewelleries for our lucky customers on every Friday. Another marketing strategy
that I aim to adopt is encouraging customers to click selfie with the jewelleries worn by them and
offering them discount in their next purchase. We are planning to introduce special birthday
editions and jewellery editions for with the aim to make our customers feel valued and thereby
retaining the loyalty of the customers.

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Business model canvass
Key Partners
 Partner with
local
restaurants
 Network of
distribution
Key Activities
 Selling
handcrafted
jewellery
produced by
the
indigenous
women.
Value Proposition
 Value
propositions
is with held
in jewellery
business
Customer
Relationships
 Creating
brand
awareness
 Innovating
products
 Building
trust

 Customer
service
Customer
Segments
 Fashion-
conscious
women
 Millenials
 Catering to
the
millenials
and
teenagers
 30-minutes
campaignKey Resources
 Networking
skills
 Brand image
 Will be
providing
employment
to
indigeneous
women to
create a
sustainable
livelihood
option .
Channels
 They have
distribution
networks
throughout
the country
 Social media
The
company has
its own
websites that
approaches
many at a
time
Cost Structure
 Technology
 Taxes to government and intercity and
interstate taxes
 Customs
 Employee wages
 Production costs
 Purchase of raw materials

Revenue Streams
 Financing the company and insurance
 Components

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Critical success factors:
Some of the critical success factors are being consistent with the brand image and
strategy, being innovative, producing new products, investing in retail, and maintaining the
distribution channels. Another critical factor would be maintaining the gross margin.
Evaluation of feasibility:
This refers to the evaluation of the business through research and thorough understanding
of the market. I need to assess the franchise potential for the business and understand the scope
of the business for a national template (Fernández-Sabiote & Román, 2012). I would choose for
an independent business as it would less expensive considering that I my company is a start-up. I
would also need to analyse the market and identify potential competitors for the business. This
would enable me to strategize my business accordingly.
Conclusion:
The paper focussed on my business plan on establishing the jewellery start-up business
through the application of the bricks-and-click model. I have found that this would be an
innovative venture, as it would provide sustainable livelihood options to indigenous women
through the production of local handcrafted indigenous jewellery.

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Assessment 2
Based on the above analysis of my click and brick business plan, the following issues can be
stated
Problem identification: I aim to sell handcrafted jewellery produced by the indigenous women
in Australia. This would provide them with sustainable livelihood options considering that the
rate of employment among indigenous women is lower compared to their male counterparts.
Apart from this, the external environment analysis of the jewellery business reveals that there
would be saturation in fashion jewellery market, therefore handcrafted jewellery has a potential
for good market growth.
Benefits generated: The benefits that will be generated from the jewellery business would
generate revenue and at the same time would help in marinating the brand value of the start-up
brand (Casadesus‐Masanell, & Zhu, 2013).
Proposed business model: The clicks-and-brick business model for my jewellery start-up would
allow me to reach a wider market by tapping in the customers who are beyond the geographical
space of Perth and secondly through physical interaction with the customers. This would enable
me to understand the concerns of the customers along with their opinions regarding the product.
This business model would enable me to maintain a cordial relationship with the suppliers.
However, the downside of this model is the expenditure of cost in marinating the online store as
well as the physical space.
Critical success factor: I would need to maintain the gross margin and continue to remain
innovative for the business to have a competitive advantage. To have leverage I would

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incorporate innovative marketing strategies and bring out new collections of jewelleries every
month.
Evaluation of feasibility: I would not have any franchise and rather be an independent investor
in the business to cut down cost. At the same time, I would conduct a SWOT analysis to
understand my position in the market.

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References
Amit, R., & Zott, C. (2012). Creating value through business model innovation. MIT Sloan
Management Review, 53(3), 41.
Avery, J., Steenburgh, T. J., Deighton, J., & Caravella, M. (2012). Adding bricks to clicks:
Predicting the patterns of cross-channel elasticities over time. Journal of
Marketing, 76(3), 96-111.
Bock, A. J., Opsahl, T., George, G., & Gann, D. M. (2012). The effects of culture and structure
on strategic flexibility during business model innovation. Journal of Management
Studies, 49(2), 279-305.
Carrigan, M., McEachern, M., Moraes, C., & Bosangit, C. (2017). The fine jewellery industry:
Corporate responsibility challenges and institutional forces facing SMEs. Journal of
Business Ethics, 143(4), 681-699.
Casadesus‐Masanell, R., & Zhu, F. (2013). Business model innovation and competitive
imitation: The case of sponsor‐based business models. Strategic management
journal, 34(4), 464-482.
Fernández-Sabiote, E., & Román, S. (2012). Adding clicks to bricks: A study of the
consequences on customer loyalty in a service context. Electronic Commerce Research
and Applications, 11(1), 36-48.

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Kacen, J. J., Hess, J. D., & Chiang, W. Y. K. (2013). Bricks or clicks? Consumer attitudes
toward traditional stores and online stores. Global Economics and Management
Review, 18(1), 12-21.
Kanjanajootha, T. (2014). Development of purchasing contract strategy for supply materials in
jewellery business.
Toufaily, E., Souiden, N., & Ladhari, R. (2013). Consumer trust toward retail websites:
Comparison between pure click and click-and-brick retailers. Journal of Retailing and
Consumer Services, 20(6), 538-548.