Enterpreneurship Assignment 2022

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Running head: ENTERPRENEURSHIP
ENTERPRENEURSHIP
Student’s Name
University Name
Author note
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1ENTERPRENEURSHIP
Introduction –
Untouched world specializes in New Zealand. The business organization offers
sustainable lifestyle fashion for both men and women. The materials used by the business
organization are luxurious natural fabrics and fibers. As the business organization operates in a
highly competitive and technologically advanced country, it will be beneficial for the company
to adapt to the new business idea that is Stylect, which has been described in the later part of the
report. The business idea proposes to take advantage of the Maori communities grounded in legal
and constitutional rights. The business idea proposes to grab the prevailing opportunities in the
country with the Maori people in New Zealand. The Maori people can be seen as a long term
business partner. The company plans to hire Maori employees considering the sustaining
property rights, language, and culture. With the increased business opportunity, the Maouri
employees can secure themselves a unique position to bring long term community centre view
implementing the resources and lasting partnership with the business. With this opportunity, the
Maori consumers can empower themselves abandoning their welfare dependency and their
embedded victim mentality.
Idea overview
Stylect is a mobile phone application that provides shopping experience to the potential
customers. The application enables the consumers to choose appropriate outfit for them in
different occasions. There are many consumers who find it difficult to choose appropriate
apparel for different occasions; henceforth they hunt for correct apparel to suit themselves in
different situations. The shopping application provides benefits to the consumers to choose from
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2ENTERPRENEURSHIP
varied clothing options and also have specialist suggestions from the fashionistas to enable them
to choose appropriate dress for different occasions and festivals as per there type and
preferences. There are many consumers who spend huge amount of time in choosing the
appropriate apparel for them. This application can solve their problems and enable them to
enhance their dressing up styles as per the latest fashion and suitable body fittings. The company
is based in New Zealand, introducing Stylect mobile phone shopping application enabling the
consumers to leverage the fashion mentor to guide the consumers and provide them suitable
advice to the consumers. This service considers the opportunity arisen from the treaty of
Waitangi settlements. The business idea is an adaptation of other online applications offering
products and services online to the customers. However, Stylect application has a competitive
advantage, as it offers personal fashion mentors to the potential customers and enable them to
dress better, thereby reducing their problem of spending too much time over choosing apparels
and matching them with proper accessories. The treaty of Waitangi settlements provides
additional benefits and opportunities to the Maori employees, as they can implement their
outstanding knowledge and skills. There are enormous potential which creates opportunity for
the business organization. Most importantly there are positive impact on Maori employees in
New Zealand. It provides great opportunity to divert wasteful spending, increase investment by
developing new business ideas like Stylect, and utilize skills of the business.
Market opportunity and industry research
According to Bharadwaj et al., (2013), there has been a rapid growth and advancement of
technology which has transformed the overall methods of selling and buying products and
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3ENTERPRENEURSHIP
services. The consumers are opting for online stores for shopping as it provides ease and comfort
to the consumers. The biggest advantage of Stylect online shopping store is that it does not have
any space constraints and variety of products can be displayed on the WebPages for the
convenience of the consumers. The online application provides additional benefits to the
consumers to make a purchase after researching and browsing different styles. It also saves time
and effort of the consumers. There is no physical stores or sales representatives who manipulate
and influence the consumers the purchase the product (Brogi et al.,2013). The consumers are not
pressurized to make a purchase in the online stores.
Advantages and benefits of the business idea
It saves time and effort of the consumers
Stylect application will offer personal fashion mentors for the consumers to help them
choose appropriate apparel as per their suitability with different occasions.
Stylect will enable the consumers to get access to different brands and choose from
varied range of products and accessories.
Stylect will offer 24/7 assistance to the consumers, hence time is not a barrier
The consumers can also get online tracking to check the status of their orders and track their
shipping; they can choose their own delivery schedule and timing for the delivery of the product
(Chavez, 2016).
Target customers
Stylect targets the consumers between the ages of 18- 40 years. The target market is both men
and women with middle income groups. It also targets the customers who are highly fashion
forward and conscious about the latest trends (Chen, Sohal & Prajogo, 2013). Stylect mainly
targets the consumers from the urban areas, who prefer shopping for themselves and their
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4ENTERPRENEURSHIP
children. The target customers are the people who are highly sensitive about the most up to date
fashionable clothing along with matching accessories at affordable pricing (Danes et al., 2013).
Market opportunities and threats
The New Zealand market is highly sensitive about the attest fashion trends and branded products.
Furthermore with the advancement of technology and latest shopping trends, the shopping
application will be accepted by the market. As per research and surveys it has been identified
that majority of the consumers in the New Zealand market prefers shopping online. Hence, the
service offered by the company will be profitability in the market; the customers will purchase
the product (Figure NZ Trust., 2013).
Value proposition and competitive advantage
Stylect has many advantages over their competitors in the market, however, there are few
features which provide competitive advantage to the companies such as the company is vertically
integrated, and it has a strong communication system between the departments and the stages of
retail cycle (Kawharu, 2018). Most importantly, the company provides fashion mentors to the
customers, which is completely unique and original. It is not provided by any of the competitors
in the market.
The online store is designed with profitable layout for the display of the products and
distribution of the products (King & Lakhani, 2013). The overall business strategy is to provide
cutting edge fashion and at affordable pricing. It offers to the customers with latest styles and
trends.
Competitive analysis
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There is stiff competition in the online fashion stores in New Zealand; Stylect might face stiff
competition from other fashion applications such as Influenster-Influenster, Myntra online
Shopping App and Pat Pat (La Rocca, Ford & Snehota, 2013). With the advancement of
technology and latest trends in the market, it has been identified that online trends are increasing
in the fashion industry in New Zealand. Stylect provides fashion mentors and guides to the
customers to suggest them the fashion trends and select the most appropriate apparel for the
consumers along with suitable accessories, which is not provided by other application service
providers in the market (Makkar & Yap, 2018). Stylect also provides options for the consumers
to choose their suitable delivery options as per their convenience, which is not provided by other
competitors in the market. The company offers fashionable and affordable clothing styles to the
consumers which differentiate it from other competitors in the market (Martin et al., 2013).
Marketing Mix
Product strategy – Stylect offers leading luxury fashion labels in the world. It offers fashion
products and services for both men and women. It offers wide range of products including jeans,
tops, skirts, t-shirts, trousers, fashionable accessories to match with the clothes. It offers
suggestions to the customers concerning their personal choices (McNeill & Moore 2015). It
works as a sales representative providing information and details about the products and provide
suggestions for different occasions and festivals. The application is a ‘one stop solution’ for the
customers be it formals or casuals.
Price strategy – The Company will be implementing a penetration pricing strategy for the
customers. It focuses on low pricing strategy so that is it affordable by all the target customers
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and the competitive pricing of the company is set to sway away the customers from the
competitors (Molloy & Larner, 2013). Being a new service in the market, it is essential for the
business organization to penetrate the market. Stylect has low cost structure compared to other
competitors in the market, which makes it favorable for the company to offer the products and
services at a lower cost. The prices of the products and services are specific to the country. The
company set a market based pricing strategy to ensure affordability of the consumers (Popov &
Roosenboom, 2013).
Place strategy – The products and services offered by Stylect will be sold through the online
stores. It is a vertically integrated business organization. The supply chain of the business
organization and the fashion mentor are two major competitive advantage of the business
organization. Stylect implements unique business models to deliver the products and services in
the shortest time possible. Highly efficient teams and departments coordinate the activities and
functions of the in-house designers and develop fashionable apparels for the customers (Ruske,
2014). The designing of the store will be done by the web designers of the company.
Promotion strategy – It order to promote the products and services of the business organization,
Stylect will be investing in various advertising and promotional campaigns. The company will be
implementing online advertising and promotional campaigns such as social media and content
marketing to reach out to the target customers and influence them to make a purchase (Shen et
al., 2014). Rather than implementing expensive marketing and advertising tools, the business
organization relies on word of mouth promotion. The company will focus on increasing its
visibility in the social media platforms such as Facebook and Instagram (Spinelli, Ensign &
Adams, 2014). The show windows of the business organization are enough for publicizing the
products and services offered by the company (Talluri et al., 2013).
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7ENTERPRENEURSHIP
Finance
In order to develop a mobile phone application for the business organization, the average
price required is $40,000 to $460,000. Depending upon the complexity of the business
organization, the application might cost somewhere between $61,000 and $70,000. The app
developer might take a rate of $50 per hour on an average (Wiengarten et al., 2016). The
company will be hiring higher level expertise to build the application ensuring quality. A
trustworthy developer team will be hired to meet the needs and requirements of the business
organization. Local app developer team might be hired, as they might ensure deeper involved
accusing suitability of the application with the local customers in the market. It will also
facilitate straightforward communications (Ward, 2015). The application will be a medium
complexity app which might take at least 700 to 1000 hours for development. For the new
startup business, personal investment and angel investment can be taken into consideration. The
angel investments are wealthy individuals or organizations which might invest in Stylect. The
leaders and the managers in Angel investment might also contribute their experience and
management knowledge to the business organization (Ward, 2015). The Angel investors might
finance the early stages of starting the business organization with investments of $25000 to
$100,000.
Functionalities
The functionalities and complexities of the application features are one of the main
resources of the business organizations. The app developing price is most expensive to the
business organizations (Spinelli, Ensign & Adams, 2014). The simple app development requires
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effort, native features engagement, and standard tools. In order to include a basic search, $650-
$900 is required. The basic messages sections of the applications and other details take 160-180
hours. It costs the company nearly $8000-$8600 (Spinelli, Ensign & Adams, 2014).
Source : (Spinelli, Ensign & Adams, 2014).
User interface design
In order to create unique and attractive UI designing in the application, costs the company is
$1000 -$12,000. It increases the application development cost (McNeill & Moore 2015).
Time & Material
The application requires maintenance and support. It requires testing and fixing bugs. The tech
vendors might increase the material costs such as the additional charges and hardware to the
application development costs. Flexible approach will be taken into consideration in case there is
any change in the scope of work or another idea (Molloy & Larner, 2013).
Teams
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9ENTERPRENEURSHIP
The company also requires extra to assist the in-house programmers. The project manager will
be provided with the pricing model (Ruske, 2014). The tech expertise will be able handle the
management. Experienced UI designer will be hired as looks of the application is essential in
today’s business scenario.
Management
The business organization will be operating with lean organizational structural with
continued focus on high performance of the business organization. The lean organization
structure of the business organization enables the business organization to have minimum levels
off hierarchy in the organizations (Shen et al., 2014). There will be decentralized decision
making in the business organization. However, the limitation is that the model is mostly focused
on its redundant administrative procedures. Stylect will be focusing on redundant administrative
procedures. Starting from designing of the product until its delivery, it will take only five weeks,
which enables the business organization to attain the consumer needs and preferences. The
structure of the business organization has been designed to attain customer satisfaction, which is
one of the important priorities of Stylect. The lean organization relies on information technology.
The top management with management skills and talent will be hired to run the business
organization (Spinelli, Ensign & Adams, 2014). The app develops designers and retailers with
necessary skilled and talent will execute their functions and coordinate the activities for
maximum outcome.
The skills, resources, and knowledge are adequate for the business organization to run the
organization. However, gathering sufficient funds to run the organization is a challenge. Personal
investments will not be sufficient to successfully run the business organization (Talluri et al.,
2013). However, Angel investments can be taken into consideration to overcome the challenge
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of shortage of finance. Another challenge that the business can face is cross platform
applications. Different consumers might operate the application in different screen sizes;
henceforth the application needs to be adaptable to varied screen sizes of the potential customers
(McNeill & Moore 2015). In order to overcome the problem, the business organization needs to
rely on expertise UI designer app developer.
Operations
Stylect mobile phone application depends greatly on the fashion trends in the industry
and word of mouth information to create an appeal among the consumers. The operational goals
of the business organization are to attain short term leads and increase the range of fashion styles
for the consumers (Chen, Sohal & Prajogo, 2013). The business organization must focus on
creativity, innovation, and equality. These are the key drivers of a sustainable competitive
advantage of any business organization today. The operation strategy of the business
organization is to reconcile with the market requirements and operations resources of the
business organization. The company will be adjusting its resources to meet the demands of the
customers. The cross functional teams in the business organization chooses a design; commit the
resources for its production (Danes et al., 2013). The vertical integration of the business
organization provides competitive advantage. They have centralized logistics and distribution
systems of the business organization. There are three main stages of operations that are
designing, manufacturing, and distribution. This can be a competitive advantage to the business
organization. The strategy of Stylect is to focus on the dynamic fashion trends and aligning them
with the needs and demands of the consumers. In a fast changing business environment, constant
innovation is required to develop new fashionable products and gain the perceived benefits. The
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feedback and preferences consumers will be taken into consideration (Chavez, 2016). The
operational strategy of the business organization is to attain short lead times and increase the
range of products and services to the consumers.
There will be creative departments deigning fashionable apparels as per the latest trends
and designing. The company will be recruiting 200 fashion designers to provide innovative
fashionable items for the customers. The sample items will be manufactured in-house and others
will be supplied by trustworthy suppliers (Bharadwaj et al., 2013). The designed clothing’s will
be manufactured and the finished products will be displayed on the websites with proper
information. The marketing department and the operations manager will oversee the functioning
and activities of the departments. The fashionistas and the fashion exerts will be available for the
customers in case they require any suggestions for the clothing’s. The orders will then be shipped
to the assigned locations of the consumers (Danes et al., 2013). The marketing and the sales
department will be ensuring that the customers are satisfied with the products.
Risk mitigation strategy
Auditing and taxation compliance – The business organization might face legal compliance
risks. Negligence of legal laws and procedures might create inconvenience for the business
organization. In order to overcome the risks, the company might hire and internal auditor to
fulfill the annual auditing requirements of the business organization (Figure NZ Trust., 2013).
Raising further capital- Incase the organization requires additional capital for the operations of
the business organization; the company might face certain risks. In order to overcome the risks,
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the organization can consider shared capital investment (Kawharu, 2018).
Licensing risks – The licensing requirements must be complied by the business organization so
as to avoid any type of legal suits. These risks might reduce the chances and opportunities of the
business organization of gaining funds and capita for running of the business organization.
Henceforth licensing is basic requirement for a new start up organizations. In order to overcome
the risks, the company must get verified business incorporate certificate while the company is
being applied for business specific license (King & Lakhani, 2013).
Undertaking agreements for the business
For the new start up business organization, the company requires working policies for the parties
involved in the functioning and operations of the business organizations. There must be
agreements with the parties involves to avoid hassles (La Rocca, Ford & Snehota, 2013). Co-
founders agreement might demarcate the roles and responsibility of the co-founders.
Raising funds from external sources
Raising funds and capital from external sources such as Angel investors and venture capitalists
or term loan providers require timely returns. Lack of timely returns might dissuade the investors
from providing funds and capital in the future. It might also harm the reputation of the business
organization. In order to overcome the risks, it must consider proper financial planning in a
precise manner. This will enable the business organization to gain the trust of the investors at the
early stage (La Rocca, Ford & Snehota, 2013).
Conclusion
Therefore, from the above analysis, it can be concluded that Stylect will be successful in
the New Zealand market with increased opportunity from the Treaty of Waitangi settlements.
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The Maori people who are highly talented and skilled will boost the performance and increase
the level of success for the business organizations. Considering the latest market trends and the
fashion industry, it can be clearly stated that the business will be profitable along with its
compliance with legal terms and procedures. The Maori people will also benefit from the
business idea to a great extent. It will provide them a platform to boost their skills and
knowledge.
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References
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business
strategy: toward a next generation of insights. MIS quarterly, 471-482.
Brogi, S., Calabrese, A., Campisi, D., Capece, G., Costa, R., & Di Pillo, F. (2013). The
effects of online brand communities on brand equity in the luxury fashion
industry. International Journal of Engineering Business Management, 5(Godište
2013), 5-32
Chavez, J. (2016). The personality characteristics of an entrepreneur and their effects on the
performance of a new business venture.
Chen, J., Sohal, A. S., & Prajogo, D. I. (2013). Supply chain operational risk mitigation: a
collaborative approach. International Journal of Production Research, 51(7), 2186-2199.
Danes, S. M., Craft, S. M., Jang, J., & Lee, J. (2013). Liability of newness: Assessing couple
social support when starting a new business venture. Journal of marital and family
therapy, 39(4), 515-529.
Figure NZ Trust. (2013, 1 1). Population by age group in new zealand . From figure.nz:
https://figure.nz/chart/3pRQhmIcVu2QCTlm-f4viNoJvwtknd8oD
Kawharu, M. (2018). The ‘unsettledness’ of Treaty claim settlements. The Round Table, 107(4),
483-492.
King, A., & Lakhani, K. R. (2013). Using open innovation to identify the best ideas. MIT
Sloan management review, 55(1), 41.
La Rocca, A., Ford, D., & Snehota, I. (2013). Initial relationship development in new business
ventures. Industrial Marketing Management, 42(7), 1025-1032.
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Makkar, M., & Yap, S. F. (2018). The anatomy of the inconspicuous luxury fashion
experience. Journal of Fashion Marketing and Management: An International Journal.
Martin, S., Foulonneau, M., Turki, S., & Ihadjadene, M. (2013). Risk analysis to overcome
barriers to open data. Electronic Journal of e-Government, 11(1), 348.
McNeill, L., & Moore, R. (2015). Sustainable fashion consumption and the fast fashion
conundrum: fashionable consumers and attitudes to sustainability in clothing
choice. International Journal of Consumer Studies, 39(3), 212-222.
Molloy, M., & Larner, W. (2013). Fashioning globalisation: New Zealand design, working
women and the cultural economy. John Wiley & Sons.
Popov, A., & Roosenboom, P. (2013). Venture capital and new business creation. Journal of
banking & finance, 37(12), 4695-4710.
Ruske, M. (2014). Indigenous Residential Development and Property Investment. Lincoln
Planning Review, 6(1-2), 56-62.
Shen, B., Zheng, J. H., Chow, P. S., & Chow, K. Y. (2014). Perception of fashion sustainability
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Spinelli, S., Ensign, P. C., & Adams, R. J. (2014). New venture creation. McGraw-Hill Ryerson.
Talluri, S., Kull, T. J., Yildiz, H., & Yoon, J. (2013). Assessing the efficiency of risk mitigation
strategies in supply chains. Journal of Business Logistics, 34(4), 253-269.
Ward, A. (2015). An unsettled history: Treaty claims in New Zealand today. Bridget Williams
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practices, and the success of supply chain integration. International Journal of
Production Economics, 171, 361-370.
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