Entrepreneurial Development: Business Model and Growth Strategy of VeloBreath
Added on 2022-11-13
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Business DevelopmentFinanceMarketingDesign and Creativity
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Running head: ENTREPRENEURAL DEVELOPMENT
ENTREPRENEURAL DEVELOPMENT
Name of the Student
Name of the University
Author note
ENTREPRENEURAL DEVELOPMENT
Name of the Student
Name of the University
Author note
ENTREPRENEURAL DEVELOPMENT1
Executive summary
VeloBreath is a line of waterproof apparel for cyclists newly launched in the UK with the vision
of providing regular cyclists a comfortable solution against sweat and rain. The product line-up
is developed keeping in mind the cyclists who venture on their bicycles on a daily basis and
suffer the consequences of harsh weather and sweat. This article describes the business value
proposition, business model and the growth strategy adopted by ValueBreath in order to
successfully establish a market in the UK for a line of innovative cycling apparel.
Executive summary
VeloBreath is a line of waterproof apparel for cyclists newly launched in the UK with the vision
of providing regular cyclists a comfortable solution against sweat and rain. The product line-up
is developed keeping in mind the cyclists who venture on their bicycles on a daily basis and
suffer the consequences of harsh weather and sweat. This article describes the business value
proposition, business model and the growth strategy adopted by ValueBreath in order to
successfully establish a market in the UK for a line of innovative cycling apparel.
ENTREPRENEURAL DEVELOPMENT2
Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Value Proposition............................................................................................................................3
Business Idea...................................................................................................................................4
Growth Strategy...............................................................................................................................5
Porter’s five force model.................................................................................................................6
Industry rivalry:...........................................................................................................................6
Bargaining power of customers:..................................................................................................7
Bargaining power of suppliers:....................................................................................................7
Threat of the substitution:............................................................................................................8
Threat of new entrants:................................................................................................................8
Risk analysis (avoid/mitigation/contingency plan):................................................................9
HRM (no of people, rules, structure, company ownership):.........................................................12
Conclusion.....................................................................................................................................14
Recommendations..........................................................................................................................14
References......................................................................................................................................16
Appendix........................................................................................................................................18
Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Value Proposition............................................................................................................................3
Business Idea...................................................................................................................................4
Growth Strategy...............................................................................................................................5
Porter’s five force model.................................................................................................................6
Industry rivalry:...........................................................................................................................6
Bargaining power of customers:..................................................................................................7
Bargaining power of suppliers:....................................................................................................7
Threat of the substitution:............................................................................................................8
Threat of new entrants:................................................................................................................8
Risk analysis (avoid/mitigation/contingency plan):................................................................9
HRM (no of people, rules, structure, company ownership):.........................................................12
Conclusion.....................................................................................................................................14
Recommendations..........................................................................................................................14
References......................................................................................................................................16
Appendix........................................................................................................................................18
ENTREPRENEURAL DEVELOPMENT3
Introduction
The company VeloBreath is a cycling apparel retail business, with their flagship store at
Old Street, London. The organizational structure of the enterprise is headed by The Chief
Executive Officer or the CEO, who has the general responsibility of managing the general affairs
of the company. The Board of Directors of the company is comprised of three directors
responsible for the three divisions of the company, which are sales and marketing, human
resources, and finance (Chi, Tansuhaj and Sun 2016). The sales and marketing department is
accountable for research and development, pricing and distribution of products, customer and
sales communication; the HR department for administration and recruitments, logistics and
employee relations; and the Finance department for accounting, auditing, and planning finances
of the company (Liu 2018). Their latest introduction to the collection is a product called
‘VeloBreath’. It is a waterproof cycling costume which comes in a range of bright colours which
would make the cyclist visible on the road. The following report will speak about the business
strategy which the company might follow in order to gain the maximum revenue and business
development.
Value Proposition
In recent times, the number of cyclists has been increasing in great numbers all over the
world due to health promoting activities, especially in the UK. With the number of cyclists, the
demand for the right kind of apparel is also on the rise. This is where the VeloBreath comes in. It
would create value for its target customers namely, the commuters who use cycle to their
destinations and families with children (Fernandes 2015). The product is waterproof, which is
perfectly suited to the ever-changing weather of the UK. The costumes are available in bright
Introduction
The company VeloBreath is a cycling apparel retail business, with their flagship store at
Old Street, London. The organizational structure of the enterprise is headed by The Chief
Executive Officer or the CEO, who has the general responsibility of managing the general affairs
of the company. The Board of Directors of the company is comprised of three directors
responsible for the three divisions of the company, which are sales and marketing, human
resources, and finance (Chi, Tansuhaj and Sun 2016). The sales and marketing department is
accountable for research and development, pricing and distribution of products, customer and
sales communication; the HR department for administration and recruitments, logistics and
employee relations; and the Finance department for accounting, auditing, and planning finances
of the company (Liu 2018). Their latest introduction to the collection is a product called
‘VeloBreath’. It is a waterproof cycling costume which comes in a range of bright colours which
would make the cyclist visible on the road. The following report will speak about the business
strategy which the company might follow in order to gain the maximum revenue and business
development.
Value Proposition
In recent times, the number of cyclists has been increasing in great numbers all over the
world due to health promoting activities, especially in the UK. With the number of cyclists, the
demand for the right kind of apparel is also on the rise. This is where the VeloBreath comes in. It
would create value for its target customers namely, the commuters who use cycle to their
destinations and families with children (Fernandes 2015). The product is waterproof, which is
perfectly suited to the ever-changing weather of the UK. The costumes are available in bright
ENTREPRENEURAL DEVELOPMENT4
colours, serving two purposes. It will make the cyclist visible on road, even in very poor weather
and also attract customers, including children. The product is made of breathable material which
will allow the cyclist to wear it for long hours during heavy physical activity without feeling the
discomfort of excess sweating (Dhanapala 2015). The products are manufactured from high
quality materials in styles which adapts to the local culture. The combination of all these factors
makes VeloBreath a quality product to be marketed to the public interested in taking up cycling
in the future or individuals who are already avid cyclists. Market analysis has been performed in
order to see whether a sustainable brand could be built with this product (Osterwalder et al.
2014).
Business Idea
The whole idea behind this kind of an innovation is to offer the customers a product that they
can rely upon in the not-so-sweet days of their cycling routine. Customers form the soul of any
business idea thereby making it a matter of absolute importance to provide primary attention to
the product and the customer base in order to garner specific ideas and key points that will help
development of the product and maintain sales (Nanda & Rhodes-Kropf 2013). At the same time,
segmenting the customer base also becomes important to strategically manoeuvre any sales or
development related issues that might pop up because of a poorly identified customer segment.
Customer segmentation is done based on criteria like lifestyle, economic conditions, age etc.
VeloBreath targets customers who engage in moderate to extreme cycling in their daily life,
mostly marathon cyclists but also tends to the base of regular recreational cyclists. In order to
successfully implement the business idea, VeloBreath follows a five point plan of action as
follows:
colours, serving two purposes. It will make the cyclist visible on road, even in very poor weather
and also attract customers, including children. The product is made of breathable material which
will allow the cyclist to wear it for long hours during heavy physical activity without feeling the
discomfort of excess sweating (Dhanapala 2015). The products are manufactured from high
quality materials in styles which adapts to the local culture. The combination of all these factors
makes VeloBreath a quality product to be marketed to the public interested in taking up cycling
in the future or individuals who are already avid cyclists. Market analysis has been performed in
order to see whether a sustainable brand could be built with this product (Osterwalder et al.
2014).
Business Idea
The whole idea behind this kind of an innovation is to offer the customers a product that they
can rely upon in the not-so-sweet days of their cycling routine. Customers form the soul of any
business idea thereby making it a matter of absolute importance to provide primary attention to
the product and the customer base in order to garner specific ideas and key points that will help
development of the product and maintain sales (Nanda & Rhodes-Kropf 2013). At the same time,
segmenting the customer base also becomes important to strategically manoeuvre any sales or
development related issues that might pop up because of a poorly identified customer segment.
Customer segmentation is done based on criteria like lifestyle, economic conditions, age etc.
VeloBreath targets customers who engage in moderate to extreme cycling in their daily life,
mostly marathon cyclists but also tends to the base of regular recreational cyclists. In order to
successfully implement the business idea, VeloBreath follows a five point plan of action as
follows:
ENTREPRENEURAL DEVELOPMENT5
1. They attempt to develop and maintain a successful relationship with their customer by
offering them a wide variety of high quality products at both, the retail outlets as well as
on different e-commerce platforms.
2. They attempt to provide an all-round 24/7 customer service support via telephone and
email.
3. Their business plan includes propositions for providing discounts and bundled products
in order to improve the customer purchase value.
4. They work towards improving their product quality and value by maintaining constant
communication with their customers via social media in order to gain their valuable
feedback.
5. Their plans also include a former-customer feedback system where they maintain
communication with their customers, former customers as well as followers on social
media platforms like YouTube and Facebook. This allows them to understand the current
trends as well as changes that are happening in other similar sectors which they can
gather ideas from to improve their product segment.
Growth Strategy
VeloBreath is built with the vision of providing customers one less reason to slack in
their daily cycling routine. It has already been observed and established that a cycling apparel
which is not so environment friendly causes to be a hindrance for cyclists. VeloBreath has
attempted to target that issue by manufacturing and distributing waterproof cycling apparel for
reasonable price targeted towards the age group of 6 to 65, thereby countering the challenges that
come with uncomfortable clothing.
VeloBreath’s growth strategy is illustrated as follows (Kowalkowski 2015):
1. They attempt to develop and maintain a successful relationship with their customer by
offering them a wide variety of high quality products at both, the retail outlets as well as
on different e-commerce platforms.
2. They attempt to provide an all-round 24/7 customer service support via telephone and
email.
3. Their business plan includes propositions for providing discounts and bundled products
in order to improve the customer purchase value.
4. They work towards improving their product quality and value by maintaining constant
communication with their customers via social media in order to gain their valuable
feedback.
5. Their plans also include a former-customer feedback system where they maintain
communication with their customers, former customers as well as followers on social
media platforms like YouTube and Facebook. This allows them to understand the current
trends as well as changes that are happening in other similar sectors which they can
gather ideas from to improve their product segment.
Growth Strategy
VeloBreath is built with the vision of providing customers one less reason to slack in
their daily cycling routine. It has already been observed and established that a cycling apparel
which is not so environment friendly causes to be a hindrance for cyclists. VeloBreath has
attempted to target that issue by manufacturing and distributing waterproof cycling apparel for
reasonable price targeted towards the age group of 6 to 65, thereby countering the challenges that
come with uncomfortable clothing.
VeloBreath’s growth strategy is illustrated as follows (Kowalkowski 2015):
End of preview
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