Business Model Innovation in the TCF Industry

This assignment delves into the realm of business model innovation within Australia's Textiles, Clothing, and Footwear (TCF) industry. Students are tasked with examining how this sector is adapting to evolving market dynamics and exploring the various impacts and challenges associated with implementing new business models. The analysis should draw upon the provided research papers and consider factors such as servitization, technology adoption, and sustainability.

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
Entrepreneurship is the capacity of developing and operating new venture and incorporating
innovation in the business model along with it risk towards gaining huge profit. This study has
developed clothing business company having innovative business model. The new organization
will provide custom generated value to clothing, where it will source the clothing designs from
the community users. The study has developed an effective business model for successfully
operating the new business venture. The new business organization will target young and
teenager customers having high needs of fashionable clothing. Moreover, the study will add high
level of customer value through offering innovative and customer generated design in the
clothing products. The study has also analyzed the feasibility of the new business venture.
Moreover, the economic development of Australia can helpful for the new business venture for
enhancing its return on investment.

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Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Business Canvas Model.............................................................................................................4
2.1 Customer Segments...............................................................................................................4
2.2 Value Proposition..................................................................................................................4
2.3 Customer Relationships.........................................................................................................5
2.4 Channels................................................................................................................................5
2.5 Key Activities........................................................................................................................6
2.6 Key Resources and Key Partners...........................................................................................6
2.7 Revenue Structure..................................................................................................................7
2.8 Cost Structure........................................................................................................................7
2.9 Minimum Viable Product (MVP)..........................................................................................8
3.0 Feasibility Analysis.................................................................................................................10
3.1 Market feasibility.................................................................................................................10
3.2 Technical feasibility.............................................................................................................10
3.3 Human feasibility.................................................................................................................11
3.4 Financial feasibility.............................................................................................................11
4.0 Conclusion...............................................................................................................................11
Reference List................................................................................................................................13

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1.0 Introduction
Entrepreneurship defines the capacity of designing, developing and running new and
innovative business venture along with its risks towards earning high level of business profit
(Bae et al. 2012). This study will develop such an innovative business idea and entrepreneurship
for developing a brand new business venture. The study will also assess the feasibility analysis of
the new business. Moreover, the study will develop a Trendy Clothing Company in Australia,
which will operate under textile industry, which will provide trendy and uniquely designed
clothing to the customers. The business model of this business venture will be completely
innovative from other clothing companies in Australian market. This new business venture will
source design of the clothing from the community users over the internet. After sourcing
adequate clothing design from the community users, the organization will allow the staffs and
customers to score over the design through internet. In this way, the organization will choose the
best and most innovative design based of high score provided on the best design. Such business
model will facilitate the new business venture towards offering most trendy and innovative
clothing design based on customized preferences of the customers. Furthermore, the customers
will be able to purchase the clothing of this organization both through online channels and retail
sectors.

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2.0 Business Canvas Model
2.1 Customer Segments
According to DaSilva and Trkman (2014), customer segmentation is the practice, which
divides customer base into groups of individuals based on their similar attributes like gender,
age, spending, preferences, interest and others. On the other hand, Casadesus‐Masanell and Zhu
(2013) opined that customer segmentation defines the division of potential customers in a
particular market into discrete groups. The new trendy clothing company will target mostly
teenage and young customers for offering highly fashionable clothing. Moreover, the business
venture will serve the customers having highly sophisticated life. The innovative design of the
clothing will give the customers a feeling of uniqueness in their daily life and fashion life.
2.2 Value Proposition
Kastalli and Van Looy (2013) pointed out that value proposition defines the unique
attributes within products and services which differentiate an organization from its other rival
organization in the market. On the other hand, Martins, Rindova and Greenbaum (2015) opined
that the unique value of value proposition facilitates an organization to stand out unique in the
market, which adds to its competitive advantage. The new retail clothing company will mostly
focus on qualitative value proposition for providing unique customer value. Moreover, the
organization will provide unique and innovative design in their clothing products. It will provide
unique value to the customers, which will facilitate it in gaining competitive edge. Moreover, the
custom generated design of the clothing will make the organization able towards differentiate
itself from other rival companies. Furthermore, the organization will also offer attractive
discounts and offerings to the customers for encouraging them in purchasing their products.
2.3 Customer Relationships
Khanagha, Volberda and Oshri (2014) pointed out that customer relationship is the
approach of managing the interaction of an organization with its current or potential customers.
This approach always cares for the concern and issues of the customers towards keeping their
satisfied over the time. In case of the new retail clothing business venture, the organization will
maintain community relationship with the customers. In such customer relationship, the

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organization will formulate a community with the customers through allowing them in inputting
their clothing deigns in the business process and even scoring the designs of the clothing. In this
way, the organization will maintain direct interaction with the customers, which facilitates in
better customer relationship. On the other hand, the new business venture will also maintain co-
creation customer relationship with the customers. In such relationship, the organization will
maintain personal relationship with the customers through allowing them in inputting their
unique clothing design in the ultimate clothing products. It enhances the value of the customers
through direct communication with them.
2.4 Channels
According to Markides (2013), distribution channel defines the chain of intermediaries
through which goods and services of an organization reach to the end customers. Effective
interconnection between the intermediaries ensures timely delivery of the products to the
customers. In case of new retail business venture, the clothing will be provided to the customers
both though e-commerce channels and retail stores. In case of e-commerce, the organization will
use e-commerce distribution centres for reaching the products to the customers. On the other
hand, in case of retail stores, the clothing products of the organization will reach to the customers
through producers to wholesalers to retailers and finally to customers.
2.5 Key Activities
As per Zott and Amit (2013), key activities in an organization define some significant
activities, which facilitate the organization in achieving high level of value proposition. In case
of new clothing venture, the organization will effectively maintain supply chain network for
efficiently producing innovative designed clothing. Moreover, the designs of the organization
will be supplied from the community users for providing custom generated value to the customer
through their final clothing products. On the other hand, the organization will also effectively
maintain customer relationship through allowing them in inputting their design ideas in the
production process of clothing. It will actually enhance the value of the customers, which will
keep them satisfied through getting custom generated value from the clothing products.
2.6 Key Resources and Key Partners
Schneider and Spieth (2013) opined that key resources define the significant assets of an
organization, which facilitate the organization in executing high level of value proposition.

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Moreover, the key resources are extremely important for an organization toward sustaining and
supporting the business process. In case of new clothing business venture, the key resources of
the organization are the community users, who sources innovative clothing design to the ultimate
clothing products. The organizational staffs and customers are also significant for choosing the
best design received from the community users. On the other hand, Maglio and Spohrer (2013)
opined that key partners are extremely important for optimizing the business operation and
reducing the risk of business model. In case of new clothing business venture, the organization
will choose community users as their suppliers of clothing design. Moreover, the organization
will keep such users satisfied with sharing organization profit with them handsomely. In will
encourage the users towards repeatedly providing unique clothing design in the production
process. In this way, the organization will be able to provide user-generated value to the
customers, which will reduce risk of business model. Moreover, the organization will also be
able to focus on its core business activities through sourcing clothing designs from the
community users.
2.7 Revenue Structure
According to Carayannis, Sindakis and Walter (2015), revenue stream defines the
building block, which represents the ways of cash generation of an organization from each of its
customer segment. In case of new clothing business venture, the organization will select asset
sales revenue stream for generating huge cash from the customers. In such asset sale revenue
stream, the customers will purchase clothing from the business venture. Moreover, the
organization will transfer the ownership rights of the clothing it produces to the customers after
their purchase. The more customers will purchase the clothing of new business venture, the more
it will generate cash from the customers.
2.8 Cost Structure
Amit and Zott (2015) cost structure defines the types and relative portion of fixed and
variable cost, which are incurred by an organization during business process. In case of new
clothing business venture, the organization will be less concerned about the cost. Moreover, the
organization will be more concerned about creating values for the clothing products to the
customers. It will facilitate the organization towards being unique in the market. However, such
structure will lead to economies of scale for the organization. The unique value of clothing

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products will encourage the customers towards repeatedly purchasing them. It will actually
enhance the sales volume of the organization. In this way, the organizational cost will go down
with increasing production and purchase order from the customers.
2.9 Minimum Viable Product (MVP)
According to Osiyevskyy and Dewald (2015), minimum viable product defines a
development technique in which organizations develop new products and websites with just
sufficient features for satisfying the customers. The products have enough value towards
encouraging the customers in taking purchasing decision. Moreover, such development
technique includes just enough features in the products for satisfying the customers and do not
include any extra less necessary products. Likewise, the new business venture will adopt MVP
technique, where it will add high quality just for the clothing products. On the other hand, Ritala
and Sainio (2014) opined that MVP technique ask for suggestion from the customers towards
improving the products. Likewise, the new business venture ask for the customers towards
providing innovative clothing design for providing uniquely designed and custom generated
clothing to them.

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Key Partners
 Community users
will provide clothing
design
 Maintain effective
relationship through
profit sharing
 Get supplying of
raw materials from
unique sources
 Effective
relationship with the
suppliers will keep
them engaged in
providing quality
materials
Key Activities
 Effective maintain
supply chain networks
 Customer generated
clothing design will be
supplied from users
 Effectively marinating
customer relationship
 Increase customer
value through
allowing them in
inputting their unique
clothing design
Value Proposition
 Use both
qualitative and
quantitative value
proposition
 Majorly focus on
qualitative value
proposition
 Provide unique
customer value
though innovative
and most trendy
clothing
 Offer attractive
discounts and
offerings to the
customers
 Value
proposition will
add to
competitive
advantage
Customer Relationship
 Maintain
community
relationship for
building
collaborative
relationship with
customers
 Allow community
customers to input
their unique clothing
design and even
allow to score over
the sourced designs
 Such practice will
enhance customer
value by valuing
their unique designs
Customer Segment
 Mostly target
young and teenage
customers having
high needs of
trendy and
fashionable
clothing
 Serve the customers
having highly
sophisticated life
 Unique design will
provide feel of
uniqueness to the
customers
Key Resources
 Community users are
significant for
providing unique
clothing design
 Organizational staffs
are important for
selecting the best
design from the
sourced designs
 Keep strong financial
backup for effective
managing innovative
business model
Channels
 Use both online and
retail stores for
providing clothing
to the customers
 Distribution centers
will be used for e-
commerce channels
 Retail sectors will
use the channels
from producers to
wholesalers to retail
stores and finally to
customers
Cost Structure
 Mostly use value driven cost structure
 Focus of providing unique quality and value to the customers
 Gain economies of scale through increasing purchasing order
and production
Revenue Stream
 Use asset sale revenue stream
 Generate huge cash through transferring ownership right of
clothing to the customers after their purchase
Table 1: Business Canvas Model
(Source: Created by Author)

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3.0 Feasibility Analysis
3.1 Market feasibility
Australia has huge market of textile market for garments, apparel, fabric and clothing. As
per the industry survey of 2014-2015, the industry added value of Australian textile industry is
precisely 2,517$m. Furthermore, textile imports are also to rise by 4.9% in the current year. The
sales and service of the industry for the year 2015-2016 is almost 7,814$m (Industry.gov.au
2017). Moreover, there is tough competition among the clothing companies of Australia.
Moreover, the competitor companies are providing almost equal value in their products.
Furthermore, textile industry also gains huge support from Australian government. The tariff rate
of textile industry have steady been reduced from 17.5% to 10% (Nossar et al. 2015). Therefore,
it would be possible to new clothing company to start over its business easily with the support of
Australian government. Apart from that, Australian customers are also highly inclined towards
wearing trendy clothing. In such situation, the innovative design of the new clothing company
would be highly demanding for the customers.
3.2 Technical feasibility
Australia is now one of the most technically advanced countries in the world. Moreover,
the textile industry of Australia takes adequate advantage of its technological advancement.
Therefore, the new clothing company can get adequate supply of technically advanced
machineries and equipments towards producing innovative clothing. Apart from that, technical
advancement of the country can also facilitate the new organization in making highly interactive
website for directly interacting with the customers. Furthermore, the advancement in
digitalization and social median platform will also help the organization towards better
promotion of the products.
3.3 Human feasibility
The new business venture can have the advantage of flexible labour market of Australia.
Therefore, the organization has to face less stringent rule and regulations in terms of managing
human resources. Apart from that, the unemployment rate of Australia has steadily remained at
5.6% (Mavromaras, Sloane and Wei 2015). Therefore, the new business organizations can easily
hire employees at lowest cost. On the other hand, the organization can also get highly skilled and

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talented employees from Australian labour market even at best prices. Such talented and skilled
employees can better add their talents and skills in the success of the organization.
3.4 Financial feasibility
The innovative business model of the new business venture will be highly cost effective.
Moreover, the organization does not much have to spend money for its marketing and
advertisement activities. The customers will themselves provide their custom generated designs
and purchase them after approval of best design. Therefore, such business model would
ultimately reduce the overall organizational cost. On the other hand, the economic development
of Australia had enhanced the spending power of the consumers. It can indirectly enhance the
sales volume of the organization and its return on investment.
4.0 Conclusion
While concluding the study, it can be said that the new Australian based business venture
will offer trendy clothing to the customers. The organization will have an innovative business
model, where the organization will source unique clothing designs from the community users.
After collection of several designs from the users, the organization will ask the staffs and
customers to score over the designs. In this way, the organization will choose the best design
based of the high score provided on the collection of designs and produce clothing based on best
design. While considering the business model of new clothing business, it will select the people
having high needs of trendy clothing. The organization will most target young and teenage
people having high fashion trends. The innovative designs of the clothing will provide a feeling
of uniqueness to the customers. The organization will maintain continuous relationship with the
customers through continuous interaction with them. Furthermore, the organization will provide
enhanced customer value through allowing them in inputting their ideas for clothing design. The
organization will use both e-commerce as well as retail stores towards reaching their clothing to
the customers. Among the key activities, the organization will primarily maintain effective
supply chain network for smooth business operation. The community users are highly important
for providing unique clothing design towards bringing competitive edge to the organization. The
organization will use value based cost structure through providing innovatively designed
clothing to the customers.

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Reference List
Amit, R. and Zott, C., 2015. Crafting business architecture: The antecedents of business model
design. Strategic Entrepreneurship Journal, 9(4), pp.331-350.
Bae, T.J., Qian, S., Miao, C. and Fiet, J.O., 2014. The relationship between entrepreneurship
education and entrepreneurial intentions: A meta‐analytic review. Entrepreneurship theory and
practice, 38(2), pp.217-254.
Carayannis, E.G., Sindakis, S. and Walter, C., 2015. Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer, 40(1), pp.85-104.
Casadesus‐Masanell, R. and Zhu, F., 2013. Business model innovation and competitive
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DaSilva, C.M. and Trkman, P., 2014. Business model: what it is and what it is not. Long range
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model. R&D Management, 44(3), pp.322-340.

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Maglio, P.P. and Spohrer, J., 2013. A service science perspective on business model
innovation. Industrial Marketing Management, 42(5), pp.665-670.
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