Entrepreneurship and Business Development for Desklib - A Case Study on Launching an Organic and Sustainable Skincare Product

Entrepreneurship
and Business
Development

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Explanation of the business concept.......................................................................................3
Assessment of Industry, Market, Organizational and Financial Feasibility...........................4
Main components of value chain and business model canvas in relation to proposed business.8
Identification of risks and explanation of risk management................................................11
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneurship is defined as the act of becoming and entrepreneur with the desire and
skills to manage and create a successful start-up along with risk associated with start-up venture
(Rezazadeh and Nobari, 2018). This report provides outline of new business concept which
includes description of product service, target market, special attributes, values, scale of
business, location and who will be involved. In addition to this, assessment of industry, market,
organizational and financial feasibility is conducted in this report. Value chain analysis and
business model canvas in context of proposed business. Potential risks associated with the
business are identified and risk mitigation strategies are provided in this report.
MAIN BODY
Explanation of the business concept
Product description: The product offered by the enterprise is of vegan and organic
skincare range which is suitable for consumers with sensitive skin and can be used to improve
health of skin. This skincare range will offer make-up products along with skincare medicine
created with sustainable and vegan materials which provide natural glow to the skin.
Special attributes: Sustainable packaging and organic materials will be used to
manufacture skincare range. This will be the special attribute of the products offered by the
company. This will provide consumers affordable and sustainable option for skincare and beauty
products.
Target market: The target market is of middle income and high income environmentally
conscious consumers.
Scale of business: This will be a medium sized company as large amount of investment
will be contributed to developing vegan and sustainable products. Investment into increasing the
scale of the company will increase financial risk. Medium size scale of the firm will limit
financial risk while also assist in offering sustainable products to the consumers (Gu, Qian and
Lu, 2018).
Location: The vegan skincare products will be primarily sold through company website
and e-commerce sites. In addition to this exclusive stores will be opened at lucrative areas.
Who will be involved: Main stakeholders of the business will be employees, investors,
suppliers and consumers.

Rationale for launching organic and sustainable skincare product: The organic
skincare industry in UK was worth in year 2017 £75.9 million in 2017 which showcased an
increaser of 24% from the previous year (UK: more than 20% growth for organic cosmetics,
2018). The shift in consumer mindset towards organic skincare and sustainability is the main
reason behind impressive growth of the organic skincare industry. This continuous growth in
organic skincare market is reason for launching organic and sustainable skincare products. Apart
from this COVIDD-19 pandemic has also increased usage of skincare products in UK. 55%
increase in usage of face wash 29% for micellar water and 31% for toner (UK facial care
surges-'Skin health is the big driver', says Mintel, 2020). Impressive growth rate of organic
skincare industry and rise in usage of skincare products provide huge opportunity to small
enterprises. Consumers are seeking affordable skincare options. This is the rational for launching
affordable organic and sustainable skincare range.
Assessment of Industry, Market, Organizational and Financial Feasibility
PESTEL Analysis
 Political Factor: Brexit is the main factor which affects start-up firms in UK.
Positive Impact: Brexit will lower retail prizes which will help the skincare company construct
exclusive stores at lower price.
Negative Impact: Labour shortage created because of reduction of EU labourers will increase
labour cost for skincare firm.
 Economical Factor: COVID-19 trade restrictions impact growth of start-up firms
(Salamzadeh and Dana, 2020).
Positive Impact: COVID-19 trade restrictions have increased online shopping. This will help the
skincare company gain high online sale.
Negative Impact: COVID-19 has negatively impacted the UK economy. This will halt rapid
growth of skincare brand.
 Social Factor: Increase in consumers adopting skincare routines and focusing on health of
their skin is a social factor impacting beauty industry.
Positive Impact: The company will be able to attract consumers by offering affordable organic
skincare products.
Negative Impact: The rise of consumer focus on skincare has increased competition from
domestic and international firms.