Establishment of a Fashion Retail Company in Australia

Running head: MANAGEMENT
Management
Name of Student
Name of University
Author Note

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MANAGEMENT
Executive Summary
The report focuses on the establishment of a small and new start up company in Australia.
The idea that is going to be developed is that of setting up Fashion Retail Company in the
fashion capital of the country, Melbourne. The name of the company that is to be established
is Stylish Fashion that aims to provide festival wear as the main component. The report
identifies ways by which the company can use the product as an anchor to pique the interest
of the customers. At the same time, the report analyses the Australian fashion retail industry
in terms of its market size, growth rate and the main competitors. It is seen from the report
that the fashion industry of Australia consists of both local companies like Ally Fashion as
well as foreign companies like Abercombie & Fitch. An analysis of the macro environment as
well as the meso environment of the industry is made that highlights the opportunities and
threats that exist in the business. The factors that drive the changes are analysed and
recommendations are made that can help the company to gain necessary opportunities in
the fashion retail market of Australia.

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MANAGEMENT
Table of Contents
Introduction............................................................................................................................ 3
1. Discussing the relative size, growth and main players........................................................3
2. Determining three threats and three opportunities..............................................................5
3. Factors that provide opportunities and threats....................................................................6
4. Isolating the drivers of change............................................................................................7
Conclusion............................................................................................................................. 8
Bibliography......................................................................................................................... 10
Appendices.......................................................................................................................... 13
Appendix 1........................................................................................................................ 13
Appendix 2........................................................................................................................ 13
Appendix 3........................................................................................................................ 13

3
MANAGEMENT
Introduction
The assignment focuses on the factors that may contribute to the success or lead to
failure of a business. The purpose of the assignment is to establish a new start up fashion
retail business in Melbourne. The factors that are analysed can be deemed part of an
environment that may play an adverse role in the development and set up of business. The
factors cannot be controlled at will and the impact can be either positive or negative for the
development of business. The assignment analyses the factors that may provide
opportunities or lead to threat for the development of the fashion retail business. The name
provided to the start up company that is in focus is Stylish Fashion.
The assignment provides the relative size, rate of growth and the main players that
exist in the Australian Fashion retail industry. A macro environment analysis is also
conducted that helps in identifying the major opportunities and threats that the Australian
Fashion retail brands face in the current market. At the same time, a meso environment
analysis is conducted for the selected brand to determine the opportunities and threats that
exist. The selected category based on which Stylish Fashion can attract customers is the
festival wear. Recommendations are provided that can help in taking advantage of the
opportunities that exist or help in the reduction of threats from the business.
1. Discussing the relative size, growth and main players
The fashion retail industry in Australia have faced with various difficulties and
challenges over the past year which includes the cautious spending of customers, intense
competition and rise in rent. Despite this, Kozlinskis & Guseva (2016, p.111) observed that
the industry has grown and the relative size of the business is about 10,895 companies with
both large and small companies in the market. The market share (Week 2 RCO 1, RCO2) of
the retail industry in the country is approximately 40% of the total revenue as the contribution