Colorful Threads: Enterprise Business Development and Strategy

This report provides a comprehensive business development plan for a new clothing venture named "Colorful Threads." It begins with an overview of the business, highlighting its unique selling proposition of sustainable fashion and its target market of fashion-conscious individuals aged 21-45 in t...Read More

4. Enterprise business
development report

Table of Contents
Introduction.................................................................................................................................................3
Business Overview:.................................................................................................................................3
Macro Environment Overview:...............................................................................................................3
Market & industry analysis:.....................................................................................................................4
Competitors analysis:..............................................................................................................................5
Marketing & pricing strategies:...............................................................................................................5
Operational Plan:.....................................................................................................................................6
SWOT analysis:.......................................................................................................................................6
Financial requirements:...........................................................................................................................7
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

Introduction
Entrepreneurship is an activity to start a new business based on a unique idea. The main
aim of entrepreneurship is to create a new venture that will offer creative products or services to
the customers. Here, the entrepreneur starts a new business in a hope to earn high amount of
profit. In other words, entrepreneurship is an activity of developing and managing a new
business venture (Reinhartz-Berger and et. al., 2017). The present study aims to analyze a new
business idea that will undertake by the entrepreneurs. Here, the business plan will prepare for a
clothing business including market, industry, financial and operational analysis of the new
venture. Additionally, competitor’s analysis, marketing & pricing strategies, SWOT analysis will
also cover in the following study.
Business Overview:
The name of business will be “Colorful threads”. It will offer different varieties of
clothes to the customers. The fashion industry of UK is growing hence there is huge scope of
growth for the respective business entity. Here, the target people are those who like to wear
trendy and fashion clothes between the age group of 21 to 45. Here, Colorful threads will offer
fashionable clothes of different sizes so that all the people can enjoy the fashionable and modern
lifestyle. Additionally, following the concept of sustainable fashion is the unique selling
preposition of the respective business entity.
Macro Environment Overview:
In the given context, the venture will be started in the fashion industry. Here, the analysis
of fashion industry is mentioned below:
Political Factors: The fashion industry of UK is affected by the influence of political
figures. Here, people consider political figures as their role model. Hence, the fashion brands can
take it as an opportunity to attract more numbers of buyers. Additionally, Brexit has created
uncertainty within the industry which will also influence the growth of the industry in an
efficient manner (Portes and Guarnizo, 2019).

Economical Factors: Manufacturing clothes is quiet expensive in UK hence the fashion
brands are likely to produce fashion items in developing countries such as India, China and
more. Also, the recent Pandemic has also affected the purchasing power of the customers. now,
people are not likely to spend on luxury fashion items.
Social Factors: In UK, people are highly fashion oriented. They like to wear trendy and
fashionable clothes. Here, 80% of people do not wear the clothes again. This attitude of people is
an opportunity for the fashion brands to grow in the future period of time (Cooper and
Slagmulder, 2017).
Technological Factors: now, more and more people are using online shopping practices.
In current time, people are highly inclined towards technology. The COVID-19 has also enhance
the use of technology in business. In this situation, fashion brands can enhance their presence by
using recent and updated technology in business.
Legal Factors: The fashion industry of UK needs to obey the rules and regulation of
government. Here, the regulations related to manufacturing and selling of clothes are really strict
which need to follow by each and every player working in the respective industry.
Environmental Factors: Large amount of gas is emitted by the fashion industry each
and every year. The industry consumes high energy in terms of production of fashionable
clothes(Donvito, 2018). Here, the fashion brands are required to follow the sustainable practices
in order to ensure long term success.
Market & industry analysis:
The colorful thread will work in the fashion industry of UK. It is analyzed that fashion
industry of UK is large that employees nearly 555,000 people and has the worth of 60.3 billion
(Radonic, 2021). In this context porters five forces is explained below:
Threats of new entrants: There is requirement of huge investment in the fashion
industry. Also, ample of large players such as Burberry, M & S are already working within the
industry. In this situation, it is quite complex for a new firm to enter and sustain for longer time
(Varley and et. al., 2018).

Threats of substitute: Here, threat of substitute is high as several brands are already
present in the market which offers different fashion products at different price range.
Bargaining power of buyers: In fashion industry, customers have the option to choose
between the brands. They can compare the rates, quality of fashion items before making actual
purchase. Therefore, bargaining power of the buyers is high.
Bargaining power of suppliers: There are ample of suppliers present within the
respective industry. Here, suppliers need to follow the rules set of the buying brands (Sterlacci,
Arbuckle, 2017). Therefore the bargaining power of supplier is low as brands can easily switch
from one supplier to other.
Competitive rivalry: Due to presence of several brands, competitive rivalry is really
high within the industry. There is intense competition in the fashion industry.
Competitors analysis:
In each and every business, there is certain amount of competition due to presence of
rival brands. In case of Colorful Threads, they also have to face intense competition as there are
ample of other brands such as Marks & Spencer, Zara and more are present. There is huge
opportunity of growth in the fashion industry of UK but there is also high level of competition
which might affect the growth of the new venture.
Apart from the large corporations, several local companies are also working in the industry. They
offer variety of products at different price range. In 2019, 11301 clothing store were present in
UK (Number of specialized stores for the retail sale of clothing in the United Kingdom (UK)
from 2008 to 2019). Therefore the fashion industry of the country is full with competition hence
it is important for the new venture to adopt innovation and creativity in order to survive in the
industry for longer period of time.
Marketing & pricing strategies:
Marketing is important to set a unique identity of a brand among the customers. In the
current competitive market, it is crucial to set appropriate marketing and promotional strategies
(Rudnichenko and et. al., 2020). With increasing number of technology users, the brand will use
online platform to promote the products. They will use social media platforms such as Face

book, Instagram, YouTube and more in order to promote the products widely. In current time,
more and more people are using online shopping to purchase the fashion items. In this situation,
it is wise for the new venture to use digital platforms for the purpose of promotion. It will be
feasible in terms of cost and the brand can easily connect with the potential customers. In
addition, they can also adopt certain strategies such as offering discounts, offers and other such
kind of benefits to some initial customers.
Pricing: Price is the value which is paid by the customers in return of the value they are
receiving from products or services (Salder, 2021). Here, the colorful threads will follow
affordable pricing strategy where they will offer the fashion brands in affordable range in order
to target huge amount of customers. The pricing strategy will allow the new venture to gain the
attention of the buyers in an efficient manner.
Operational Plan:
Operational plan includes the daily activities of business which are important in order to keep a
business running efficiently (Reji, 2020)
. In context of colorful threads, they will produce fashion items such as clothes. Here,
they will require necessary raw material such as fabric, cotton and more to produce the clothes.
For this purpose, the entity is required to purchase equipments and tools to manufacture ready
clothes from the raw material. Efficient and skilled people will hire to make efficient use of the
available equipments & tools. For this purpose, they will also provide necessary training to the
employees so that they can produce fashion products in a sustainable way. The venture will
situated at prime location near the market. Here, they can easily access the transportation
facilities for maintain exchange of goods properly. While choosing the premises, it is important
to consider the legal rules and regulations in order to avoid future hassles.
SWOT analysis:
Strengths Weaknesses
 Colorful threats will focus on
producing fashion products using
sustainable approach in order to
 Here, Colorful threads is working in the
fashion industry in presence of ample
of well-known and local brands. Hence,

minimize the negative impact on the
environment. It will help in formulating
a positive image of the brand in market
that is crucial for future growth.
 The brand will skilled and efficient
individuals who will contribute in the
future success in an efficient manner.
 The major focus of Colorful threads is
on quality that will help in gaining the
attention of more and more people
efficiently.
the opportunities of future enlargement
are limited.
 The brand has lack of financial
resources that will create constraint in
future growth. Due to this, they cannot
purchase expensive equipments & tools
to speed up the manufacturing process.
 The brand has to put significant efforts
in order to make positive image in the
mind of potential buyers.
Opportunities Threats
 Colorful threads can make use of
updated and advance techniques to
promote the fashion items in an
efficient manner.
 The brand can also expand the
operations in other countries in order to
earn high amount of sales and revenue
in future period of time.
 They can appoint celebrities to endorse
the brand that will also put a positive
influence on the customers.
 Increasing competition in the fashion
industry is one of the major threats for
the respective brand.
 Change in the trends in the fashion
industry also creates threat for future
growth of the brands.
 Here, change in the macro environment
will also affect the growth potential of
the respective entity.
Financial requirements:
In each and every business, there is requirement of adequate amount of funds to start and
run the business efficiently. Here, the start-up cost of the new venture is mentioned below:
SEGMENTS ESTIMATED COST

Operational cost £250
Human resources cost £150
Transportation cost £175
Raw material cost £150
Maintenance cost £175
Equipment Cost £100
TOTAL £ 1000
It is analyzed that the there will be requirement of nearly £ 1000 to start and operate the
respective new venture. The selling price of a fashion item will be $ 28. Here, the selling price
has been determined after the detailed analysis of the cost. The company can easily cover up the
cost of production by charging the above-stated selling price. There are ample of sources to
receive the funds. Here, the amount will be taken via Bank Loan as it is the highly authentic and
reliable source to get adequate amount of funds.

Conclusion
It is summarized out of the above-mentioned information that entrepreneurship is an
activity of establishing and managing a new business. A venture called colorful threads is going
to start by the entrepreneurs. It is analyzed that using sustainable approaches of cloth
manufacturing is the major USP of the company. Further, the macro environment of the fashion
industry has intense competition. Also, the industry is attractive in terms of future growth and
enhancement. Further, there are ample of competitors present in the fashion industry that will
affect the growth of the new venture. Additionally, there is discussion regarding SWOT analysis
and operational plan. It is concluded that the venture will incur the overall cost of £ 1000 and the
entrepreneur will get the money from bank loan in order to meet with the stipulated expenditure.

References
Books and journals
Borovkov and et. al., 2021. Improving the information resource management strategy in the
process of modernizing an industrial enterprise. In E3S Web of Conferences (Vol. 258).
EDP Sciences.
Cooper, R. and Slagmulder, R., 2017. Supply chain development for the lean enterprise:
interorganizational cost management. Routledge.
Donvito, R., 2018. Renaissance of marketing and management in fashion. Journal of Global
Fashion Marketing, 9(3), pp.179-184.
Portes, A. and Guarnizo, L.E., 2019. Tropical capitalists: US-bound immigration and small-
enterprise development in the Dominican Republic (pp. 101-131). Routledge.
Reinhartz-Berger and et. al., 2017. Enterprise, Business-Process and Information Systems
Modeling. Spri
Reji, E.M., 2020. Business Services for Small Enterprise Development: Emerging theory and
practices. In Social Entrepreneurship and Sustainable Development (pp. 53-69).
Routledge India.
Rudnichenko and et. al., 2020. Minimization of risks of the enterprise foreign economic activity
through improving the interaction management quality with potential
partners. Calitatea, 21(174), pp.61-67.
Salder, J., 2021. The creative business: enterprise development in the arts-based creative
industries. Creative Industries Journal, 14(1), pp.63-80.
Sterlacci, F. and Arbuckle, J., 2017. Historical dictionary of the fashion industry. Rowman &
Littlefield.
Varley and et. al., 2018. Fashion management: A strategic approach. Macmillan International
Higher Education.

Online
Number of specialized stores for the retail sale of clothing in the United Kingdom (UK) from
2008 to 2019. [Online] Available through:< https://www.statista.com/statistics/294277/clothing-
number-of-retail-stores-in-the-united-kingdom-uk/>
Radonic D., 2021. The Most Important Fashion Industry Statistics in 2021.[Online] Available
through:< https://fashiondiscounts.uk/fashion-industry-statistics/>