MGMT20143 Assignment 2: Virtual Reality in Apparel Retail

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Central Queensland University, Australia
Term – 2019
MGMT20143 ASSIGNMENT 2
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1

Executive Summary
This report helped in gathering information about the significance of the new proposed idea of
virtual reality in the apparel retails. It offered a web-based shopping experience to men’s through
VR (virtual reality). In the market, there are very fewer industries that produce men’s collection.
It also produces goods which are affordable by the middle-class segment. The innovation will
always attract customers. Hence this trend in the industry will help in attaining a different
experience by customers as well as the service providers.
2

Contents
Executive Summary.......................................................................................................................2
Introduction................................................................................................................................... 4
Issues Identified in Existing Innovation Needs..............................................................................5
Benefits to Customers from New Idea...........................................................................................6
Discussion of the proposed business model...................................................................................7
Identification and discussion of the key interrelationships in the BM that will support the success
of the idea...................................................................................................................................... 9
Identification of critical risks and assumptions............................................................................10
Critical success factors to be managed during the execution of the idea......................................11
Evaluation of the overall feasibility of the idea...........................................................................12
Conclusion................................................................................................................................... 14
References................................................................................................................................... 15
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Introduction
The virtual reality is one of the greatest innovations in the field of technology. The new idea here
is related to virtual reality in the retail sector where people can do their purchases easily and
effectively. It helps the customer to buy quality goods at fewer prices. In this report, there will be
a discussion on market and customer problem that needs solving reason the innovation is
required. The benefits of the customer will be discussed. The proposed business model will be
established. There will be a discussion on the key interrelationships in the BM that will support
the success of the idea. In addition to that success factors to be managed during the execution of
the idea will be discussed. It also determines critical risks and assumptions.
4

Issues Identified in Existing Innovation Needs
Customers are facing the issue of quality and prices. It solves the issues of the customer by
producing men's wear at a reasonable price with good quality. Customer takes advantage of
taking quality shirts collection at less cost. It offers unique product related to men such as shirts,
accessories, and trousers. It manufactures a unique style of clothes. The collection is exclusive
and Fashionable. The customer likes to buy stylish clothes and a different colour. Customer is
satisfied and happy with the quality and collection. The producing of men’s collection by solves
the problem of customers. The innovative idea is used by the company to produce goods and
services which is unique. It has the unique collection of men’s wear which includes accessories,
trousers, and shirts (Gill, 2015).
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Benefits to Customers from New Idea
Customer takes various benefits. It provides men’s collection at an affordable price. The
collection of it is fashionable. It manufactures and sells a quality product. It focuses on
producing the best service to customers. It also takes order according to the customer's taste and
preferences (The science of sensory marketing, 2015). It makes an order as per the customer
demand. The customer gets attracted to purchase from it because of innovative ideas. It uses
different strategies for innovatively producing goods and services. An organisation is introducing
a new collection in the market. So, it takes high charges. After when it makes its reputation in the
market, it offers a product with discount and schemes. Customer is satisfied when they get
products at fewer prices with quality. Customer is satisfied when they get unique and innovative
men’s collection by it.
6

Discussion of the proposed business model
The nine blocks made a business model. It uses the business model to produce goods efficiently
and effectively.
Key Partners
It has various
business partners
who have access
to brand
awareness,
newspapers, sales
traffic, and
mailing list.
Key Activities
By the help of the
internet, it provides
finished delivery
order and brochure
of mailing.
The match back
process connected
with purchase
individual and
scheme available
for the consumer.
It generates codes
on the internet
through mailing.
Value
propositio
n
The main
objective of it
is to make a
fashionable
and stylish
dress.
It provides
clothes at
affordable
prices.
The middle
class sector
attracted to
purchase it.
Customer can
purchase goods
from online
stores as well
as offline
stores.
Customer
Relationship
s
It gets connected
through
customers by
email, SMS,
newspaper, etc.
It provides
various offers,
schemes, and
discount to
customers.
It helps to
maintain good
relationships
with existing
customers.
Custome
r
segments
It covers the
largest
customer
base which
covers the
men’s wear
segment.
It shows the
efficiency
and
effectiveness
of the
business.
Key Resources
The key resources
Channels
It has various
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of it include match
back capacities and
mailing lists.
outlets in USA,
UK, Germany,
France, and
Australia. It also
has its online
medium to buy
goods and
services. It has
both online
stores as well as
offline stores
(Ogunrin, 2015).
Cost Structure
As per the nature of the sector.
Revenue Streams
It generates the highest profit as compares
to competitor industry in the market. It
generates revenue as well as satisfaction
to customers. It focuses on the quality of
the product. It records the profits for the
long term.
Identification and discussion of the key interrelationships in the BM that will support the
success of the idea
Quality focused –The new Business model helps to focus on quality. It manufactures the quality
product to maintain its market share. It helps to maintain the goodwill of customers. Quality
helps to retain the customer for a longer period of time (Apeagyei, 2013).
8

Revenue generator –New business helps to generate revenue. It helps to create high
profitability. It helps to create innovative products which help to maintain a competitive position
in the market.
Improvement in the customer relationship–New business model helps to create good
customer relationship. It directly contacts with customers to promote the goods and services. It
provides customer offers, schemes, and discounts (Laitala, 2014).
Channels – New business model have various channels to distribute such online store and
offline stores. It has outlets in different places such as USA, UK, Germany, and Australia. It
helps to reach the mass number of audience.
Creation of Goodwill –It creates a good reputation in the market by providing quality goods and
products. It supplies items at reasonable prices. It is essential for a business to maintain a good
reputation for sharing market share (Lueg, 2013).
9

Identification of critical risks and assumptions
Technology risk –Nowadays Technology plays an important role in business. Technology helps
to reach a mass number of audience. By the help of technology, a business can sell the goods
online. It generates higher profits. Technology risk related to the failure of the technology of the
business. It includes project risk, reputation risk and competitive risk (Mehrjoo, 2015).
Competitive Risk – An organisation needs to face competition in a competitive market. It is
necessary to implement innovative strategies to produce a unique product. Maintaining a
competitive position in the market is important. Competitive risk helps to prevent from reaching
the goals. It includes the risk of margins and declining business revenue.
Legal Risk –It is essential for every business to follow the rules and regulations. All the legal
formalities are important to implement.
10

Critical success factors to be managed during the execution of the idea
 Availability of designers –The Company has the best designers who help to
manufacturers the designer clothes. It uses innovative ideas to produce unique items in
the market. It helps to expand business for maximising profits.
 Timely delivery –It is necessary to deliver goods on a time. It helps to retain the
customer for a long period. It helps to maintain a good reputation for the company.
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Evaluation of the overall feasibility of the idea
It maintains its position in a competitive market. It promotes its shirts, accessories and trousers
through online platform. It helps to advertise the product. It shows all the specification of clothes
on online sites (Sahmelet.al, 2014). It helps to attract the customer to buy products. The
company sell its new outfits through online medium. It helps to maintain the goodwill of an
organisation. It establishes a competitive position in the competitive market. It gives customer
satisfaction which retains customers.
Score (-5 to +5) Overall Potential of the
Business Idea Based on
Each Part
Suggestions for Improving
the Potential
Part 1:
Timeliness of entry to the
market
The extent to which the idea
adds value for its buyer and
end user
The extent to which the
customer is satisfied by
competing for products that
are already available
Timely
Moderate
High
Need to deal with updating
factors or provide the latest
designs.
Create strategies according to
the expectation of customer
by which they can easily
accept.
The quality and raw material
in use of high quality.
Part 2:
Number of competitors
Stage of the industry life
cycle
Few
Growing
Competitors are deals with
pricing strategy but this idea s
concern about the quality of
the product.
Continuously growth will be
possible if the customer will
be satisfied by offered service
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