Dress on Rent Business: Strategy, Market Analysis & Key Components

This report analyzes the 'Dress on Rent' business concept, focusing on providing designer dresses for rent to customers. It identifies the target market using STP analysis (Segmentation, Targeting, Positioning) and assesses the impact of external factors through PESTEL analysis (Political, Economic, Social, Technological, Environmental, Legal). The report also details the business strategy, including operational aspects like clothing design and online booking, marketing strategies using social media, and financial considerations such as securing bank loans. Key business components like value creation, marketing, sales, value delivery, and finance are explained, highlighting how 'Dress on Rent' aims to meet customer needs, attract customers, ensure satisfaction, and achieve financial sustainability. The report concludes that a unique business concept and careful consideration of external factors and business components are crucial for success.

New Business

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Business idea...............................................................................................................................1
Target Market..............................................................................................................................1
Impact of external factors............................................................................................................1
TASK 2............................................................................................................................................2
Business strategy.........................................................................................................................2
Operation.....................................................................................................................................3
Marketing.....................................................................................................................................3
Finance.........................................................................................................................................3
Main component of business:......................................................................................................3
CONCLUSION................................................................................................................................4

INTRODUCTION
Business can be described as organisation that is engage in different commercial, professional
and industrial activities (Cosenz and Noto, 2018). There is carious component of business which
is to be consider by managers of company. This project report includes description about
business idea and influence of external factors. It also includes explanation of different
components like finance, marketing, operation and other things.
MAIN BODY
Business idea
Dress on rent is a new business concept which is providing designer dress to their customers. In
this, designer party wear and bridal dresses are provided by business on rent. In today’s time,
people are avoiding to repeat dresses especially young generation which increase demand of this
concept. It will get demand in market that provide opportunity to business to gain profit in
market.
Target Market
In order to identify target market, a person can conduct STP analysis which is mentioned below:
Segmentation: Segmentation can be as process of dividing customer into small group of people
who has same traits, needs and characteristics (Moore, Dau and Doh, 2020). Dress on Rent is
segmenting customers on basis of demographic and geographic factors.
Targeting: Targeting is a process to identify most suitable and attractive segment. Dress on Rent
is targeting segment on basis of reachability size of target market.
Positioning: Positioning is a process of creating a distinct image of products and service in
minds of consumer. Dress on Rent is providing unique products in market that suits to
requirement of customers.
Impact of external factors
In order to identify external factors that create impact on business, managers of Dress on Rent
can conduct PESTEL analysis. It is an external analysis which include different factors that
create negative impact on business. It identifies factors like political, social, economic,
technological, environmental and legal factors.
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Political Factor: Managers of Dress On Rent needs to consider this factor that create impact
over survival of business. They need to adopt all rules and regulation in business. For instance,
due to covid-19, government has made certain guidelines for business which Is to be followed by
this business.
Economic Factors: This factor can create impact over cost of business of Dress on Rent. Due to
cocid-19, economy of many country is facing crisis that results in reduction in purchasing power
(Nian, Hari, and Yuan, 2019). It increases demand of this business as people prefer to take dress
on rent instead of purchase it.
Social Factors: It includes cultural factors, demographic factors like age, habits and other things.
People of UK prefer to dress well in parties and other events which create opportunity for
business of Dress on Rent.
Technological Factors: It is an important factor for any business as it creates opportunity for
business. Dress on Rent is adopting technology in business by offering their products on online
platform. It is also providing different digital methods of payment for convenience of customers.
Legal Factors: There are various laws and legislation impose by legal authorities of UK on
business which is to be adopted by mangers of Dress On Rent for smooth functioning of
business.
Environmental factors: Dress on Rent is not impacting on environment and also fulfilling their
corporate social responsibility by taking care of their employees and also by cleaning area near
their stores (Viriyasitavat, Anuphaptrirong and Hoonsopon, 2019).
TASK 2
Business strategy
It can be described as set of action, plans as well as goals which outline different ways in which
business can compete in a market with a specific products and service. There are different types
of business strategy to be adopted by managers of Dress on Rent for purpose of getting success
in business. They are targeting young generation for purpose of feeling their products and service
and using technology to be make their business more efficient.
2

Operation
Dress on Rent is designing clothes as per latest fashion and marketing trends which can be
customise as per size of customers. These dresses are further offered to customers for rent for
which they can visit their stores or book from online platforms.
Marketing
Marketing is one of important activity that is undertake by business for purpose of increasing
awareness of their products and service. Dress On Rent is adopting social media marketing for
purpose of promotion of products and service. It is one of cheap method for promotion of
products and is considered as effective method. Many of customers in today’s time using social
media platform due to which, it is easier for managers to increase awareness of their products
through social media marketing.
Finance
It is one of important component of business as every business activity require funds. It is
required from day-to-day operation to purchase of assets for business. There is various source of
funds from which Dress on Rent can raise funds (Wial, 2018). These sources include friends and
family, angel investor, Bank loan, crowdfunding and others. All these sources have their own
advantage and disadvantage for business. Business should select source of fund as per their
requirements as Dress on Rent is taking funds from Bank Loan.
Main component of business:
Main component of any business includes value creation, marketing, sales, value delivery and
finance. Explanation of these components is mentioned below:
Value creation: Dress on rent is creating value by identifying needs and requirement of
customers. As customer require designer clothes but these are too expensive and this
organisation is providing them on rent.
Marketing: In order to attract more and more customers, this organisation is adopting social
media marketing.
Sales: By offering them effective customer service, this organisation will convert prospect into
real customers.
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Value Delivery: By providing customers with good quality products, Dress on Rent is fulfilling
their promise and also providing customer service to ensure customer is satisfied with their
organisation.
Finance: In this, focus of company is on earning sufficient money for their business for survival
and making efforts in that direction.
CONCLUSION
From above mentioned project report, it can be concluded that business require new and unique
concept. There are different external factors that create impact over business which is to be
identified by managers. There are various components of business over which managers needs to
focus.
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References
Books and Journals
Cosenz, F. and Noto, G., 2018. A dynamic business modelling approach to design and
experiment new business venture strategies. Long Range Planning, 51(1), pp.127-140.
Moore, E.M., Dau, L.A. and Doh, J., 2020. Does monetary aid catalyse new business creation?
Analysing the impact of global aid flows on formal and informal
entrepreneurship. Journal of Management Studies, 57(3), pp.438-469.
Nian, V., Hari, M.P. and Yuan, J., 2019. A new business model for encouraging the adoption of
electric vehicles in the absence of policy support. Applied energy, 235, pp.1106-1117.
Viriyasitavat, W., Anuphaptrirong, T. and Hoonsopon, D., 2019. When blockchain meets
Internet of Things: Characteristics, challenges, and business opportunities. Journal of
industrial information integration, 15, pp.21-28.
Wial, H., 2018. 21. New Bargaining Structures for New Forms of Business Organization.
In Restoring the promise of American labor law (pp. 303-313). Cornell University
Press.
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