Flessy Marketing
Autor: Moon Ling • September 10, 2016 • Business Plan • 6,523 Words (27 Pages) • 593 Views
1.0 Introduction
Many people in an effort to do what is healthy and have spent a lot of money to find a shoe which can fulfill their demand like fitness, healthy feet, pain-relief or others. People in the daily life have appeared some frustration with problems on the shoes in term of any degree of elevated heel, any degree of arch support, inflexibility throughout mid-sole and others as any degree of heel cup or support. But the real story on shoes is a little darker than that.
FLESSY is a shoe with a flexible heel in which has several levels of heels that can be manually adjusted by an individually and this product is dedicated for female customers. Mostly employees especially office people they are requested to be dress in formal and requested to wear high heel from morning until evening which actually leave them an unhealthy feet and also it caused many troublesome problems. Therefore, FLESSY would be helpful for these office lady in order to provide valuable input on the level of the heel and a type of shoe needed for an individual as well as helping with proper fitting at any time. FLESSY shoe is group into different categories which can be such as for walking, travelling and fashioning
2.0 Purpose
The purpose of running this business is to raise fund MYR 40 thousand from CIMB bank.
3.0 Competitive analysis Grid and industry analysis
3.1 Industry Analysis
Shoes industries
Low | Medium | High | |
Threat of substitutes | / | ||
Threat of new entrants | / | ||
Rivalry among existing firms | / | ||
Bargaining power of suppliers | / | ||
Bargaining power of buyers | / |
3.1.1 Five forces in shoes industries
3.1.1.1 Threat of substitute
A customer can easily deviate and switch to a new footwear just as quick, depending on if the price is right, its uniqueness and its quality. With so much resources available it is very easy to replicate a firms own product. Hence threat of substitutes is high.
3.1.1.2 Bargaining power of buyers
There will be a weak buyer group concentration towards our industry. This is due to our company is the first innovator of this kind of shoes in the industry therefore it makes us the only supplier of the products. In this case, buyers will have low bargaining power towards our industry. We have predicted that buyer’s costs will be high due to there are limited supplier that offer this kind of product therefore it will also lower down their bargaining power. The degree of standardization of supplier’s product will be low which will cause the bargaining power of the
buyers to be low. In terms of the threat of backward integration, we believe that our product will be hard to imitate and to be understood due to its special design that allow the heels to be changed flexibly into flats. Therefore, buyers will also own a low bargaining power. In addition, our products will have the advantage of first innovator and it is differentiated which will lead our company to gain a strong market power like charging a premium price.
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