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Business Background

REPORT PREPARED FOR: Business Model Analysis Presented by: Bharti Bhargava, Olga Karpova , Udara Wickramasinghe POSTGRADUATE DIPLOMA IN BUSINESS APMG 8119: DIGITAL ENTERPRISE 2014. Business Background. High-end fashion boutique offering “ plus size” clothing for women

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Business Background

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  1. REPORT PREPARED FOR:Business Model AnalysisPresented by:Bharti Bhargava, Olga Karpova, UdaraWickramasinghePOSTGRADUATE DIPLOMA IN BUSINESSAPMG 8119: DIGITAL ENTERPRISE2014

  2. Business Background High-end fashion boutique offering “plus size” clothing for women A small family-owned business Brick & Mortar Store - Mt Eden Road - in 2008 Online shopping - themillhouse.co.nz - in 2013

  3. Industry Overlook Retail industry focuses on: effective stock & margin management Resource optimization Staff rostering Customer satisfaction Clothing retail industry: High margins Low productivity Intense competition Fashion retail industry trends: Local (Zebrano, Frontline) and global competition Digitalization (online & offline) Innovative business models (Burberry, Rent the Runway, Style Mint)

  4. The Retail Business Model goods Manufactures Retailers Customers Challenges: intense competition difficulty in differentiation low switching costs growing customers expectations goods communication Brick-and-mortar stores Online stores

  5. Revenue Creation Customer Relationships Revenue through relationships Taking first mover advantage Winning customer’s preference Lead the few players in the market Customer Segments Affluent, plus size ladies Channels Their brick and mortar store in the Mt Eden – Auckland is the only distribution centre. Website works as the channel for gaining 50% of their revenue

  6. Revenue Creation For what value are our customers really willing to pay? homemade brand higher quality designer clothes value generated by meeting uncommon needs For what do they currently pay? need fulfilment they experience with the company which is not easy to find in the common market.

  7. Retail Cost Structure

  8. Cost Creation - The Mill House Marketing Cost Security and Payment gateway EMPLOYEE

  9. Key Partnership Marketing agency

  10. Key Resources and Activities – driving the business Marketing Agency Technology Partner Security for customer details-iTheme Payment Partner-Paypal express Courier & Delivery Moss Obi, Chocolate, Ashley, Fogel, Sakaguchi, Trelise Cooper, Paula Ryan Employees at The Mill House Outsourced partners Major Cost Contributor

  11. Value Creation Brick-and-mortar store: High quality & Prestige Convenience Customized customer service / Style advice Refined premises Guest parking Prize draws Online store: Content (Product & Information) Customer Experience Platform (Internal & External)

  12. Digital Content(product & information) POSITIVE: Terms and Conditions: precise and easily found New collections immediately appear on web site NEGATIVE: whole range of stock is not available online product description is very limited No information about size fitting No additional information (blog, articles, lookbooks, links) No customer reviews or testimonials The content is maintained by the Sales Manager

  13. Customer Experience POSITIVE: web-site layout is appealing and easy to use order and payment process is simple and safe NEGATIVE: limited product range creates serious threats of losing potential customers product display is confusing no possibility to select products by categories; it is only available to browse by brand and size absence of proper inventory controlling system results in the possibility to order a product which is already out of stock

  14. Platform The only platform delivered through the web site is an online retail shopping platform, which is simple and standardized, however lacking any enhanced options Facebook is the only social media platform, which is utilized mostly as a one way business-to customer informative channel, without fostering interaction with clients

  15. Digital Transformation

  16. Recommendations: CUSTOMER VALUE MANAGEMENT SUPPLIERS AND PARTNERS INTEGRATION PRACTICAL IMPLICATIONS TO FURTHER DIGITALIZATION: Product range Content Usability Customer engagement Mobile-friendly Responsible staff Industry engagement (communication platform) Addittional services

  17. Thank You!

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