Proposal Analysis

Proposal Analysis
Industry Market Competition Barriers to entry may exist in terms of capturing and retaining customers in a highly competitive environment of fashion industry (-) Market size 4.3 million, with high disposable income that spends 5 billion $ on clothes. This market group has a growth rate of 8-10% per year (+) Well established competitors Liz Clairborne, Evan Picone that already capitalise on market and trend(-) Clearly distinguished market leaders (-)Liz Clairborne, Evan Picone Market trends favours varied looks in clothes that can be satisfied by Heather Evans Bridge line. (+) No available statistical data on market segment owned by competitors (-) Suppliers-Distribution, although different possibilities are mentioned there isn?t a solid picture if specific suppliers, manufactures chosen can handle cost, volume required (-). Targeted market group is receptive to new styles and designers(+) No competitive advantage provided.
Cannibalization possible for ?Bridge? category on clothes industry (-) Product positioning as designer clothing for the formal professional that can expand at a later stage to other markets. (+) Based on the above analysis I would say that Heather Evans opportunity has to face already established competitors in a market that she cannot clearly define her competitive advantage. Besides that there is a need for previous infrastructure referring to working capital, suppliers, and distribution network that according to the data provided she lucks. According to the case I would say that Heather?s effort lacks comprehensive analytical and structured approach to her entrepreneurial venture. More of her efforts are based on personal taste and intuition and not on a predefined action plan. She focuses on issues superficially without analysing in depth important issues (location, finance, viability). She lacks familiarity and network with the industry she tries to enter. She doesn?t seem to have the ability to pursue initial goals set and she usually ends up on accepting available opportunities presented without evaluating future impacts. For example hiring a pattern maker but then she is influenced by a friend of hers from the industry so she changed her mind, she leased a space for office but then she accepted another offer based again on a friends recommendation. She shows uncertainty on what line she should start (winter, spring).She approaches investors without a solid deal to propose them. She also shows an inability to act quickly and promptly based on external changes. I get the impression that she is more influenced by other peoples opinion and information provided and she doesn?t intensively seek commitment from parties that she can be helped. By reading her business plan I would say that it lacks critical information about many issues related to the business. There are no sufficient data about the industry attractiveness, details about the way that the company will be launched (action plan, milestones). Statistical data about consumer?s response to her clothes line. Another issue is that the business plan doesn?t mention anything about the risk faced in terms of opportunities, setup, business viability, exit strategy. According to my opinion another critical point is the team. I am not persuaded by the team?s capabilities or previous experience. Last but not least the financial requirement made for 250.000$ has no further analysis on why this amount is needed or detailed analysis on operating costs, profits anticipated, suppliers and distributors fees. In the table following there are my evaluation comments for the financing options available: Arden & CO Venture Capital Firms Helen Neil Fashions,Inc Private Investors According to my opinion there is no actual interest on behalf of Arden side, she doesn?t seem committed and there is an obscurity about the financing terms. On the other hand she has a good reputation and her agreement can be used as ?guarantee? for the start up of the company Unfamiliar with the company, usually require long time to proceed with decisions and actions required. Based on Heather?s requirement to maintain control of the company and not go public this kind of collaboration may ?jeopardise? current personal terms set. Can be a great help for providing support with current base of relationship with manufactures and retailers, although they lack operating management. This can be proven time consuming for rapid decisions and action required. It will be difficult to maintain control and licence line under Heather Evans name since the option of being incorporated to Helen Fashion Inc seems more probable. Diverse desires for terms of investment. Divergent individual interests. Many people, time consuming to raise adequate capital required. According to my opinion Heather should approach Helen Neil fashions Inc. She could benefit by their already established relationship with manufactures and retailers since her approach to business is not detailed planed. Based on Heathers requirement she should clearly define from the beginning her financing terms so as not to proceed as a joint venture but to be able to maintain her major control ownership of her company .She should offer part of the business ownership (30%) and agree on exit strategy based on company growth and profits earned.

Proposal Analysis 7.4 of 10 on the basis of 3374 Review.