Homework answers / question archive / Week 6 Assignment - Feasibility Analysis INTRODUCTION "A feasibility analysis is a chance to open your eyes, ask yourself some very tough questions, then check to see whether your idea, as originally conceived, needs to be modified, refocused, or changed dramatically

Week 6 Assignment - Feasibility Analysis INTRODUCTION "A feasibility analysis is a chance to open your eyes, ask yourself some very tough questions, then check to see whether your idea, as originally conceived, needs to be modified, refocused, or changed dramatically

Writing

Share With

1. Week 6 Assignment - Feasibility Analysis

   INTRODUCTION

   "A feasibility analysis is a chance to open your eyes, ask yourself some very tough questions, then check to see whether your idea, as originally conceived, needs to be modified, refocused, or changed dramatically. (Or perhaps even scrapped altogether.)" (Abrams, as cited in Scarborough & Cornwall, 2015, p. 237).

   OVERVIEW

   With this assignment, you will be addressing the fundamental question: Does this business have profit potential?

   INSTRUCTIONS

   Referring to the same business you started or purchased in the first assignment, write a 3–4 page paper in which you:
   1. Conduct a feasibility analysis in which you research:
      • Industry and market feasibility.
      • Product or service feasibility.
      • Financial feasibility.
      • Entrepreneurial readiness.
   2. Based on your assessment, does the business idea need to be modified, changed significantly, or abandoned? (Note: If you abandon the business idea, then you will need to select and analyze a new business that has profit potential.)
   3. Include at least two references that don't include the textbook.
   This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.The specific course learning outcome associated with this assignment is:
   • Analyze a business plan to determine feasibility.

Running Head: E-COMMERCE BUSINESS E-commerce Business Amber Fox 05/02/2021 BUS402 1 2 E-COMMERCE BUSINESS Executive Summary Belle Boutique is a new upscale online store dedicated to making every woman feel beautiful by offering a wide array of stylish, high-quality clothes catering to women of all shapes and sizes. This business is especially needed due to the fact that so many women in the professional arena are busy to the point that they do not have time to shop for clothing; an online boutique would therefore solve this problem and cater to this niche market. Belle Boutique will offer services such as style assessment, personal shopping, and special ordering to meet the particular needs of our customers within store hours and through special appointments. Research indicates that women’s time is stretched too thin, especially when they have to balance a career and family time; as such, they have very little time for shopping and hence need assistance in determining the right clothes and styles to wear. With over 61 million women aged between 2554 in the US, about $34 billion is spent every year on women’s apparel (Cao, 2018). This market is therefore very lucrative. Competition In the e-commerce market, Amazon has to be the biggest competition one could have. In the last couple of years, the company has surpassed Walmart to become the world’s largest retailer. Even though Belle Boutique is considerably smaller, Amazon is still a major competitor due to the fact that they sell almost everything and control about 45% of the e-commerce market in the US (Simmons & Kang, 2018). Despite Amazon’s superiority, however, some customers will always prefer niche e-commerce stores and brands such as Belle Boutique due to the fact that they are higher in quality and have more specialized knowledge when it comes to particular products. As such bigger stores such as Amazon are unable to compete when it comes to this specific market segment E-COMMERCE BUSINESS 3 More closely related competitors in the fashion apparel market include Tabitha Simmons, Verge Girl, The Pink Lily Boutique, Natori, and Yala Designs. Strengths of Natori as a competitor • Elegant and beautiful fashion apparel • A diverse collection of products including clothing, accessories, loungewear, bras, and lingerie • The site updates customers on all the new collections available • Affordable prices on its products • The company uses beautiful images for marketing its products • An excellent shopping experience for the customer on the site, including a search feature that makes it easy to sort products, multiple reviews that help guide customers’ decision, detailed customer descriptions, recommended accessories for particular products, a size guide, and a responsive live chat Weaknesses of Natori as a competitor • The site lacks a dash button, and hence ordering of products is not as fast and easy as it could be • The company is also at times unable to maintain its catalog as well as updating its apparel and accessories to meet the trends in the market (Cao, 2018).. What Makes Belle Boutique Unique? Belle Boutique is different from other companies in the market due to the fact that the company provides services that others in the market do not. These services include style 4 E-COMMERCE BUSINESS assessment, personal shopping, and special ordering. Due to its smaller size, Belle Boutique will be able to offer customers a more personalized shopping experience. Style concierges who are properly trained will be available to customers on a daily basis, and by building the company brand through helping women develop their personal style, Belle collective will become a force to be reckoned with in the industry. In order to accomplish this, the company will start small then expand as the customer base grows. More so, the company will offer unmatched customer service in order to be able to attract and retain customers. Competing with well-established brands will not be easy, but Belle Boutique is committed to carving out a niche in the market. Mission Statement Belle Boutique will be committed to providing unique, elegant, and luxurious fashion for the modern woman in a manner that is sustainable and at affordable prices. It is our goal to make every woman feel beautiful and look her best as she traverses the concrete jungle. Ownership The business will take the form of a general partnership with two partners. Within this agreement, the partners will equally share the profits, assets, and all financial and legal liabilities. However, each partner will be responsible for their own tax responsibilities, including their partnership earnings, since taxes do not pass through a general partnership. More so, the primary partner will be in charge of management while the second partner will be more of a silent partner and not participate in the day-to-day running of the business. Cost of formation The start-up cost for the business, including inventory, is projected to be about $120 000. Financing, including the working capital, will be $60,000 from the primary owner, $60,000 from E-COMMERCE BUSINESS 5 a family investor, and a $90,000 BA loan. The total cost will add up to $210,000, and the loan is to be paid by year 4 of operation. 6 E-COMMERCE BUSINESS References Simmons, A., & Kang, J. H. (2018, January). The Strengths and Weaknesses of Amazon. Com and Macy’s as Fashion Retailers. In International Textile and Apparel Association Annual Conference Proceedings (Vol. 75, No. 1). Iowa State University Digital Press. Cao, H. (2018). The growth of e-commerce and its impact on the fast fashion retailers.