BUSINESS PLAN 1
BusinessPlan Part III: Business Initiative & Technology
X.ComShoe Company Business Plan
MauriceHandy
StrayerUniversity
ProfessorGodwin
BUS521
June3, 2016
Business Plan Part III: Business Initiative & Technology
Optionsfor Producing the Product
There are severaloptions for producing convertible shoes. For example, X.Com ShoeCompany can choose to collaborate with another established company soas to benefit from economies of scale. Creating a temporary jointventure would help the company to generate sales and acquireexperience. X.Com Shoe Company can also leverage the excellentreputation of the larger corporation so as to enjoy the goodwill fromcreditors and suppliers. The company can also choose to outsourceseveral functions to external parties. However, deploying this optionwould require the firm to conduct an appraisal of its productionprocess so as to identify systemic weaknesses. In this regard, theshoe company would outsource production functions that may be cheaperfor other firms to undertake. Another viable option involvesproducing the product without any input from other businesses orexternal parties. Pursuing such an option would provide the companywith an allowance to impose their unique attributes on the product.It would also ensure autonomy in other production-related decisions.
Arranging for atemporary joint venture can be useful in streamlining operations.According to Luximon (2013), the shoe industry has major players suchas Nike and Adidas, who dominate the market share. Therefore, itwould be quite challenging for X.Com to establish a viable business.Furthermore, some suppliers have been drawn into exclusive contractswith big firms in the shoe industry. Therefore, a joint venture wouldallow X.Com to learn from industry leaders while still making decentprofits. Such a partnership would also reduce the costs borne by thestart-up. Besides, the company can conduct a gap analysis so as toidentify the differences between its activities and best practices.Furthermore, the joint venture partner can be used as a benchmark forthe evaluation of company practices. Therefore, a joint venturepartner would ensure not only the streamlining of operations but alsothe reduction of costs.
MeetingConsumer Needs
Modern consumersare concerned with appearing stylish in their manner of dress andgrooming. This is especially true for large sections of the femalepopulation. Women have a higher propensity to engage in impulsebuying as compared to that of men. Nevertheless, the volatility ofthe current economic state requires caution in making purchasingdecisions. Footwear comprises one of the most appealing accessoriesamong females. Women need shoes that can be worn in differentsettings and under various circumstances. Convertible shoes providewomen with an opportunity to satisfy their need for multi-functionalshoes under existing economic constraints.
The convertibleshoe enables the user to fix six different designs of straps invarying colors. Therefore, women will be able to wear an array ofshoe designs while attending official functions, informal gatherings,or romantic dates. Also, the convertible shoe provides a lady with avariety of colors and designs to use depending on the occasion. Inthis regard, the consumer can blend shoe color with the chosen outfitso as to project a fashionable look. The convertible shoe allows thefemale buyer to essentially acquire six pairs at a reasonable one-offprice. The shoe’s thick sole also guarantees reliable service forat least two years.
Typesof Technologies
Customization ofconvertible shoes can be used to enhance the appeal of the product.Many consumers would be drawn to the aspect of havinguniquely-designed shoes. Also, users would feel empowered if they hada choice concerning shoe design. Pursuing customization will alsoenhance the quality of shoe products due to the impact of feedbackand suggestions. X.Com Shoe Company will have an opportunity toexplore different designs based on the specifications provided bypotential clients. Customized shoes can also help to build brandloyalty since other shoe companies have overlooked the customizationof low-cost shoes.
Communicationtechnologies will help X.Com Shoe Company to develop reputablecustomer service and coordinate in-house activities. Granted, someemployees may have to be trained in the effective use of technology.However, it is necessary to ensure that the workforce adoptsfunctional techniques of customer service. An online chat willprovide a platform through which visitors to the X.Com’s websiteobtain necessary information. An online system would also beestablished to allow for placement and tracking of orders. Questionsfrom clients would be answered via email promptly so as to maintainprofessionalism. Also, Web 2.0 tools would help to convey informationto different employees. Implementing these facets of communicationtechnologies would enhance the quality of customer service.Furthermore, they would create brand loyalty due to the uniquecustomer experience in real-time communication. The company’scapabilities would be enhanced with regards to maintaining linksacross various customer bases.
Marketingtechnologies would enable X.Com Shoe Company to reach new andexisting female customers. In this regard, the company would usedifferent types of internet marketing so as to overcome the drawbacksof print ads. Maintaining a website would be an ideal method offostering internet marketing. Advertisements of convertible shoes canalso be placed on search engines so as to generate interest.According to Pride & Ferrell (2014), product sales could also beconducted through an online interphase whereby deliveries are madeupon payment. Updates, coupons, and monthly newsletters can be sentto targeted buyers via email. Branded applications and text messagingcan also be used in mobile marketing. Deploying marketingtechnologies would enhance capabilities in that the company wouldstrive to provide products that match up to the advertisedspecifications. Customer loyalty would also be strengthened due tothe increased online presence of convertible shoes.
Typesof Technology Policies
X.Com ShoeCompany has to adhere to copyright laws during the production of theconvertible shoe. The designs adopted by the company must be unique.In this regard, the production of the convertible shoe may bechallenged in court if any similarities in design and utility wereuncovered. According to Bessant & Tidd (2015), copyright lawsalso affect the product in that the company would need to conductin-depth market analysis so as to establish current copyrights.Extensive research and development would also have to be undertakenso as to develop new methods of production.
The company alsohas to ensure privacy and confidentiality of client information andbusiness records. The proliferation of technology has placed data atrisk due to the effect of hackers and other online criminals.Identity theft also occurs due to the carefree storage ofinformation. Therefore, the company has to secure its intellectualproperty. According to Bessant & Tidd (2015), privacy andconfidentiality policies would affect production in that they wouldcontrol the relationships between the firm and its suppliers. Thedesire to protect the identity of its partners would motivate thecompany to ensure discretion. In this regard, the company wouldhesitate to reveal its method of production to rival firms. Also, thefirm would price the convertible shoe after factoring the legal costsof obtaining particular information. Besides, maintaining privacy andconfidentiality would contribute to brand loyalty due to the absenceof counterfeit convertible shoes.
References
Bessant, J. R. & Tidd, J. (2015). Innovation andentrepreneurship. Hoboken, New Jersey: Wiley.
Luximon, A. (2013). Handbook of footwear design and manufacture.Cambridge: Woodhead Pub.
Pride, W. M. & Ferrell, O. C. (2014). Foundations ofmarketing. Australia: South-Western.