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Unit 32 Business Strategy BTEC-HND-Level 4 & 5 Assignment Answer UK

The current assignment focuses on an in-depth analysis and development of the integrated business strategy for a purely fictional organization, EcoFashion, to be launched in the UK market with sustainable clothing products. Therefore, the report will comprise an exhaustive environmental analysis using the PESTLE model, analysis of the internal environment through Value Chain Analysis, and an analysis of competitive forces using Porter’s Five Forces framework. Furthermore, the paper will entail making a proposal for a strategic management plan in which Ansoff’s Matrix will be applied in a move to identify growth opportunities. Through such instruments, it is through their harmonization that the paper will strive to establish the strategic course that will be envisioned for EcoFashion, which will also comprise elements that will ensure proper entrance into and positioning in the sustainable fashion market.

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Task 1: Environmental Analysis and Internal Capabilities

1.1 PESTLE Analysis of the UK Market

Political Factors

The UK government positively supports sustainable business practices through policy and incentives, which are beneficial for EcoFashion’s entry.

Trade agreements after Britain leaving the EU would influence the availability of the raw materials and also on the tariff, which would make a reorganization of the supply chain strategy.

Economic factors

The UK economy is gaining positive momentum as well as growing disposable incomes, especially for green-conscious consumers.

Increasing demand for sustainable apparel is bringing about opportunities for EcoFashion.

Sociocultural factors

Increased awareness of ecological concerns among the consumers has increased the demand for eco-friendly clothing.

Ethical fashion trends are emerging, which makes it mandatory for EcoFashion to focus on such customers.

Advancements in e-commerce and digital marketing enable reach and interaction with the target market.

Innovations in eco-friendly textiles can aid further improvements in the product line of EcoFashion.

Environmental Factors

Environmental issues, such as climate change, have ensured that customers prefer environmentally friendly brands.

EcoFashion has to make sustainable production procedures to ensure that its products support the values of the consumers.

Legal Factors

There is a necessity to be legally compliant with UK requirements on environmental impact as well as customers’ rights to venture into the market.

Knowledge of labor laws will be able to guarantee all ethical practices in the supply chain.

Value Chain Analysis of Eco Fashion

Inbound Logistics

Source material should be sourced sustainably by ethical suppliers

Installing processes within the company that involves optimized stock control procedures to minimize waste

Operations

Use the least destructive ways of producing, using an environmentally responsible production process

Process continuous improvement programs that augment the efficiency of the operation

Outbound Logistics

Build distribution infrastructure upon sustainability: for example, using electric vehicles

Make partnerships with eco-friendly delivery companies

Marketing & Sales

Activity: Using social media marketing campaigns to get access for communicating with green consumers.

Crafting a narrative that conveys brand value of sustainability.

Service: Exceptional customer service, so return policies and exchange are trouble-free to create delight in customers.

Assignment Task 2: Competitive Forces Analysis

2.1 Porter’s Five Forces Model

2.1.1 Threat of New Entrants

Moderate, as the large brands have control over sustainable clothing markets.

EcoFashion can use its point of uniqueness as a source of differentiation.

2.1.2 Suppliers Bargaining Power

Low to Moderate; sustainability-oriented material suppliers can be a threat to the availability of suppliers.

Several suppliers can create an excellent relationship to offset this threat

2.1.3 Buyers Bargaining Power

High, due to high consumer demand for sustainable options

EcoFashion has to have unique products and service quality to maintain customers.

2.1.4 Threat of Substitute Products

High, fast-fashion and other sustainability-oriented brands are seriously threatening the existing ones.

EcoFashion should emphasize its unique sustainable principles and values as a brand.

2.1.5 Industry Rivalry Intensity

High rivalry with well-established incumbent sustainable brands, for example, Patagonia and Allbirds.

Emphasis on loyalty from customers and keep them engaged with the brand as a community.

2.2 Competitive Advantage Strategy

Develop a great website presence and encourage interaction with its online community.

Offer loyalty schemes and other sustainable incentives to encourage repeat orders of the product.

Task 3: Strategic Management Plan

3.1.1 Penetration

Market strategies will aim at creating awareness and market share of the brand in the sustainable clothing area.

Promotional and discount offers will be made to target eco-sensitive consumers.

3.1.2 Development

Distribution channels will be enhanced through partnerships with eco-friendly retailers and online platforms.

Demographic distribution will be targeting different demographics, including the producers who are keen on sustainable fashion.

3.1.3 Product

The business will penetrate its diversified range of products, which include accessorizes made from sustainable materials.

Innovation through collaboration with designers and focus on sustainability.

 3.1.4 Diversification

Investigate potential for expansion into other sustainable lifestyle products shortly, for example homewares.

Assignment 4: Tactical Priorities and Objectives

4.1 Concrete Objectives

Launch EcoFashion in 12 months, with the short-term target of five locations in the main UK cities.

Achieve a 15% market share within three years in the sustainable clothing marketplace.

4.2 Tactical Initiatives

Use a digital marketing strategy through social media and influencer partnerships to raise brand awareness.

Invest in employee education to ensure best-in-class customer service and product knowledge.

4.3 Strategic Guidance

EcoFashion will be prominent in the sustainable fashion market, where transparency, quality, and community involvement will be paramount.

The company should always keep an eye out on what’s going on in the market, as well as consumer preferences, and adapt the business direction accordingly.

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