SWOT analysis of business canvas model:
The strengths are as follows:
- Customer segment: Since fitness is a huge industry in New Zealand, there are quite a lot of people who enjoy going to the gym or make sure that they keep themselves fit. Therefore, there are three types of segments that Newman apparel provides to, which are, health-conscious people, first-timers and people going to the gym on a regular basis. Since the three given segments use the same type of products, this proves to be a strength for Newman apparel as they can concentrate on those segments.
- Value proposition: When compared to its competitors, Newman apparel charges the least and even offers good quality of material on their products. Since it’s a wellington-based organization, it is highly convenient for people living in and around wellington to get access to their products.
- Channels: Since Newman apparel is an online based organization, they’ve to be up to date with their technology and make sure that their website is up and running at all times. Newman apparel has a strong connection with social media because all their customers are acquired via social media, i.e. through Facebook and Instagram.
- Revenue streams: Despite being just over an year old, Newman apparel has made a lot of sales in the past year and have made a neat profit. Their revenue is determined by the price of their products and the commissions they earn from sales.
The weaknesses are as follows:
- Key partners: Newman apparel has only two key partners, i.e. their suppliers, who supply the products to Newman apparel and the software developers, who help to maintain the site and keep it running 24*7. Since they’re just over an year old, they’re not too well-known in New Zealand. This can be a weakness as other potential partners may not prefer to work with them because they’re a small organization.
- Customer relationship: Having a proper relationship with the customer is very vital for any organization. In the case of Newman apparel, there seem to be a lot of one-time buyers, which basically means that most of the customers buy their products only once and don’t come back for more. This does lead to lack of customers and customers not being loyal. Online support can be risky because upkeep of the support site is tough, there can be a crash in the server which can cause inconvenience for customers and even employees at Newman apparel.
The opportunities are as follows:
- Key activities: Being a wellington-based organization, Newman apparel has made delivery very easy only in and around wellington. Although they do deliver to other regions of New Zealand, but not just as smoothly as in wellington. Apart from delivering their products domestically, they should start delivering their products internationally as well. For that, they’ve to study the international market and act accordingly.
The threats are as follows:
- Key resources: Being in an e-commerce business, Newman apparel ought to hire more staff members as they do keep getting bigger orders, which makes it hard to handle for a staff of just five people. They should get better equipment in terms of technology to handle big orders and also acquire better computers in order to provide faster service for their customers.
Identification of the possible marketing opportunities by using the Canvas model
Business model canvas is a strategic model of management that includes different elements of the firm. However, products, customers, firms, infrastructure, and firm are the major components of such model (Scotch, 2017). Newman Apparel is an online shopping website situated in the Wellington New Zeeland. Gym wares are the main item of such organization. Based on the business canvas model analysis it can be said the product is the basic opportunity of such organization.
Opportunity to cover a large number of health conscious people through the products
Newman Apparel focuses on the gym products, which will bring a big opportunity for them to cover a large population in New Zeeland who are health conscious. In the recent years, fitness is the global requirement as maximum people in high-class society are health conscious (Fernandes, Silva & Albuquerque, 2017). Hence, they have a common intention to make them fit. Offering different types of gym products enable this organization to get customers at the national and international level as it is an online based apparel. This organization offers the high-quality product with low price. That is a big thing to attract the customer and to gain competitive advantages in the market. However, consumers have a common intention to buy the good quality product at cheap price. Hence, Newman Apparel offers this type of gym product to the customers that lead them to get the opportunity to increase the number of customers in their business.
Product feature, price, and quality bring opportunity for Newman Apparel in the global market. By developing new products the organization will able to gain the interest of the people especially the health conscious customers. However, by creating product diversification in gym product and by offering them with the affordable price this organization will able to expand their business by increasing the number of global customers who are health conscious. This opportunity can be done by improving the communication level with the customers. On the other hand, providing value to the customer choice is crucial for an organization (Plenter et al., 2017). Newman Apparel needs to communicate with the values of the customer by identifying their choice and needs. However, by offering health conscious products this organization can communicate with their values as well as with the customer’s value.
Opportunity to communicate with the customers via social media application
Based on the business canvas model analysis it has been found that Newman Apparel is an online based organization and they try to connect with their customers via social networking sites. This brings a big opportunity for them to cover a large number of populations. Application of the social media application enables a business organization to communicate with a large number of customers from different geographical regions (Gon?alves & da Silva, 2017). Newman Apparel is an online based apparel thus they need social media integration in their business. They have made a strong connection with their customers via social media.
Application of Facebook and Instagram will enable this organization to communicate with the existing customers as well as to find the new customers (Tomczak, Reinecke & Kuss, 2017). Social media application in business increases the brand awareness in the customer’s domain. By creating advertising via facebook and twitter the customers those are outside of New Zeeland are able to know about the Newman Apparel brand. This creates the opportunity for this brand to increase the number of new customers. On the other hand, Newman Apparel can create brand loyalty through social media marketing that enhances their brand value as well as the belief of the consumers. According to the business model canvas, customer segment is a big part of a business (Liebl, 2017). However, it is important for a business to give their concern to the need of all customers from different market segments. Newman Apparel offers their products for different segments of customers include first-timers, health conscious and for the customers, those are going to a gym on regular basis. Hence, social media application creates brand equity for different segments of customers by sharing free and valuable contents regarding their products. This will build trust in the mind of customers over the time. Apart from this social media marketing is a crucial way for Newman Apparel to humanize their brand. This provides the opportunity to this organization to showcase their brand personality.
Opportunity to deliver the products in the international market
Newman Apparel is a New Zeeland based online apparel and they are running their business successfully in the domestic market. However, their market operation in the international market is not as smooth as the domestic market. This will bring a good opportunity for them to expand their business in international market. The value proposition is an important component of the business model canvas (David, David & David, 2017). Based on the analysis of business canvas model it has been received that Newman Apparel offers the good quality product with affordable price in comparison to their competitors in Wellington. This focuses on the needs of the market. Wellington is a highly convenient area for the people to live. Hence, people of such area can easily access their products. Such marketing operation in the domestic region influences this organization to expand their market share in the international market by utilizing their business channels.
Supply chain management is a big factor for every business based on which the image of a brand depends (McDonald & Wilson, 2016). This organization delivers their product quickly and smoothly in the domestic market. Such strong supply chain and social media channel will be beneficial for such organization to expand their market share on the international level. This will be valuable for their organization as well as for the consumers. This will improve the organizational culture by identifying the demand of the consumers in the global market.
Discussion of the organizational and the marketing resources to engulf the marketing opportunities
Organizational resources include human resource and the financial resource. In order to utilize any business opportunity, it is important to manage the organizational resources (Strauss, 2016). In the context of Newman Apparel, they need proper arrangement of financial resource and human resource. To provide quality gym products to attract the health conscious people they need an innovative idea to improve their product feature. This can be done by human resources and manage the financial resources. On the other hand, to operate in the international market major investment is needed. Therefore, for the advertisement of the products via social media strong human resource is required. A large number of technical experts is needed to utilize the social media marketing and to communicate with customers both domestic and international market (Richter & Torstensson, 2016). In the context of Newman Apparel, they need to recruit more staffs to expand their business in international market. Moreover, they need partnership work to manage the fund and workforce to utilize the current opportunities.
Money, expertise, time and energy are the basic four resources of marketing. These four resources are crucial to market a product by utilizing the opportunities (Nenonen & Storbacka, 2016). In the context of Newman Apparel, they need huge money to invest more in the foreign market to engulf the opportunity of international marketing. Therefore, to maintain the workforce and hire the expertise money is the major element in this business. However, Newman Apparel is an online based business hence, to market their product expertise like technical and non-technical staffs are required.
Talented marketing executives are required to advertise and communicate with the products in the customer domain to increase the customer number. Therefore, the technical experts are mandatory to operate the entire online marketing. Time is another element of marketing (Liebl, 2017). Newman Apparel needs to give more time during the development of the business plan to enhance their market share in the global market. On the other hand, to understand the needs of the different market it is important for this organization to give more time to their market research. To expand the business in the global market a proper marketing plan is required, which needs more time in the context of Newman Apparel. Energy refers to the capacity of a company to carry out their marketing operation. By involving more people in the business, this organization will build their energy and this will be helpful for them to carry out their marketing in both domestic and international market.
The entire work reveals the marketing strategy in the context of Newman Apparel. This is a New Zeeland based online apparel and popular in the domestic market of New Zeeland. However, the major strength of this organization is their product quality and price. On the other hand, their customer segmentation based on the product brings a big opportunity for them to attract the customers those are health conscious. On the other hand, use of social media in the business is another strength of such organization to make their product popular in the international market. In order to utilize such opportunities, this organization needs financial resource and workforce. Therefore, time, money, energy and expertise are required as the marketing resources, which will allow them to increase their market share in domestic as well as in the international market.
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