Capri-CorniaThe brand has very few direct competitors. We’ll analyze the competition by using PORTER’s five forces:
Threat of Substitutes: Low
High number of substitutes
Gets benefit of substitution.
Degree of Rivalry: High
Increasing number of competitors
Competition is not tough
Competitors with same business model
Lower cost than competitors
i) Bargaining Power of Buyers:
Since there are few direct competitors with the same business model, however Capri-Corniahas its USP (Lower Cost than competitors, and Customization Facility), bargaining power of buyers is low.
ii) Bargaining Power of Suppliers:
Since Capri-Corniais using its personal relations in dealing with the local tailor initially to whom it will give numerous orders, the power lies with Capri-Corniahere not with the supplier. However, fabric supply is also not an issue because of the reason that there are numerous cloth/fabric markets in Los Angeles with thousands of fabric dealers from where our procurement dept. can get the job done.
iii) Threat of New Entrants:
Threat of new entrants is high since there is lesser number of ventures like Capri-Cornia. However, the USP of Capri-Corniais sustainable enough to keep its market growing up with the time. Also,Capri-Corniacan also enjoy the benefitsof FMA (first mover advantage).
iv) Threat of Substitute:
Threat of substitute is low for Capri-Corniaas the USP is low cost. ThereforeCapri-Corniawill get the benefit of substitution over its competitors by providing same solutions to customers with almost 50% lower costs than others.
Overall, the competition for Capri-Corniais not tough provided as it keeps its USP sustained, which is in control for Capri-Corniato sustain over the period of years.(Porter, 2008)
There are no formal channel partners with Capri-Corniaat the initial stage. However, the solutions for requirements to fulfill certain business needs will be out-sourced to the third party (i.e. Tailor and Courier Services).
The primary customers of Capri-Corniaare the corporate executives, managers, professionals, students and whoever wears formal suits. The targeting and segmentation analysis would be elaborated further later in the report.
Employees / Our Team:
Capri-CorniaThe brand will function initially by few teams as the size of the organization small at the initial stage. Starting from the CEO at the top will head all other heads of the departments and will pursue to ensure company’s mission and vision. Under CEO will be three HOD’s initially, “Procurement Head”, “Marketing Head”, and “Chief Technical Officer”. Procurement Head will ensure the back-end activities to get the items purchased suits completely made and delivered.CTO will ensure the front-end portal up to date with the technology and will head two sub heads under him, “SEO Head” and “Web Head”. Marketing Head will initially be only restricted to Social Media Marketing because of the size of the venture at the initial stage.
Strengths Weaknesses Opportunities Threats
• Low cost offering
• Custom made designing
• Financial standing
• Financial limitation
• delay in marketing • Joining ventures
• Getting an investment
• Improve geographically
• New entrants
• Low switching cost
The core strength of Capri-Corniais its low cost offering compare to its competitors which can’t be imitated easily by the competitors. The custom made designing facility to its customers is also strength however,this point of differentiation needs to be continuously diversified so that the edge over competitors would remain.
The weakness is the financial limitation of Capri-Cornia, for massive branding and promotion it needs more than what it has financially. Therefore, Capri-Corniahas to go within the limited resources which will cause a delay in the brands marketing. The brand itself is new in the market so a little vulnerability is there as well…………….
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