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Business Models Required (Australian Apparel Business Environment (Online…
Business Models Required
Australian Apparel Business Environment
Increased moderate growth until 2020 is forecasted
(MarkeLine 2016)
Appealing market for overseas players due to low entry barriers and requirements and prospect of growth
(MarkeLine 2016)**
H&M, Zara, Top Shop, Uniqlo
Department stores make up 24.1% of the industry and online equates to 19.9% as of 2015
(MarkeLine 2016)
Absence of diversification creating great competition "Large number of similar players"
(MarkeLine 2016, pg.19). Red Ocean effect
Room for smaller entrants
#
Manufacturing offshore to reduce costs
(MarkeLine 2016)
What is the importance of CSR when it comes to manufacturing offshore.
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Is it not important, or is it increasingly becoming more important due to customer demands?
The possibility that intellectual property can be compromised, replication or stolen (MarkeLine 2016)
Parent Companies and their power and scale
(MarkeLine 2016)
Argument that this causes greater competition for small business and new entrants according to MarketLine 2016.
Pacific Brands and Just Group
Off-price Retailers
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Online Retail Market
There is increased growth of the segment, however the rate of growth is slowing down (MarkeLine 2016)
Are consumers heading back toward traditional retailers /bricks and mortar store?
Niche and specialisation stores
How do they compete with online, and globalisation in a modern highly competitive age?
Reduced operating expenses. Reduction of waste
Security of online transactions. Should consumers be concerned? (MarkeLine 2016)
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Global Business Environment
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International Competitors moving to Australia
TK Maxx
#
Political instability (Brexit and Donald Trump) (Business of Fashion 2016)
Terrorism (Business of Fashion 2016)
Impact on manufacturing regions
Could provide brand with less choice, less opportunity to reduce costs, must consider CSR (do the help rebuild effected areas or move on to another area to manufacture that is safer?)
Types of Business Models
Contemporary
Systems Theory (Bartol et al. 2009)
Open
Closed
Organisations are broken down into systems/components that work together with the same goal (Bartol et al. 2009)
Contingency Theory (Bartol et al. 2009)
Idea that the appropriate management style/process depends on the situation and parameters of that situation. That methods of management changed as necessary (Bartol et al. 2009)
No one best way compared to Fayol, Taylor and Weber (Bartol et al. 2009)
Total Quality Control (Bartol et al. 2009)
Strategy focused on continuously improving product quality
Traditional
Frederick Taylor (Bartol et al. 2009)
Idea to improve productivity techniques through systematic study of people, tasks and behaviours (Bartol et al. 2009)
4 Principles. -Study task and develop best method -Carefully select and train staff -Collaborate with workers -Divide work and responsibility clearly (Bartol et al. 2009), figure 2.2
Scientific Management
Improve task efficiency
Classical (Bartol et al. 2009)
Frank and Lillian Gilbreth (Brown 2017)
Idea that there is one best way to complete a task and you must replicate it in order to achieve effectiveness and efficiency (Brown 2017)
Scientific Management (Bartol et al. 2009)
Improve task efficiency
Max Weber (Bartol et al. 2009)
Bureaucratic Methods (Bartol et al. 2009)
The model that hiring and position was not based on nepotism, rather what you know. This was an evolution from traditional industrialist methods.
That approach in an organisation must be rational (Bartol et al. 2009)
Hierarchy
Formal rules and methods
Scientific Management (Bartol et al. 2009)
Improve task efficiency
Henri Fayol (Bartol et al. 2009)
Administrative Theory (Bartol et al. 2009)
Planning Organising Leading Controlling
Management Practice Improvement Goal
#
Mary Parker Follett (Bartol et al. 2009)
Behavioural Management (Bartol et al. 2009)
The idea that group functionality is key. That individual members are influenced by other group members.
Team work and collaboration between employees and managers
Self-managed teams and break down of hierarchy
#
Hawthorne Studies 1924 -1932 (Bartol et al. 2009)
#
#
Behavioural Management
Greater employee emphasis
Idea that improved productivity came from group relationships, and the social aspect of work
Maslow's Hierarchy of Needs (Bartol et al. 2009)
Theory that consumer behaviour and motivations were based on their psychological, safety, belongingness, esteem and self-actualisation
Emerging and Future Business Models
Non-linear Management Approach (Romano 2009)
Coaching Management Approach
Shona Brown and Kathleen Eisenhardt (1998) state that aspects of management should include;
-Unpredictbale
-Uncontrolled
-Inefficient
-Proactive
-Continuous
-Diverse
(cited Brown, Eisenhardt & Romano 2009)
#
Clippinger 1999 1: How can you manage when you cannon control the single parts of your system or the resources?
2: How can you manage when the future is too uncertain and too unstable to plan for?
3: How can you manage the consequences of changes?
(cited in Clippinger & Romano 2009)
It must be fluid and evolving with a changing environment
#
Holistic Business Approach (Romano 2009)
Intergration and connectedness
"....consideration of organisations as organisms" (Romano 200, p.g 47)
Flexible
#
Employability Skills of the Future
Leadership, Strategic Thinking, Creative Problem Solving & Communication (Smith 2017)
Corporate Universties (Romano 2009)
Onmi-Channel
Is it enough?
What will be the future key goals of a business model/strategy. Are they the same as traditional methods, a merger of new and old or highly innovative?
What is my definition of a Business Model at this point in time?
-It incorporates the needs of the employees
-How can we best achieve profit, company growth and market share
-How can we affectively compete (business strategy)
Drivers of Change
Consumers
#
Rapid need for business change and adaptation [8]
Overall experience and satisfaction with the brand, not just in store, but customer relations, advertising, CSR, technology, ease of purchase, cafes, yoga classes, interactive experiences (MarketLine 2016)
Price sensitive
Transparency (Schmitt 2014)
Instant gratifcation
Discount culture
Discount fatigue, this is difficult to change
Uncertainty (political instability, global and local economy) (Business of Fashion 2016)
Reducing their spending
#
How can marketer and business models counteract this fear?
Globalisation
#
Increased competition
Greater need for businesses to not only compete/diversify on product but also business functions/models
#
Innovation
'Afterpay'
#
(Afterpay Holdings Limited 2017)
'Lifestyle Brands' (MarketLine 2016)
Interactive Mirror
Creativity
Derives from change. By systematically analysing change, opportunities can be evaluated and ceased (Burns 2007)
What is innovation?
Technology
Integration between platform (Business of Fashion 2016)
Virtual Reality
Pure-play brand (Business of Fashion 2016)
Environmental Changes
Coporate Social Responsibility
Suppliers
#
Clothing manufacturers and wholesalers
Fragmented (MarkeLine 2016)
Lack of automation in the apparel production process (MarkeLine 2016)
Lack of power due to number of manufacturers and companies abilities to move to another manufacturer
Key Trends According to Business of Fashion & McKinsey and Company (2016);
-Volatility (global economy, Brexit, politics)
-China's return to power
-Informed and unpredictable consumers
-Appeal to the retired and millennial generations due to their large proportion of the population
-Lifestyle and wellness (brands and products)
-Fast paced industry (instant gratification)
-Room for small entrants