a) Market Research:
- Conduct a survey among current customers to gauge interest in the new stationary products
- Research the competition in the area to see if there is a gap in the market for these products
- Analyze trends in stationary sales to determine potential demand for the new products
b) Product Sourcing:
- Research potential suppliers for semi-finished products for the stationary line
- Investigate the quality and pricing of creative stamps and craft pens from suppliers in China
- Consider logistics and shipping costs for importing products from China
c) Financial Analysis:
- Calculate the cost of producing the stationary line, including materials, labor, and overhead expenses
- Estimate potential revenue from selling the new products and project profitability
- Determine the amount of capital needed for the expansion and analyze loan options
d) Marketing Strategy:
- Develop a marketing plan for promoting the new stationary line, including advertising, social media, and in-store displays
- Consider pricing strategies and packaging options to make the products attractive to customers
- Plan for a launch event or promotion to generate buzz and drive sales
e) Legal and Regulatory Considerations:
- Research any regulations or permits required for importing products from China
- Ensure compliance with intellectual property laws when sourcing creative stamps and craft pens
- Consider any environmental regulations related to packaging materials for the stationary line
f) Operational Planning:
- Develop a plan for managing inventory and storage space for the new stationary products
- Consider staffing needs for production and sales of the stationary line
- Implement efficient processes for fulfilling orders and managing customer inquiries
g) Viability of Business Idea:
Based on the research conducted, it appears that Wendy's idea of expanding her book store to include a stationary line is viable for the following reasons:
1. Market demand: The research indicates that there is a potential demand for creative stationary products, as customers have expressed interest in purchasing them.
2. Competitive advantage: By offering unique and creative stationary products, Wendy's bookstore can differentiate itself from competitors and attract new customers.
3. Profit potential: The financial analysis shows that the new stationary line has the potential to generate revenue and contribute to the overall profitability of the business.
Overall, Wendy's business idea to expand her book store to include a stationary line is promising and has the potential to be successful with proper planning and execution.
Case study
The book store is a business which sells a variety of books to suit any lifestyle, from bestselling novels, educational material to children’s books.
The owner, Wendy Brooks, has realised that there is a demand for creative stationery based on her customers’ requests. She decided to expand her business by producing a stationary line including creative paper, envelopes, notepads, creative stamps, craft pens and wrapping paper which she will sell in store.
Wendy is considering using semi-finished products to produce the stationery and wants to import the creative stamps and craft pens in china. Wendy plans to apply for a business loan in order to gain the capital for the expansion of the book store. Wendy knows that she has to conduct thorough research before starting this new venture.
You are required to assist Wendy by conducting the research and preparing a typed investigative report on the following points:
g) conclude the investigation by providing an opinion as to whether this business idea is viable or not and provide three reasons to substantiate your answer.
1 answer