Business Plan

Business Plan

Executive Summary

The fashion industry is in a great booming growth since decades, not only in Europe but also in other parts of the world. The main raw material for fashion industry is textile of different fabrics, which is produced in many countries of the world specially developing countries of Asia. This business plan analyses and evaluates various factors for setting up new business in the fashion industry of E.U. The report contains the strategic business view, detailed marketing analysis and key financial data for the potential business opportunity. The SWOT analysis has also been carried out in order to completely understand the local market conditions. The Environmental analyses for political, economical, demographic, and social aspects are also covered in this report.

Table of Contents

1.INTRODUCTION3

2.BUSINESS IDEA3

3.STRATEGIC PLANNING4

a.Vision4

b.Mission4

c.Organizational objectives4

4.SWOT ANALYSIS5

Strengths5

Weaknesses5

Opportunities6

Threats7

5.Generic strategy8

6.Environmental analysis9

a.Economics10

b.Political aspects10

c.Demographic and social aspects11

7.MARKETING11

a.Market Analysis12

b.Market Trends14

c.Trade Barriers17

d.Market Access18

e.Marketing strategy18

f.Customer Profile19

g.Marketing mix19

Product19

Distribution20

Price20

Promotion20

8.FINANCIAL ANALYSIS21

a.General Assumptions21

b.Cash Flow Statement22

c.Pay Back Period22

d.MACHINERY AND EQUIPMENT23

e.Profitability Indicators23

9.CRITICAL EVALUATION OF RISK25

The Business Plan for a Clothing Factory

INTRODUCTION

This project seeks to evaluate economic and financial feasibility of setting up a factory-oriented garment manufacturing to supply in the local market and then in the markets abroad. The factory will be located in the district of Madrid, Spain. Supported in making the basic models that take the U.S. and European fashions and considering the great interest in the youth group lends these designs, provides business success. This will lay the groundwork for a future opening of a local market opportunities and challenges but also export of textile fashion goods from Spain to other countries.

BUSINESS IDEA

The apparel garments are a selective consumer product that is subject to fashions, tastes, preferences and seasonality in the year. The company is dedicated to develop products with unique designs and exclusive fashion drawn from American and European magazines that the product is differentiated from the competition, the variety of prints, finishing, presentation and price. The figures demonstrate the potential sales of textile apparel in Spain. Hence, the company prefers to setup a manufacturing plant in spain rather than opting for export from some other country (Cumming, 2004, 23).

STRATEGIC PLANNING

Vision

Be among the ten largest export companies apparel knitting.

Mission

Making clothing knitted fashion for young audiences. Thus, we satisfy the needs of our customers to wear clothing juvenile type, modern and informal.

Organizational objectives

We set the following objectives.

Achieve production target of 2660 poles per month in the first year.

Export to a country in South America within the first nine months.

SWOT ANALYSIS

This analysis helps explain the relationship of the organization to implement the way the company will compete in the market.

Strengths

Proper positioning in the market: The Spanish clothing has been placed in a demanding market niche due to its high quality textiles, serving major apparel brands in the world.

Availability of labour: In general, the local industry has a well-trained labour supply, which includes professionals, technicians and operators. This availability allows you to place jobs in the various stages of ...