Being that it is only targeting African American with western wear apparel, they are really limiting their customer base and thus making their goals much harder to reach. However, their location makes it ideal that they target these customers and sell these types of products. They are stationed in-between residential housing and social activities that could contribute to their long term growth and success. The company’s ownership isn’t under much noted people and so we aren’t really able to determine how effect they will be able to run the business.
I also believe that they are leaning on the need of having a loan to start the company to much and may not be able to repay it in a timely manner. The plan is to make profit within the two year mark but that is also only how long their lease is on the building that they are planning on having their business in. Competition will also be tough for this venture because they will be competing against top name stores that are known throughout Texas. The products and services hey will be offering can sell really easy and are a wide enough variety to sell but should be targeted at a much wider audience.
The ventures projected sales and profits seem like this company has high hopes and will prosper in the selected area. However, this seems highly unlikely to me with the limited amount of time that they are giving themselves with a profit in two years and not having the lease lasting any longer than two years. Competitors are going to be a big issue for this venture because they are already well established and known in the area. Also they have the resources to buy and sell products that rival this ventures merchandises.
The competition will be able to quickly compete with the company’s products and prices. Although the company plans to have a very flexible pricing plan, competing companies will most likely have the ability to place lower prices on any product that is to be sold. Future plans can be made to widen the target market group and market to everyone in the area. With the location being centered on a busy region, the venture will be able to easily spread their brand and have everyone in the rear know about them through their plan of making flyers and having a radio ad.
This could bring in potential customers from further areas that the competitors own. The venture is well organized and they seem to be ready for anything that could be thrown their way. They have a well thought-out financial model and sales projection that they probably won’t be far off from their actual sales that they receive. Although they don’t have an exclusive product that only they can sell, other companies can sell the same products, it ill be up to their marketing skills to sell their products better than these other big name companies.
After performing the SOOT analysis for this business plan have come to the conclusion that it is a reasonable proposal. There are a few things that can be worked out with some more time and it has a pretty decent future if the sales go as planned over the two projected years. Would say that this Company has some stiff competition ahead Of them but due to their location and business ideas for that location they will be just fine and should sell well.