Business Idea Assignment: Business Report On Vegan Leather

Question

Task: The objective of this individual assessment submission is to learn how to develop your own business idea, complemented by research and observational insights that detail why the need is compelling. Please submit a 1500-word business report of your idea, a detailed business model (BM) canvas, discussion of the interrelationships among the BM components that are essential to success, critical risks and assumptions, and overall feasibility. The business model canvas must be discussed in the report and included as an appendix.
The assessment criteria are detailed below.

Assessment Criteria:

1. Effective explanation of the customer/market problem that needs solving and/or the reason the innovation is required. (15%)
2. Persuasive argument of the customer/client benefits to be generated by the idea (10%)
3. Discussion of the proposed business model (15%)
4. Identification and discussion of the key interrelationships in the BM that will support success of the idea (10%)
5. Critical success factors to be managed during execution of the idea (15%)
6. Identification of critical risks and assumptions (10%)
7. Evaluation of the overall feasibility of the idea (15%)
8. Quality of written submission, minimum 6 peer-reviewed journals, and APA referencing format (10%).

Answer

Executive Summary
The below paper on business idea assignment comprises of a business report of an innovative idea named Vegan Leather, which is going to offer PETA approved leather products for both men and women at reasonable prices. The paper discussed some relevant knowledge on the opening of a company from developing a business model to the analysis of the risks and success factors. From the study developed within this business idea assignment, it can be said that the company has sustainable production process and innovativeness like positive aspects while intense competition from both international and domestic houses, lack of the brand value and experiences may create a problem for the company.

Introduction
Business model supports the organizations in figuring out the elements like business concepts, the issues, shareholders, process of creating customers’ value. Herein business idea assignment, the report developed an innovative business idea of a company named Vegan Leather, which is going to deals in fashion products for men and women. The main scope of this idea will be its PETA approved leather products, which come with stylish and new aged designs. The below report on business idea assignment will help in developing an innovative business idea with the help of observational insights and research work. With the detailed discussion on the business model, assumptions, interrelationships within factors and feasibilities, main risks like an economic downturn, competition from the big house are also will be justified in the following paper.

Explanation of market or customers’ problem, where innovation required
The new idea "Vegan Leather" is expected to create a significant buzz among the fashion interested people because of its PETA approved reasonable priced leather products. Due to recent progress into the fashion industry and the transformation of choices, both men and women are equally interested in trying new brands. As described by DaSilva & Trkman (2014) within this business idea assignment, it also can be said that 2019, will be the vital year in the fashion industry, dominated by the factors like digitization, sustainability, and consumers shifts. However, the year also will some critical challenges like staying current and sustainability for the fashion industry so that "Vegan Leather."

Figure 1: Consumers’ expectations from the fashion companies
(Source: DaSilva & Trkman 2014)

As discussed by Bocken et al. (2016), fashion companies always require staying on consumers’ choices, their requirements, time and present trends and recent changes in fashion industry depict the latest changes in the street smart styles. Additionally, people are interested in using sustainable products produced by environment-friendly methods, which forces companies like Versace, Burberry, Adidas, and Gucci to make out 1 million shoes from ocean plastics.

Critical analysis of the customer benefits generated by the idea
Considering the recent trends while preparing this business idea assignment, the companies require to upgrade themselves to stay ahead into the competition. As commented by Gassmann, Frankenberger & Csik (2014), fashion need to current, adapt to the changes and pay fruitful attention towards the recent occurrences into the designs. The idea should have inspired by the big houses like Prada, Louis Vuitton, and Burberry, who were become streetwear specialists and become younger for appealing the new generations. 

Figure 2: Australian Fashion Industry
(Source: Gassmann, Frankenberger & Csik 2014)

Recently, the fashion industry faces a considerable verge of changes whiles the consumers’ point shifted towards the more sustainable, transparent industry and caring approach. On the other hand, the idea also will provide innovative designs and environment-friendly mechanisms of producing leather, developed with the help of advanced technologies and new information. The company’s website will also provide the details of the fabrics, its structures, specialties, reviews, feedbacks, ratings, measurements and other requirements for letting the tech-savvy people aware of their purchase.

Discussion on the Business Model
Considering the above-stated market and customer related problem outlined in the business idea assignment, here a business idea is developed through the business model canvas. As justified by Bohnsack, Pinkse & Kolk (2014), business canvas model is made up of the significant segments like crucial partners, key activities, customers, value propositions, customer relationships, revenues, essential resources, channels and cost structures for initiating the practices without maximizing the costs. In this idea presented in the business idea assignment, the principal partners will be the factories, online forum, Fashion magazines, and Textile producers, Shopping centers and malls whereas, the key activities and resources are segmented based upon E-businesses, Order delivery, Shopping, Customer services, and Online agencies, Shops, Designers respectively. On the other hand, the idea's value proposition will be its PETA approved reasonably priced leather products crafted for both men and women. The company will try to aim the college students, high and middle-class people, and fashion enthusiastic through Online and offline representatives, Phone attendants and Web communicators. The company “Vegan Leather’s” distribution channels will be both online and offline, where it was structuring its Logistics, Design, Advertisement and Material costs from online sales and in-store sales (Refer to Appendices 1).

Discussion and identification of essential interrelationships in Business Model
The interrelationships between the branding, marketing and designs are increasing getting complicated into the interweaving of the products. Fashion has significant relationships with the plans that distinguish the label, brand, and designers with a recognizable and consistent identity. As justified by Spieth, Schneckenberg & Ricart (2014), in the fashion industry, branding becomes an integral part of the marketing for retaining and attracting brand equity and consumers as the primary concern of valuing the fashion companies distinguishing between marketing functions and designs.

Figure 4: General overview of a fashion company
(Source: Spieth, Schneckenberg & Ricart 2014)

Herein business idea assignment, the designs will be progressively more essential into the business to the consumers market with surprisingly designer products, promotions, and retail environments by separating the company from their competitors into the volatile financial climate. As criticized by Saebi & Foss (2015), here the outcomes and the designing procedures will depend onto the unpredictable factors and social economy with varieties of motivations, dynamics of the social innovations, etc. Additionally, for attracting new generation consumers, the idea should require to strengthen its technological services to reach maximum numbers of visitors into the online forum.

Debate on the success factors during the generation of plan
The business report developed on this business idea assignment is written for describing the related structural elements about a new concept called "Vegan Leather," which is going to provide leather products at reasonable prices. The company will aim for the college students, fashion enthusiastic and both high and middle society male and female. The company will also offer a sustainable process of production with zero amount of harm towards animals. As commented by Kindström & Kowalkowski (2014), analysis of the success factors supports the organizational setups by understanding its strengths and capabilities for overcoming the weaknesses in achieving the corporate objectives as entirely as possible.

Figure 5: Statistics of fashion
(Source: Kindström & Kowalkowski 2014)

Its innovativeness and PETA approved products will provide the idea an extra advantage to create a mark into the highly competitive fashion market. Furthermore, the business-friendly Australian government and country’s feasible economic structure with per capita GDP of AUS $75,681 will support the company in enhancing its products and services more for supporting the sustainable development of the society successfully.

What are the assumptions and risks associated with the case of business idea assignment?
After discussing the success factors of generating the idea, analysis of the dangers and afterward assumptions onto it will aids in understanding the overall situations of the company comprises of threats and opportunities. Besides, its sustainability and innovativeness, its new presence and lack of experiences into the market can pose a considerable risk for the company. As demonstrated by Massa, Tucci & Afuah (2017), a proper understanding of the risks factors supports the companies in taking precautionary measures or strategic approaches in the time ahead for overcoming the adverse situations. Besides the big house like Prada, Burberry, Adidas, Louis Vuitton local companies like H&M, Supre, Zara, Cue, Gap and FCUK like companies will give it an intense competition.

Figure 6: Australian trendiest retail chains
(Source: Massa, Tucci & Afuah 2017)

On the other hand, its limitations in raw materials like leather may create a problem for the operations of the company as it is the only option, which can high the operational costs. Additionally, its low brand value and limited consumers’ base will hamper the business of the company by incorporating tensions.

Evaluation of the feasibility of the idea
From the above analysis provided in this business idea assignment, it can be said that Vegan Leather is an innovative idea, which will offer PETA approved leather products at reasonable prices. Considering the enormous worldwide progress of the fashion industry in the present context of business idea assignment, it can be said that there will be massive scope for this innovative idea. As evaluated by Joyce & Paquin (2016), the success of any business depends on the practical business management, proper analysis of the risks and appropriate usage of the available resources in the framing period. After analyzing the idea, risks, and opportunities, it can be said that its innovativeness, sustainability will provide extra mileage to its success whereas, the new presence, lack of brand value and experiences may impact its business. It also can be said in this business idea assignment that if the company use technological advancements as its clothing ideas or 24 * 7 online presence to understand the present choices of the population thus evolve itself, it will be undoubtedly successful into the international market.

Conclusion
On a conclusion, it can be said that Proper adoption of the business model ensures the error-free path of the services and products towards the consumers, businesses' competitive advantages and related costs and revenues affordable by the company. Considering the possible risks factors identified in this business idea assignment, it can be said that the new idea is going to face some substantial problems like competitions from big and domestic houses, lack of experiences, brand value and consumer base while starts its operation into the market. However, if the company will use its innovativeness and technological advancements into the productive way, getting success will not be a massive problem for the company.

References
Bocken, N. M., de Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design and business model strategies for a circular economy. Business idea assignment Journal of Industrial and Production Engineering, 33(5), 308-320.

Bohnsack, R., Pinkse, J., & Kolk, A. (2014). Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles. Research Policy, 43(2), 284-300.

DaSilva, C. M., & Trkman, P. (2014). Business model: What it is and what it is not. Long range planning, 47(6), 379-389.

Gassmann, O., Frankenberger, K., & Csik, M. (2014). The business model navigator: 55 models that will revolutionise your business. Pearson UK.

Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.

Kindström, D., & Kowalkowski, C. (2014). Service innovation in product-centric firms: A multidimensional business model perspective. Journal of Business & Industrial Marketing, 29(2), 96-111.

Massa, L., Tucci, C. L., & Afuah, A. (2017). A critical assessment of business model research. Academy of Management Annals, 11(1), 73-104.

Saebi, T., & Foss, N. J. (2015). Business models for open innovation: Matching heterogeneous open innovation strategies with business model dimensions. Business idea assignment European Management Journal, 33(3), 201-213.

Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the art and future challenges for the field. R&d Management, 44(3), 237-247.

Appendix
Appendices 1

Figure 3: Business Model Canvas
Appendices 2

=4

Appendices 3

=3

Appendices 4

=4

Appendices 5

=4

Appendices 6

=4

Appendices 7

=15