ENT530 AM228 3E BMC Report PDF

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BUSINESS MODEL CANVASPRINCIPLES OF ENTREPRENEURSHIP (ENT530): BUSINESS MODEL CANVASFACULTY &PROGRAMME : BACHELOR OF ADMINISTRATIVE SCIENCE(HONS) AMGROUP : N4AM2283EPROJECT TITLE : NAKAMA APPARELNAME : MUHAMMAD ISKANDAR BIN HAMZAH(2020971169)LECTURER : MADAM MAZIAH BINTI MOHD ARIFACKNOWLEDGEM...

Description

BUSINESS MODEL CANVAS PRINCIPLES OF ENTREPRENEURSHIP (ENT530): BUSINESS MODEL CANVAS FACULTY &PROGRAMME

: BACHELOR OF ADMINISTRATIVE SCIENCE (HONS) AM228

GROUP

: N4AM2283E

PROJECT TITLE

: NAKAMA APPAREL

NAME

:

MUHAMMAD

ISKANDAR

BIN

(2020971169) LECTURER

: MADAM MAZIAH BINTI MOHD ARIF

HAMZAH

ACKNOWLEDGEMENT First and foremost, I might prefer to express my gratitude to Allah SWT as I managed to end my Business Model Canvas report successfully by His guidance and blessings mutually of the necessities that require to be complete within the course work assessment for the code ENT 530. Then, I might prefer to show my thankfulness to University Technology Mara (UiTM) Campus Seremban 3, Negeri Sembilan for giving me the chance to manage this project assignment. Next, special thanks for Madam Maziah Binti Mohamed Arif, lecturer for this subject Principle of Entrepreneurship due giving me opportunity to hold out this project assessment yet as deliver continuous great support and guidance on behalf of me during this semester. although our country faced pandemic Covid-19, she was able to guide me through online learning like Google Meet application. Moreover, my deepest gratitude to my family who tried the simplest they'll so as to support me in terms of physical and mental state during this era. They gave me lots of encouragement and provided the funding to pay all the value required from the start until the top of the project assessment. to not forget all my classmates who had supported and shared their knowledge with me through this whole semester. Lastly, I might prefer to thank everyone who had contributed directly or indirectly to the current portfolio as they showed their effort and initiative for my business until successfully completing my portfolio report. I hope this social media business and portfolio report can give us more information about entrepreneurship and the way to become a successful entrepreneur within the future.

EXECUTIVE SUMMARY Nakama Apparel is a business that offers high quality printed apparel products and services that give high satisfaction for the customers. Nakama Apparel provides a variety of designs as well as types of cloth which not only t-shirt but also hoodie and sweatshirt. The main target of our customers is people who are interested in streetwear fashion regardless of age or gender as long as they have a desire to be stylish. In other words, someone who has a bold sense of fashion. In order to be exclusive, Nakama Apparel produces anime characters as a design with high rarity special for fans of anime. Other than that, this business focuses on affordable price and quality of the product which has printing and apparel quality. Nakama Apparel uses the internet such as Facebook pages in order to expand knowledge by customers about our product and services, deliver the value proposition to the customers and to create awareness about our advertisement. Other than that, Nakama Apparel uses personal assistance, in which customers have the chance to interact with the sales representative while making the purchase decision and giving feedback after the sales for the customer relationship. Absolutely, our revenue stream is from printing service due the core services for our business and cash on delivery is the side of revenue that we manage to get from delivering the products to the customers. The key activities consist of designing the pattern, marketing the business on Facebook page and selling products through the shipping process or cash on delivery. In addition, the main inputs in our business include the store, machinery and equipment such as the Heat press machine which is the most important part in doing printing apparel services. Nakama Apparel also makes good deals with suppliers that give high benefits which can offer low cost of raw materials which is partnerships with Kilang Baju Sdn. Bhd. Lastly, Nakama Apparel uses the cost-driven cost structures which focus on minimizing the cost of the product and services to maximize the profit.

Table of Contents 1.0 Introduction ..................................................................................................................... 1 1.1 Business Background .................................................................................................. 1 1.2 Business Structure ...................................................................................................... 2 1.3 Purpose of BMC preparation ....................................................................................... 3 1.4 Problem Statement ...................................................................................................... 3 1.6 Solution for the identified problem................................................................................ 6 2.0 Business Proposal .......................................................................................................... 7 2.1 Customer Segments .................................................................................................... 7 2.2 Value Propositions....................................................................................................... 7 2.3 Channels ..................................................................................................................... 8 2.4 Customer Relationship ................................................................................................ 8 2. 5 Revenue Streams ....................................................................................................... 9 2.6 Key Activities ............................................................................................................... 9 2.6.1 Designing ............................................................................................................ 10 2.6.2 Marketing ............................................................................................................ 10 2.6.3 Selling ................................................................................................................. 10 2.7 Key Resources .......................................................................................................... 11 2.7.1 Physical Key Resources...................................................................................... 11 2.7.2 Human Key Resources ....................................................................................... 11 2.7.3 Financial Key Resources..................................................................................... 12 2.8.1 Buyer-Supplier relationship ................................................................................. 12 2.9 Cost Structure ........................................................................................................... 13 2.9.1 Fixed Cost........................................................................................................... 13 2.9.3 Variable Cost ...................................................................................................... 13 3.0 Conclusion .................................................................................................................... 13 References ......................................................................................................................... 15 Appendices ......................................................................................................................... 16

1.0 Introduction 1.1 Business Background As for the business name I have choosen Nakama Apparel which ‘Nakama’ originates from Japanese word that means friends and Apparel is our main focus which is to sell printed apparel. My business motto is “Be exclusive. Feel trendy” which shows that my products are worth shopping for because of high rarity and of course, with our apparel, you will look trendy in society due the up to date design fresh from Japan. Nakama Apparel was founded by Muhammad Iskandar and one staff. The business is located in Besut, Terengganu. I chose to open a business at Besut it is my hometown and of course it is a strategic place and there is a lot of people in the area. I am tend to use the Facebook page as a platform to interact with the customers due people more prefer to buy through online nowadays. Nakama Apparel’s mission is to provide high quality printed apparel and best customer service to the consumers and for vision is to become a commercial success as a local marketing business of branded apparel in Malaysia. Nakama Apparel specifies the target market which involves the satisfaction of the customers as the whole in the purchase which has high ethical conduct to motivate customers and gain their trust and loyalty and Nakama Apparel will conduct this business ethically and demonstrate leadership in satisfying our responsibilities to our customers and society.

Figure 1.1 Nakama Apparel Logo

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1.2 Business Structure Nakama Apparel is a sole proprietorship business form. I become the sole owner of the business and run it by a single person. As a student, this is a start-up business for me and I am only able to operate a small business due lack of financial and human capital. However, I am able to manage the business easily and it gives me power to control the business. I will hire one staff to assist me in order to make the operation of business run smoothly.

OWNER

Muhammad Iskandar Bin Hamzah

Staff Figure 1.2 Nakama Apparel Organizational Chart

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1.3 Purpose of BMC preparation The Business Model Canvas (BMC) could also be a strategic management tool to quickly and easily define and communicate a business idea or concept. It is a one graphic document which works through the fundamental elements of a business or product, constructing an idea during a very coherent way. The BMC focuses on the customer which is external and business from internal. Both external and internal factors meet around the value proposition, which is that the exchange is all important between your business and your customers. The rationale why we would prefer to use it because to quickly draw a picture of what the thought entails, allows us to urge an understanding of our business and to travel through the strategy of making connections between what our idea then creates into a business. It is at what kinds of customer decisions influence the use of your systems. It allows everyone to urge a transparent idea of what the business will likely be.

1.4 Problem Statement Nowadays, young people tend to look stylish and fashionable. It has become a trend now to be bold in front of people especially in terms of your appearances. It is in line with the development of social media technologies such as Facebook and Instagram, which emphasize the appearance as an attraction to become influencers. Therefore, people will look for nice apparel to be stylish and follow current trends. To be more specific, young people actually want rare apparels to be different from others. Moreover, there are groups of people which love the anime characters. This kind of people wants to wear their favourite anime apparel to show their admiration or support towards the character. However, it is difficult to find their favourite anime character apparel with high quality and it becomes worse when they only sell specific types of character only. In fact, this group of people have their community in Malaysia which is huge. Therefore, these people are not able to own their favourite anime characters apparel due to lack of people involved in this business.

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1.5 SWOT Analysis

Radiant attire (First Competitors)

Strength

Weaknesses

•

Stable financial background

•

Had open 10 years ago

•

Has loyal customers

•

Very unreasonable price

•

Do not have up to date equipment

•

Do not very special offer

Opportunities •

Many strong competitors

designers

•

Global economic recession

•

Emerging organic clothing line

•

Plagiarism of design due easy to copy

•

Online shopping

•

Emerging domestic market

•

Collaboration

with

Threats professional

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Atsui Clothing (Second Competitors)

Strength

Weaknesses

•

Opened everyday

•

Less quality product

•

Have competent staff

•

Not strategic location

•

Cheaper price

•

Lack of quality and services

•

Poor design development

Opportunities •

Expanding

market

Threats for

foreign

customers •

Minimal competitors

•

Expand product and services line

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•

Economic slowdown

•

Rising cost of material

•

Change in consumer preferences

1.6 Solution for the identified problem There are a few solutions that are able to fulfil the demand of the customer to be stylish. Firstly, Nakama Apparel will provide printed apparel for the customers with exclusive design. In terms of design, Nakama Apparel will focus more on uniqueness, rarity and uncommon to give maximum level of satisfaction towards the customers. I knew that young people nowadays look for nice and stylish apparel to follow the trends. Therefore, the customers will find the product with Nakama Apparel. Besides, the fact that there are communities in Malaysia who love anime characters and sometimes collecting anime figures as a hobby. It can be denied that this kind of hobby costs a lot of money and they also love to wear their favourite anime printed apparel. Of course, Nakama Apparel is able to satisfy this type of demand because it provides custom design service. Customers only need to tell their preferences and I will create the design according to their demand. Therefore, anime fans will no longer buy products from overseas because Nakama Apparel is able to custom for them, especially experts in anime characters. Lastly, Nakama Apparel only serves high quality products for the customers such as lightweight, soft and durable. I will not serve the cheap apparel in order to gain maximum profit because I focus more on the satisfaction rather taking advantage of the customers.

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2.0 Business Proposal Business Model Canvas is used to design a business supported the worth proposition of business, product, infrastructure, customer and finance. Nakama Apparel that offer printing apparel services need structured plan using a Business Model Canvas (BMC) to ensure the business flow can be done very well. The elements in business model canvas customer segments, value propositions, channels, customer relationships, revenue streams, key activities, key resources, key partnerships, cost structure. These all elements can built a strong, competitive and long-term business for Nakama Apparel.

2.1 Customer Segments

Printed Apparel sales is more focused on young people who range from age 12 until 30. This apparel can be wear either male or females due the design is universal and unique. The customers can enjoy the style of the clothing without worrying about the trend due entire design is up to date with the current mainstream. All the printed pattern will amazed the customers in terms of quality of printing itself, the fabrics and the service provided by the Nakama Apparel. Nakama Apparel located in Besut, Terengganu and the population here quite large. Even though the the district less developed, demand of the young people towards the stylish clothing keep increasing. Income level of this people is middle class income, fortunately the price of the product is very affordable. Therefore, the customers did not have to overspend because the product was being sold at the right price. From my observation, young people here like styling streetwear appearance, and now it is becoming a trend.

2.2 Value Propositions Moreover, according to Luenendonk (2015) In simple terms, a price proposition makes a case for why a customer should pick one product over another, citing the unique value the merchandise provides over its contenders. It is important to provide value to the customers in order to solve the problems face by the customers. It is crucial to solve the problems in unique ways to compete with other business. Customers perspective for the products or services that they want to buy is the value, quality and the price. Nakama Apparel biggest value is focused more on the exclusive design. For example, Nakama Apparel produce anime characters design because we know that fans of anime is very huge and this community willing to buy their favourite characters. Therefore, our concept of design mostly inspired by the japanese 7

animation makes Nakama Apparel products out of ordinary from other apparel businesses. In terms of fabrics, Nakama Apparel emphasis on the softness, comfort and lightweight material suitable for the climates in Malaysia. Lastly, Nakama Apparel focus in the value in terms of price. This business offers reasonable and affordable prices for the customers and is cheaper than existing options in the market which the product sold only at the range RM35 until RM 50.

2.3 Channels

Distribution channels help us move our products from a plan to the customer. They are the ways how you reach your target customers. Distribution channels establish how a company communicates with its pre-identified customer segments and value propositions (Pereira, 2020). Therefore, it is essential for the customer experience. Nakama Apparel uses the internet such as Facebook pages in order to expand knowledge by customers about our product and services, deliver the value proposition to the customers and to create awareness about our advertisement. It is alternative to personal sale due it represents low cost and can reach the world wide customers. The benefits when using this method is that the owner has immediate access, ease of use and customization. In addition, it is available 24 hours a day, 7 days a week and still be able to gain the customers feedback. Nakama Apparel Facebook page will inform the customers about our latest releases, promotions and the latest events. We will be able to know the evaluation of the value proposition by the customers through the interaction in the comment section in the Facebook page. Other than that, the customers just need to order online either to message directly to the facebook page or call the number given. We use the ‘cash on delivery” (COD) for the customers who live nearby and others will ship for them, so no need to waste our energy to find any store. Lastly, Nakama Apparel also has their own store located in Besut, Terengganu. Even though it is a new start up business, having a store is essential in order to make our business recognize the customers and also they can choose the apparel in our store.

2.4 Customer Relationship

Keeping in touch with existing customers is very important in my business because it ensures that customers come to my boutique regularly. Customers where they will continue to buy and use services or products in my business. This customer will also be an indirect 8

marketing agent in my business. They will also recommend my business to the public. The customer relationships that a corporation forms support the company’s business model and greatly impact the customer experience (Belyh, 2015). Nakama Apparel used the self-ser...