entrepreneurship report and need an explanation and answer to help me learn.
Business Presentation: Product Feasibility Analysis Assignment Instructions
Instructions
Submit a 2 4 page product feasibility analysis for your business relative to the product and service mix that will be offered. Use this week’s reading assignment and two or more additional outside resources to address the items listed below that are most applicable to your product, services, and business. Assignments are to include an attached Microsoft Word document, double spaced with one-inch margins. Title page and reference page are to be included, but these pages DO NOT count towards the required number of pages. The assignment is to fully follow APA format. Any detailed spreadsheets used to make product related calculations for price, cost or revenue can also be attached to the assignment.
Business Name, Business Idea and Value Proposition
Begin with the updated business idea and value proposition based on feedback and comments from previous assignment(s). These should be clear and concise with only one or two sentences each.
Product and Service Mix Definition
List the primary and supporting products and services that will be offered.
What are the key features and functionalities of the products and services that specifically differentiate from competitors and add value to customers?
Product Pricing per Unit
What is the price for each product or service, or the price range for the category?
Describe the overall pricing strategy. Include any data, research and other justifications used to estimate set pricing.
Pricing for multiple product/service categories should be listed in table format
Quantity to Sell
For each product, service, or category, how many units do you plan to sell over the first three years? Use a table format to summarize multiple products and services.
Provide justification, assumptions and any other data or analysis used to estimate quantities.
Cost per Unit to Manufacture or Cost of Goods Sold
The cost per unit to manufacture or cost of goods sold (COGS) is the direct costs per unit for materials and labor to manufacture a product, or the wholesale cost to buy products for resale. Only include costs that can be directly related to a unit of product. Most service businesses do not have a cost to manufacture unless labor is contracted only to deliver the specific service and not paid while they are not directly providing service.
List the Cost per Unit to Manufacture and/or the COGS for your product(s). Costs can be listed in table format for multiple products and services.
Include any data, research and other justifications used to estimate the costs.
Will this cost be affected by the quantities listed in Quantity to Sell?
Revenue Forecast
Using the price and estimated quantities, along with guidance from this weeks readings and presentation, estimate the gross sales revenue for the first three years of the business.
Revenue for multiple product/service categories can be listed in table format for each year, and should include any data, research and other justifications used to estimate set pricing.
Summarize and provide justification and support that shows the revenue forecasts are realistic.
Christian Worldview Application
Are there any Biblical or ethical considerations that should be made in setting pricing?
Often, manufacturers will source parts and labor from foreign countries where production costs can be minimized. From a Christian worldview, what factors should you consider when making decisions about where and how to produce your product and services?
Product Summary
In bulleted format list the 3 5 key conclusions from your analysis of the product that would be most important to communicate about your entrepreneurial startup to potential investors in the final Business Presentation.
Requirements: 2-4 pages
Industry Feasibility Analysis
Renee Thomas
BUSI 336
Professor Jimmy Duncan
February 6, 2023
Industry Feasibility Analysis
Population growth has increased the demand for consumer products such as clothes, resulting in a further increase in the number of landfills. This not only depletes existing natural resources but also harms the ecosystem. Recycling and reusing things is an urgent necessity. The company focuses on?employing?a variety of recycling processes, such as chemical and mechanical methods. Recycling discarded denim fabrics into different designs and items like bags, sofas, and outfits. Mechanical recycling, which puts post-consumer waste denim into mechanical and reuse processes, will be the organization’s primary recycling method. To a given extent, the organization will also use chemical recycling techniques in its denim waste conversion. However, the main determinant here will be the end product desired at the end. The objective is to create a firm whose production processes are centered on sustainability and contribute to the worldwide management of denim waste, beginning with the North American market.
Business name
The name of the company is Go-Green Smart Denim Company Limited (GSD)
Business Idea
The business idea involves?recycling?discarded denim fabrics into different designs and items like bags, sofas, and outfits.
Value proposition
Our value proposition, we offer a sustainable solution to textile waste by collecting and transforming discarded denim into high-quality, stylish products for a conscious market. Our commitment to the environment and to responsible consumption creates a win-win situation, providing consumers with eco-friendly alternatives while reducing their impact on the planet. Our products are conveniently available through e-commerce platform.”
Industry Definition
An industry is a component or segment of a broader economy that generates a certain type of item or service. It involves all firms and enterprises engaged in a given commercial activity, like clothing and accessories,?manufacturing, construction, or technology, as well as the individuals that work for these companies. The phrase refers to both the production methods and the commodities or services produced.
According to the N.A.I.C.S. system of industry coding, denim recycling, and design primarily belong to the clothing and clothing accessories stores industry of code NAIC S448000. Clothing and Clothing Accessories stores refer to retail enterprises specializing in the sale of clothing and accessories, including shirts, dresses, pants, shoes, hats, jewelry, and belts. In many cases, the stores may sell their products to people of various genders, ages, and sizes, and their focus may range from high-end designer names to quick fashion. Zara, H&M, Forever 21, and Nordstrom are some notable fashion and accessory shop chains. Others often referred to as supporting industries within this main industry, include NAICS 448100 – Clothing Stores, NAICS 448300 – Jewelry, Luggage, and Leather Goods Stores, and NAICS 448200 – Shoe Stores (U.S. Bureau of Labor Statistics. n.d).
Industry Analysis
The primary customers of recycled products include the wealthy, fashion-sensitive section of society, such as musicians, sportsmen, and women, and university and college students who seem to be having a strong liking of denim products, as data suggests. Secondary customers include conscious individuals who would prefer buying a product not because they need it but because they want to send a message to the rest of the population regarding the need to treat the natural environment fairly.
Substitutes and Barrier to Entry
There are limited substitutes when it comes to recycling used denim clothes into highly fashionable finished products because the required technology and assembling the necessary talent and skill set for the design had to come (Kumbara., 2020). However, new denim products straight from factories can be considered substitutes for the products developed from recycled denim materials.
As indicated above, the main barrier to entry is the high technology needed and assembling the necessary talent and skill set for designing unique and highly fashionable products. The collection of used denim clothes also requires an established infrastructure.
Industry Dynamics
The global market for denim-made products has exceeded 70 billion dollars and is expanding at a 2% yearly rate (as per the Global Denim Market, 2022). North America has a 26% share of the overall denim market, worth around $17.5 billion (according to Cbi, 2022). This can also help us understand the expansion of the denim recycling industry, which is predicted to increase at a 4.4% annual pace (Global Denim Market, 2022). Extrapolating these estimates to the U.S.U.S. denim industry, it is anticipated that the country’s denim recycling waste market will be worth roughly $25 million by 2022 (as per Cbi, 2022).
According to studies, the growth rate of different consumer-based markets in the United States is predicted to range between 2.5% and 3% through 2030. (Masduki, 2022). The present and future market size may be computed using the expected size of the U.S.U.S. market for recycled denim goods, which is $11 billion by the end of 2023 and has a growth rate of 2.5% to 3% (Jain & Jain, 2022). As a result, the company’s growth and revenue will expand until 2030, as it fits within the industry’s predicted growth rate.
Business Model
The company’s business model is straightforward. The company will collect used denim clothes from colleges and universities as well as within communities using organized collecting third parties to establish collection points. The raw materials are then subjected to necessary enhancement steps and then designing. The images of all finished products are uploaded to the company’s e-commerce website, where potential customers can conveniently browse, order and pay. Because the target market is small, marketing will include digital campaigns and advertising that target the appropriate group, organizing exhibitions in universities and colleges.
Christian Worldview
The Christian worldview has no position on wearing denim apparel. Christians adhere to biblical ideals such as modesty, humility, and the avoidance of worldly vanities. As a result, how Christian dresses, including their choice of denim clothes, should accord with their ideals and positively represent their faith. Finally, whether or not to wear denim clothes is a personal decision, and Christians are urged to exercise their judgment and make decisions that respect God. There are several verses in the scriptures that teach believers how to wear them. For instance, Deuteronomy 22:5 says, “A woman shall not wear anything that pertains to a man, nor shall a man put on a woman’s garment, for all who do so are an abomination to the LORD your God.”
Summary
Recycled used denim will form part of the primary raw materials used to make new products such as bags, clothes, shoes, and seats.
The target customers include rich, fashion-sensitive young people comprising musicians, sportspeople, and artists.
The e-commerce platform will provide the necessary convenience to customers.
Christian worldview does not provide a position on wearing denim products.
Reference
Cbi. eu. (2022). Entering the European market for denim | C.B.I. [online] Available at: [Accessed February 06, 2023].
Jain, T. K., & Jain, E. (2022). Startup Decisions: Forces that Determine Entrepreneurship. Available at SSRN 3339256.
Kumbara, A. (2020). THE ANALYSIS OF PORTER’S FIVE FORCES IN LUCKY TEXTILE GROUP IN FACING THE COMPETITION OF THE TEXTILE INDUSTRY. Dinasti International Journal of Economics, Finance & Accounting, 1(3), pp.397-412.
Masduki, F.M., (2020). The contribution of consumer values and a country’s image to luxury brand equity: The case of the middle-class Indonesian woman (Doctoral dissertation, Curtin University).
U.S.U.S. Bureau of Labor Statistics. (22, March 31). Clothing and clothing accessories stores – May 2021 O.E.W.S. industry-specific occupational employment and wage estimates. U.S.U.S. Bureau of Labor Statistics.