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Fashion Valet Case Study

The document discusses a case study on Fashion Valet. It describes Fashion Valet's strengths, external factors influencing it, resource-based views it applies, and business strategies to reduce competitive pressures. The case study is part of an individual assignment submitted by two students for a Strategic Management course.

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Nur Nadhirah
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0% found this document useful (0 votes)
1K views

Fashion Valet Case Study

The document discusses a case study on Fashion Valet. It describes Fashion Valet's strengths, external factors influencing it, resource-based views it applies, and business strategies to reduce competitive pressures. The case study is part of an individual assignment submitted by two students for a Strategic Management course.

Uploaded by

Nur Nadhirah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FACULTY OF BUSINESS MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS) INTERNATIONAL BUSINESS

BA246

STRATEGIC MANAGEMENT (MGT657)

INDIVIDUAL ASSIGNMENT

CASE STUDY: FASHION VALET (JUNE 2018)

LECTURER: MADAM NURUL AZLINDA BINTI CHEK TALIB

NAME: NUR NADHIRAH BINTI ZULKIFI (2018298768) & SITI NURAZIYAH BINTI MOHD AZMILIN

(2018276604)

GROUP: BA2465B

SUBMISSION DATE: 10TH DECEMBER 2020


QUESTION 1

Based on the case study above, describe two (2) strengths of FashionValet. (8 marks)

Two (2) strengths of Fashion Valet are:

 The high demand. Fashion Valet aims to penetrate the West Asian market as it sees high
market and consumer demand coming from the region. FashionValet’s product that suit the
local community’s taste also make they have a high demand for community.
 The availability of a physical boutique. Fashion Valet have two physical boutique which are in
Bangsar Village and Pavilion Shopping Centre of Kuala Lumpur. It was a great choice and is
seen as the best way for customers who do not like shopping online to broaden product
offerings. It was aimed at improving the role of the brand on both the online and physical store
platforms.

QUESTION 2

Explain any four (4) external factors that influenced FashionValet in competing in the fashion industry.
(12 marks)

Four (4) external factors that influenced FashionValet in competing in the fashion industry are:

 Value propositions. It offers consumers a fun shopping experience, simple payment choices
and helpful features of the FashionValet website that make customers and sellers feel
comfortable buying and selling their goods. Thus it make FashionValet different from others
online fashion retailers.
 Customer interactions. FashionValet provides a list of reward points where consumers can
claim and exchange the points for items in cash or discount. Customer engagement is very
critical in order to preserve customer’s satisfaction.
 Segmentation of consumer. The customer category targeted by FashionValet are all internet
users who love to browse for fashionable apparel, usually college students, women with jobs or
professionals, women or women who love fashion like Vivy Yusof. The average age of
consumers is between 25 and 40 years old.
 Channels of distribution. The online shopping platform for the website is provided by
FashionValet. The website facilitates the automated execution of the whole contract, including
the invoice. FashionValet also uses social media to market its goods, such as Facebook,
Twitter, Blogs, and Instagram, as its website. FashionValet has increasingly evolved into
physical networks, where a few channels have been introduced via strategic sites.

QUESTION 3

Describe two (2) Resource-Based Views (RBV) that FashionValet had applied in pursuing a sustainable
competitive advantage. (8 marks)

Two (2) Resource-Based Views (RBV) that FashionValet had applied in pursuing a sustainable
competitive advantage are:

 Cost structure. The costs incurred by FashionValet include those related to warehouse and
logistic such as operational cost, staff salaries, online platform development and maintenance,
delivery cost and also for sales and marketing purposes.
 Revenue stream. FashionValet gained the revenues based on product sales including their
own brand DUCk such as Duck scarf and Duck cosmetic. Another source of revenue stream is
the listing fees from vendors and designers.

QUESTION 4

Discuss any three (3) business strategies implemented by FashionValet that can reduce competitive
pressures from its competing rivals. (12 marks)

Three (3) business strategies implemented by FashionValet that can reduce competitive pressures
from its competing rivals are:

 Market development. Market development involves introducing present products or services


into new geographic areas. It occurs when new channels of distribution are available with
reliable, inexpensive, and good quality and when an organization has the needed capital and
human resources to manage expanded operations. For example, FashionValet aims to
penetrate the West Asian market as it sees high market and consumer demand coming from
the region. The choice to penetrate the West Asian market is one of the plans for the growth for
FashionValet in continuing to provide value for their customers.
 Product development strategy. Product development strategy seeks to increased sales by
improving or modifying present products or services. It usually entails larger research
development expenditure. For example, the partnership formed with Brunei Princess Sarah
resulting in the collection of the third Limited Edition square scarf line by the brand after the
Kaleidoscope and Alphabet series created to celebrate women. There are four scarves in
collection in one design, comprising images of a wheel, diamonds, bees, the grid of a sports
racquet and hydrangeas, the princess favourite flower.
 Market penetration strategy. This strategy seeks to increase market share for present product
or services in present markets through greater marketing efforts. It occurs when current
markets are not saturated with a particular product or service and when the usage rate of
present customers could be increased significantly. For example, apart from online sales
FashionValet also has a physical boutique in Bangsar Village and Pavillion Shopping Mall in
Kuala Lumpur. They manage to strengthen the presence of the brand on both online platform
and physical boutiques. She also aim to open a few more physical boutiques at several
locations in the country to support the e-commerce segment as well as their vendors.

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