Launching a new product in a new market comes with a wide range of challenges. One of the problems that face an organization is maneuvering through internal and external factors that affect the operations of an organization. The stiff competition from the already existing players in the market can also be a considerable impediment to the establishment of a strong base in the new market. Cavusgil et al., (2014) explains the need for conducting extensive market analysis to understand the lurking challenges in the new market.
This paper is a competitor analysis of Zhai Company which seeks to launch eco-friendly apparel products (Bamboo Charcoal Fabric) in Singapore.
S: Internal characteristics that may be deemed as strength to eco-friendly clothing or the company
By deciding to venture in Bamboo Charcoal Fabric, Zhai Company has a good chance of taking the market by storm because of the many customers are increasingly turning eco-friendly products. Consumers in fast developing countries are becoming environmentally conscious, which is Singapore is an excellent location for an eco-friendly company.
Because Zhai is a fashion company, the new style is likely to be embraced in Singapore, therefore becoming one of the most preferred fabrics in the whole of Asia (Morris, 2014). Zhai can use various marketing strategies such as working with celebrities and partnering with other companies to increase the brand presence in the market.
The new fabric is of high quality therefore likely to be embraced by people customers looking for quality and values for their money. When customers understand the quality of the material, it will help attract more customers.
W: Internal characteristics that may be deemed as weakness to eco-friendly clothing or the company
One of the internal challenges likely to face Zhai Company is lack of stable production unit to meet the demand for fast-growing market. Zhai Company is likely to be strongly embraced in the country, it may lack the capacity to satisfy the customer's demand.
Another weakness likely to face the company is the failure to comply with the all the environmental requirements set by the country. Although the company engages in selling eco-friendly Fabrics, it may be challenged in complying with the environmental requirement in the supply chain. This means the company will have to comply with all supply chain in order to avoid clashing with law of the land.
O: External characteristics that can be used as advantage for the company
By introducing the products in Singapore, Zhai Company has a great opportunity to increase it market operations from Singapore into other countries in Asia. Asia is one of the regions with a huge population which creates an opportunity for Zhai Company to expose its products to a wider client base.
There is an opportunity for expanding the product line from selling Bamboo Charcoal Fabric into selling ready-made clothes of different designs. This is an opportunity to sell the fabrics in the form of ready clothes.
Another opportunity lies in selling the product during the major events that are usually held in Singapore and other countries in Asia.
T: External characteristics that might be a threat to the company leading to failure for the
One of the major threats facing the company is the stiffening competition from other apparel companies in Singapore. Because of its rate of growth, Singapore is among the countries that have been preferred by the international apparel companies seeking to expand their operations to other countries. With the growth of both local and international apparel companies in the country, Zhai is likely to face stiff competition (Lee & Fukunaga, (2014).
Economic fluctuation is another factor threatening the flourishing of Zhai Company. Economic fluctuation affects the income and consumption rate which is likely to dent the performance of the company.
P: Singapore political situation and how it affects eco-friendly apparel company
Singapore is one of the countries that enjoy strong economic stability in the region. This means, as compared to other countries in Asia, Singapore has the lowest political risk. Since its independence, Singapore has enjoyed relatively strong political stability which has enabled it to flourish economically (Tremewan, 2016). However, Singapore like other countries in Asia, it has not fully embraced democracy defined by Western countries. According to (Barr, 2014), Singapore has been in the spotlight for failing to promote open speech and other political criticism and establishment of the civil rights group. This clearly shows that Zhai Company should avoid any interfering with any political process in the country to be on the safe side of the country.
E: What are the prevalent economic factors?
Singapore has continued to experienced sustainable economic growth since approximately 3 decades ago. In 2017, according to Min (2017), the country was expected to grow at the rate of 2.5%. As the country with the highest income per capita in the Association of Southeast Asian Nations, Singapore is a lucrative location for a company seeking to launch a new product like Zhai Company. According to Law & Singh (2014), Singapore has a per-capita income of 85,050 PPP dollars, making it an ideal place for setting new business (Ram, 2016). However, Zhai Company will have to face new challenges such as high cost of labor because of the growing labor shortage in the country.
S: The importance of Singapore culture in the eco market and what are its determinants
Singapore is like any other country in Asia where traditional values are highly regarded in the society (Davis et al., 2014). Because of the extensive spread of Confucius teaching, even in Singapore, the people are more reserved with a great need to maintain harmony and respect in the society (Koh,& Fraser, 2014). They also work hard to fulfill their material desire, and because of better wages, they are mostly high-end customers. This means Zhai Company will be able to get the ready market for its products because of the high population and relatively high income in the country.
T: Types of technologies that are likely pop-up and how is that going to affects the market structure
Singapore has embraced technological advancement which has influenced the change of lifestyle and improved the quality of life. The internet has helped to extensively boost business operations in the country. With the stable power and fast accessibility to internet, Singapore has experienced a growth in e-commerce (Kumia et al., 2015). In launching Bamboo Charcoal Fabric in Singapore, Zhai Company should also embrace technology as a marketing tool to reach a wider customer base in the country. With over 70% rate of internet penetration in the country, Singapore is a good place for engaging in e-commerce for Bamboo Charcoal Fabric (Soon & Soh, 2014). Additionally, the company should embrace technology not only for selling and marketing but also for networking with other companies and accessing government services such as license applications.
E: Environmental concerns for eco-friendly apparel company
As an eco-friendly company, Zhai Company will have a relatively easy time in getting approval for its operations in the country. Singapore is the greenest country in Asia because it has dedicated itself to establishing a strong environmental policy. Singapore has continued to encourage environmental sustainability in public and in the corporate world. Since Zhai Company will be dealing with products that are safe to the environment, it is in line with the sustainable strategy of Singapore therefore likely to be approved by the administration (Heidari, Katircioglu & Saeidpour, 2015).However; Zhai Company will still be required to engage in environmental conservation measures.
L: Any current legislation that regulates the wireless connected industry eco-friendly Apparel Company or is there chances of changing in the legislation for this company
Singapore has continued to ratify new policies to promote transparency in the market and improve the security of e-commerce in the country. In 1996, the e-commerce program was launched as across the board policies for e-commerce operations in the country. Zhai Company should familiarize with various laws in the country relate to e-commerce such as the Electronic Transaction Act, Content Regulation, Import and Export procedures and Evidence Act. This is important for ensuring that the company is operating within the legal framework of Singapore.
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