Assessment Task 1
BSBWOR502 Lead and manage team
Appendix 1: Apparel Brands Pty Ltd
Apparel Brands, founded in 1901, is an Australian based manufacturer and
distributor of generic clothing and footwear. The company takes orders
from retailers and supplies retailers with clothing products that have been
manufactured to retailers’ specifications. These clothing products are then
sold to consumers under the retailers’ various brands.
Recently, Apparel Brands has found its market share in decline due to a
strong Australian dollar and increased overseas competition. In addition,
labour costs are eating into profit margins. Trends in the Australian textile
industry suggest that the company, although it is in a strong financial
position now, will struggle to make a profit within two years.
To ensure the continued existence of Apparel Brands, the company has
embarked on a bold new strategic direction:
develop own brands and product range and sell direct to consumers
leverage e-commerce opportunities to reduce distribution costs and
increase profit margins.
In the next five years, Apparel Brands will establish a
range of innovative and exciting online clothing brands and help secure a
future for Australian clothing manufacturing.
Assessment Task 1
Your team has been charged with the task of identifying an e-commerce
opportunity for Apparel Brands and developing a proposal to put to the
board of directors. For example, your team could decide to propose setting
up an online business in which customers design their own custom t-shirts.
Your budget for setting up the e-commerce venture is $30,000.
For your proposed e-commerce venture, your team will need to determine:
Value proposition: What will you offer consumers? What products?
What price? What quality? How will the products benefit your
Who your target market is: What are the characteristics of the people
who will buy your products? What do they need or desire?
How you will gather necessary information for setting up the venture?