Diana Kushnerova FX848473

1. Industry
Looking for the opportunities of developing business in Spain I noticed
that there is one industry that is not as developed as it is in Ukraine. To
tell the truth, I was surprised with the fact that online-shopping is not very
popular here. Analyzing all the aspects of online-shopping industry I
understood that there are not so many Instagram shops where you can
order clothes as it is in Ukraine. Of course, there are a lot of factors that
influence this fact but in general, having conducted the survey of my
Spanish friends about this, I concluded that industry of clothes is not
developed totally, especially when we are talking about online-shopping.
So my chosen industry is clothes for women through online.

2. Competitive strategy
While looking through the competition in this industry I noticed that the
most common thing for people buying online is lower price. Having
checked websites of Shein, Amazon, some Instagram pages of not
popular brands, this fact was proved. In my case, I would better choose
differentiation strategy. And there are some reasons for that. Firstly,
Spanish people have their own culture and values. In daily life people
prefer to wear simple clothes comparing to Ukrainians, women do not try
to stand out with unusual style or stanning outlooks. But they pay
attention on the quality, comfort of clothes. The opposite things I´ve
noticed in the evenings in clubs, bars and concerts. Women look really
brightly, all of them are unusual. They wear clothes that can be not very
comfortable, but the main thing is to highlight their induviduality. For
instance, in Ukraine women usually wear the same as for going out as
for daily life. Of course, we change our looks in colours, models, but in
general we do not look as brightly as Spanish. In this case, it is
necessary to pay attention on the individual person during running
business in this industry. For example: measurements, shades, fabric,
print. All these factors can be developed personally for every customer.
This way in differentiation can be achieved due to good marketing that
makes every woman sure that she is special. The costs for
manufacturing of such clothes will be higher but exactly online way gives
opportunity to reduce costs of another factors like rent, staff, utilities.

3. Clock strategy

1. “No frills” - we can mention here AliExpress, marketplace where

you can find clothes for really low price not paying attention on the
quality at all. This can be the occasion of “tematic” clothes which
we are looking for wearing for one time, for example, on unusual
party like Halloween, and the price is the only thing that disturb us.
On AliExpress we are able to find such products easilly.
2. Low price - this is the case of Shein. It is one of the most popular
services of online-shopping where you can find lots of clothes for
low prices but with above average quality. The main advantage is
that it is cheap.
3. Quality-price ratio - Inditex has services where we can order
online. The clothes there are average prices and quality and at the
same time it has wide range of products.
4. Differentiation - case of my enterprise, oriented on the whole
industry with high quality products and more than average prices.
5. Segmented differentiation - luxury clothes, high fasion and very
high prices for people with high feelling of uniqueness.
6. 7. 8. Strategies destined to fail - if the products of my enterprise
have bad quality or the level of service is too low, it will be this
 case, as the price is too high and customers will be disappointed
with it.

4. Non-related diversification - vitamins. The way to develop

non-related diversification - to follow the trends. Nowadays everyone
wants to be beautiful and healthy. So lets move to medical industry.
Vitamins are used by lots of women as they are good for appearance,
health and mood. But sometimes we do not know exactly which vitamins
we should take. So imagine that you have Instagram shop where you
can chat with the expert who checks your demand, total situation and
gives recommendations. And exactly at that chat you can order
everything you liked and get healthier.
In this case I would better start with drop-shipping as it is the best way to
explore if the diversification works at all. You do not need to invest a lot
of money, just for the marketing and transfer goods after payments
totally from the supplier to customer being an intermediary.

5. Vertical integration - offline stores to reduce the level of

dependence on delivery companies. At the same time it will help to give
better after sales service. In the level of thinking over vertical integration
we must be ready for investing more costs. Opening of offline stores
should be distributed be geographical areas: from one city to another.
Start will be in the city of origin. The main case here is to pay attention
on the importance of changing of organisational structure as the level of
development rises, the amount of workers, demand and competition
rises at the same time.

6. International strategy - direct export. At this case the easiest

and the least costless will be the way of entering new countries through
online shopping leaving the origin company inside and just involving
agreements with delivery companies abroad. The investments are low
as the only thing is to hire some workers that are able to communicate
with foreigners via chat in English and to make sure that marketing
works properly due to understanding the difference between cultures.
7.Organisational structure - as the company is already
diversificated and internationalised I would use multi-divisional structure.
It would be good choice as it helps to create independent divisions for
both industries, women clothes and vitamins and at the same time head
office is still responsible for the strategy decissions. The company is not
so big yet and it helps to be flexible to the environmental changes and to
manage non-related diversificated companies properly.

8. The Balanced Scorecard

● Financial: to increase the profit, to reduce costs (learning effect,
experience effect, economies of scope), to extand the size of the
firm, productive management team, long-term strategic planning,
analyzing changes in competitive environment, passive and active
marketing, clear SMART objectives.
● Customers: to analyze the demand in present and predict changes
in future, before-sales and after-sales services, attitude to every
client must be as unique as it is possible, establishing high
perceived value added, producing of high quality clothes.
● Internal business process: flexible manufacturing, productivity,
high-quality production, efficient planning, marketing and services,
analyzing of customer´s behaviour.
● Learning and growth: educated and motivated employees,
improvement of technological infrastructure, establishing and
improving supplier relationships, improving the level of vertical
integration step by step, sustaining competitive advantage in
differentiation.