Business Plan

KNITTY KNOTTY

ENT 4013 – New Venture Growth Strategies

Instructor: Dr. Festus Edobor

Students Name & Id:

Dina Al Zarooni – H00388753

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Table of Contents
Introduction............................................................................................................................3
Brand Name and Logo........................................................................................................................3
Products And Services........................................................................................................................3
Market...............................................................................................................................................3
Environmental scan.................................................................................................................3
Pest Analysis......................................................................................................................................4
Political..................................................................................................................................................................4
Economical:...........................................................................................................................................................4
Social:....................................................................................................................................................................4
Technological.........................................................................................................................................................4
SWOT Analysis...................................................................................................................................5
Strength.................................................................................................................................................................5
Weakness..............................................................................................................................................................5
Opportunity...........................................................................................................................................................5
Threat....................................................................................................................................................................5

Venture Functional Areas........................................................................................................5

Strategic planning..............................................................................................................................5
What motivates you?............................................................................................................................................5
with a justification.................................................................................................................................................6
Marketing plan:..................................................................................................................................6
Financing plan....................................................................................................................................6
Operation Planning............................................................................................................................6
Marketing growth strategy.....................................................................................................6
STP APPROACH..................................................................................................................................6
1- Segmentation....................................................................................................................................................7
2- Targeting...........................................................................................................................................................7
Advertising Mix......................................................................................................................................................7
Price.......................................................................................................................................................................7
Place......................................................................................................................................................................7
Promotion..............................................................................................................................................................7
Product..................................................................................................................................................................7

Financing................................................................................................................................8
Team.......................................................................................................................................8
Team structure...................................................................................................................................8
UAE Growth Strategy..............................................................................................................8
Strategic Partnerships........................................................................................................................9
Utilize Resources...................................................................................................................................................9
Combined Skills.....................................................................................................................................................9
Penetration Of New Markets................................................................................................................................9
Further Enhancing the Online Marketing...........................................................................................9
Recommendation And Conclusion...........................................................................................9
References............................................................................................................................10

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Introduction

Knitty knotty is an online cloth-selling shop (eCommerce)where you can have a better clothing
experience. At our company, you can purchase pure handmade clothes with soft and smooth
work. Our organization works on the demand of customers it gives you a variety of clothing
items. The vision is to build online clothing that would provide the finest services by using
transparent homemade tailoring work to improve society’s lifestyle. The main aim of this online
clothing is to reduce market fraud and costly outfits at markets which worth nothing. And also it
will benefit the customers to save time, they can shop anytime at home without traveling outside
home. This report will demonstrate the start-up of Knitty Knotty.

Brand Name and Logo:

Knitty: means an activity involving the skill of making things by hand someone, also who knits
yarn or thread with needles to create clothing (or materials).
Knotty: feeling uneasy due to anxiety or stress

The Brand Logo:

Self-Made

Products And Services

Knitty knotty uses highly effective homemade tailoring machines to achieve the services. The
company will provide all types of clothing like boutique outfits, handmade trousers with pure
cotton fabric, and all sorts of garments related to both males and females. Moreover, our
company also made traditional Emirati clothes like the “abaya” which is a long black robe with a
hijab. Apart from services, the products will be available for little cost as compared to market
prices. The strategy of our company will promote Middle-class families in UAE.

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Market
Our business depends on the eCommerce market, which is rapidly growing in the world as well
as in UAE. With an estimated US$8.5 billion in revenue in 2021, the United Arab Emirates
ranked 24th among all eCommerce markets, ahead of Austria and Vietnam.

Environmental scan

Environmental scanning is a technique for gathering information about activities and how they
interact with the internal and external systems of an organization. to discover all potential
opportunities and risks. PEST analysis and SWOT analysis are the tools that we used.

Pest Analysis:
PEST Analysis is an analytical technique that enables a business to identify the key external
factors that significantly influence its operations. This tool considers political, economic, social,
and technological factors.

Political
Government initiatives aiming at promoting sustainable energy investments and making it
simpler to produce, manufacture, sell, and export environmentally sustainable goods and
technologies.
That's because the government is moving toward more sustainable strategies. we are free to make
profits for our company, and these kinds of policies will encourage newcomers to enter the UAE
business sector. This will give our company a good chance to gain public attention as well as
governmental support.

Economical
1. The United Arab Emirates has an open market economy in which the prices of goods and
services are determined by a free price system.

2. In April, the UAE government launched the “digital economy to strategy” which aims to
double the contribution of the digital economy to the UAE’S GDP from 9.7% as of April
2022 to 19.4% within 10 years.

Since the UAE’S effective economical strategies growing the GDP of the country, it’s also
involving our hands to make grow the GDP of the country by using online digital business
through E-commerce which will bring foreign markets in UAE to invest.

Social
In this social world, the increasing digital marketing industry is beneficial for our company as
well as for our country. To a report on the E-commerce industry in UAE, it is expected to
increase in eCommerce revenue from 9 billion us dollars to 17 billion by 2025. This increase in

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revenue will boost our GDP rate and also the government will initiate a lot of incentives for
others.
people can easily attract to our work by online advertisements which is fruitful for our company.
These social platforms can boost our work in UAE and foreign countries.

Technological
1. The seamstress who works in the field of tailoring uses a range of new technologies to
carry out stitching clothes, such as abayas, hijabs, trousers, and other foreign outfit
designs.
2. As our company is working on Internet, people can easily reach out to us by using our
website www.knittyknotty.com at any time with no delay or bargaining. Just one click
shops.
Technology is rapidly improving: my company will invest in an online digital market technology
which will boost my business.
According to the PEST analysis, there is a huge chance for the company to gain a competitive
edge.

SWOT Analysis:
Using the SWOT analysis, you can identify your internal strengths and weaknesses as well as
external opportunities and threats.
Strength
1. The availability of modern technological stitching machines.
2. Diligent and well-experienced employees do the work transparently.
3. Easy access to online websites to shop for homemade clothes.

Weakness
1. Time-consuming work as customers demand fast delivery arrangements, due to our
reliability of quality we take little time to complete the order.
2. Time-consuming delivery.

Opportunity
Through unique support programs, including more than 10 national programs, the government
agencies help Emirati business owners and offer an environment that encourages the expansion
of local small and medium-sized businesses. These government opportunities like the “UAE
digital strategy” gives us hope for a better future for our company.

Threat
1. There is huge competition in the e-commerce industry which can slow down our profits.
2. As some outsiders can damage the reputation of our company of their interests.

The SWOT analysis shows that the company must develop strategies that leverage its
strengths to seize opportunities and employ tactics to strengthen its weaknesses while

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 reducing risk. For instance, reducing the risks posed by fierce competition by educating and
training employees to ensure superior performance.

Venture Functional Areas

The ability to complete objectives successfully and efficiently is what groups tasks and
activities into functional categories. The four management teams that make up our company's
division of business activities are as follows:

Strategic planning:
Because a business strategy outlines how a company will compete in a specific market through a
clear set of objectives, activities, and goals. Any size business needs a plan if it wants to survive
and grow. As a result, we're going to identify the components that our online business strategy
must include to successfully launch, manage, and expand our firm online.

What motivates you?

our motivation will come from our why, which will also help our company idea come to life.
Start, to paraphrase Simon Sinek,

with a justification.
What issue are we addressing? Problem-solving is the purpose of business. So, we must find
out what individuals need by asking questions.
1- What are our talents and skills?
We don't have to be experts in everything, but we should have some basic skills in a few
areas. So, we must use our skills in our company.

Marketing plan:
Recognizing potential clients and developing promotional activities to draw them in will help
with the marketing of the online work. We will establish online advertisements on social media
apps like TikTok, and Instagram YouTube, to attract customers to our company.
In addition, we will run various offers and promotions, such as upgrading some services during
holidays to persuade clients to choose the better services, as well as bundles to let customers take
advantage of many services at discounted rates.

Financing plan:
Recognizing potential clients and developing promotional activities to draw them in will help
with the marketing of the online work. It was decided that the business license and other legal
documents, which cost about AED 5700, would be the first expense to be covered by financing.
The second item is the $10,000 worth of environmentally friendly company equipment. The
business will require funds to address cash flow issues when it is first starting. The start-up will

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be supported with AED200,000 from Dubai Commercial Bank. And personal savings will be
used to cover the remaining costs.

Operation Planning:
Managing the business's procedures and processes is what operation planning entails. Since labor
is used primarily to meet customer needs daily, trained personnel with relevant experience are
employed by the company to guarantee client satisfaction.
The employees of our online shop staff will include different kinds of outfits for all traditional
people around the UAE like Indian Philippines traditional clothes as their population is in
majority. This operational planning will increase the profit of the company.

Marketing growth strategy

STP APPROACH:
The STP technique involves segmenting the market, choosing which segment to target, and
figuring out how to position your product to appeal to the most lucrative consumer segments. In
addition, the primary advantage of using the STP strategy by targeting resources toward the
designated segment with specificity and in accordance with the segment's characteristics, you
can increase marketing effectiveness. To avoid placing or selling the product in places where it is
not required, the business's costs would be reduced.

Segmentation
Customer segmentation is a technique for grouping consumers together based on shared traits.
 Geographic: This category divides customers based on where they are physically
located; examples are Masdar City in Abu Dhabi and The Sustainable City in Dubai.

 Demographic: This component is divided into demographic groups according to gender.

As an online clothes store, Knitty Knotty will feature all genders in this segment.

 Psychological: This segmentation separates people according to their way of life,

interests, and activities. The largest group is those that enjoy dressing in diverse clothes
around the world and find fulfillment in doing so.

Targeting
Based on the demographic segmentation, the company will provide the service to everyone as it
will be the largest and most lucrative market.

Advertising Mix
Price, Place, Promotion, and Product make up the marketing mix. These components help
businesses sell their products and services to consumers.

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Price
Prices on our website will be calculated using cost-plus pricing, which adds a profit margin to
the cost. to establish a low cost for the customers. To boost customer happiness and loyalty, The
Knitty Knotty will offer deals and packages during the holidays, such as service upgrades or a
package that combines several services at a discounted price.

Place
The services offered by Knitty Knotty demand close customer engagement. Our website is easily
accessible via the Internet with just one click.

Promotion
Promotion includes marketing strategy, publicity, and advertising. Knitty Knotty will promote
the new idea of sustainable online purchasing services through a variety of media channels.

Product
A company's offering of a good or service to customers is known as a product. Our online store
offers a wide range of services that are carried out using top-notch, environmentally friendly
equipment.

Financing:
No matter how excellent the business strategy is, being able to raise enough money to start and
grow the business is a crucial element of start-up success. The company will use debt financing,
or taking out a loan, as its financing approach.
Furthermore, personal borrowing from savings will be used to cover the remaining costs. Due to
the expanding Internet e-commerce market, this company has a fantastic chance to make a
significant profit. I also chose this method of financing because I will continue to own and
control the business and keep all the profits generated by it. With debt financing, the lender has
no control over your company.

Team:
Team structure
Many providers of e-commerce solutions dislike the functional team structure's hierarchical
character. Instead, they opt for a flat e-commerce structure with fewer levels of management. A
flat organizational structure, also known as a horizontal one, reduces the number of layers in the
management hierarchy. This is a system that has minimal to no intermediate management, to put
it simply.

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All employees are close to the management in a flat organization. This makes communication
more effective by lowering the number of levels a message must pass through before reaching its
intended audience. A flat organizational structure also lessens the fear experienced by lower-
level team members about higher levels of management by lowering the number of levels of
management.

UAE Growth Strategy

Business growth strategies are long-term plan of action that motivates you to grow your current
market share. This establishes how the company will raise its worth by boosting sales and
profits. Franchises, strategic alliances, joint ventures, and licensing are a few of the different
ways that a firm might grow. Our company, however, agreed that franchising and strategic
alliances are the best growth strategies.

Strategic Partnerships:
A strategic alliance is an agreement between two businesses to work together on a profitable
project while preserving the autonomy of each business. A company may create a strategic
alliance to expand its product line, obtain a competitive edge, or access new markets.
The Knitty Knotty will invest in dravmo.com to launch a digital online marketing campaign that
will promote our garment line by utilizing virtual online technologies as part of the firm's equity
strategic alliance strategy for future expansion. For Knitty Knotty’s online store, this strategy
was chosen to progress the technological component, offer a cutting-edge consumer experience,
and assist the company's growth in the UAE online digital market.
The following are the primary gains from the strategic alliance strategy:

Utilize Resources
A joint venture will employ the combined capital of the two companies to achieve its goal. While
one company might have a proven production procedure, another might have better supply
networks.

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Combined Skills
One or both businesses involved in a joint venture may have unique experiences, skill sets, and
information. Each company that forms a strategic partnership with another will profit from the
expertise and resources of the other.

Penetration Of New Markets

A strategic alliance gives an organization access to new opportunities through a method that
would not have been practical for either firm acting independently. For my company, the
cooperation will result in a move toward a more technologically advanced workforce in the
beauty sector.

Further Enhancing the Online Marketing

Significant potential for growth and profitability in the nation will be created by our company's
provision of various services and products that offer consumers environmental protection
strategies. And in preparation for future growth, the company created a plan to improve the
online store by offering more simple options for Emiratis to shop and to support the growth of
the UAE's gross domestic product (GDP). As we have already witnessed in the above reports E-
COMMERCE business is the key figure for boosting the economy of the country.

Recommendation And Conclusion

It is essential to write a start-up business plan for the idea before starting the business to project
its success and profitability. by doing an environmental scan to look at both internal and external
factors that could have an impact on the firm. Because a business cannot begin without sufficient
funding, it should also have a financing strategy. formulating expansion plans as well as taking
advantage of new chances to grow the business.
In conclusion, there are many prospects for sustainable online businesses given the expansion of
the UAE's e-commerce sector and the fast-rising digital marketing sector. We must participate in
online commerce to advance environmentally friendly company practices. It will increase the
nation's prospects for growth and profitability.

References
Zibin, A., & Abdullah, A. D. (2019). The conceptualization of tolerance in the UAE press media: A case
study of ‘The Year of Tolerance’. Open Linguistics, 5(1), 405-420.
Parakandi, M., & Behery, M. (2016). Sustainable human resources: Examining the status of
organizational work-life balance practices in the United Arab Emirates. Renewable and Sustainable
Energy Reviews, 55, 1370-1379.
Wally, E., & Koshy, S. (2014). The use of Instagram as a marketing tool by Emirati female entrepreneurs:
an exploratory study.

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Goby, V. P., & Erogul, M. S. (2011, July). Female entrepreneurship in the United Arab Emirates:
Legislative encouragements and cultural constraints. In Women's Studies International Forum (Vol. 34,
No. 4, pp. 329-334). Pergamon.
Nuseir, M. T., Aljumah, A., & Alshurideh, M. T. (2021). How the business intelligence in the new startup
performance in UAE during COVID-19: The mediating role of innovativeness. In The effect of coronavirus
disease (covid-19) on business intelligence (pp. 63-79). Springer, Cham.
Itani, H., Sidani, Y. M., & Baalbaki, I. (2011). United Arab Emirates female entrepreneurs: motivations and
frustrations. Equality, Diversity and Inclusion: An International Journal.

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