FINAL PROJECT

Training program:
Masters Business Administration
Subject:
Final Project Strategic Management
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CONTENTS

BACKGROUND.....................................................................................................................................................3

BACHI BARCELONA.......................................................................................................................................6

INTERNAL ANALYSIS....................................................................................................................................7

VRIO ANALYSIS...............................................................................................................................................9

STRENGTHS AND WEAKNESS.................................................................................................................10

PORTER'S FIVE FORCES ANALYSIS......................................................................................................12

PROPOSED STRATEGIES..........................................................................................................................13

BALANCED SCORECARD (BSC) MATRIX..............................................................................................15

STRATEGY BASED ON MICHAEL PORTER...........................................................................................16

BIBLIOGRAPHY.............................................................................................................................................17

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BACKGROUND

BACHI Barcelona (http://www.bachibarcelona.com) is a company that sells medium-high

range handbags and accessories for men and women. This project has been created by two
friends, Meritxell and Nuria, passionate about fashion and fully orientated to the satisfaction of
their customers through their products, and it has been in the market for one year.

These two enterprising women have a common idea: to create comfortable accessories but
without sacrificing innovative designs. Therefore, their products seek differentiation through
originality, because their patterns are visible both inside and outside of the bags, thereby
creating a different product.

BACHI Barcelona stands out for online sales through a website that tries to be intuitive and
with a high navigability whilst, of course, gaining visibility for their bags and accessories. In
addition, it has the following services:
- Complete catalogue of their accessories for online sale.
- Filtering by categories and price system, to customize searches.
- Offers and temporary discounts on some products.
- Form for potential customers to request information.
- Delivery service of 24-48 hours. Cost: € 5 (other costs assumed by BACHI Barcelona).
However, they offer several promotions with free deliveries.
- National and international shipments (European Union), although they are still not very
clear how to penetrate international markets.
- "Stories by Bachi" blog, where they report announcements and related news.
- Newsletter service (previous subscription with welcome gift).
- Access to their social media: Facebook, Twitter, Instagram and Pinterest.

In relation to other information of interest:

- Human capital is composed only of them: Meritxell and Nuria. They both have
extensive knowledge of the fashion industry and new trends. Also, they have earned a
degree in Law, so they have great knowledge in legal matters.
- High involvement, enthusiasm, and desire to grow and meet the needs of customers in
the fashion and accessories sector.

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 - They have external consultants in different areas such as Marketing, Community
Manager, Web Positioning, Accounting, Photography, Web Programming or Modelling.
- Clear awareness of the importance of the presence of BACHI Barcelona in social
media to obtain a good position in the market.
- Low bargaining power of the price of the deliveries until they start getting a higher
number of orders.
- Very close relationship with their suppliers. Currently they are working with 20
suppliers because of the many details that their accessories have. These are local
Eco Friendly suppliers, thus contributing to the sustainability and development of
local commerce, even though this may translate into less competitive prices than if
they worked with suppliers from countries with different labor rights cultures.
- All their designs are unique and handcrafted in Barcelona.
- The stock policy is very clear: refuse to work on request. They prefer to have surplus
for all their star and classic products. They will only work on request for cost or
limited edition designs.
- At a financial level, they work with a Business Expansion Account for SMEs with
advantageous conditions in terms of fees and bank charges, but they do not have
financing.
- They often base their strategy on participating in fairs and events to bring their product
and brand closer to the public, at strategic points such as Barcelona, Tarifa and
different Italian cities, avant-garde in the latest fashion.
- Currently BACHI Barcelona faces stiff competition. Their main competitors are:
o Zubi (http://zubidesign.com/es/)
o Afortunadas (https://shopafortunadas.com/tienda/)

Meritxell and Nuria have some priorities related to gaining presence in social networks and
increasing their competitive advantages over their main competitors. They consider it very
important to increase the number of subscribers on the web, get more followers to increase
visibility, try new ways of online communication (guest posting, banners, collaboration with
bloggers and other national and international friendly companies) and increase sales from the
promotions they make.

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Although they are very aware of these facts, they have never stopped to elaborate a strategic
plan that helps them achieve their main goals for BACHI Barcelona. For this reason they’re
contacting you to help them in this task.

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BACHI BARCELONA

Mission: Our mission is to provide medium-high-range handbags and accessories that

combine comfort and innovation. With our handcrafted products, we aim to express our
passion for fashion and meet the needs of our customers.

Vision: We envision BACHI Barcelona as a leading brand in the fashion and accessories
sector, known for its original and distinctive designs. Our goal is to expand our presence both
nationally and internationally while maintaining our commitment to sustainability and
supporting local businesses.

Values:

 Creativity and Innovation: We value originality and continuously seek to push

boundaries by creating products with unique patterns and designs.
 Customer Satisfaction: We are dedicated to meeting the needs of our customers and
providing them with a seamless shopping experience.
 Quality and Craftsmanship: We take pride in the craftsmanship of our handcrafted
products, ensuring the highest quality standards.
 Sustainability: We are committed to working with local Eco-Friendly
suppliers, contributing to the sustainability and development of the
community.
 Integrity and Ethics: We adhere to ethical business practices and maintain transparent
relationships with our suppliers, customers, and stakeholders.
 Continuous Growth: We strive for constant improvement, embracing new trends, and
staying ahead in the fashion industry.

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INTERNAL ANALYSIS

Competitive Advantages of BACHI Barcelona:

Unique and Innovative Designs: BACHI Barcelona differentiates itself from competitors
through its visible patterns both inside and outside the bags, offering customers a distinct
product.

Knowledge and Expertise: Meritxell and Nuria's extensive knowledge of the fashion industry
and new trends, along with their legal background, provide a strong foundation for the
business.

Close Relationship with Suppliers: BACHI's collaboration with local Eco-Friendly suppliers
contributes to sustainability and ensures the high quality of their products.

Online Presence and User Experience: The intuitive and navigable website, along with online
services such as filtering, offers, and delivery options, provides a seamless shopping
experience for customers.

Human Capital: The passion, enthusiasm, and commitment of Meritxell and Nuria, along with
their external consultants, contribute to the overall success of BACHI.

Competitive Disadvantages of BACHI Barcelona:

Limited Human Resources: With only two founders, the company's growth potential may be
constrained by the availability of resources to handle increased demand.

Price Competitiveness: Working with local suppliers may result in higher prices compared to
competitors who source products from countries with different labour rights cultures.

Limited International Market Penetration: BACHI Barcelona needs to develop a clear strategy
to expand into international markets and overcome potential barriers.

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Tangible Resources: Physical and Financial:

Physical Resources: Handcrafted accessories, website, office space, inventory, equipment

for photography, etc.

Financial Resources: Business Expansion Account, working capital, revenue from sales,
investments, etc.

Intangible Resources:

Brand Reputation: BACHI Barcelona has gained a reputation for unique designs and high-
quality handcrafted products.

Intellectual Property: The unique patterns and designs created by BACHI Barcelona offer
intellectual property rights protection.

Capacities:

Design and Innovation: BACHI Barcelona has the capacity to create original and innovative
designs.

Marketing and Online Presence: The company has consultants in marketing and web
positioning, enabling effective online communication and visibility.

Collaboration and Networking: BACHI Barcelona actively collaborates with bloggers, and
friendly companies, and participates in events to promote its brand and products.

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VRIO ANALYSIS

Competitive V R I O
Valuable Rare Inimitable Organized

BACHI's unique designs,

Competitive knowledge, and close
disadvantage relationship with suppliers
create value for the company

The combination of
Competitive handcrafted accessories and
Party visible patterns both inside
and outside the bags is rare
in the market.

The handcrafted nature and

Temporary
intellectual property
Competitive
Advantage protection provides some
level of inimitability.

BACHI Barcelona effectively

Unused
organizes its resources and
competitive
advantage capabilities to offer unique
products and services.

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STRENGTHS AND

Unique and Limited Human

Innovative Designs Resources

Knowledge and Higher Prices

Expertise in the Fashion Industry compared to some competitors

Close Relationship Limited International

with Eco Friendly Suppliers Market Penetration

Intuitive Website

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PEST ANALYSIS

POLITICAL STRUCTURE ECONOMIC STRUCTURE

•
Economic Growth: The
overall economic growth affects consu

P E
Trade Regulations: Political Disposable Income: Higher disposable
policies and trade agreements impact international shipments and market penetration strategies.
Labour Rights Regulations: Working with local Eco- Friendly suppliers aligns with labour rights regulations and sustainability goals.

TECHNOLOGICAL STRUCTURE SOCIAL STRUCTURE

FashionitsTrends
E-commerce Growth: The increasing popularity of online shopping provides opportunities for BACHI Barcelona to expand and base.
customer Consumer Preferences
•
Sustainable and Ethical
Social Media Influence: Technological advancements in social media platforms can be leveraged for brand visibility and customer engagement Consumption: Grow

T S

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PORTER'S FIVE FORCES

I. Bargaining Power with Suppliers: BACHI Barcelona's close relationship with local Eco-
Friendly suppliers may limit their bargaining power but ensures quality and sustainability.
II. Power of Negotiation of Consumers: Customers have various options and may have
moderate power in negotiating prices or seeking alternatives.
III. Threat of Income from Substitute Products: The availability of other handbag and
accessory brands in the market poses a threat to BACHI's market share.
IV. Threat of New Competitors: The fashion industry attracts new entrants, and the ease of
establishing an online presence poses a moderate threat.
V. Rivalry Among Competitors: BACHI Barcelona faces stiff competition from brands like Zubi
and Afortunadas, requiring constant differentiation and innovation.

Opportunities:
 Online Expansion: Leverage the growing e-commerce market to reach a wider
customer base.
 International Market Penetration: Develop a clear strategy to enter international
markets and expand customer reach.
 Collaborations and Partnerships: Collaborate with national and international bloggers,
influencers, and friendly companies to increase brand visibility.
 Sustainable and Ethical Fashion Trend: Capitalize on the increasing demand for
sustainable and ethical fashion products.
 Social Media Marketing: Utilize social media platforms to enhance brand visibility,
engage with customers, and drive sales.

Threats:
Intense Competition: Competitors with similar offerings may pose a threat to market share
and customer acquisition.
Changing Consumer Preferences: Rapidly evolving fashion trends and shifting consumer
preferences may impact demand for specific designs or styles.
Economic Volatility: Economic fluctuations can affect consumer spending on luxury and
fashion accessories.

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Regulatory and Trade Barriers: Political and trade regulations can pose challenges in terms of
international shipments and market expansion.

PROPOSED STRATEGIES

Defensive Strategy:
 Strengthen the relationship with existing customers through personalized offers and
excellent customer service.
 Focus on product quality and unique designs to maintain a competitive edge.
 Continuously monitor and respond to changing consumer preferences and market
trends.

Offensive Strategy:
 Increase brand visibility through collaborations with bloggers, influencers, and friendly
companies.
 Develop a comprehensive international market entry strategy, including research on
target markets and localized marketing efforts.
 Explore partnerships with sustainable fashion organizations or events to enhance
brand reputation and reach a wider audience.

Survival Strategy:
 Optimize cost structure by exploring more cost-effective suppliers without
compromising quality and sustainability.
 Focus on improving operational efficiency to maximize resources and reduce costs.
 Continuously monitor and adapt to market dynamics to quickly respond to challenges
or shifts in demand.

Reorientation Strategy:
 Conduct thorough market research to identify potential untapped segments or niche
markets.
 Explore partnerships or collaborations with other brands or designers to introduce
limited edition or collaborative collections.

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 Invest in technological advancements to enhance the online shopping experience and
stay ahead in digital marketing strategies.

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BALANCED SCORECARD (BSC) MATRIX

TARGETS INITIATIVES
STRATEGIC OBJECTIVES KEY PERFORMANCE INDICATORS
YEAR 1 YEAR 2 YEAR 3 PROGRAMS BUDGETS

Monthly/quarterly/yearly sales growth

FINANCIAL

Increase in sales Revenue

percentage.

Profit Margin Improvement Gross profit margin percentage.

Cost of Reduction through operational

Reduction in operating expenses
efficiency

Customer satisfaction score (CSAT) through

CUSTOMER

Increase in customer satisfaction and loyalty

surveys or feedback

Growth in customer base Customer acquisition rate

Improved brand perception and reputation Brand awareness and recognition surveys

Streamlined production and supply chain

Cycle time reduction in production
process
PROCESSES
INTERNAL

Continuous improvement in production Number of new product launches or design

quality design innovations.

Effective inventory management Inventory turnover ratio.

Employees training and development Training hours per employee

LEARNING

Adoption of new technologies Implementation of new technology solutions.

Collaboration with external consultants for Number of successful collaborations with

knowledge enhancement consultants.

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STRATEGY BASED ON MICHAEL PORTER

Differentiation Strategy:

BACHI Barcelona can focus on differentiation by continuing to offer unique, handcrafted

designs that set them apart from competitors, emphasizing their visible patterns both inside
and outside the bags, BACHI can create a strong brand identity and cater to customers who
seek originality and innovation in their accessories.

Justification:

 BACHI Barcelona's emphasis on unique designs aligns with the differentiation

strategy, creating a competitive advantage in the market.
 Their close relationship with local Eco-Friendly suppliers contributes to the exclusivity
and quality of their products.
 BACHI can charge a premium for their differentiated products, targeting customers
willing to pay for unique designs and craftsmanship.

Note: It's important for BACHI Barcelona to continuously monitor market trends and customer
preferences to ensure their differentiation strategy remains relevant and resonates with their
target audience.

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BIBLIOGRAPH

Strategy Management Group. (2023, June 9). Balanced Scorecard Basics - Balanced
Scorecard Institute. Balanced Scorecard Institute. https://balancedscorecard.org/bsc-basics-
overview/

Balanced Scorecard Templates. (n.d.). Office Timeline.

https://www.officetimeline.com/balanced-scorecard/templates

[Mariana Casillas]. (2023 Final Project Strategic Management).

[ENEB]. (2023 Masters of Business Administration Section1 Strategic Management).

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