Zeddy Business Opportunity Analysis - Paper Example

Introduction

To succeed in the business world, an entrepreneur must do thorough research on the available opportunities and analyze the opportunity. Business ideas do well depending on the environment around it. Such settings include marketers, competitors, suppliers, distributors, investors, and lenders. Business analysis is trying to convince your audience that the idea can work. While evaluating the opportunity, one finds its benefits, find risks, and solve them. It is essential to focus on the business competition, industry growth, organizational structures, your financial situation, and the conditions of the workplace. This type of analysis will indicate whether the business is worth investing in or not. This paper analyses the business opportunity analysis of Zeddy Company profile, marketing analysis, funding and investments, and findings.

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Company Profile

Zeddy Company is located in the United Kingdom. Started in 2019, Zeddy sells clothes through the online market. The company looks forward to serving people from all parts of the world by offering the latest and trendy clothes for both genders. Our mission is to empower the world to grow stylishly. Our objectives are to deliver our customers' orders according to their tastes and privileges, to keep our customers up to date with the latest fashion clothes, to listen to the needs of our customers and respond to them and listen and act to customers' suggestions towards improving our business. The company serves its customers via electronic commerce. E-commerce is conducted on Medias such as company website, social media platforms, and advertisement on popular sites like Amazon. Zeddy has both direct and indirect distribution channels. Orders from outside the country are delivered through shipments. The company will soon have a warehouse in every country where they are a high concentration of our customers.

Marketing Analysis

Marketing analysis is the evaluation of the progress of the market (Bennet, 2014). It a business plan which examines the market in which an entrepreneur intend to start a business. The analysis is done to determine the strategies to use while running the company with the consideration of various factors. These factors are commonly known as SWOT (Strengths, Weaknesses, opportunities, and Threats). After evaluating the strengths and weaknesses of the company, Zeddy can make plans on the marketing strategies which will work effectively. The company also look at the external factors which are likely to bring opportunities and threats to the business. Factors like political, social, and economic can create risk or an opportunity for the company. The following are features of marketing analysis.

Market Size

This is a significant factor in the report ("Analysis," 2015). Large markets are likely to pose high competition; therefore, Zeddy should make their products outstanding. A big market also helps determine the prices of the products. Setting high prices will make customers shift to competitors' products. Also, setting lower prices will have customers assume that the products offered are of low quality. However, in small markets, charging high prices is a good idea because the customers will believe that the business provides the most top quality products in the market.

Market's Growth Rate

Before setting up the business, Zeddy Company needs to look at the growth rate of the market. This shows how long the market will last, hence the intended business. In areas where the market is overgrowing, it is vital to invest more. Otherwise, areas with little or no growth rate discourage investments. A market growth rate determines whether it is worth spending on the investment or not.

Market Trends

Learning the market trends have an entrepreneur know the types of product to sell. In Zeddy's case, market trends will help to know to determine the kind of clothes it will sell. Noting the trends means noting what the customers want, how much they are willing to spend on it, and what particular trends are likely to fetch their attention. Trends changes can be opportunities or threats to any business. It is important to be diverse in the type of products sold to avoid trend threats.

The profitability of the Market

Most companies are Profit-motive businesses. Similarly, Zeddy aims to make profits out of its sales. Therefore, it is essential to note whether the market is profitable or not. In cases where the market is lucrative, Zeddy should invest more. Otherwise, financing will be a waste of time and resources.

Success Key Factors

Critical success factors are those that help the business achieve its success in the market. Such factors include progress of the technology, economies of scale, and proper utilization of resources. These factors should be outstanding from those of other competitors. These are the essential things which if the company did well, it would produce good results.

Channels of distribution

Distribution channels are critical in the market analysis. It is through them that the products reach the customers. If there are already successful channels which exist, the company can use them or still develop new ones. In Zeddy's case, the company will need to use the existing distribution channels, start fresh, or improve the current.

Cost of industry structure

This helps the business in determining how much finance is needed to get the company products selling. Smart companies come up with ways to cut down these costs, thus making more profits without hiking the sales prices. Doing market analysis paves ways of cutting don such costs hence giving the business a competitive advantage.

Funding and Investments

Funding or financing and investing are different terms which aim at a common thing; bringing money to the company (Ingram, 2019). Financing involves borrowing, relying on investments and earnings. Investing entails buying products like bonds and stocks. Both strategies help the long-term growth of the organization. Zeddy can decide to fund and invest its company in the following ways. Through borrowing. Borrowed the money for the business can come from banks, friends and families, agreements with suppliers and credit unions, among others. Investor funding is another source which involves obtaining funds from the investors. An investor is a partly legal owner of the business. Retained earnings are money saved for a long time. The company can also choose to invest in real property and income-generating investments.

Conclusion

Zeddy Company is an online marketing shop which majors in trendy fashion clothes. The company which intends to serve people from all over the world has an opportunity to grow. Based on the current trends in successful online sales of clothes, the company has a chance of doing well, thus should be created. After the market analysis, the company is in a better position to make the best decisions, which will lead it to success. There are various sources of funding and investment opportunities. Therefore, the company cannot suffer the possibility of lack of capital. I would recommend that the company set up its business as soon as possible since it has weighed the chances of its survival in the market.

References

Bennett, L. (2014, December 11). How to Analyze a Business Opportunity -. Retrieved from https://www.business-opportunities.biz/2014/12/11/analyze-business-opportunity/

Ingram, D. (2019). Financing & Investing Activities of a Business Entity. Retrieved from https://smallbusiness.chron.com/financing-investing-activities-business-entity-1884.html

What is Marketing Analysis? (2015, May 5). Retrieved from https://pestleanalysis.com/what-is-marketing-analysis/