UW00302
FUNDAMENTALS OF ENTREPRENEURIAL
ACCULTURATION
SEMESTER 2 (2022/2023)
BUSINESS MODEL CANVAS REPORT
SECTION: 101
LECTURER: DR. SYAHRUL NIZAM BIN SALAM
COMPANY NAME: [Link]
GROUP NO: G9
TYPE OF BUSINESS: FASHION
NO. NAME MATRIC NO. PROGRAMME
1 MUHAMMAD FAUZI BIN LILIT SUHENDAR BG21110243 HE22
2 JACQUELINE JENUWIN BG21110249 HE22
3 OLIVIANIE PATRICK BG21110251 HE22
4 SITI KOMIRIYAH BINTI AMSIRI BG21110259 HE21
5 AUEDRY CLAYRESA SAWAD BG21110260 HE22
TABLE OF CONTENTS
No Content Page
1.0 INTRODUCTION TO OUR BUSINESS 1
2.0 9 BUSINESS MODEL CANVAS (BMC) AREAS 2
2.1 Key Partners 3
2.2 Key Activities 3
2.3 Value Proposition 3
2.4 Customer Relationships 4
2.5 Channels 5
2.6 Customer Segments 5
2.7 Key Resources 5
2.8 Cost Structure 6
2.9 Revenue Streams 7
3.0 RISKS 8
4.0 CONCLUSION 10
5.0 REFERENCES 11
1.0 INTRODUCTION
An organization or enterprising body that engages in commercial, industrial, or professional activity is what
we mean when we talk about "doing business." We have already decided to market our business around
selling used clothing items. In addition to our capacity to bring in revenue, we also can bring down global
pollution levels.
[Link] is a company which is formed by 5 members from group 9 for the course of
Fundamentals of Entrepreneur Acculturation and under supervision by Dr. Syahrul Nizam. The president
of this company is Muhammad Fauzi bin Lilit Suhendar, and follow by sales manager Auedry Clayresa
Sawad, marketing manager Siti Komiriyah binti Amsiri, accounting manager Jacqueline Jenuwin and
Olivianie Patrick as our customer service and multimedia manager. Basically, this business focuses on high
quality bundle clothing, and it will be sold through an online platform such as Instagram, Facebook, Tiktok
and Whatsapp. The tagline of [Link] company is “Get Your Dream Fashion Style with an
Affordable Price”. The mission of this business is to sell high quality and affordable clothing products for
satisfaction and open a bundle store to be known among people.
This business aims to attract women who want to look stylish but still stick to their budget,
especially those who do not have a high source of income and also students who are prohibited to go outside
of the campus to shop for clothes. Fashion is of the utmost significance when seen from a professional
standpoint because it may help an individual feel more confident and make them look remarkable. People
are interested in fashion for various reasons, some of which have nothing to do with the practicality of
clothing. As a result of the fact that fashion evolves from season to season, following its trends might give
certain people a greater feeling of being up to date. In addition, because of the capacity of clothing to
communicate attitudes and beliefs, the fashion industry offers opportunities for people interested in
participating in the fashion industry to express themselves in artistic and uniquely personal ways.
By running this business, we hope people will be more aware of using used clothes. Therefore, this
kind of business can progress in line with the times.
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2.0 THE 9 ELEMENTS OF BMC REPORT
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2.1 KEY PARTNERS
Key partners are the group of other businesses that work together to make the business plan work well.
These partners would assist our company by supplying or handling some demands the company could not
meet. Through this, it can lower risks and improve the business model by forming partnerships to get
resources.
In our business, we work with two important partners. The first significant relationship is between
our business and the thrift shop, which is our provider. Some of the places we buy from are thrift shops,
where one of our members went to pick out the things by hand. This gives us a wide range of products we
can buy at even the lowest prices to market them. The students, all company members, are our second most
important partner. They help us get the word out about our offering and build good business and company
performance. They are all crucial parts of the company that need to be kept up to make the company's name
and improve the service we give our customers and the quality of the product itself.
2.2 KEY ACTIVITIES
Key activities are the things a company must do for its business plan to work. These key actions are essential
building blocks for any business because they can help it grow and stay in business. But how these things
are done will depend significantly on the company’s business. They can be anything, like making a product,
giving a service, or mixing the two.
Our company offers a wide selection of trendy things at competitive costs. Our marketing channel,
which consists of social media sites like Instagram, Facebook, and Whatsapp, is essential to the success of
our business concept. By doing so, our consumers will feel more comfortable asking us questions about our
company and services, increasing their trust in us. In addition, this crucial process helps us understand our
clientele's wants and needs, which is paramount to us. In our business, our sales and customer service team
take orders and answers customers' questions about the product. In our marketing unit, they will be in charge
of Instagram, Whatsapp, and Facebook to promote the goods we will sell. They also take photos of the
items to make them look good on our social media and get more people to buy them. Also, they package
everything and send it to our buyers in person or by postage.
2.3 VALUE PROPOSITION
A value proposition is essential for starting a business because it is thought to be the basis of a good product
or service. Through this, value is shown differently, such as what makes the company's product or service
appealing, why a customer should buy it, and how its value differs from similar products or services. In the
business we've chosen to start, we've come up with several "value propositions" for our customers, each of
which includes a "unique selling point" and a "featured advantage." The value proposition we offer our
customers shows that our clothing business is honest and exceptional.
The first part of our value proposition is that we have developed a solution for those individuals
who need a better sense of style. On the website, [Link], we demonstrate several different ways our
product may be worn, and we post these images on social media to give our target audience some direction
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and an idea of how they can appear intelligent and fashionable. We also offer a bundle of our products so
that customers can purchase everything they need in one convenient package at a price that is both
reasonable and aesthetically pleasing. Aside from that, we sold our products at a price that most people
could afford. Our target customers are UMSKAL students and teens from outside the school, so we priced
our products reasonably for them. Most students and teens who have yet to start working don't have a steady
job or many ways to make money, but they like to dress well, especially when it's in style. So, mmpreluvs.
co gives them the best price and an up-to-date product in a manner with the latest trends.
2.4 CUSTOMER RELATIONSHIP
Customer relationships are the kinds of ties that a company makes with different groups of customers. It
helps people feel like they know the business. Customer relationships are significant because how well a
business does determine whether it will succeed or fail. So, having good relationships with all your
customers and keeping them for a long time is essential to keep your business going and improve it.
In our business, we use social media to stay in touch with our clients. Most of our customers reach
out to us through social media, and we will also use social media to get to know our customers better and
tell them more about our goods. Targeted customers can give comments directly or through social media
platforms to help the company make its product better and more popular. Customers expect a business to
maintain a good relationship with them through social media and in person. Building solid relationships
with customers is a great way to make them loyal and keep essential customers for a long time. Also, we
want to have a good relationship with our customers. There are a few ways we do this. The first is a special
discount, where we offer them a few ringgits off the actual price when they buy several items. Customers
can send us a unique order request if they want to do it. We want to keep a healthy, friendly, and good
relationship with every customer. A good, planned strategy is the key to doing this, and it is essential for
keeping our business going for a long time.
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2.5 CHANNELS
Marketing channels are how a company gets its goods or services to those who buy them. Therefore, it
business needs to have a good marketing outlet strategy so that the product can get to the customer and the
product can be advertised widely to get people interested. As part of promoting a business, many ways or
tools can be used for marketing.
Our company uses a two-channel marketing platform to promote our products. The first marketing
channel was social media like Instagram, Facebook and WhatsApp. Everyone can and has access to social
media. This makes it easier to promote, contact and support our customers with every purchase and every
delivery. In addition, with this platform, we could also save the budget for promoting our products because
using social media is free and more environmentally friendly than promotions with a poster on which we
have to print it. The last marketing channel we used was the delivery service. For those banking online, we
offer cash on delivery (COD). We have also provided package delivery for people outside the Labuan area
via JNT, as we can easily reach and ship our products via this courier.
2.6 CUSTOMER SEGMENTS
As the customer segment is one of the essential components of the business model canvas, ensuring that it
is accurate is critical to achieving our goals. We want to sell our product or service to businesses or
customers in this specific group.
The customers that we have targeted are women, students, and outsiders. This is because the
products that we sell are suitable for women and for those who are searching for formal clothes to wear.
Furthermore, most of the customers have a budget limit on their expenses to make ends meet as most of us
are focusing on academics instead of making money, especially students. So that is why we are targeting
students who seek a low budget and affordable price with quality clothes.
2.7 KEY RESOURCES
One of the most essential parts of running a business is having access to key resources. It is what holds a
business together. It makes sure that every plan goes as planned. Essential resources that a company model
needs to make it work. Every business plan needs them; they are the only way for companies to make
money and offer value. The three main types of critical resources are physical resources, human’s resources,
and financial resources.
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Raw materials, buildings, cars, transportation, and storage facilities are examples of physical
assets. Natural materials, as we all know, are vital since they are the inputs needed in manufacturing to
create completed products for sale to consumers. Aside from that, human resources (HR). Human resources
are skilled workers and marketing gurus in both fashion and marketing. It is crucial in knowledge-intensive
and creative businesses. These human resources are necessary for our product to receive positive client
feedback or happiness with our apparel. HR is critical to making an organization's culture grow, change,
and stay the same. HR oversees essential parts of business culture like pay, performance management,
training, and development, hiring and onboarding, and reinforcing the company's ideals. We also use our
employees as models to promote our goods, and when we do photoshoots, we need to be creative and use
the proper techniques to get a high-quality photo that can be shared on social media. For example, we get
money from our members to buy goods from our suppliers. The idea for this business came from our own
money. We got each person in our group to give us RM50. Our modal costs RM250, and we make good
use of that money.
2.8 COST STRUCTURE
The cost structure describes all expenditures incurred for a company model to function. Such costs can be
estimated readily after determining Key Resources, Activities, and Key Partnerships. Entrepreneurs should
plan the best and most acceptable cost structure for their project concept. Some prices are visible, while
others, such as taxes, are not. Understanding the highest cost item and which essential resources or activities
lead to a high cost in our firm is critical.
The cost structure in this scenario includes material expenses, shipping charges, and packing costs.
Aside from that, value-driven cost structures aim to increase the product's value rather than produce it at
the lowest possible price. Our company proposed a product stock up, we will make our product a ready
stock item to attract customers without having to lower the price down. If the clothes take a longer time to
arrive at the customer’s hand it will give them the time to change their mind and go shopping at other places,
especially if it is a pre-order item. We also understand how frustrating it can be for our customers to wait
for their products to arrive because maybe some of them have already planned to wear them on certain
occasions and so on. That is why we took the alternative of stocking up the product so that customers
purchase it and get it in no time. Furthermore, cost-driven cost structures strive to keep product or service
costs as low as feasible. For example, we will purchase high-quality materials and low-cost courier services
to reduce overall costs. Therefore, the most money we will spend in our business model will be on
transportation costs during delivery, especially during a pandemic, and we will choose the best courier at
the best price. We wanted to make sure our customers are satisfied with the delivery but at the same time
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safe from any harm. We will also spend our cost in stocking and restocking our clothes to maintain their
quality and making sure they are following the current trends.
2.9 REVENUE STREAM
Revenue streams are the different avenues through which a company receives money from selling its
products or services. The sorts of revenue that a company registers in its books are determined by the
activities that the company performs. Consequently, the revenue accounts of retail enterprises are more
diversified than organizations that provide services (Campbell, 2005).
Our revenue stream, which is sales of clothes, and we use fixed pricing where we state the price on
the product that we sell so it is easier for the customer to know the price and they can set the budget to buy
the product. Also, our price is flexible, so it is not set in stone. For example, a new or used car has a stated
price, which is often negotiable, especially if you trade in your old car, get a loan, or lease. In this case, the
reason why our price of the product is negotiable is because maybe some of the customers cannot afford it
even if the price range is already affordable.
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3.0 RISK AND POSSIBLE SOLUTION
Starting a bundle store comes with its own benefit of exposing its customer to a wide range of clothes at a
cheaper price. Customers can still get the latest fashion trend from the bundle store. However, opening a
bundle store exposes the business to several industry-wide risks. If these risks are not managed, the result
can be bad for the business. There are several risks that are related to this business.
The first risk that is related to this business is inventory risk. Inventory risk is best described as the
possibilities of a business unable to sell their stocks in hand. To operate this kind of store, the business must
have a good supply of clothing in its hands. When customers browse through the online store, they expect
that we offer many kinds of clothes. Failure to purchase enough inventory results in disgruntled customers
and lost sales. But on the other hand, businesses that purchase too much inventory might face lost sales if
the clothes failed to capture buyers’ interest. Not only that, but the business will also face inventory lost
when a product is physically lost or when mistakes are made when receiving products. Products may go
missing due to ineffective inventory management or careless handling by workers. The perfect solution to
this risk is to implement a cycle counting program in the business. The workers need to check the inventory
regularly and make adjustments when needed. By implementing this, the business can stay on track and
avoid unnecessary problems such as too much stock or stock out.
The second risk is the trend analysis in the business. Operating a clothing business is hard because
the trends in the fashion industry are frequently changing. One mistake in understanding the trend in fashion
could cause the store to have too much inventory, lose credibility, and have a confusing brand identity.
These mistakes might all be deadly for the business. To overcome this problem, businesses can get updated
with celebrity trends. This is because many celebrities influence fashion trends. The business can pick only
clothes that are similar to what celebrities are wearing and by doing this it can attract the customer by
buying from our shop.
The third risk is competitive risk. In the business world, competition reduces a company's market
share and client base, especially if demand is constrained. There are many bundle stores in Labuan that are
already established. Because of this, smaller clothing stores like us can struggle against larger competitors
in several ways. Not only does this bring issues in brand awareness, but a larger store can have the pricing
power to offer larger discounts to the customers. This can make the customers buy with them rather than
us. Our business could face the possibility of lowering the profit margin to be able to compete with larger
stores in Labuan. To solve this risk, the business can conduct competitive analysis which is to get better
information about the competitor. The business can take advantage of the weakness that competitors have.
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The business also can focus on the quality of the product so that the customer is satisfied with our product
and brings their acquaintances to try out our clothes. Businesses can also make use of social media pages
to attract more customers by engaging with them frequently.
Fourth risk of this business is health risk. There is quite a huge number of human diseases
transmitted through body fluids like sweat and this can be found in clothes. As bundles stores sell used
clothes there are chances that infection can be transferred to clothes previously used by the infected person
if the clothes are not washed properly. This is a huge risk to our business as it affects the health and safety
of our possible buyers. Our business needs to spend funds on ensuring our products’ cleanliness is ensured.
Before buying the products, we should inspect the garment carefully. We should try to look for any
blemishes like large stains and avoid buying them. Other than that, we also can overcome this risk by deep
cleaning the clothes.
The fifth possible risk of this business is the public perception towards secondhand clothes. The
public has always had the bad perception of bundle stores consisting of clothes that people don’t want
anymore. The customer that has a high level of self-esteem usually avoids buying from the bundle store
and this has lowered our possible customer. Not only that, but the public has also always had the assumption
that the clothes might have defects in them and are not trendy enough to wear. Business must face this
assumption and make an effort in correcting the public. What can the business do to change the perception
of the public is by creating a new image for the business. As secondhand clothes really help the
environment, the business can take this and use it as an advantage to promote the company as an
environmental-care company. The business also can use social media to show a closer look of our clothes
so that the possible buyers can see how good our clothes are although it is secondhand.
Last but not least is the problem with the distribution of the product. As this business is being
conducted online, most of the products are being shipped or posted to the customers. There are several
possibilities of problems regarding this risk. One of them is the lateness of the delivery by courier service.
The business might have complaints from the customer if this happens. Not just that, the company also
needs to be ready for the possibilities that the couriers might lose the parcel during the delivery process.
The solution to this risk is the company needs to always stay transparent with the buyers regarding the
shipping time and estimated arrival. The company should provide the tracking number so that the customer
can track their parcel in real time. This could help to avoid customers making complaints to the business
although it is the courier that takes time to deliver their packages.
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4.0 CONCLUSION
Through our efforts, we are confident that this business will always be relevant at all times because as
informed above that the fashion industry will continue to grow from time to time according to the latest
trends then this will directly make the demand in this industry always increase. However, when we hear the
mention of fashion, the public must have a stereotype that the price of fashion items is always expensive.
For this kind of thinking, we have a solution to the problem where we sell trendy clothes at prices that are
easily owned by every class of society. This is because our business has a business partner who is able to
give us a cheap price compared to other traders for us to resell in the market. With this, there is no obstacle
for customers who are interested in buying our goods because of the reasonable price. This point can be
strengthened by the statement by an article released by Faith, D. O. (2018) that says the greater the relevance
of price in the purchasing choice, the more intense the information and the more comparison between rival
brands (Mazumdar and Monroe, 1990). Given the nature of consumer items (often purchased and used
products, implying a somewhat low level of consumer-supplier interaction), the bottom line is that
customers who buy more frequently are more concerned with pricing. Therefore, pricing strategy is critical
for all organizations manufacturing consumer goods and services since it indicates the company and its
products.
Looking at the risks that will be experienced if we run this business and the risks are stated above
such as inventory, trend analysis in business, competition, health, customer perception of used clothes, and
product distribution problems. But this matter can be avoided in a sure way which is a good business
management system like what is presented in the BMC report. With the existence of this report, it is possible
to see that the operation of this business is orderly and can avoid any major problems that may occur in this
business. Thus, by running this business our group will be able to collect a lot of profit and be able to
provide satisfaction to customers.
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5.0 REFERENCES
Apsuser. (2022, August 26). 5 major inventory risks and how to avoid them. APS Fulfillment, Inc.
[Link]
risks/#:~:text=Solution%3A%20One%20way%20to%20resolve,are%20always%20available%20
to%20customers.
Catherine Capozzi. (2017, November 21). Risks of Starting a Clothing Store. Small Business.
Retrieved from [Link] on 5
Mei 2023.
Faith, D. O. (2018). A review of the effect of pricing strategies on the purchase of consumer goods.
International Journal of Research in Management, Science & Technology (E-ISSN: 2321-3264) Vol, 2.
Khann, A., & Crain, A. (2022, February 22). 10 ways to keep up with fashion trends. wikiHow.
[Link]
Krzymowski, P. (2022, May 2). Why buying second-hand clothes matters. Loop Generation.
[Link] /news/why-buying-second-hand-clothes-
matters#:~:text=Second%2Dhand%20clothes%20have%20a,up%20in%20landfills%20or%20inc
inerators.
Mazumdar, T. and Monroe, K. B. (1990). The Effects of Buyers‘ Intentions To Learn Price Information On
Price Encoding; Journal Of Retailing, volume 66.
Melanie. (2023). 7 Types of Inventory Risk and Their Impact On Your Business. Unleashed
Software. [Link]
on-your-business
Rakhshanpour, A., Aghahossein Shirazy, A., Shafiei, R., & Rahimi, M. T. (2021). Second-Hand
Clothe, a New Threat for Acquiring Parasitic Infection. Iranian journal of public health, 50(1),
211–212. [Link]
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