BMM3013 Starting a Business and Fundamentals of Marketing

Assignment 1

Student ID

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Abstract
For the success of the company in any sector, the company should think about the sustainability
of the operation. As a start-up company, it should think about the potentiality which the giant
company does not provide to its customer, so that the company generates the gap in the operation
of supply and demand in the market to develop their operation. Through the assignment, it shows
the potentiality of the recycle denim and cloth production operation in London, where the people
are concerned about the environmental pollution and the effectiveness of the process. They also
concerned about the fashion, so that the skill can be a differentiating factor for the company.

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Table of Contents
Abstract............................................................................................................................................1

Introduction......................................................................................................................................2

Business Plan...................................................................................................................................2

PESTLE Analysis............................................................................................................................3

Competition Analysis......................................................................................................................5

Recommendation.............................................................................................................................6

Conclusion.......................................................................................................................................7

Reference.........................................................................................................................................8

Appendix..........................................................................................................................................9

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List of Figure
Figure 1: Statistical Data of water uses in Denim production.........................................................7
Figure 2: Carbon Emission Data of the Denim Industry.................................................................7
Figure 3: Reuse of Denim................................................................................................................8
Figure 4: Environmental Impact of Denim Production...................................................................8
Figure 5: Reuses of Denim..............................................................................................................9
Figure 6: Recycling of Denim Fabric..............................................................................................9

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Introduction
When a company wants to alive in the industry, the company should think about the future to
manage the sustainability and also develops the factors which assist the company to make
successful in the long run through long term investment. For a different perspective, the
geographic condition of the business provides the signal to manage sustainable development.
The success of the company depends on the proper uses of the opportunities in the environment
effectively and carry out the proper output in return to develops barriers for the other company to
enter the market.

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Business Plan
Business Idea

Recycle in the necessary step from the company, because the company creates a huge amount of
pollution through producing new goods. The unused goods also create pollution, so that pollution
increases in multiple ways, which creates a serious impact on the environment. In the fashion
industry, the company produces cotton by using a huge amount of water and also uses a mass
amount of chemical in the development of the product.

Business Location

For this topic, it describes the area, London, where people use the water with the high price, so
that it is much expensive to produce cloth in there. That’s why, the fashion company develops
the reuse, recycle and reproduction operation to reduce the pollution rate in the environment.
According to Amutha et al (2017), it also creates a great concern in the society and the young
generation has a positive motive to save the environment from the pollution.

Market Gap

As the company produces new denim or cotton, it is expensive, so that the recycle of denim or
reuse of fabric can mitigate the cost generating option. In the industry, there is a low amount of
company performs the operation, but it is very difficult to collect the fabric.

As a start-up company, it will easier to perform the operation in the niche market, so that the cost
of collection of fabric will be lower. Through the assignment, it will discuss the effectiveness of
the operation by providing a clear market condition with justification.

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PESTLE Analysis
For the viability of the operation, there provides the overall environmental analysis through
PESTLE. Through the discussion, it provides a visible site for the operation to make the
operation more competitive. It also provides an overall scenario of the market condition to
provide a current condition of the situation.

Political Factors:In the UK it faced international pressure and the tax for carbon omission, so
that recycle operation of denim and cotton to assist the government to reduce the pollution rate.
According to Glenn et al (2019), As the company makes a step to produce the denim and cotton
from used cloth, it creates a strong point for the government in the parliament, so that the
company provides a positive side in the international side as environment-friendly operation.
According to the Container Recycling Institute (2018), For encouraging the organisation, the
government also provides a supportive step through investment and subsidy. The government
also assists to create social awareness and also takes the necessary step to protect the
environment. As a city, it is very difficult for the government to provide 3781 litres of water to
produce 33.4 kilograms of denim, so that it creates a trade-off to make the operation effective
through utilising the existing side properly.

Economic Factors:According to Glenn et al (2019), Every year the UK import a huge amount of
pant and shirt from the different countries, which creates huge pollution. Through the recycling
steps, it will create a huge save for the government and people to get the product in lower price,
so that the people interested to purchase the goods. As the company makes the operation
successfully, it creates a huge change in the production side and reduces a mass amount of
pollution. The country can generate more employment through associate people with those
operations.

Social Factors:Most of the denim product’s style is similar so that there is no huge modification
in the style. Because of small modification, the people can use the product by recycling the
product, it also provides scope to get the product with the customisation and makes the product
useable. According to Yang et al (2015), People also think about the environment, so that it
creates a positive side in the society to reuse the product.

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Technological Factors: Due to the technological updating, it will be possible for the company to
develop the operation wear, the company promotes the operation as repairing and reuse of denim
in a different purpose. According to Ciwei et al (2019), Denim can be repaired when it’s not
looking good, so that the customer can modify the cloth. As it is not possible, the company can
utilise the product for decoration. For that reason, the company utilised different software
technology to design the product and develop an innovative product to attract the customer.

Legal Factors:For the environment-friendly operation, the company gets the legal service from
the government to perform the operation in different areas. For the operation, the company
requires to collect the used denim to produce the product, so that the legal support is very
essential for the company to sustain in the sectors. According to Beatty et al (2017), In the
international export operation, the company gets the legal preference to perform the operation.

Environmental Factors:When produces new denim it creates a huge cost and pollution that
makes a huge environmental and economic loss. According to Ekvall et al (2017), From that
point of view, the recycle or reuse of denim creates the possibility, because the fibre of this
cloths is so strong that can be easily reused or recycle if it properly utilised. Through the
statistics, it indicates that there is a huge amount of pollution directly or indirectly generated
through operation function to produce denim and cotton. As the company tries to reuse the
product, it can make the pollution rate reduces to 25%.

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Competition Analysis
Competition is a vital issue for any company to sustain so that the company should think about
its competitors and also analysis the possible factors which creates a direct or indirect impact on
the operation.Most of the denim production company started to perform the recycle operation,
but it is very difficult for the company to make the operation effective. According to Diviney et
al (2019), The cost of recycling is not low as the company purchase the foreign denim ata low
price. H & M, Zara, which are the top company in this sector, who’s tried the operation in the
primary level to develop a stage for the company. As a result, it creates a huge pressure for the
local company to collect the used denim for the customer ata low price.

But, the company can take the effective step by promoting the customisation, because the top
company can’t perform the operation in the niche market so that the company gets the effective
platform to manage the competitive advantage over the top companies.

According to Finnveden et al (2019), As a new operation, the customer is not enough aware
about the operation process of the recycle process, so that it creates difficulties to the collection
process of the used denim so that the company requires to promote the operation in the social site
and creates a social protest to develop a sector for the product in more effective way. For the
development of the demand, the company creates the scope to perform the operation in large
areas.

According to Amutha et al (2017), Price and innovative product can perform a great role in here
to develop the market, because the company shows its competitiveness in the market through
providing the innovative product by using lucrative design and quality of the product. As the
company used the used denim the cost of the raw materials is low so that it creates a scope to
provide the product in competitive price. As the company develops a low market segment, it
creates an open market for the new companies which creates a direct competition. According to
the Container Recycling Institute (2018), But, the Asian market creates a huge pressure over the
company to manage the sustainability to perform the operation. The Asian companies also
collect the denim fabric from the local market.

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Recommendation
In the initial level, it is effective to perform the operation in London, because the city has a huge
number of population, which assists the company to promote the product. As a new concept
product developing company, it requires a huge amount of educated customer who knows about
the trend and the feature of the product, so that it will easier for the company to promote the
operation in that area.

Most of the people used denim because they do not get enough time to wash and the cost of
washing is higher than in other cities so that the demand for denim is high. According to Richard
et al (2016), As the recycle provides the customised product, it creates a huge demand in the
different classes of the customer.

In the young side, it creates the most impact due to social concern, rice and comfortability. As a
student, it is very difficult to purchase jean frequently, so that the modification can assist the
people to save the money and promote the environment-friendly operation.

Reuse of denim creates a huge scope to attract the women and design lover to make the used
denim in nice form. There is a number of the shop which promotes this type of recycle product in
the market, who collects the product directly from the different sources.

According to Glenn et al (2019), Style lover is the most attractive segment for the company,
because people love to see an innovative design which generates premium value for the product.
But, the company should invest more in the designer and also the technological development to
manage the demand of segment.

According to Yang et al (2015), Most of the corporate people requires to wear formal dress, so
that the scope to enter in that segment is quite difficult from the company’s perspective. For this
reason, the young people are more adoptive with the social issues and the change of the style, so
that it can be a great option as the company promotes its operation in the young generation in an
effective way. Besides that, the niche market does not provide enough value to generate a huge
brand value over the market, so that it will be effective to choose the young local market to
perform the operation with sustainability.

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Conclusion
As the overall discussion analysed, it indicates that the company has a great scope to perform the
operation in the UK local market like London, where it has a huge amount of customer and the
customer has a positive opinion about the product. Besides that, the social and environmental
condition assists the company to get the government and local market assistance to perform the
operation.

As a local company, the company thinks to promote the customisation of the product, so that it
can manage a number of the customer to sustain in the local market. According to Ciwei et al
(2019), The company also performs the reuse of the denim through innovative design and
customised product, it creates a competitive advantage in the local market. The interior design
through reused denim makes a huge step for the company to compete with the top companies.
But, the Asian market creates the great threat for the operation, because the company faced the
difficulties with the labour cost, where the Asian market performs the operation with lower
labour cost so that the subsidy of the government can save the operation from those
competitions.

To create the sustainability of the business, it requires a huge amount of investment to develop a
competitive advantage through developing the technological advancement in the overall process.
According to Beatty et al (2017), The Denim fabric collection is not a simple task, because there
is a number of steps in the overall operation, which requires a huge investment to perform the
operation with efficacy. As the operation performs in a smooth way, the company should think
about the different competitive factors, which the company already has from the social and
environmental concern of the people.

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Reference
Amutha, K. (2017). Environmental impacts of denim. In Muthu, S.S. (final ed.). Sustainability in
Denim. United Kingdom: Woodhead Publishing, 27-48.

Bin, S., Qingying, L., Ciwei, D. and Patsy, P. (2017). Sustainability Issues in Textile and
Apparel Supply Chains. Sustainability, 9(9), 1592.

Beatty, Timothy K. M., Peter Berck, and Jay P. Shimshack. (2017). “Curbside Recycling in the
Presence of Alternatives,” Economic Inquiry 739–55.

Bohm, Peter. (2016). Deposit-Refund Systems: Theory and Applications to Environmental,

Conservation, and Consumer Policy. Published for Resources for the Future, Inc.
Baltimore: Johns Hopkins University Press.

Collins, Alan, Richard O’Doherty, and Martin C. Snell. (2016). “Household Participation in
Waste Recycling: Some National Survey Evidence from Scotland,” Journal of
Environmental Planning and Management 121–40.

Container Recycling Institute. (2018). “Wasting and Recycling Trends: Conclusions from CRI’s
2008 Beverage Market Data Analysis.” [Available at http://www. container-
recycling.org/assets/pdfs/reports/2018-BMDA-conclusions.pdf.]. [Access in: March,03,
2020].

Diviney, E. and Lillywhite, S. (2019). Travelling textiles: A sustainability roadmap of natural

fibre garments. Brotherhood of St Laurence, Australia.

Finnveden, G., Hauschild, Z. M., Ekvall, T., Ginée, J., Heijungs, R., Hellweg, S., Koehler, A.,
Pennington, D. and Suh, S. (2019). Recent developments in Life Cycle Assessment.
Journal of Environmental Management. 91(2019), 1-21.

Van Houtven, George L., and Glenn E. Morris. (2019). “Household Behavior Under Alternative
Pay-As-You-Throw Systems for Solid Waste Disposal,” Land Economics 515–37.

Yang, Hai-Lan, and Robert Innes. (2015). “Economic Incentives and Residential Waste
Management in Taiwan: An Empirical Investigation,” Environmental and Resource
Economics 489–519.

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Appendix
Appendix 1

Figure 1: Statistical Data of water uses in Denim production

(Source: Container Recycling Institute, 2018)

Appendix 2

Figure 2: Carbon Emission Data of the Denim Industry

(Source: Ekvall, 2018)

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Appendix 3

Figure 3: Reuse of Denim

(Source: Levi.com, 2019)

Appendix 4

Figure 4: Environmental Impact of Denim Production

(Source: Lillywhite, 2018)

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Appendix 5

Figure 5: Reuses of Denim

(Source: Goerge, 2019)

Appendix 6

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 Figure 6: Recycling of Denim Fabric

(Source: Heijungs, 2019)

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