Rahat E Commerce Consultancy Report
They operate effectively at the international level. The business aspires to venture into UK. Rahat wishes to sell organic cotton wear for toddlers (0-2 years). The enterprise will contract an Indian based manufacturer that has expertise in the field. The enterprise intends to employ the UK reputation as the place of quality, transparency, reliability. The infants` clothing in UK are manufactured in pure organic cotton. The material is preferred for it is easy to wash in hot water and does not shrink easily as was the case with other natural and synthetic fibers. The size of the UK infants cotton wear has been expanding gradually and notably since the year 2009 to 2013. From the Government report, the infants’ population have also increased gradually from the year 2009 to 2013.
The notable population growth could be attributed to the matching gradual changes in the amount of the cotton wear demanded for the children. The local industry controlled 0. 4 % of the sector. The expansion rate of the sector indicated that the import business was expanding significantly as was compared to the local enterprises (gov. uk, 2018). This information was good news to the Rahat business that wished to export cotton wear for infants to UK. UK is involved in international and regional trade guided through the regions trade alliances, pacts, and arrangements. UK is a member of the Commonwealth countries that are involved largely in trade and labor exchange between them. The member states allow for flat rates in the exchange rates between them and allow for a common trade measure between the member states.
UK has elaborate trade agreements with other international nations such as US, Australia, and China (Fontana, Sastre and Baca, 2015). Key Business Drivers supporting Enterprise Expansion into the UK Why set up the firm in UK UK is one of the world`s developed economy. The region has enjoyed a stable economy from the 2008 economic regression to date. The region has wealth distributed appropriately between the people with most of the population living above the poverty line as was established by the World Bank and the World Health Organization. Majority of the households are made of families that consist of a productive husband and the wife. The unemployment rate for the adults in the UK is relatively low, that is about 4. 8% (Shakirof, 2016).
In the e-commerce, businesses such as Amazon and Alibaba have engaged millions of international enterprises that vend kids` cotton wear across the globe at very competitive prices. This coupled with the local brick and mortar stores as well as the local enterprises that have embraced internet marketing puts the consumer at a better advantage in the market (CBI Product Factsheet: Children’s wear in Europe, 2017). Supplier Bargaining Power: The suppliers in the cotton wear business for the kids have significant bargaining power. The suppliers for the raw materials that produce the garments have an array of choices since cotton is a liked industrial fiber suitable for manufacturing different type of clothing. Cotton clothes are preferred everywhere across the world and the international players have the alternatives to supply.
However, the properties of the organic cotton make it superior to the other natural and artificial fibres for employment for the infants clothing. Thus, cotton remain the undisputed leader in the manufacturing of the kids clothing in UK and elsewhere across the globe (Press, 2017, p. Sustainability of the venture a. Relevant Trade Barriers and Regulations that can Inhibit Growth of the new Enterprise Trade Barriers The UK region recognizes and promotes international trade. The UK is a member of different regional and territorial trade arrangements and agreements that would foster entry of the Indian business to the region. However, UK requires foreign enterprises to employ at least 30% of the locals and to remain within the national labor and employment laws (Shakirov, 2016, p.
Biggest Challenges facing SMEs in the UK The biggest challenges facing the SMEs in the UK include the stiff competition from other local and international players. The second challenge is the required and availability of the capital. The third is the cost of capital due to interest rates. The fourth challenge is competition from the local and international corporations (Young, 2010, p. Implications of Organic Clothing to Infants Organic clothing is favoured for the children, especially in the UK. The cloths are viewed as naturally soft, absorbent, and strong. They are tender to the infants` skin and recommended by the healthcare givers. Child labor, Pesticides, GMO`S Issues with Imported Cotton from India India is a region that is significantly associated with child labor.
UK has regulations that prohibit effective business with organizations that employ child labor. Cross-cultural issues applicable to the new Venture The Indian and the UK culture are quite different. One of the notable cultural differences is the religious practices and beliefs. The second aspect is the mode of dressing and associated attributes. The third is the place of the women in society. Fourth is the health perception and education level. The approach would entail Harat merging with a local or a UK based enterprise dealing with production and manufacturing of cotton and cotton-based products (Young, 2010, p, 13). UK Technical Infrastructure The UK is one of the regions where digital intellectual properties are highly recognized, protected, and valued locally and at the international levels.
Harat will have their digital intellectual properties recognized and protected within the UK and across the globe if they are registered in accordance to the UK digital intellectual property laws. Issues in Setting up a Website UK does not have issues with developing an E-commerce platform. The standards of operations and the contents of the website are guided by the digital intellectual property UK laws and the World Trade Organization. It will contain information about business core values, mission, and vision that will be centred on the user. The website will have a business-visitors interaction platform for inquiries and customer care. In addition, the website will have on ordering portal for the users to place their orders. CSR Responsibilities The CSR will be responsible for providing appealing interaction between the users and the business.
They will be responsible for ensuring the customers are served in a timely manner and all their concerns and suggestions are heard, responded, and integrated into the business operations. The elaborate airline network would facilitate physical coverage about delivery of the products to the various UK destinations. The chosen place had favourable economy, demand, and legal support for the E-commerce industry (Wheelen and Hunger, 2017). Suggested Approaches for Rahat to improve their Position in E-commerce The suggested approach for Rahat to improve their profile in the E-commerce industry would be to use the social media platforms for marketing and advertising. The design is cheap, reliable, efficient, and very fast. The approach converts the users into marketers without the business having to pay for their services.
The BREXIT could have commercial and governance challenges to doing businesses with the region due to the legal and commercial separation of the UK member states. The E-commerce venture could be improved by using social media for advertising and marketing. Bibliography CBI Product Factsheet: Children’s wear in Europe. [ebook] LONDON: CBI, pp. Available at: https://www. populationpyramid. net/capture/?selector=%23pyramid-share-container&url=https%3A%2F%2Fwww. populationpyramid. net%2Funited-kingdom%2F2015%2F%3Fshare%3Dtrue [Accessed 18 Apr. Fontana, A. gov. uk. Births 2012 to 2017 - Office for National Statistics. [online] Available at: https://www. ons. Rahatcontinental. com. Rahatcontinental. [online] Available at: http://www. rahatcontinental. Business Ethics Quarterly, 21(02), pp. Wheelen, T. and Hunger, J. Strategic management and business policy. Upper Saddle River, NJ: Pearson Prentice Hall.
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