WingBird is an apparel company that operates in the U.S. with its headquarters in Chicago. The company is one of the fashion firms that were established in the wake of COVID-19 due to the increased demand for personal protective equipment (PPE). Although the company initially specialized in manufacturing masks, gloves, and protective gear, its growing consumer base led to the introduction of fashion wear. Currently, the firm has expanded its stations to four more states in the U.S.: Texas, Florida, Alaska, and Montana. With its clients coming from five U.S. states, the company aims at expanding its business to the entire country. WingBird is an environmentally sustainable company, with a mission to produce polythene-free products. Therefore, WingBird attracts consumers who are interested in conserving the environment while remaining fashionable.
Management
WingBird is a limited company that is headed by a board of directors. The company has four departments whose headquarters are located in Chicago. The marketing department is responsible for product and service promotion across the U.S. The finance department conducts and oversees all the financial transactions within the company. The product and service development department conducts innovative activities and helps the company produce attractive and sustainable goods and services. Meanwhile, the human resource department is responsible for the employment relations within WingBird. Each of the firm’s four branches is headed by the branch manager who oversees the routine operations. Therefore, WingBird is managed by the board of directors, branch managers, and departmental heads.
Business Model
WingBird has adopted a hybrid business model that incorporates a mix of traditional product sales with the addition of hardware, and software, among other services. The company has its manufacturing plant in Chicago and Texas. The manufactured goods are supplied to all the branches where clients can buy directly or over the internet. The hybrid business model is beneficial to WingBird. The integration of technology in business activities has attracted younger generations, who are the primary clients. Moreover, the model has allowed the company to improve its business value through excellent customer relationships. The hybrid business model has enabled WingBird to adopt effective mechanisms for business sustainability.
Products and Services
WingBird socializes in apparel and protective clothing products. The company manufactures menswear, womenswear, and kids’ wear. The menswear clothing line involves the production of casual apparel and shoes. Meanwhile, the womenswear clothing line involves casual and official apparel. For the kids, the company has specialized in the production of sports kits only. Moreover, the company is one of the leading manufacturers of PPE, including gloves and facemasks. However, the company is focusing more on the production of womenswear and kids’ sportswear due to their increasing demand. Unlike many fashion companies, WingBird offers specialized services through the production of customized clothing for special events. The customers access the customized products by contacting the company in advance. Therefore, WingBird positions itself as a unique apparel firm that meets customers’ needs through the production of quality and less imitating clothes.
Growth Strategy
WingBird has adopted market penetration and product development growth strategies. The market penetration strategy allows the company to increase sales of existing products and services to the existing market (Ivanova et al., 2022). The organization has developed marketing programs that attract consumers from its competitors. For instance, early this year, the company introduced incentives and customer loyalty programs. Some of the products were sold at prices that are cheaper than what the competitors sell. Meanwhile, the product development strategy involves the creation of new products and services (Ivanova et al., 2022). The organization started as a manufacturer of PPEs but expanded its product line. Moreover, the company is planning to introduce new sportswear for women and men. The market penetration and product development growth strategies have enabled WingBird to remain significant in the market and attract more customers.
External Pressures
Supplier Power. WingBird is an environmentally sustainable company that depends on natural raw materials for the production of its apparel. The firm depends on the existing suppliers of cotton wool in the U.S. The suppliers sell their wool to other competitive brands like Nike and Fendi, which are more lucrative than WingBird. Consequently, the suppliers choose other brands over WingBird. The increased supplier power has caused the organization to acquire raw materials at expensive prices. Therefore, the company has increased the prices of its products, scaring many customers away.
Buyer Power. The company competes with reputable brands that sell apparel in the U.S. Many buyers consider purchasing the products from recognized brands such as Nike and Adidas. Therefore, WingBird spends a lot of money to attract buyers who have less confidence in its products. However, the company is slowly dominating four states where it has branches. Consequently, the buyers have no say in the product prices.
Competitive Rivalry. The U.S. fashion industry is highly competitive since many companies fight for the same market. WingBird competes with excellent brands like Nike, Adidas, and Fendi, among others. Unlike its competitors, the firm has a lesser advanced technology. Moreover, the competitors have established a reputable brand name that attracts more customers. Furthermore, the competitors serve the global markets, making them more financially sustainable than WingBird. Therefore, the effective business strategies adopted by WingBird’s competitors make them more sustainable in the industry.
The threat of Substitution. The company produces apparel that has no close substitutes. However, the apparel produced by WingBird can be substituted by more luxurious and durable ones. Therefore, the company is not at risk of substitution but can modify its existing product line to accommodate consumers attracted to luxury and more durable clothes. The absence of close substitution makes WingBird sustainable and at less risk of dissolution.
The threat of New Entry. The fashion industry in the U.S. is lucrative and attracts more investors. With the changing societal needs, many apparel companies are established in the country. Moreover, the existing brands are improving their product line to form more subsidiaries. Therefore, WingBird is at risk of new entrants in the markets that it is dominating. The company is at risk of losing its existing customers to the new entrants in the market.
Problem Definition
WingBird has integrated technology into its business operations, and the customers can access its products on its e-commerce platform. However, the platform can only be accessed by typing the company’s webpage link on a search engine. Therefore, it is tiresome for many customers to purchase the company’s products online. Moreover, many customers are complaining about the firm’s feedback system that is incorporated into the company’s website. Therefore, many customers do not give feedback on their products’ delivery statuses and their satisfaction level. The faulty e-commerce system has led the company to lose many customers to its competitors.
Overarching Business Process
The existing business process involves three major phases: order, quotation, and delivery of the product. The customers access the company website, where they go through all the available products and select the order of their choice. The company processes the order and gives the customer a quotation of the total amount for the products. After that, the customer places an order. Finally, the company processes the order and estimates the delivery time and date for the customer. Upon receiving the ordered product, the customers can access the company’s website for feedback which is crucial for organizational decision-making. However, many customers do not give feedback since the existing system is cumbersome.
Business Solution Proposal
The existing business process is detrimental to WingBird’s sustainability and customer relations. Many customers find it difficult to access the company’s website by typing the unique link on a search engine. Therefore, WingBird can overcome the existing problem through the development of a customized mobile application. The application would be made available to the customers on various mobile platforms such as iPhone and Android. Unlike the existing company’s website, the application will be easily accessible by the customers. Therefore, WingBird’s mobile application will attract many customers who will access the products with fewer difficulties.
Technology Integration Importance
The use of the mobile application to offer services and sell products will be beneficial to the company and the customers. The application will contain features that are attractive and friendly to the customers. The notification button will update the customers on the new products available and offers on various products and services. The messaging button will allow the customers to interact with the customer service. The application will be designed in a manner that the users can receive notifications on new messages when it is closed. Moreover, the application will allow the customers to track their ordered products. Therefore, WingBird will benefit from the increased customers due to effective services over the mobile application.
Future Business Process
The future business process will involve various phases, with the initial one being the mobile application download by the customer. After downloading the application, the customer will open it and sign up by entering their full names and email addresses. After that, the customer will have an updated personal profile. The mobile application will allow the customer to access all the available products and services. Depending on the choice of the product, the customer will view their total purchase price on the cart button. The company will allow the customer to track their order upon accepting and paying for it. Upon the reception of the ordered products, the customers will be able to give feedback through the messaging button on the mobile application. Customers with an existing profile will not have to enter their details and instead just log in using their email addresses.
Solution Assessment
The new solution is beneficial to the company since many customers will be retained. The mobile application development will take about 6 weeks to be fully developed. The company’s mobile application will be simple and therefore cost the company about $200,000. The technology price is quoted based on the normal price range for developing an e-commerce mobile app. The company will have to hire trainers who will take the employees through the mobile application interface. Given the size and geographical location of the company, six trainers will make the process successful. The training can take up to four days, with each trainer being paid about $300 for three working hours per day. Therefore, the total cost for training the employees will be $300 x 6 x 4 = $7200.
The company will require a fast internet connection for successful training that will take place online. Moreover, the company will have to acquire new hardware, including computers that will facilitate the use of the new technology. The total price for purchasing the computers and related is estimated at $ 100,000. Therefore, the total cost for integrating the new technology will be $200,000 + $7200+$100,000= $307, 200. The application is expected to raise the purchases by about 200% above the normal purchases of about $ 500,000 per year. Therefore, the new income will be $1,000,000 per year. The ROI for using IT will be 225.52% per year with an investment gain of $692, 800.
Project Management
The project’s system development life cycle may face challenges in the planning and implementation phases. During the planning phase, the company may give wrong price estimations and may incur higher prices at later stages. The firm could hire a professional project manager who would give an expert opinion on how to accurately estimate the project costs. Meanwhile, in the implementation phase, the company may have difficulty introducing the new application to its customers. The firm could develop a promotion activity that would encourage the customers to download the application. The analysis, design, and maintenance phases may exhibit fewer challenges since the company has an active IT team.
Conclusion
M-commerce is beneficial to businesses since it enhances the cordial customer-business relationship. Although many businesses have adopted e-commerce in their routine activities, they still lack a dependable mobile application. WingBird is an apparel company facing stiff competition in the U.S. The company utilizes an e-commerce platform that can be accessed through a search engine. A new and interactive mobile application will allow the company to retain its customers and register a higher ROI.
Reference
Ivanova, N., Popelo, O., Avhustyn, R., Rusak, O., & Proshchalykina, A. (2022). Marketing strategy of the small business adaptation to quarantine limitations in the sphere of trade entrepreneurship. International Journal of Computer Science & Network Security, 22(1), 149-160.