English report

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Contents

Key Summary ……………………………….2

Acknowledgement …………………..……3A description of the history of the trade or business

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Part 1: Company Profile

1.1 Brief Description of the Business ...………………………4-8The background information and company profile

1.2 Comparative Analysis of the Businesses’ Competitive Traits …………………………………9-15Analysis of the competitive behaviors of the businesses and respective market

1.3 Recommendation ………….16-17

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Part 2: Appendices

2.1 Minutes of Meetings………18-21Notes

2.2 Survey Questionnaires …………22Brief answers

2.3 Photos and Captions………23-28Pictures

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Part 3: Reference

3.1 Reference……………..……………29

Key Summary

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This research report shows analysis and comparison of three businesses on different

settings and also the competition these businesses faced. Our selected type of

business is the clothing retailing while the shops we interviewed are Pink Petals

Fashion located at Kenanga Wholesale City, L’Avenir located at Penang First Avenue

Mall and Fashion Tee located Sungei Wang. This report had consisted of background

information about businesses and comparative analysis of businesses. Face-to-face

interview was used for us to obtain the information and compare the businesses’

competitive traits. After analysis, we had found that Pink Petals Fashion is more

commercially successful than Fashion Tee and L’Avenir. We also recommended some

suggestion on improving the competitiveness for each business.

Acknowledgement

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Clothing retail businesses are nowadays the most visited establishments all over

the world. Companies in this industry operate physical retail establishments that sell

clothing and accessories. Throughout the twentieth century, fashion-oriented retail

operations prospered. As people left the cities for suburbs, the stores followed, so that

shoppers no longer had to visit a downtown, central shopping district. Being a

successful retail-clothing business, one should need a range of resources and a stay-

with it attitude because the return on their investment may not come as fast as they

wish. In Malaysia, there are a lot companies which operate the clothing retailing

business. For examples, Versace, Factory Outlet Store, UNIQLO, and H&M which are

very famous. Now, in the beginning of the twenty-first century, consumers are treated

to more retail outlets where their fashion needs are satisfied. Whatever their pleasure

or preferred time to shop, a whole new world of retailing is available.

Brief Description of the BusinessPINK PETALS FASHION

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Outlook Enterprise Sdn Bhd is a very popular retail-clothing company located at Jalan

Hang Tuah in Kuala Lumpur. Outlook Enterprise Sdn Bhd has 5-6branches of clothing

shops that located in different area. Pink Petals Fashion is one of the branches of the

Outlook Enterprise Sdn Bhd that located in Kuala Lumpur. It located at G4, Kenanga

Wholesale City. The address of Pink Petals Fashion is No2, Jalan Gelugor, Kuala

Lumpur. Mr. Bong, the boss of Outlook Enterprise Sdn Bhd had started this business

at 2011 year. Mr. Bong started this business because this business belongs to his

family business. Mr. Bong had started different type o business and pass to his

daughter and sons take care the business. One of his sons, Bong Siok Siong had

taken care of Pink Petals Fashion. He had hired a manager, Sam Liew and hired 3

workers, Ramlah Junaidi, Dicky and Tan Siew Ping to help him take care of the shop.

The main product of the Pink Petals Fashion was clothes. There were two concepts of

clothes sold by Pink Petals Fashion that was Malay Concept and Fashion Concept.

Pink Petals Fashion sold Malay Concept such as Baju Kurung and the Fashion

Concept such as ladies clothing. Besides that, Pink Petals Fashion also sold lady

accessories such as handbag, belt and scarf. The number of customers a day was 100

people. Two workers, Dicky and Tan Siew Ping had served the customer of Fashion

Concept, one workers, Ramlah Junaidi had served the customer of Malay Concept

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while Sam Liew, manager will served all customer. Pink Petals Fashion’s monthly

revenue figure was around $30000. However, Pink Petals Fashion did not have any

changes but the choices of clothes increases over the past 1years. The office phone

number of Pink Petals Fashion is +60392210268. If customers have any question or

want to make a complaint can call this number.

L’AVENIR

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First Avenue Mall is a spread over seven levels shopping mall with the fifth to seventh

floor consisting of parking spaces that located in Penang. It has opened since

November 2010; many of the first outlet in the building are women’s apparel stores.

L’Avenir is a small clothing shop that located at 4th floor, First Avenue Mall. The

address of L’Avenir is Jalan Magazine, Georgetown, 10300 Georgetown, Penang,

Malaysia. Nicholas, the boss had started the business in August 2012 year. This is his

first shop as he did not open any branch. Nicholas had started this business because

he was interested in doing the clothing business. He felt satisfied when he saw people

wear beautiful clothes. He had hired a worker, Eelyn to help him take care of the shop.

Eelyn also considered as manager as she can make small decisions without asking

him such as held a promotion or when purchase new clothes. The main product of

L’Avenir was Fashion ladies clothing. L’Avenir carried out an assortment ladies clothing

that has a range of size with latest trends in style. In addition, L’Avenir also sold ladies

accessories such as earring, bracelet and necklaces. The number of customers of

Bukit L’Avenir a day is not constant. For weekdays, the number of customers is about

10-20 peoples while the number of customers for weekend is about 20-30 peoples.

The monthly revenue figure of L’Avenir was around $10000 or below and it is not

constant. However, L’Avenir did not have any changes as it just started the business I

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years. If customers want to know when the new style of clothes will arrive can call

phone number of Eelyn, 016-3218381.

FASHION TEE

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Fashion Tee is one of the retail-clothing stores that located at Sungei Wang Plaza,

Jalan Bukit Bintang, 55100, Kuala Lumpur. There are two branches of Fashion Tee

clothing shops which another branch is located in Penang. Fashion Tee was founded 5

years ago by Alice and her brother. As two of them were interested in this field of

business, they started their company when they were in very young age. Alice is in

charge of the Fashion Tee shop which located in Sungei Wang while his brother is in

charge of another branches in Penang. The shop which is in Sungei Wang is opened

three years ago. The main product of Fashion Tee was clothes and accessories like

handbag, belt and others. There are three female employees who work in this shop.

They are friendly and hardworking so that the customers feel cozy and happy while

shopping. The concept of Fashion Tee is the fashion concept which is same as its

name and most of the products are for ladies. The clothes sold are fashion in design

which will attract customers especially the young ladies. According to Alice, there are

more than 30 customers a day and the monthly revenue figure of Fashion Tee is about

$15000.The office phone number of Fashion Tee Sungei Wang is +60321449988.

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Comparative Analysis of the Businesses’ Competitive Traits

1) Number of competitors of businesses in their respective markets

Pink Petals Fashion

Pink Petals Fashion has many competitors. The range of number of competitors

around 2-10. However, Pink Petals Fashion has top three competitors which are A To Z,

Melody and Rafflesia as they are located at the same building. For Pink Petals Fashion, A

to Z is the strongest competitors. It is because the size of the A to Z is bigger than Pink

Petals Fashion and the choices of clothes also more than Pink Petals Fashion. A to Z also

just located beside Pink Petals Fashion only. Besides that, the top three competitors of

Pink Petals Fashion also sell the same concept of clothes with it which is Malay Concept

and Fashion Concept with style diversification.

L’ Avenir

Butik L’Avenir has many competitors. The range of number of competitors is arounf

10-20. However, Butik L’Avenir has top 3 competitors which are H&M, Teetoo and Belle as

they are located at the same building. H&M (Hennes & Mauritz AB) is a very well-known

multinational retail-clothing company. H&M is the strongest competitors for Butik L’Avenir. It

is because H&M has a larger size and the choices of Fashion clothes more than Bukit

L’Avenir. H&M also can get the latest style of clothes with normal price faster than Bukit

L’Avenir. In addition, Belle also is a strong competitor because it has more choices of

fashion clothes and cheaper than Bukit L’Avenir.The three competitors of Butik L’Avenir sell

more branded clothes than Bukit L’Avenir.

Fashion Tee

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As Fashion Tee located in Sungei Wang which is a popular shopping mall, of course

there are many competitors there. For examples, EDWIN, H&M and other big brand

competitors which are located around the area. Fashion Tee is just ordinary clothing

retailing shop compare to these famous shops. So that, it’s hard to attract customers with

its ordinary branded clothes. Besides, there are also many competitors of ordinary clothing

shop there with great price or with large range of products. Luckily, most of the competitors

of Fashion Tee are selling different concept of products like EDWIN which focus on jeans

and JD which offer the sports apparel.

2) Strategies compete with competitors and How successful business

Pink Petals Fashion

The strategy that Pink Petals Fashion used to compete with its competitors is lower

the price. For example, when A to Z held a sale, Pink Petals Fashion will held a promotion with

‘Buy 1 free 1’ to attract the customers. In addition to sell clothes, Pink Petals Fashion also sells

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ladies accessories such as handbag, belt and scarf. Pink Petals Fashion also will use the

strategies ‘Get free handbag one if customers buy above $150’ to attract customer buy more.

Pink Petals Fashion also has a purpose that is always provide the best services to the

customers.

The result of Pink Petals Fashion compete with other competitors is quite successful.

There was around 100 people visit the shop and buy the product a day no matter weekdays or

weekend. The selling results of one month also will not lose compare to other strong

competitors. It is because the price of the clothes of Pink Petals Fashion is cheaper than other

competitors and the quality of the clothes also will not lose compare to the clothes of A to Z.

The customers also can get the free products if they reach the goal. Besides that, the workers

of Pink Petals Fashion always provide best service to the customers.

L’ Avenir

The strategy that used by Bukit L’Avenir almost same with the Pink Petals Fashion

that is lower the price. Bukit L’Avenir also held a promotion and sells ladies accessories such

as earring, necklace and bracelet to attract more female customers. Another strategy used to

compete with the competitors is the manager has to always follow the trend to purchase

different styles of clothes quickly.

Butik L’Avenir is quite unsuccessful compare to Pink Petals Fashion. The highest

number of customer is around 10-20 peoples for weekends only. This is because the H&M has

a good reputation on the market. Even though Bukit L’Avenir lowers the price of product and

held a promotion but the quality of the clothes of H&M is better and it is branded clothes. So, it

is difficult to compete with the H&M.

Fashion Tee

To attract more customers, Fashion Tee persist the price even though its competitors

held a promotion. Besides, Fashion Tee also obtains the latest fashion products from the

supplier as soon as possible and always faster than other shops. A friendly service is practiced

by the workers to improve its image and attract more customers.

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Even though the competitors there are with high reputation, Fashion Tee is still

sustainable with its strategies to attract gain the latest products in the first time so that people

can buy such kind of products there at the first time.

3) Obstacles faced by business

Pink Petals Fashion

The obstacle faced by Pink Petals Fashion is economics is not good. The price of the

product now had increased. People now prefer to save the money to buy the item that is

necessary only. However, for Pink Petals Fashion, it is easy to overcome the obstacle. It is

because Pink Petals Fashion is the branch of the big and popular retail-clothing company,

Outlook Enterprise Sdn Bhd. It can fully support the needs of the Pink Petals Fashion and

invest capital into the Pink Petals Fashion.

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L’ Avenir

The obstacle faced by Butik L’Avenir is there is too many clothing shop now and it is

difficult to compete with other competitors. The owner also must have a big capital before

started a business. For Butik L’Avenir, it is difficult to overcome the obstacles compare to Pink

Petals Fashion. It is because Butik L’Avenir just a small clothing shop. Butik L’Avenir has not

big company that can fully support and invest it.

Fashion Tee

The obstacle faced by Fashion Tee is the other clothing shop there is quite famous and

with great price. It is possible to overcome these obstacles by produce different concept of

clothes so that the costumers might have more choices. Besides, Fashion Tee should work

harder and harder to improve the reputation so that it can fight with other big branded shop.

4) Nature of business

Pink Petals Fashion

Pink Petals Fashion is an oligopoly market. Oligopoly market is a market that dominated

by a few sellers. The competitors of the Pink Petals Fashion also are an oligopoly market. This

is because the market of business is dominated by Pink Petals Fashion, A to Z, Rafflesia and

other competitors. Each of them controls their own market and cannot get involved each

other’s market as there is a strong barrier to enter the market.

L’ Avenir

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Butik L’Avenir is an oligopoly market. One of the competitor, H&M is a monopoly market

but the other competitors are an oligopoly market. A monopoly is the single dominating seller

of a market. H&M consider as monopoly market because it control 70% of the market. Other

clothing shops are difficult to compete with the H&M. Bukit L’Avenir and other competitors

control their own market and do not get involved each other’s market.

Fashion Tee

Fashion Tee is an oligopoly market while its competitor EDWIN is a monopoly market.

Fashion Tee is a shop or market with few dominators.

Comparative Analysis SummaryCompetitive Traits Pink Petals Fashion Fashion Tee Butik L’Avenir

Number of competitors

3 to 4 competitors More than 20 competitors 3 competitors

Barrier to enter the market

Strong. Because the economics is not good

Easy by owned small capital

Strong. Because too many clothing shops.

Strategies to sustain business

Lower the price to attract customers

Always be the fastest people to obtain the product

Lower the price to attract customer and has to always follow the trend to purchase different styles of clothes quickly.

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Pricing power Lower the price to compete with competitors

Persist the price to earn more profit

Price Maker. Because L’Avenir is just a single business shop and the owner can decide the price by himself.

Recommendation

Pink Petals Fashion

We had suggested that the shop should promote more man style of clothes

because the man also has choice to choose their clothes. If just selling lady types

of clothes, the shop can just doing business with lady. So, the business of the

shop will decrease. Other opinion is to open more branches to sell their products

in other shopping malls and places. It is because it will let more people know

more about their shop and product that they selling, so the business will expand

and the competitiveness also will improve. Besides, the shop also has to improve

their relationship with supplier and customers. This is the most effective way to

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improve the business, because have a good relationship with supplier, they will

get product faster so customers will come buy clothes with them.

L’Avenir

We had suggested that the shop should increase the investment in the marketing

activities. The shop should do more promotion to promote their product to

customers, so that many people know more about their product. Furthermore,

they can produce more style of clothes like selling man style clothes. If their shop

just sell simply one type of clothes, the customers will feel less selection in this

shop, so increasing style of clothes is necessary. Moreover, make a good

relationship with the customers to increase their trusted on their shop and

product. If the shop can get the trust from the customers, customers will help us

to promote our shop. This will increase the visibility of the shop.

Fashion Tee

We had suggested that the shop should be keep their attitude that is always gain

the products at the first time so that the customers can only get these type of

products from Fashion Tee which other shops don’t have it. Fashion Tee should

also improve the range and type of concept so that the customers would have

more choices and will be attracted easily. In order to increase their income, it

would be better if they don’t lowers the price too much.

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Minutes of Meetings1st Meeting (English Research Project)

16th Dec 2013, Monday

Meeting called to order at 15:30 a.m. in Taylor’s Student Life Centre.

Attendees’ attendant: Mak Mun ChoonRonn Chua Chang YeongKaren KongLily ThenVoon Sze Lun

Attendees’ absentee: -

Agenda: 1. Assignment of task for the project2. Suggestion of businesses to be interviewed3. Discussion on questionnaire

1. Assignment of task for the project

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Mak Mun Choon as Leader Ronn Chua as Secretary Karen Kong as Interviewer Lily Then as Data compilation Voon Sze Lun as Data compilation

Motion carried unanimously

2. Suggestion of businesses to be interviewedRetail-clothing businesses:

H&M -motion from Ron

Pink Petals Fashion -motion from Lily

L’ Avenir -motion from Lily (as we already interviewed during Penang Trip)

Fashion Tee -motion from Karen

Stylix -motion from Mak

Final decision: Pink Petals Fashion, L’ Avenir and Fashion TeeMotion passes 4-1, 5-0, and 4-1

3. Discussion on questionnaireQuestions suggested from assignment assessment -motion from Karen

Motion carried unanimously

(Next Meeting: To be confirmed)- Everyone should have to conduct preliminary research on the chosen businesses by next meeting

2nd Meeting (English Research Project)

2nd Jan 2014, Thursday

Meeting called to order at 11:15 a.m. in Taylor’s Library Level 4.

Attendees’ attendant: Mak Mun ChoonRonn Chua Chang YeongKaren KongLily ThenVoon Sze Lun

Attendees’ absentee: -

Agenda: 1. Gather background information on the chosen businesses2. Discussion on time and date to interview

1. Gather background informationAll information is collected by Ron and Sze Lun as they are assigned to be in charge of the report.

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2. Time and date to interview 8th Jan 2014 -motion from Mak

15 Jan 2014 -motion from Lily

Final decision: 15 Jan, Saturday (10a.m.), by Mak’s car

3rd Meeting (English Research Project)

16th Jan 2014, Thursday

Meeting called to order at 12:00 p.m. in Taylor’s Student Life Centre.

Attendees’ attendant: Mak Mun ChoonRonn Chua Chang YeongKaren KongLily ThenVoon Sze Lun

Attendees’ absentee: -

Agenda: 1. Discussion on guideline of report 2. Tasks given for report

1. Discussion on guideline of report We keep understand the brief and Ronn will note down the important notes.

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2. Task given for report Task:

Mak Mun Choon: Powerpoint presentation, Background of businesses and company Karen Kong: Artistic cover, Recommendation Lily Then: Comparative analysis and a summary table of it Sze Lun: Photos and captions, comparative analysis Ronn: Summary, Acknowledgement (History of the trade), Report correction and adjustment

(Next Meeting: 6th Feb, Online meeting)*Remind: show Ms Cassandra the information on 23th Jan, Thursday

4th Meeting (English Research Project)

6th Feb 2014, Thursday

Meeting called to order at 12:00 p.m. in Taylor’s Student Life Centre.

Attendees’ attendant: Mak Mun ChoonRonn Chua Chang YeongKaren KongLily ThenVoon Sze Lun

Attendees’ absentee: -

Agenda: 1. Finalize report

1. Finalize report All contents are upload and finalized through Facebook group.Presentation section also be divided to every group members.

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2 slides/ topics per person.

(Next Meeting: 24th to be confirmed)

Survey Questionnaires and Results

Q1. When was the business founded?

Q2. Who are the key founders?

Q3. What are you main products?

Q4. Can you estimate the number of customers per day?

Q5. What is the business’ annual revenue figure?

Q6. Do you have many competitors? Who are they? Who are your top 3 competitors?

Q7. What strategies have they used to compete with you?

Q8. Generally, do you feel it easy or hard to enter this market? Why?

Q9. How often do you release a new product?

Q10. Are you pricing decisions strongly affected by your competitors?

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Photos and CaptionsPink Petals Fashion

Pink Petals Fashion’s Premises

The man of the right side in the photo is the owner, Mr Bong.

Main Product of Pink Petals Fashion

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Other products of the Pink Petals Fashion

Fashion Concept Clothes

Malay Concept Clothes

Handbag Scarf

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A to Z is the strongest competitor of Pink Petals Fashion

The woman is the owner of the A to Z

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Bukit L’Avenir

Fashion Concept Clothes and Malay Concept Clothes

Sam Liew, the manager of the Pink Petals Fashion

Main Product of A to Z

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Main Product of Bukit L’Avenir

Bukit L’Avenir’s premisesEelyn, manager of the Bukit L’Avenir

Other products of Bukit L’Avenir

Fashion clothes Earrings, Bracelets and necklaces

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Fashion Tee

The most powerful competitors of Bukit L’Avenir

Bukit L’Avenir held promotion such as 2 for $100

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Reference

Fashion Tee front door

Group photos taken by Ronn

Various ladies clothes with fashion concept

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Barrow. C. (2007). Starting a business for Dummies. (2nd ed) Chichester, England: John Wiley & Sons. Ltd. [Accessed 19 Jan 2014]

Tyson, Eric, Schell, Jim (2012). Small Business for Dummies. (4th ed) Hoboken, N.J.: John Wiley & Sons. Ltd. [Accessed 19 Jan 2014]

Malaysia (2009). Outlook Enterprise Sdn Bhd. Retrieved from

http://www.malaysia.com/directory/retail-clothing-and accessories/textiles-and-specialty-

stores/wp-kuala lumpur/Outlook_Enterprise_Sdn._Bhd._156991.html [Accessed 20 Jan

2014]

Innovation Leaders (2008). H&M. Retrieved from

http://innovationleaders.org/hm_company_profile.html [Accessed 21 Jan 2014]

Time Out Penang (2013). Shopping & style. 1st Avenue mall. Retrieved from

http://www.timeout.com/penang/shopping-and-style/venue/Malls/title/1st-Avenue-Mall

[Accessed 21 Jan 2014]