Operations Research


Gina Fox has entered the apparel industry, an industry that continuously evolves as fashion and trends emerge.Starting a clothing business is just like any other business: you need to have the resources to jumpstart your vision, skills and know-how in managing the business, and marketing savvy to promote the business. You must also have a business plan that will serve as your detailed guide that will walk you through your first couple of years in business. Having gone through the process of thinking through a plan for your business will enable you to always know what steps to take next.
However, there are a number of unique factors that a would-be apparel manufacturer needs to know about the clothing business. Small businesses face an increasing competition from big firms given their marketing muscles and economies of scale. In South Africa we have recently seen a decline in this industry, as a result of a flood of imported Chinese clothing, stringent labour practices and high labour costs.
At the Outset
Before going into business Foxy shirts would need to determine the type of clothing it would like to manufacture and establish if a market exists for the sale of this product. In this instance Foxy Shirts has already established that it would manufacture imprinted shirts for special occasions. Foxy Shirts can segment its market based on age and gender demographics, or depending on opportunities diversify to where potential exists to maximize profit.
The type of distribution depends on the identified target market. This has a direct impact on pricing, promotion and production. If this garment is available at exclusive stores, there is opportunity to price this higher as it would be deemed to be a unique product with lower production volumes and possibly higher production costs. However if this product is targeted at the masses, then it would be mass production at a lower cost. At this point the financial impact of production capacity and supplier...