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COLLEGE OF BUSINESS(COB) ENTREPRENEURSHIP BPME 3073 INDIVIDUAL ASSIGNMENT AEGIS PERFORMANCE APPAREL’S BUSINESS PELAN EVALUATION PROVIDED FOR:

COLLEGE OF BUSINESS(COB)

ENTREPRENEURSHIP

BPME 3073

INDIVIDUAL ASSIGNMENT

AEGIS PERFORMANCE APPAREL’S BUSINESS PELAN EVALUATION

PROVIDED FOR:

DR.YEOH KHAR KHENG

PREPARED BY:

JU-RAIZAH BINTI ABU BAKAR

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PART 1: STRENGTH OF THE BUSINESS IDEA

ENEURSHIP BPME3073

ENTREPR

Based on the Aegis Performance Apparel, this company takes advantage of a trend by choosing to provide a Snowsport apparel which can be a set of protection, especially for the Snowsrider to reduce the risk of injury during a skiing activity. Beside that, for the design of the Snowsport apparel will be design followed by the fashion to make and customer be comfortable and feel have good security to wear the suit of apparel. The making of Aegis Apparel will be solved the problem too focussed on about awareness of Snowsport injured. It is because the number of participants in X games not increased because the number snowriders injured a more than the participant. In addition, Aegis filled the gap in the marketplace because in a current market doesn’t have a set of protection for the snowboarding and skiing activities that it be combined with fashion. Even though in the marketplace have a preventive orthopedic product, but the function of the product still limited to prevent injured when the snowrider was in the games.

For the strategies to entry the marketplace, Aegis plans to enter markets with a specialized line by targeting toward the male and female snowboarders. So, Aegis will introduce that product to market by passing through specialized retailed because if the larger chained retailed it like to take risk to introduce a new product line.

Adds value idea that Aegis produces is they will provide high quality for the Snowsports apparel. Protective Snowsports apparel that offers an integrative and unique combination of fashion, function and protection. One of a kind combination in the Aegis Apparel is, they have a removable protective inner layer paired with a well designed high quality outer shell.

Based on the consumer test methodology, end user was shown, their satisfied with the Aegis preventive apparel product because the product makes they realized the need of safety precautions while participating in snow sports. Plus, Aegis product not only can be a protection suit, but it also makes the snowrider follow the fashion up to date. Aegis idea that makes customer to change their basic practice behavior from not realize the precaution of the injured when participating Snowsport to become a fashionable but still have a preventive tool hidden on the apparel.

PART 2: INDUTRY RELATED ISSUES

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ENEURSHIP BPME3073

ENTREPR

In the over $1.6 billion industry that involved in orthopedic producing, DJ Orthopedics and Biomet are the major competitors for Aegis. Both of this company manufacture and sell both functional and prophylactic knee braces directly compared by Aegis are selling an apparel to specialized retailer not to directly doctor.

In the orthopedic industry, the Snowsport apparel is the midst of significant growth. In other meaning, this industry in the growth stage, whereas if the product enter in the market place the company will make a big return profit in this industry. It is because in this industry only a few companies have been able to acquire sizeable market share but the established ski apparel have been specialized into a few group. Aegis will make a big profit because their product are combined Snowsport function and fashion sectors.

Growth rate of snowsport industry is the high growth because the demand for this kind of product in higher based on the Aegis’s surveys.To strength the product demand ,summary financial are shown are rapidly sale and margin growth from 2006 are onward flow.Other than that,importance of snowsports industry’s product or services to customers is to make the snowsports apparel are suitable with increased numbers of skiers in the terrain parks and fashion trends worn by all snowsports rider.

Based on Aegis distribution strategies , Aegis will target retailers who are actively looking to offer bundled products that increase profit margins and who, due to industry seasonality, participate in a narrow window of time for turning inventory, requiring timely delivery of goods with impeccable products that will promote sales for the store. Aegis seeks to target end consumers in Generation X and Y, upper- middle class, price-conscious, moderately risk-averse, avid snowsports enthusiasts who are intermediate to advanced skiers and snowboarders.These retailers look to achieve higher margins through the bundling of products.

PART 3:TARGET MARKET and CUSTOMER RELATED ISSUES

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ENEURSHIP BPME3073

ENTREPR

Aegis has defined target market to be specialty retail stores catering to

generation X and Y skiers and snowboarders in the United States. Aegis seeks to target end consumers in Generation X and Y, upper-middle class, price-conscious, moderately risk-averse, avid snowsports enthusiasts who are intermediate to advanced skiers and snowboarders. Aegis plans to target this group because they already recognize the need for safety precautions while participating in snowsports.

Brand loyalty is one of the barrier to entry for potential competitor to enter the same industry product.In this meaning,brand loyalty can be a significant barrier but requiring large efforts in marketing in order.For this barrier,Aegis need to obtaining intellectual-property rights for the design.

More than three quarter or 80% from total respondent of Aegis’s surveys are response yes or maybe when they would be interested in purchasingthe product.So ,we can conclude for this product it have higher purchasing power based on the power of demands.

Easy ways to make customer realised of the new product and service is by promoted in the nearly snowboarding seasons. with the vast majority of sales occurring between August and February each year, coinciding with the snowsports season. This creates a cyclical effect in which inventory is renewed on a yearly basis.

The success factors for Aegis include verification of the target market and of demand, and creating awareness. Aegis estimates the demand for Aegis's products to be $325 million.In the other meaning ,Aegis get half of demand from the current market target that it value $600 million .

PART 4: Founder (or founders) Related Issues

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ENEURSHIP BPME3073

ENTREPR

The founder of this snowsports apparel is David Dobkin and Annemarie Dillard.Both of them have a different experience of skill in this industry.David Dobkin a Ph.D. candidate in bio- medical engineering from USC, was a health care investment banker at Wasserstein Perella in New York, completing deals in biotechnology, medical devices, and services. David was founder of Dealprovider.com, a Web-based deal-finder, and managed a staff of over 100 for Versity.com, an online-notes company. David also brings his experience as a

competitive skier and ski instructor at Breckenridge and Mammoth

Mountains.

.

Annemarie comes to Aegis with years of experience in the fashion industry including in Dillard's Inc., BCBG Maxazria and Left Coast Style, as well as a business degree in entrepreneurship from the University of Southern California.

Mr. Dobkin is currently a ski instructor for Mammoth Mountain, California, and previously worked in that capacity for Breckenridge, Colorado. He has competed in both collegiate racing and professional ski competitions.For Ms. Dillard has been an avid skier since the age of three and spends a significant amount of the winter season on the mountain. Both of them have their own experience of skiing sector.

In the resume of David Dobkin and Annemarie ,we can see both of them have a big of social networking for their operation and marketing sectors.David Dobkin will be responsible for aspects related to overall operations and to product sales and distribution of goods. Using his background in finance, Mr. Dobkin will oversee the financial aspects of Aegis. Using his biomedical engineering experience, Mr. Dobkin will also work closely with the designer to help devise protective aspects for the apparel.Although ,Annemarie Dillard will be responsible for oversight of all product development and productionand will use her background in fashion in working closely with the designer to ensure quality products for Aegis. Ms. Dillard will also use her experience in marketing to effectively promote Aegis.

PART 5: FINANCIAL ISSUES

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ENEURSHIP BPME3073

ENTREPR

For initial capital investment in Aegis Company, Aegis plans to initially fund Aegis with private investment. A line of credit will be used to cover initial working capital expenses. Aegis requires $450,000 in start-up capital. Based on the table given ,the start-up capital was include 18 months of a safety cushion needed until the initial revenues are received in October 2006. Other start-up costs include office and warehouse space, inventory systems, designer and employee costs, insurance,

utilities, other fixed costs, and a safety net of 18 months, the time when Aegis will receive initial revenues and break even.The initial investment will target the 2006-

  • 2007 season, with the initial orders coming in spring of 2006.But,the critical success

factors for Aegis include verification of the target market and of demand, and creating awareness. In addition to the primary retail revenue source, Aegis will aggressively market directly to ski resorts as an option for staff uniforms.Plus,the introduction of the ski helmet has presented a new revenue stream to the once stale ski industry.

Aegis was predict that their companies will be able to break even in October

  • 2006 when the first revenue are received.

CONCLUSION

Product or services that Aegis provide is the excellent thing for bring a new ways for snowsport rider to reduces a percentage of injured when their join that activity.Product snowsport apparel can filled up the gap of shortage of this kind of orthopaedic product in this ski-ing industry.Aegis will get a higher profit margin because they will produced their product by manufactured in China and India that the place are used a lower cost fr production.

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