the environmental analysis

External Analysis


In maintaining with the tendencies in other Asiatic states, Sri Lanka is besides demoing greater urbanisation tendencies. Statisticss have demonstrated that Sri Lanka ‘s urban population will duplicate over the following several old ages. With greater urbanisation comes a greater demand for individuality and individualism which for the manner industry can intend a greater demand for specialized merchandises. Geographically Lilly Trotter will non be restricting itself to one country but will be turn toing the urban population in general. At present it is limited to the urban Centres where ODEL has setup its concerns.

The proposed market sections are the immature grownups ( Ages 20 – 27 ) and advanced adolescents ( Ages 16 – 19 ) . The first group, the immature grownup females in their first few old ages of employment, is eager to see their independency and want to be seen and noticed in societal circles. Bing introduced to the concern environment for the first clip they would be acute to show a manner statement at societal occasions. The following group, the manner witting advanced adolescent, does non hold independent agencies of her ain but desires to look grownup and confident. This group would be looking to the first mark group for manner thoughts and tendencies

Economic and political

Due to the war in the state the political state of affairs was volatile for a long clip. With the stoping of the struggle stableness has come back to the Country. It is anticipated that the demand for sole manner points will appreciate due to more flush life styles. However, with planetary recession, lending involvement rates may intensify. This will hold an impact on the concern enlargement programs.

More people are utilizing cyberspace and on-line purchase has become popular among locals excessively. Hence the possibility of web selling is an option to look at. Internet banking has made life easy giving greater easiness of buying.

Social Environment

As stated above, with globalisation society has become more and more westernised. Latest tendencies in Western manner is seen as more and more acceptable and even sought after. This can be peculiarly seen in the addition of jubilation of events such as Valentines and Christmas by assorted sectors of society.

Operational Analysis

The market that these merchandises seek to busy is a niche market which has non been fulfilled by the local manner industry. As stated above there is limited cloth up market manner bags soon in the market catering to the market sections under reappraisal. Therefore the concern is seeking to derive the first mover advantage herein. Access to telecasting and with life styles going more and more flush, the younger coevals in peculiar is demanding trendier up market merchandises. With more and more studying abroad, this tendency has been steadily increasing but non met with by Sri Lankan manner industry necessitating foreign imports that are acquiring more and more dearly-won.


The Company has studied this niche market for high priced high quality upmarket bags out of cloth. There are a batch of branded and not branded high quality manner bags in the market made out of leather or PV stuff but none out of cloth other than the more cultural line by concerns such a Paradise Road and Barefoot. However, these cater to a different market and to different occasions.

Therefore, the concern can be considered to be runing in a Blue Ocean ( Chan,2005 ) state of affairs, peculiarly in the country of purchase for personal usage while there will be some competition in the country of gift buying from makers of other gift merchandises. However, this is non seen as important. Therefore Lilly Trotter has decided to concentrate on this merchandise and the two market sections aforesaid. The fabric choice, the design of the bag etc. , would take into history the little but important differences in the two sections.


In position of the fact that the merchandises are marketed in section shops peculiarly ODEL, close coaction will be required with these shops. The merchandises are sold in the manner subdivision in these shops and hence, it is necessary to understand the current manner tends being promoted by these mercantile establishments.

Internal Analysis

As a concern that has been engaged in the design, industry, selling of manner accoutrements and peculiarly of bags the concern has with it a pool considerable expertness and accomplishments in this topic. Over the several old ages of its being the company has been easy bettering its merchandise line and therefore it is now in a place to present high-end good manufactured, voguish manner bags. The concern has besides acquired three latest machines for sewing which gives a clear competitory border over others in the country of sewing. It has besides over a period of clip developed a web of providers through whom the concern will obtain sole cloth and other accoutrements for the intent of this industry.

Industry Analysis
Rivalry amongst rivals

Where competition is irrelevant it is considered to be a Blue Ocean scheme. This is the ideal environment in which to run.

Supplier bargaining power

Dickering power is high on the points where the measure of purchase is low. With providers who supply larger measures, the provider bargaining power is low.

Menace of permutation

Very few replacement merchandises are available on the market at present. The unrelated gift points of other makers and importers which fall within the same monetary value scope are a possible replacement.

Buyer bargaining power

In position of the fact that competition is less ; dickering power of the purchaser is minimum. In any event, the concern nominates its monetary values maintaining in head the concluding consumer and the marketable monetary value in the unfastened market.

Menace of new entrants

Menace of a new entrant is ever present. However, the long term specialization and singularity of design has provided the concern with a curve consequence. Therefore it would be hard for a new entrant to efficaciously vie with this concern instantly.

The five forces need to be analysed critically. These are elements which are external and are hence less under the direct control of the concern. Proper internal accommodations could enable uses of some of these factors. In add-on to Porter ‘s five forces, the PEST analysis could besides be carried out to farther analyze the external macro environment


After the analysis of the vision and mission statements now we analyse the strengths, failings, chances and menaces associating to the administration. The strengths and failings are internal to the administration and within the control of the direction to pull strings whilst the chance and menace are external to the administration and the direction has limited control to pull strings.

Having ain copyrighted trade name names
Proprietary cognition on merchandise know-how
Skilled labors
Creative designs
Positive client feedback
Price fight
Singularity of designs.
Quick response to altering tendencies.
Distribution is chiefly confined to one reseller
Limited entree to suited Fabric in the local market.
Turning cyberspace capablenesss
Addition of import revenue enhancements on manner bags
Changing manner tendencies
Product line enlargement
Improvement in the tourer industry in Sri Lanka
Substitute merchandises such as other gift points coming into the market
Retailer ‘s backward integrating
Change of merchants of the buying
Banks increasing loan involvements and Over bill of exchange involvement
Through the SWOT analysis, the concern was enabled to come to a realistic appraisal of its place and to maneuver a class towards its ends and aims in maintaining with the strengths and understating the impact of its failing. Every effort has been made to change over failings to places of strength.


As an on-going successful concern, the operation of Lilly Trotter will depend on the undermentioned critical factors:

Keeping its impulse as the leader in the niche market.

Developing the new line of merchandises without compromising its present market section. In peculiar, pull offing growing in such a manner that in run intoing the increased demand, one does non compromise on quality and client satisfaction.
The primary premises are as follows:

Continued market stableness.
Limited impact due to planetary recession.
Continuing manner tendency.

Company is be aftering to increase about 15 % gross revenues value from 1st to 2nd twelvemonth. From 2nd twelvemonth to 3rd twelvemonth they hope to increase about 50 % .

Target Market
Target market for this merchandise will be adolescent misss and immature grownups.

Selling Aim
1ST Year

Making consciousness of the merchandise is the chief aim in twelvemonth one. The trade name name is one that is already in the market and is good known. Trial and mistake will take topographic point during this period. Emphasis will be on advertisement, peculiarly in association with ODEL, and in manner magazines such as “ Hi Magazine ” . Research has demonstrated that even immature grownups and teens look up to Hi magazine for new tendencies. One hebdomad prior to the launch it is proposed to hold a manner show at ODEL in coaction with other manner garment makers to present the merchandise.
Market incursion will be done though advertisement as set out above. This scheme applies to both sections.
2nd Year

Company hope to increase the gross revenues value by 50 % which will assist to increase the market portion.
With increased production, it will besides be possible to cut down the fixed cost per unit, therefore heightening profitableness.
3rd Year

Market portion care. It is anticipated that at this clip there will be some rivals get downing up and viing merchandises being available. Hence the trade name name will be an of import tool in keeping market portion. For this intent, the concern has besides obtained rational belongings protection for its trade name names.
Cash flow maximization
Distinguishing and Positioning
Position is based on focal point selling under Porter ‘s three Generic Strategies. Therefore the market is a narrow market section or identified niche.

Under Kottler ‘s Specific Positioning Schemes, it would use class positioning claiming to be the leader in its class.

Positioning will be done under the subject ‘Be Seen, Be Notices, Be Remembered ” .

An alternate subject for the adolescents is “ Turning, Turning, Grown ” , meaning their avidity to maturate into stylish immature adult females.

As stated above, distinction will be achieved by utilizing expensive silk or cotton cloth which would distinguish it from the other makers. Another characteristic that would enable distinction is in design and in public-service corporation such as shoulder bags and carpus bags.

Not required for this assignment.

Not required for this assignment.

Kotler, P, Keller, K.L, et Al, 2009, Marketing Management 5th Edition, Singapore, Prentice Hall.
Holzner, S, 2006, How Dell Does it, New Delhi, Tata McGrow-Hill.
Chan Kim, W, Mouborgne, R, 2005, Blue Ocean Strategy, Harvard Business School Publication Corporation.
Wikipedia web site [ Online ] , Available: hypertext transfer protocol: // [ Accessed on 22nd February 2010 ]
Wikipedia web site [ Online ] , Available: hypertext transfer protocol: // [ Accessed on 22nd February 2010 ]
Marketingteacher web site [ Online ] , available: hypertext transfer protocol: // [ Accessed on 25th February 2010 ]
Collection of slides website [ Online ] , Available: hypertext transfer protocol: // # 355,1, Chapter 8 Market Segmentation, Targeting and Positioning [ Accessed on 26th February 2010 ]

"Looking for a Similar Assignment? Order now and Get a Discount!