Company information
BACHI Barcelona is a company that sells bags and accessories of medium-high range for men and women. Barely 1 year old, this project has been created by two friends, Meritxell and Nuria, who are passionate about fashion and fully oriented towards satisfying their customers through their products.
Two enterprising women with a common idea: creating accessories with comfort in mind but without giving up innovative designs. For this reason, their products seek differentiation through originality, since their patterns are visible both inside and outside of the bags, thus creating a different product.
BACHI Barcelona is characterized by online sales through a website that tries to be intuitive and highly navigable and, of course, makes its bags and accessories visible in an attractive way. In addition, it has the following services:
- Complete catalog of its accessories for online sales. Filtering system by categories and price to personalize the search. Offers and temporary discounts on some products. Form so that potential customers can request information. 24-48 hour transport service. Cost: € 5 (and another part assumed by BACHI Barcelona). However, they carry out various promotions offering totally free deliveries. National and international shipments (European Union), although they are still not very clear on how to penetrate international markets. "Stories by Bachi" blog where they report news and related news. Newsletter (upon subscription with a welcome gift). Access to its pages on RRSS: Facebook, Twitter, Instagram and.
In relation to other information of interest:
- Human capital is made up solely of them: Meritxell and Nuria. Both have extensive knowledge of the fashion sector and new trends. They are also graduates in Law so they have great knowledge in legal matters. High involvement, enthusiasm, desire to grow and meet the needs of customers in the fashion and accessories sector. Eco Friendly local suppliers, thus contributing to the sustainability and development of local commerce They have external consultants in different areas such as Marketing, Community Manager, Web Positioning, Accounting, Photography, Web Programming or Modeling Clear awareness of the importance of the presence of BACHI Barcelona in RRSS (social networks) for obtain a good position in the market.Low negotiating power of the price of the transport service until a higher number of specific shipments is achieved. Very close relationship with its suppliers. They currently work with 20 suppliers due to the many details that their accessories have. These are, despite the fact that this may translate into less competitive prices than if they worked with suppliers from countries with different cultures in labor rights. All their designs are their own and handcrafted in Barcelona. The stock policy is very clear: they refuse to work on request. They prefer to have a surplus for all their flagship and classic products. They will only work on request for expensive or limited edition designs.They work with a Business Expansion Account for SMEs with advantageous conditions in terms of commissions and bank charges, but do not have financing. They often base their strategy on participating in fairs and events to bring their product and brand closer to more public, at strategic points like Barcelona, Tarifa and different Italian cities, avant-garde in the most current fashion.
Currently BACHI Barcelona faces stiff competition. Its main competitors are mainly two:
Meritxell and Nuria have some priority objectives related to gaining a presence in social networks and increasing their competitive advantages in relation to their main competitors. They consider it very important to increase the number of subscribers on the web, get more followers to increase visibility, try new means of online communication (gest posting, banner publication, collaboration with bloggers and other national and international friendly companies) and increase the conversion of sale of the promotions they carry out.
Although they are very clear about all this, they have never stopped to draw up a strategic plan to help them achieve the main objectives of BACHI Barcelona. For this reason they contact you to help them in this task.
Preparation of the strategic plan
Mission
Our mission is to create accessories thinking about comfort but without giving up innovative designs using eco-friendly materials and contributing to the development of the local economy. Since our products seek differentiation through originality and online sales.
View
To be a reference in the characterization of fashion with its artisan creations, increasing the presence in networks at a national and international level, positioning itself as one of the best fashion and online sales brands.
Values
Elegance and exclusive design: All the bags are exclusive and handcrafted in Barcelona. Customer orientation: Creation of bags for a dynamic and feminine active woman who is committed to design and who wants to take her style everywhere. Ecological and Quality Product: Importance of making a quality and handmade bag and that its materials meet ecological standards.
Internal analisis
Competitive advantages and disadvantages with respect to competitors
Advantage
- Quality product and handcrafted local Eco Friendly suppliers, Extensive knowledge in fashion and legal matters Unique designs based on their knowledge and experience with photography Motivation to meet the needs of the client, likewise, an excellent identification of their Market niche Production in Barcelona Competitive prices
Disadvantages
- Only online sale without having a physical store like Zubi has. Zubi has more variety of products allowing their customization, thus contributing to the sustainability and development of local commerce. Zubi has competitive prices and free shipping with higher prices. Wide presence worldwide being a Recognized brand. Fortunadas has a commitment to the environment and quality products in the same way. Fortunates shows knowledge in marketing and economics. Fortunadas shows first quality organic raw materials.
Tangible resources
Physical
- All materials for making the bags (fabrics, leathers, paint, zippers, etc.) Available bags (Stock made previously ready for sale) Physical property for making the bags.
Financial
- Capital contributed by the two partners Clients and Suppliers Work with a Business Expansion Account for SMEs with advantageous conditions in terms of commissions and bank charges, but do not have financing
Intangible resources
Humans
- The two partners have extensive knowledge of fashion and legal resources. Motivation and commitment to the undertaking that is being carried out. Collaborators in the area of marketing, social media and clothing. Relationship with suppliers
Non-human
- Website for online sale. Complete catalog of their accessories for online sale. "Stories by Bachi" blog where they report news and related news. Newsletter service (upon subscription with a welcome gift). Access to their pages on RRSS: Facebook, Twitter, Instagram and. BACHI Brand, Vision, Mission and Values focused on customer satisfaction.
VRIO analysis
| VRIO ANALYSIS | VALUE | RARITY | INIMITABLE | ORGANIZATION |
|---|---|---|---|---|
| All materials for making the bags (fabrics, leathers, paint, zippers, etc.) | YES | NO | NO | YES |
| Available bags (Stock made previously ready for sale) | YES | NO | NO | YES |
| Physical property for making bags | YES | NO | NO | YES |
| Capital contributed by the two partners | YES | NO | NO | YES |
| They work with a Business Expansion Account for SMEs with advantageous conditions in terms of commissions and bank charges | YES | NO | NO | YES |
| Clients and suppliers | YES | YES | NO | YES |
| The two partners have great knowledge of fashion and legal resources | YES | YES | NO | YES |
| Motivation and determination for the undertaking that is being executed. | YES | YES | NO | YES |
| Collaborators in the area of marketing, social networks and clothing. | NO | NO | NO | YES |
| Relationship with suppliers | YES | NO | NO | YES |
| Website for online sale, Complete catalog of its accessories for online sale | YES | NO | NO | YES |
| Blog "Stories by Bachi" where they report news and related news. | YES | YES | NO | YES |
| Newsletter service (upon subscription with a welcome gift). | YES | YES | NO | YES |
| Access to its pages in RRSS: Facebook, Twitter, Instagram and. | YES | NO | NO | YES |
| BACHI Brand, Vision, Mission and Values focused on customer satisfaction | YES | NO | NO | YES |
Strengths and Weaknesses Matrix (Internal Origin - Company Attributes)
| POSITIVES - STRENGTHS | NEGATIVES - WEAKNESSES |
|---|---|
| Quality product and handcrafted. | Lack of presence in networks |
| Eco Friendly local suppliers, thus contributing to the sustainability and development of local commerce | Lack of ownership and brand positioning |
| Extensive knowledge in fashion and legal matters | Absence of a fixed point of sale |
| Unique designs based on your knowledge and experience with photography. | Lack of preparation of a strategic plan |
| Motivation to meet the client's needs and an excellent identification of their market niche | Lack of expansion of products to offer |
| Elaboration in Barcelona | |
| Motivation and determination for the undertaking that is being executed | |
| Teamwork |
External analysis (macroenvironment and microenvironment)
PEST Analysis
Elements of the economic structure
| Know the economic phenomena that have occurred in Spain during the last 30 years | The Spanish productive fabric is characterized by a high weight of the services sector and by a low presence of the industrial sector. Although this has not always been the case, data from the National Accounts and the Labor Force Survey show that in the decades of the 70s and 80s the weight of industry and energy in national production and employment exceeded 25 %. Since 1970, Spain has registered a gradual decrease in the contribution of industry to GDP, while the service sector has been gaining weight over time. Thus, since 1970, the service sector has been growing in importance, going from representing 46% of GDP in 1970 to 75% in 2015. This outsourcing is common in the economic development process of most countries. In this sense,Spain is a service economy and has a significant number of companies that are very competitive in this sector.Thus, BACHI must be in charge of analyzing the purchasing power of its clients as well as the cost of raw materials and preventing possible problems when acquiring this inventory. |
| Know the contribution that each productive sector makes to the economic activity of the country as a whole | |
| Know the international relations of the economy, mainly with the European Union (EU) | |
| Know the production factors that the Spanish economy has in terms of population |
Elements of the technological structure
| Know the technological phenomena of the last decades. | Spain is a technological powerhouse. In the last 30 years, it has gone from the need to modernize manufacturing machinery to being one of the world's technological leaders in various sectors. Technological infrastructure is an increasingly important factor when assessing the competitiveness of an economy. In its recent Report on Global Competitiveness, the IMD World Competitiveness Center analyzes the situation of technological infrastructure in 63 economies, examining 21 indicators, including spending on telecommunications, the extent of connectivity, broadband users, skills technological workforce, etc. The best international technology infrastructure corresponds to Singapore, followed by two European nations: the Netherlands (2) and Finland (3).Spain is ranked 28th in the ranking of the 63 economies analyzed by the IMD and 14th among the EU economies.The use of the internet is becoming a fundamental aspect in the implementation of new sales policies and access to products in a fast and efficient way, in this way BACHI focuses on the technology of the future. |
| Know the ease of electronic commerce. | |
| Know the main tools
offered by online sales and the ease of purchasing products. |
|
| Know the different social networks and
SEO tools. |
Elements of the political structure
| Know the political aspects of Spain. | The Spanish Constitution of 1978 (opens in a new window) establishes the institutional organization of Spain and heads our legal system. The other legal norms develop it. It is a great achievement of consensus and coexistence. It was approved by referendum by a large majority of voters and electors. Here are drawn the main outlines of the institutional system that allows living together and making decisions: Spain is a democracy, a state of law and a welfare state. We have a social market economy. The values of our coexistence model are: freedom, justice, equality, solidarity, political pluralism, dignity of the person and respect for fundamental rights and public liberties.The Constitution protects the fundamental rights of the people and establishes some principles to guide the actions of the public powers.BACHI, as the main generator of electronic commerce, must keep abreast of policies that establish new regulatory and quality systems in online sales. |
| Identify the existing regulations for electronic commerce. | |
| Know the main tools that generate online commerce policies. | |
| Identification of Quality standards for the generation of integrated management systems. |
Elements of the social structure
| Know the social phenomena involved in fashion. | The fashion sector is, globally, one of the most dynamic and growing, and encompasses a very diverse set of activities: from the transformation of natural materials (cotton, wool, etc.) and artificial (polyester, polyamide…) to the generation of threads and fabrics, passing through a wide variety of productive activities (making clothes, footwear and accessories, jewelry, watches and cosmetics). The 27 countries of the European Union generate 350,000 million dollars to the sector each year (311,951 million euros), above countries such as the United States or China, according to a report prepared by Statista (2014). Globally, fashion retail has a turnover of 1.1 billion dollars annually (0.9 billion euros). BACHI should focus on the analysis of social behavior giving priority to fashion and its evolution. |
| Know the ease of consumption linked to fashion. | |
| Know the main tools offered by the social age as fashion. | |
| Know the fashion sector and its impact on the social. |
Porter's 5 Forces Analysis
i. Bargaining power of suppliers.
ii. Bargaining power of consumers.
iii. Threat of entry of substitute products.
iv. Threat of entry from new competitors.
v. Rivalry between competitors.
Opportunities and Threats Matrix (External origin - Attributes of the environment)
| POSITIVES - OPPORTUNITIES | NEGATIVES - THREATS |
|---|---|
| Possibility of positioning in social networks | Entry of new competitors to the same market |
| Possibility of expanding the market | High costs with suppliers |
| Possibility of expanding the product range | Absence of a fixed point of sale |
| Possibility of participation in commercial events | High product competition for example with Zubi and Afortunadas |
| Motivation to meet the client's needs as well as the excellent identification of their market niche. | Competitive prices |
| Elaboration in Barcelona | |
| Motivation and determination for the undertaking that is being executed. | |
| Teamwork |
SWOT Strategy
Defensive Strategy
The defensive strategy tries to combine the strengths of the organization with the threats of the environment.
STRATEGY: By having quality products as a strength, it is intended to sell these products also at fixed points with competitive prices.
Offensive Strategy
Combine the strengths of the company with the opportunities of the environment
STRATEGY: With knowledge of fashion as a strength, the creation of new products and business lines is induced, always giving priority to product quality as another strength.
Survival Strategy
Combine weaknesses with threats
STRATEGY: Increase of promotion in networks and commercialization as facing the weakness but having as a threat the high presence and easy access of other competitors to the electronic commerce market
Reorientation Strategy
It combines the weaknesses of the organization with the opportunities of its environment.
STRATEGY: Preparation of a strategic plan taking as an opportunity the motivation generated by entrepreneurship.
Balanced Scorecard
| PERSPECTIVE | OBJECTIVE | FREQUENCY | INDICATOR | MEASURE | OBJECTIVE | RESPONSABLE |
|---|---|---|---|---|---|---|
| Financial | Sales increase | Annual | Sales increase | % | 10% | Commercial area |
| Financial | Sales increase | Annual | Cost effectiveness | % | two% | Commercial area |
| Client | Customer satisfaction | Biannual | Polls | % | 5% | Commercial area |
| Client | Best sales | Biannual | Sales increase | % | 5% | Commercial area |
| Processes | Optimization of internal processes | Annual | Costs reduction | % | 5% | Commercial area |
Generic Porter Strategies
Cost Leadership Strategy.
It consists of seeking and maintaining a low cost position with respect to the competition, this will allow the company to obtain higher returns than the sector average. There is a relationship between the cost leadership strategy and the possession of a high market share, this is because having a high market share allows the appearance of economies of scale and economies of experience, both contribute to reducing unit costs.
In this case, for BACHI, the search for new suppliers with a high negotiation capacity allows identifying lower costs in terms of raw materials as well as the reduction of production costs without neglecting the strength focused on the quality of the products.
Differentiation Strategy.
For BACHI, the differentiation strategy focused on creating unique bag designs was implemented from the beginning, seeking that this product differentiates itself from others and even more from its competition, it is based on observable characteristics of the product such as photographs unique professionals. On the other hand, a characteristic of differentiation must be evidenced in the promotional guidelines of social networks, making the brand known and thus associating it with the concepts of exclusivity and quality.
Focus Strategy.
BACHI, as a fundamental market niche, has women with a great touch of femininity who are hard-working, independent, strong and courageous, who do not settle for just anything and who want to wear something special, something different in their daily look.
