RentKaprey.com....An E-Commerce business model..

We planned to start a new business which is providing people with wedding dresses on Rent, for which they can order Online. For that regard, we have prepared the basic description of its business model which comprises of 8 key elements. These are described as follows:

1) Value Proposition:

“RentKaprey” is a website which is going to provide people with traditional Pakistani wedding dresses for Women and formal suits & formal wear for Men on “Rent” at comparatively low prices. There is a need present in the market as the economy is in recession, prices of formal apparel in increasing very high and the purchasing power of customers is lowering.

Through this site people will be able to choose their choice of outfit on the website and the dress would be delivered to them. Even though customers have the choice of buying customized wedding dresses, but they have to spend weeks & months for choosing, ordering and getting their fittings done. On the other hand, we are providing readymade dresses in various sizes & designs on cheap Rents as compared to the price of the actual outfit. Convenience, time saving and low cost, there are the very important elements in RentKaprey’s value proposition to customers.

2) Revenue Model:

RentKaprey is opting for a sales revenue model by which it will be generating its revenue by the rental fees of wedding apparels. The firm’s investment would in purchase of a range for the wedding dresses for both bride and groom. The company would generate profits once more and more customers start renting their dresses.

3) Market Opportunity:

Market space for RentKaprey would be Federal and Punjab initially. The market has a wide opportunity in regard for returns, as wedding is one of the most prestigious occasions in this society and people spend a lot for these occasions. Therefore, there is an ample amount of chance for the business to achieve high returns.

4) Competitive Environment:

The competitive Environment of RentKaprey does not consist of any direct competitors, some of the outlets are available which are providing its customers with rental outfits but they don’t have online service. This trend is as not much very popular in Pakistan but with the passage of time there are chances that market becomes bigger and new potential entrants come into the market and start providing customers with online service that would increases the competition for “RentKaprey”. The market which RentKaprey is going to serve is an untapped market.

5) Competitive Advantage:

The competitive advantage for RentKaprey would be First-Mover Advantage as it is one out of the whole industry which is going to provide its customers with such kind of service. As well as they will try to balance their complimentary resources by making good marketing strategy, having good team of managers and by managing their financial resources so that no one can compete them.

6) Market Strategy:

RentKaprey market strategy is to advertise heavily on social communities like face book, my space, yahoo as well as through word to mouth and also will advertise in print media in Sunday newspapers and in fashion magazines of Pakistan like Instep etc so that people become familiar about the site. And the cheap rates as ell as designs provided by its customers will also help in attracting customers.

7) Organizational Development:

As it is a new company so we have to start from scratch and we have to develop departments according to our requirements, there are certain departments which we have to maintain like “Web Developers Department” which consist of 3-4 people initially and after certain time period we will increase the ratio according to our requirements. The people in this department need to up to date and maintain the web site. Then we have to maintain “Operational Department” consist of 5-6 people initially they have to receive orders , receiving of payments , managing inventory ( purchase of second hand dresses on half rates , dry cleaning of dresses ) , maintain records of delivery and receiving of dress to the customer and from the customer. We also have to maintain “Finance and Marketing Departments” consist of 4-5 people initially, after the passage of time ratio of employees will increase according to the needs. People of the finance department have to gather capital and maintain records of transactions and marketing department will provide company with new advertisements and new campaigns.

8) Management Team:

As our business is online so we need to hire managers which have experience in working IT firms , their technical background should be related to Web Developing , first of all we will launch the web site , which is a function of Web Developers Department then e have to advertise about our site which is the responsibility of marketing department then we have to maintain range of products for which operational department is responsible then we have to collect orders and make sure that delivery and receiving is on time (delivery mechanism) which is also working of operational department.