A business model (BM) is the explanation of the causes, results and effects of the organization and in what ways it delivers and apprehend value. This value is judges on the basis of the ethical, social, economic and other significant contexts. The business model of an organization explains its core aspect of the model of the business. Charles Tyrwhitt (CT) launched an Australian website selling men’s English-style cotton business shirts with the promise to ‘make it easy for men to dress well’ and save money buying proper quality shirts in multiples of four. This assessment will brief about the business model of the CT which will describe its marketing approaches and the building blocks of the business model (Massa, Tucci & Afuah, 2017).
The Charles Tyrwhitt (CT) has developed a website that sells men apparels which are trendy, fashionable and easy to wear. CT offered a web-based shopping experience tailored to men’s apparent dislike of shopping drawing on the infrastructure of a traditional mail-order business. Since 1986 CT has sold over 34 million made-to-measure shirts off the shelf. The company runs a traditional high/low retail strategy also described as ‘was/now’ where fresh season stock is rapidly cut-rate and sold inexpensively pouring sales and stirring stocks (Geissdoerfer, Vladimirova & Evans, 2018).
The business model is segmented in nine rudimentary layers where it describes the basic flow of the business strategies with their product distribution. This business model has segmented and is approached to professional males which are interconnected with corporate world. The product is for the market where affluent men between the age of 30 to 54 years choose the products for their professional wear. In order to provide the products at their doorstep who are the key suppliers are newspapers hawkers, mailing houses and third part referrals. The third layer explains about the value proposition the products give to their customer which has a reputed standard of Jermyn St. fit and finish and yet affordable for them. The fourth stage consists of key activities like brochure and product deliveries. The fifth stage is the medium through which these products can be released on the website. The sixth stage is a marketing tactic to sell high number of products and this business model sells 4 shirts with multibuy discount offer which gives it 10 per cent of the profit margin. The seventh stage explains the cost structure of the business which is 40 per cent in stocks, distribution and sales 30 per cent and admin 20 per cent of the overall revenue. The eight stage define the key resources of the business which are mailing lists, match back process, website for orders, stocks and warehouses. The final stage ninth explains on how to maintain customer relationships which is mainly through direct mail and e-mails (Ritter & Lettl, 2018).
The business of CT prints around 35 million brochures with 15 million sent to prospective buyers identified from rented lists which in turn generate 75 per cent of the overall revenue. The supplier like newspaper hawkers and mailing system with CT business canvas and customers establish a significant foundation. The warehouses are the size of 130,000 sq. feet. The pricing technique of was/now helps to maintain the stocks and keep the revenue flowing-in. It also allows for apparent mass customization by holding stock in multiple sleeve lengths and fits thereby linking customer demand for well-fitting shirts and revenue opportunity (Linder & Williander, 2017).
The match-back procedure is important by connecting the buyer’s features which define a tendency to purchase on the hired dispatching list, with the proposal offered and the configuration of buying results. The incessant procedure development and the request of capital investments permits CT to advance pace of implementation at cheaper costs and with less blunders. The quality of the product linking to the Jermyn St. is a seller and is in complete favor of the organization (Bocken, Boons & Baldassarre, 2019).
The marketing approach of the CT is old school which can lead to major risks to the whole operations. From the analyses the was/now process resulted in fining of 10,800 dollars and customer did not purchased because of the high prices. This turns out to be hindering the credibility of the retailer diminishes the business model is at risk of failing. Through movements in foreign exchange markets can add costs to global businesses. The foreign exchange can easily increase the price of the product by 44 per cent if distributed in global markets (Ibarra, Ganzarain & Igartua, 2018).
If this business was of my then I would surely gone through tactical approaches in selling the products. It would be beneficial to have a data analyst that could evaluate the situation of the progress of the business model and suggest approach for future investments. The main fact where this business lacks is surely on generating insights through their process and product manufacturing. It is ineffective for an organization like CT to have prosperous sales and revenue but not generating any insight or knowledge out of it. Through business analyses it can be further depicted that what are the stocks and products that need to be in movement and maintain strategic management throughout the process. The company should also build a review and feedback system for the customers to give their opinions about the service and products. This helps in gaining informational insights that are not present in theoretical approaches rather practical information that could be further used for development (Joyce & Paquin, 2016).
Charles Tyrwhitt (CT) launched an Australian website selling men’s English-style cotton business shirts with the promise to ‘make it easy for men to dress well’ and save money buying proper quality shirts in multiples of four. CT offered a web-based shopping experience tailored to men’s apparent dislike of shopping drawing on the infrastructure of a traditional mail-order business. The product is for the market where affluent men between the age of 30 to 54 years choose the products for their professional wear. The quality of the product linking to the Jermyn St. is a seller and is in complete favor of the organization. Movements in foreign exchange markets can add costs to global businesses and can easily increase the production cost.
Bocken, N. Boons, F. & Baldassarre, B. (2019). Sustainable business model experimentation by understanding ecologies of business models. Journal of Cleaner Production, 208, 1498-1512.
Geissdoerfer, M., Vladimirova, D., & Evans, S. (2018). Sustainable business model innovation: A review. Journal of cleaner production, 198, 401-416.
Ibarra, D. Ganzarain, J. & Igartua, J. I. (2018). Business model innovation through Industry 4.0: A review. Procedia Manufacturing, 22, 4-10.
Joyce, A. & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more sustainable business models. Journal of cleaner production, 135, 1474-1486.
Linder, M. & Williander, M. (2017). Circular business model innovation: inherent uncertainties. Business strategy and the environment, 26(2), 182-196.
Massa, L. Tucci, C. L. & Afuah, A. (2017). A critical assessment of business model research. Academy of Management Annals, 11(1), 73-104. References
Ritter, T. & Lettl, C. (2018). The wider implications of business-model research. Long Range Planning, 51(1), 1-8.
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