Finding Core Competencies as a Basis for Developing Expansion Strategy at deBut Pret-a Porter
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DeBut Pret-a-Porter (deBut) is among the small companies entering Jakarta to survive and compete with the existing players in fashion market (boutique's wear market). The main objective of business endeavor is to survive while gaining profit in its industry by doing continuous improvement in all areas of the business operation. As competition become tougher from time to time, business people are forced to continuously evaluate and anticipate its position among the competitors.
One-way to keep business alive and become stronger in its industry it to find out the core value of the business in the eyes of the consumers. Therefore, deBut should focus on its core competencies that are uniqueness in model. But in the long-term, deBut should improve its competencies in terms of price by finding local sourcing and placement by having more outlets.
We identify three steps as our action recommended that are: first, using focus on expansion through partnership by using current business model. Starting to learn developing local sourcing: materials, suppliers, lead times, price, & quality. Second, shifting focus more on local sourcing development (own production) while reducing portion of outsourcing products in order to increase product availability in terms of size, color and quantity to develop economies of scale. Third, more portion for local production and reduce outsourcing compared with step 2.
deBut should also continuously explore new market opportunities by opening more outlets. There are several ways to explore the opportunities, such as: study further on fashion product life cycle and after the product reaches its declining stage, deBut should immediately duplicate the product and sell as second-line product by using different brand (private label) but still under deBut's license. The second-line product must be placed in separate location.
Finally, by implementing the above action recommended, deBut can anticipate its position among competitors that becoming tougher and strengthening its position in the fashion boutique market, which in the end is expected to help to boost deBut's growth and success in the future.
Research Location: deBut Pret-a-Porter
Supervisor: Satya Heragandhi
Accepted: 21 August 2003
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v, 63p. : figs., quest., tabs. ; 27 cm.
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English
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