Activity 2: Generate potential ideas that provide innovative solutions to the identified issue
and identify restrictions
Template: Research and documentation of the process
Research and documentation of the process
Organisation Background: The organization is a shoe store
Name of the organisation: Pearl Shoe store
Stakeholder: Dylan O'Hara the CEO
Charles Brake my supervisor
Review of existing information that will inform new concept development, use 150 – 200 words.
After a meeting with Charles Brake I found that the most pressing issue in the organization is that
our sales figures are not updated, they never balance or make any sense.
List of three (3) opportunities, including information about the research conducted and reasons why
these opportunities may have potential, use 200 – 250 words.
Information regarding the research conducted
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Revenue in the Footwear market in Australia amounts to US$4.34bn in 2022. The market is
expected to grow annually by 4.23%
The market's largest segment is the segment Leather Footwear with a market volume of
US$2.29bn in 2022.
In global comparison, most revenue is generated in the United States (US$85.84bn in 2022).
In relation to total population figures, per person revenues of US$166.30 are generated in 2022.
The average volume per person in the Footwear market is expected to amount to 3.9 pairs in
2022.
Statista.com Analyst Opinion: “The overall outlook for the fashion industry remains positive
as the share of the apparel and footwear portfolio is expected to decline only slightly, leading
to enormous overall growth potential. The most important driver for the global footwear
market is the increasing importance of emerging markets not only as production sites but
also as consumer markets. This indicates a strong impetus for producers and retailers to
diversify their geographical presence to enable further growth. Additionally, the athleisure
trend that combines comfort with chic and has elevated functional sportswear to coveted
fashion statements is bound to continue.”
List three (3) opportunities
1. Move manufacturing to China.
2. Open an online store.
3. Open a store in china.
Reasons as to why these opportunities may have potential
1. Manufacturing in China is cheaper.
2. Online sales will grow bigger and bigger every year.
3. China has a very big population and all of them need shoes.
Issues identified and explanation of two different solutions for each issue.
Issues and solutions
1. We don’t know how to manufacture in China.
1.1. Solution: Hire a Chinese director and let it do it.
1.2. Solution: Find a provider and buy from it.
2. We don’t know how to create and online store.
2.1. Solution: Hire a team of developers to create an online store for us.
2.2. Solution: Hire an IT company and pay it to build the store for us.
3. We don’t know how to open a store in China.
3.1. Solution: Hire a Chinese director and let it do it.
3.2. Solution: hire a teacher to teach us how to open a store in China.
Identification of two (2) positive and two (2) negative factors that can affect the solutions proposed
above.
Positive factors that can affect the solutions proposed
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The amount of shoes factories in China.
The quality of the shoes manufactured in China.
Negative factors that can affect the solutions proposed
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The relationship between Australia and China
Our lack of knowledge in IT.
Identification of two (2) advantages and two (2) disadvantages of the solutions proposed above.
Advantages that can affect the solutions proposed
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The Chinese are having more and more money to buy shoes.
Australian shoe designers are world renowned
Disadvantages that can affect the solutions proposed
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No one in the company knows Chinese.
We could be cheater because of our lack of knowledge.
List of four to six creative ideas that will address the needs and opportunities.
1. Move manufacturing to China.
2. Open an online store.
3. Open a store in china.
4. Hire a Chinese IT company to builds us an online store to sell in China.