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COLLEGE OF BUSINESS(COB)

ENTREPRENEURSHIP
BPME 3073
INDIVIDUAL ASSIGNMENT
AEGIS PERFORMANCE APPARELS BUSINESS PELAN EVALUATION

PROVIDED FOR:
DR.YEOH KHAR KHENG

PREPARED BY:
JU-RAIZAH BINTI ABU BAKAR
226426

PART 1: STRENGTH OF THE BUSINESS IDEA

ENTREPR
ENEURSHIP BPME3073

Based on the Aegis Performance Apparel, this company takes advantage of a


trend by choosing to provide a Snowsport apparel which can be a set of protection,
especially for the Snowsrider to reduce the risk of injury during a skiing activity.
Beside that, for the design of the Snowsport apparel will be design followed by the
fashion to make and customer be comfortable and feel have good security to wear
the suit of apparel. The making of Aegis Apparel will be solved the problem too
focussed on about awareness of Snowsport injured. It is because the number of
participants in X games not increased because the number snowriders injured a
more than the participant. In addition, Aegis filled the gap in the marketplace
because in a current market doesnt have a set of protection for the snowboarding
and skiing activities that it be combined with fashion. Even though in the marketplace
have a preventive orthopedic product, but the function of the product still limited to
prevent injured when the snowrider was in the games.
For the strategies to entry the marketplace, Aegis plans to enter markets with
a specialized line by targeting toward the male and female snowboarders. So, Aegis
will introduce that product to market by passing through specialized retailed because
if the larger chained retailed it like to take risk to introduce a new product line.
Adds value idea that Aegis produces is they will provide high quality for the
Snowsports apparel. Protective Snowsports apparel that offers an integrative and
unique combination of fashion, function and protection. One of a kind combination in
the Aegis Apparel is, they have a removable protective inner layer paired with a well
designed high quality outer shell.
Based on the consumer test methodology, end user was shown, their satisfied
with the Aegis preventive apparel product because the product makes they realized
the need of safety precautions while participating in snow sports. Plus, Aegis product
not only can be a protection suit, but it also makes the snowrider follow the fashion
up to date. Aegis idea that makes customer to change their basic practice behavior
from not realize the precaution of the injured when participating Snowsport to
become a fashionable but still have a preventive tool hidden on the apparel.

PART 2: INDUTRY RELATED ISSUES


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ENTREPR
ENEURSHIP BPME3073

In the over $1.6 billion industry that involved in orthopedic producing, DJ


Orthopedics and Biomet are the major competitors for Aegis. Both of this company
manufacture and sell both functional and prophylactic knee braces directly compared
by Aegis are selling an apparel to specialized retailer not to directly doctor.
In the orthopedic industry, the Snowsport apparel is the midst of significant
growth. In other meaning, this industry in the growth stage, whereas if the product
enter in the market place the company will make a big return profit in this industry. It
is because in this industry only a few companies have been able to acquire sizeable
market share but the established ski apparel have been specialized into a few group.
Aegis will make a big profit because their product are combined Snowsport function
and fashion sectors.
Growth rate of snowsport industry is the high growth because the demand for
this kind of product in higher based on the Aegiss surveys.To strength the product
demand ,summary financial are shown are rapidly sale and margin growth from 2006
are onward flow.Other than that,importance of snowsports industrys product or
services to customers is to make the snowsports apparel are suitable with increased
numbers of skiers in the terrain parks and fashion trends worn by all snowsports
rider.
Based on Aegis distribution strategies , Aegis will target retailers who are
actively looking to offer bundled products that increase profit margins and who, due
to industry seasonality, participate in a narrow window of time for turning inventory,
requiring timely delivery of goods with impeccable products that will promote sales
for the store. Aegis seeks to target end consumers in Generation X and Y, uppermiddle class, price-conscious, moderately risk-averse, avid snowsports enthusiasts
who are intermediate to advanced skiers and snowboarders.These retailers look to
achieve higher margins through the bundling of products.

PART 3:TARGET MARKET and CUSTOMER RELATED ISSUES

ENTREPR
ENEURSHIP BPME3073

Aegis has defined target market to be specialty retail stores catering to


generation X and Y skiers and snowboarders in the United States. Aegis seeks to
target end consumers in Generation X and Y, upper-middle class, price-conscious,
moderately risk-averse, avid snowsports enthusiasts who are intermediate to
advanced skiers and snowboarders. Aegis plans to target this group because they
already recognize the need for safety precautions while participating in snowsports.

Brand loyalty is one of the barrier to entry for potential competitor to enter the
same industry product.In this meaning,brand loyalty can be a significant barrier but
requiring large efforts in marketing in order.For this barrier,Aegis need to obtaining
intellectual-property rights for the design.

More than three quarter or 80% from total respondent of Aegiss surveys are
response yes or maybe when they would be interested in purchasingthe
product.So ,we can conclude for this product it have higher purchasing power based
on the power of demands.

Easy ways to make customer realised of the new product and service is by
promoted in the nearly snowboarding seasons. with the vast majority of sales
occurring between August and February each year, coinciding with the snowsports
season. This creates a cyclical effect in which inventory is renewed on a yearly
basis.

The success factors for Aegis include verification of the target market and of
demand, and creating awareness. Aegis estimates the demand for Aegis's products
to be $325 million.In the other meaning ,Aegis get half of demand from the current
market target that it value $600 million .

PART 4: Founder (or founders) Related Issues


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ENTREPR
ENEURSHIP BPME3073

The founder of this snowsports apparel is David Dobkin and Annemarie


Dillard.Both of them have a different experience of skill in this industry.David Dobkin
a Ph.D. candidate in bio- medical engineering from USC, was a health care
investment banker at Wasserstein Perella in New York,
biotechnology,

medical

devices,

and

completing

services. David

deals

in

was founder of

Dealprovider.com, a Web-based deal-finder, and managed a staff of over 100 for


Versity.com, an online-notes company. David also brings his experience as a
competitive skier and ski instructor at Breckenridge and Mammoth Mountains. .
Annemarie comes to Aegis with years of experience in the fashion industry including
in Dillard's Inc., BCBG Maxazria and Left Coast Style, as well as a business degree
in entrepreneurship from the University of Southern California.
Mr. Dobkin is currently a ski instructor for Mammoth Mountain, California, and
previously worked in that capacity for Breckenridge, Colorado. He has competed in
both collegiate racing and professional ski competitions.For Ms. Dillard has been an
avid skier since the age of three and spends a significant amount of the winter
season on the mountain. Both of them have their own experience of skiing sector.

In the resume of David Dobkin and Annemarie ,we can see both of them
have a big of social networking for their operation and marketing sectors.David
Dobkin will be responsible for aspects related to overall operations and to product
sales and distribution of goods. Using his background in finance, Mr. Dobkin will
oversee the financial aspects of Aegis. Using his biomedical engineering experience,
Mr. Dobkin will also work closely with the designer to help devise protective aspects
for the apparel.Although ,Annemarie Dillard will be responsible for oversight of all
product development and productionand will use her background in fashion in
working closely with the designer to ensure quality products for Aegis. Ms. Dillard will
also use her experience in marketing to effectively promote Aegis.

PART 5: FINANCIAL ISSUES


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ENTREPR
ENEURSHIP BPME3073

For initial capital investment in Aegis Company, Aegis plans to initially fund
Aegis with private investment. A line of credit will be used to cover initial working
capital expenses. Aegis requires $450,000 in start-up capital. Based on the table
given ,the start-up capital was include 18 months of a safety cushion needed until
the initial revenues are received in October 2006. Other start-up costs include office
and warehouse space, inventory systems, designer and employee costs, insurance,
utilities, other fixed costs, and a safety net of 18 months, the time when Aegis will
receive initial revenues and break even.The initial investment will target the 20062007 season, with the initial orders coming in spring of 2006.But,the critical success
factors for Aegis include verification of the target market and of demand, and
creating awareness. In addition to the primary retail revenue source, Aegis will
aggressively market directly to ski resorts as an option for staff uniforms.Plus,the
introduction of the ski helmet has presented a new revenue stream to the once stale
ski industry.
Aegis was predict that their companies will be able to break even in October
2006 when the first revenue are received.

CONCLUSION
Product or services that Aegis provide is the excellent thing for bring a new
ways for snowsport rider to reduces a percentage of injured when their join that
activity.Product snowsport apparel can filled up the gap of shortage of this kind of
orthopaedic product in this ski-ing industry.Aegis will get a higher profit margin
because they will produced their product by manufactured in China and India that the
place are used a lower cost fr production.

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