CIA 2

COURSE NAME- ENTREPRENEURSHIP

(MBA BATCH - 2021-23)

GUIDE – PROF. SUNIL KUMAR

REPORT

ON

BUSINESS IDEATION AND DEVELOPING BUSINESS

MODEL CANVAS

SUBMITTED

BY

Aastha Rajput

(2128032 – F6)

DECEMBER 2022
Business Idea

Banana cloth is the concept of making clothes and carpets from banana stems. The concept
originated centuries ago in Nepal and the Philippines, where people wore these clothes. The
demand for fabrics made from banana stems has gradually declined. However, the demand
for sustainable products has recently increased, and people have started looking for organic
orrecyclable products. Banana stem towels are available in India, but no specific brand has
seized the market opportunity.
My Billboard

Name Aastha Rajput

Strongest skill Adaptive

Email Address aastha.rajput@mba.christuniversity.in

Name of the Company Banana Cloth

Requirement Manufacturing Space and a Designing team

Tagline Make it greener

Problem statement Banana Stems get wasted after harvesting. Also, clothes are non-
environment

Business Idea Extracting fibre from banana Clothes and Rugs is being made

PESTLE analysis helps you understand the impact of six factors on your business in its current
aspects. The six factors are political, economic, social, technological, legal and environmental.
These factors affect each company differently. Pestle analysis also helps understand the
opportunities and threats of factors, enabling business teams to formulate strategies to
overcome/take advantage of the current situation.

Problem Statement

1. Banana stalks, after harvesting, become waste and are not disposed of properly. In most
cases, farmers burn it, leading to environmental pollution.
2. Towels expire after a certain period of use. Most materials used in fabrics are not
environmentally friendly and are not fully recyclable. Colouring dyes also cause
environmental pollution.
STP Analysis

• People who are • Do not want to buy • Focus on the

concerned about non environment advantages and green
sustainability. friendly clothes. friendly side of the
• Young generation who product.
are passionate about
trends in clothing

Segmentation Target Positioning

PESTLE Analysis

Political
Policies
and
Regulation
Economic
Growing
Environmental Disposable
Impact of Incomes
cloth Increasing Labor
Costs

PESTLE

Social
Legal
Environment
Safety friendly
Standards

Technology
Automation

Political
Includes state taxes and regulations. GST on clothing is around 5% and on branded goodsis
10%. GST is the same in all states, but there are differences. For example, Kerala imposes a2%
flood tax on products. Another important factor is how well the state/government supportsthe
business. Telangana numbers are now good for business.

Economic
The textile industry is affected by economic factors such as per capita income, national income,
resource mobilization, natural resource development, infrastructure development, capital
formation, job creation, and industrial growth.
Social
Customers are always looking for eco-friendly and sustainable clothing. Customers want
unique designs and affordable prices.

Technology
The use of technology in manufacturing, designing, colouring and packaging products is of
great importance as these variables give the product a unique appeal over its competitors.
Additionally, technology increases the degree of customization of our products. In addition,
implementation of manufacturing adjustments.

Legal
There are specific standards when manufacturing substances. This includes the number of
chemicals used and the amount harmful to humans and the environment. Specific safety
standards must be adhered to.

Environmental
These factors are based on the company's environmental contribution. This includes the carbon
footprint of fabric manufacturing. Beyond a certain level, you can reduce your carbon footprint
and become environmentally friendly. This also affects the number of by-products and resulting
waste from the plant.

Porter's five forces

The threat of New Entrants
The setup of a cloud kitchen is cost-effective; it is easy for a new rival to enter the market. It is
easyto enter the Banana Cloth making quickly for any firm. So the deciding factors will be
price,design, colouring and operation.

Bargaining Power of Suppliers

The Bargaining power of suppliers is very less as the raw material is readily available. In most
cases, the farmers want to remove the remaining part of the Banana stem after harvesting. This
will increase the profit margin cost.

Bargaining Power of Buyers

The bargaining power of Buyers is very high. The customer is the king. Customers will look
moreinto products with unique designs and affordable prices. So, the product should be
innovative.

Threat from Substitute Products

The threat of a substitute product is high. Normal clothes are abundant and available at different
price ranges. Also, there are other types of organic clothes extracted from natural fibres.
Therefore, these can cause the demand reduction for Banana cloth fibres. Consumers also may
show switching behaviour.

Rivalry among the existing players

Rivalry from the same category products is comparatively very less. The presence of banana
fibre products is very less in the market because the demand is less. But slowly, the number of
firms producing banana fibres is increasing, so it may be a threat in the future.

Business Model CANVAS

A tool to describe and assess a business model encompassing nine components:
• Customer segments
• Value propositions
• Channels
• Customer relationships
• Revenue streams
 • Key resources
• Key activities
• Key partnerships
• Cost structure.

Traditional model Vs. business model

The traditional method of banana fibre extraction was unorganized and required more time
and people. But the new model proposes a semi-automated model, but it will be completely
automated. This will largely reduce manpower and time. Usually, people used tomake this
for their own family purpose, which is less required.

The traditional model requires more staff

One primary reason is that the traditional making model needs to be more organized and
organized.In this model, people don’t have any specific job roles. They used part of most of
the role in the process of making.

Lower start-up costs

Even though the cost will be a little higher in the beginning for the machinery, it will drastically
reduce, and the cost of production will be very cheap in the future.
Higher profit margins

As the quality of the product is high and the perceived value of the product is high the profit
margin will also be very high.

Expansion opportunities
Currently, Banana Fibre clothes have higher demand in outside India and Globally
Philippines and India are the two major exporters of it. This situation can be utilized very
well tograb the market opportunity. In India, the business will mainly focus on the 2-3 Tyre 1
metro cities and later expand into all cities.