Executive Summary

STRATEGIC MANAGEMENT PLAN FOR SISSUMS PRELOVED COLLECTION
DON HONORIO VENTURA STATE UNIVERSITY
EXECUTIVE SUMMARY
This strategic management paper primarily focuses on a thorough analysis and
evaluation of the business's current situation, the findings of both internal and external
analyses, key strategy issues that emerged from these analyses, the issue-solving strategic
and financial goals, as well as the suggested tactics, which may include some action plans
to assist the strategies designed for Sissums Preloved Collection. The Sissums Preloved
Collection is an online shopping business that sells thrifted dresses through the use of social
media platforms, primarily Facebook. The products are stored at Sitio Delta Consuelo,
Macabebe, Pampanga, in the owner's house. Selling dresses such as sundresses, bodycons,
halters, maxi dresses, etc,. Products from a supplier in Manila, helps to bolster the firm to
enter its position in the thrift clothing industry, earning profitability by providing the best
outfit that every customer will love, and the buyer will surely come back because of the
quality and uniqueness of the products.
Over the years, Sissums Preloved Collection has gained their expected return on
investment from P 25,000.00 of investment cost to P864,324.00 gains. Sissums Preloved
Collection continues to be dedicated to fostering the development of the shop’s
profitability. Prior to this, the business's current performance is not parallel to what the
owner expects as their revenue is too low compared to the expected revenue to be earned.
Conductors of the study used a descriptive research design to analyze the strategic
management ideals and marketing strategy of the Sissums Preloved Collection. Thorough
research and data gathering were done to come up with necessary information that is
needed in the study.
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The researchers also suggested possible strategies that the firm may use to improve
their profitability and sustainability. There are different matrices that were utilized by the
researchers to produce accurate information. Among them, the Strength, Weaknesses,
Opportunities and Threats (SWOT) Analysis, was the foundation and the major contributor
of data. The five forces are included to analyze where they need to put attention onto. The
Grand Strategy also played a huge part in determining what possible objectives and
strategies may be implemented to further develop the company with the SPATRES
structure.
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INDUSTRY ANALYSIS
I. Background of the Business
Sissums Preloved Collection is an online shopping business that sells thrifted
dresses such as sundresses, bodycons, halters, maxi dresses, etc. through the use of social
media platforms, primarily Facebook. Before the business sold only dresses, they offered
different varieties of clothes like tops, polo shirts, trousers, pants, jackets, skirts, and shorts.
Sort of thrifted and overruns clothes.
The Sissums Preloved Collection was established on May 18, 2018. The founder
of this clothing business is a big fan of a famous designer, Albert Andrada, and she is just
a simple woman who dreams to be a designer of her own clothing business. It is owned by
Mrs. Les Lee Bautista-Versosa, a freelancer and former employee of a BPO company;
according to her, this is one of her dreams to have her own business and to become a
designer, and she has promised herself that she will make her dream a reality. She started
her business by decluttering clothes, and through social media platforms, she sells her
clothes at affordable prices.
As the day passed, she did not expect that her decluttered clothes would be loved
by many people. After a year of saving money, she got to build her own online shopping
business and name it "Sissums Preloved Collection." She chose this kind of business
because it was also the dream of his mother. They truly loved fashion because they believe
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Sissums Preloved Collection is just an online shopping business, where customers
can buy their products through an online platform. Although the business doesn't have a
physical store to visit, it is located at Sitio Delta Consuelo, Macabebe, Pampanga, in the
owner's house, where the products are stored. That is why the firm only permits walk-ins
to look over the products and make early reservations or purchases, allowing the buyer to
personally select the best-fitting garments for them. Sissums Preloved Collection got their
products from a supplier in Manila, which is a close friend. The owner can go to the factory
or walk in to personally see the dresses. It is not unusual to bale or bundle when we are
referring to thrifted clothes. The products are literally hand-picked by the owner for the
best fit and best quality to sustain the satisfaction of the consumers.
Buyers may select their dress directly from the seller's home in order to make an
early reservation or purchase it immediately. Customers can order their parcels via the
business's Facebook page, and the seller will complete the transaction with the logistic
partners, and the buyer will successfully receive the purchase within a few days.
Sissums' Preloved Collection was designed to protect and comfort the human body.
Clothes are also used as items of decoration and fashion. These products come from
different fabrics like cotton, chiffon, velvet, etc. Sissums Professional Clothes is also
known for its classy and unique designs, even though they are second-hand products. The
owner handpicks the dresses because they want to give potential customers the best outfit
that every customer will love, and the buyer will surely come back because of the quality
and uniqueness of the products and the fastest and safest process of this business. It is easy
and comfy to wear, easy on the pocket, and just right for any occasion.
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II. Nature of Business
Sissums Preloved Collection is a sole proprietorship in the retail merchandising
business that sells an array of clothing dresses, including long, midi, fitted, revealing, and
so on. The shop offered a lovely selection of dresses for women ranging from affordable
prices to really appealing stylish designs that would pique the interest of buyers. Women
are likely to purchase garments that catch their attention, which is why Sissum Preloved
Collection may offer things that will delight customers.
Sissums Preloved Collection leverages social media platform Facebook to display
their products, saving both the customer and the retailer time. Other information easily
obtained on the company's Facebook page that will save consumption time in researching
information. The company ensures that their products are secure before delivery and assists
customers in tracking their packages.
Even if Sissums Preloved Collection is a small business, it contributes to the
economy by enhancing productivity by allowing enterprises to produce more output, make
more revenue, and eventually generate more GDP. Because it sells its items in an advanced
manner, it also encourages innovation and drives improved shopping experiences.
The organization does not have a physical store and operates only from the owner's
home, which benefits the environment. Additionally, purchasing things online minimizes
the need for the consumer to drive or travel to the store, which helps the environment by
lowering carbon emissions.
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A.
B. Review of Related Literature
1. Sole Proprietorship
Gabriel Lip (2023) describes a sole proprietor as an unincorporated
business that one person owns and manages. It is also known as individual
entrepreneurship, sole trader, or simply proprietorship. The business owner,
also known as a proprietor or a trader, conducts business using their legal
name. As such, a 'Sole Proprietorship' company organization is one that is
fully owned, managed, and controlled by a single individual with complete
power, responsibility, and risk. According to Ashmore, M. Catherine, &
Pritz, Sandra G. (1983), sole proprietorships are a form of business
organization where one person is the sole owner of the business, usually
with the help of a few employees and family members. They usually operate
with limited resources and exist in a variety of businesses (p.5). In line with
Kyle Peterdy (2023), sole proprietorship type of business is the easiest and
cheapest form to start. For this reason, it is common among small
businesses, freelancers, and other self-employed individuals. Although sole
proprietorships are free of government laws and have a simple
organizational structure, they might be dangerous. With a sole
proprietorship, you also do not need to fill out a tremendous amount of
paperwork, such as registering with your state. You may need to obtain a
license or permit, depending on your state and type of business.
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2. E-commerce Business
Electronic commerce is a relatively new concept that crept into the
business vocabulary during the 1970s. A picture of electronic commerce is
emerging in which the internet will become the essential dial-tone for
conducting business by the year 2000 (Rolf T. Wigand, 2006). The internet
retail landscape is again transforming with the advent of mobile commerce
(m-commerce), the buying and selling of goods and services through
wireless handheld devices such as smartphones and tablets. This puts
shopping literally at consumers’ fingertips while creating unprecedented
opportunities for businesses and signaling a new era of growth in online
retailing (Jong Woo Kang et al., 2021). According to Jenn Vande Zande
(2023), e-commerce is the buying and selling of goods or services via the
internet, and the transfer of money and data to complete the sales. It’s also
known as electronic commerce or internet commerce. E-commerce is
powered by the internet. Customers access an online store to browse
through and place orders for products or services via their own devices (Ben
Lutkevich et al., 2022). Vladimir Zwass (2023) stated that e-commerce, in
full electronic commerce, maintaining relationships and conducting
business transactions that include selling information, services, and goods
by means of computer telecommunications networks.
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Modern electronic commerce typically uses the World Wide Web at
least at one point in the transaction's life-cycle, although it may encompass
a wider range of technologies such as e-mail, mobile devices, social media,
and telephones as well (Saimunur Rahman, 2014).
3. Situations with E-commerce in Philippines
The e-commerce market in the Philippines posted continuous
growth in recent years (Statista Research Department, 2022). As mentioned
on Lokal as of the latest statistics of January 2021 and based on 2020 data
(as cited by Hootsuite and We Are Social, 2021), 38.88 million Filipinos
purchased goods via the internet, amounting to up to $3.55 billion with an
annual growth of +42.5%. The increasing use of mobile phones in the region
has given a major push to E-commerce platforms, as mobile phones and
Apps provider one of the easiest access to these platforms. According to
data from GSMA Intelligence (2022) the Philippines had around 156.5
million active mobile connections, indicating considerable potential in
utilizing the reach offered by the mobile apps of the E-commerce platforms.
One of the major issues preventing E-commerce platforms from flourishing
in the Philippines is slow internet speed.
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According to the global ranking by Speedtest Global Index for July 2022, the
Philippines ranked 84 with a median mobile internet download speed of 22.56 Mbps and
46 with a median fixed broadband internet downloading speed of 75.62 Mbps (Mordor
Intelligence 2022).
III. Current Revenue and Profit
Figure 1. Financial Performance of the organization from 2018 to April 2023.
Sissums Preloved Collection's estimated revenue is approximately ₱150,000 to
₱350,000 per year; based on the percentage of their products sold per month and year, it is
much lower as it is running for the whole 12 months. From 2018 to 2023, the revenue has
been low due to the decreasing number of sales of their product.
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Moreover, according to the owner, they tend to sell less than 60 and not more than
80 pieces of thrift dresses per month, with prices ranging from ₱250 to ₱350, which will
lead to approximately ₱5,000 to ₱30,000 in revenue per month, not meeting their expected
or target volume of sales of 100 to 150 pieces of products per month.
However, according to the owner, the sales are sometimes different per month, so
the revenue is also different from the previous and current month or year, but, according to
her, the revenue is low as they have expenses of up to ₱100,000 plus per year to record
minus the revenue earned to compute the overall profit of the business.
In addition, in the succeeding years, the revenue has been low compared to the
previous years, which is significant for having a low profit over the current year.
Nonetheless, over the past 5 and a half years of operation, the business has earned an
estimated revenue of approximately ₱800,000 plus, which is considered low given that the
business has been in operation for nearly 6 years.
Figure 2. Current Revenue of Sissums Preloved Collection (January-April 2023)

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Sissum's Preloved Collection's current revenue is approximately ₱64,000 during
the last four (4) months, counting January to April of the year 2023 (current year).
Moreover, the revenue earned for the period of four months has been estimated at up to
₱105,000 which will lead to approximately ₱20,000–₱25,000 per month; however, there
are expenses that will be deducted from the total revenue earned per month. According to
the owner, these are the operating expenses the business has incurred for the past operating
months: salaries expense ₱10,000, utilities expense ₱6,000, supplies expense ₱20,000, and
other expenses ₱5,000, which will lead to a total of ₱41,000.
Thus, revenue earned during the four months, ₱105,000 less the operating expenses
incurred, ₱41,000 which will lead to a current net profit of ₱64,000. On the other hand,
Sissum's pre-owned collection's current performance may lead to the conclusion that the
business is not gaining enough revenue for the past months of the current year. As
indicated, the net profit of the current year has been approximately ₱64,000, which
concludes that the business performance and revenue are not on good terms as the business
has been running for the past months and has only acquired a total of ₱64,000 after
recording all the expenses incurred. Prior to this, the business also has expenses to record,
so to sum it up, the business's current performance is not parallel to what the owner expects
as their revenue is too low compared to the expected revenue to be earned.
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IV. Major Markets Served
A. Target Market
As explained by Danielle Smyth (2021), the target market is the group of
consumers whom you are trying to target while marketing your product or service.
Target market is a specified group of people to whom the business is trying to offer
the products or services of the seller. Normally, Sissums is a thrift shop in social
media whose target market are females; students, teenagers, adults, in the sense that
they offer a different variety of dresses, long dresses, fitted, revealing, and more.
When the business started it became popular especially to the eyes of female
consumers, that is why they focus more on dresses. The clothes that the business
offers are pre-loved, which is why even students can afford it.
As an individual we go along on what is trend, for example, women are
more fond of clothes as we scan our environment. The business goes along with
what is the trend in the eyes of their consumers, they consider the consumer wants
to sustain their satisfaction. When the firm first got off the starting line, they
concentrated on local customers who were already aware of its existence. However,
one of their objectives is to increase the visibility of their company over time using
social media platforms in order to attract more potential customers. The researchers
identify the target market of the Sissums Preloved Collection by using the
segmentation factors. Using demographics, it is possible to organize people
according to shared traits.
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Sissums Preloved Collection target market are women who are at age of 15
to 50 years olds, financially stable and able to buy their products, and
notwithstanding the ethnicity of the buyer. The geographical segmentation is also
used to develop the target market of the business. The targeted customers are
located at the Sitio Delta Consuelo Macabebe, Pampanga, a small urban area which
has a population density of 2669 at the year 2022 – 900 boys and 1769 number of
girls specifically. The seller is also proficient in what the consumers are thinking,
she is concerned with the people who are willing to buy their products, those who
actively use social media to look for products, and boys who are lovely to buy gifts
for their mother, sister, wife or girlfriend. The targeted consumers are also those
who are fond of the dresses that fit into different categories, and have an attitude of
wearing dresses all the time that helps them feel pretty, feminine, and makes
everyday a little special.
In conclusion, 15-50 year old girls are the target market, equivalent to 18%
of women in Sitio Delta Macabebe, Pampanga. Based on the data provided it has
1769 women in the area, so 18% ranging 15 to 50 years olds are 315 women. In
addition, those men who are most likely to buy dresses for gifts are presumably 50
people, so 6% of men are the estimated customers in the said area. By expanding
the range of their social media platform to which it can reach the eyes of the target
customer, it will help the business to raise their productivity in offering their
products.
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Last two years when the pandemic started the business was enjoyed even
more by the consumers, because online shopping became the companion of the
people, this is the start of having an increase of income in the business. In addition,
it became more famous when they were posting their products online, primarily
Facebook. At the end of the pandemic the number of consumers decreased in the
sense that we can now go out and people nowadays much prefer to go to a physical
store to buy clothes.
Figure 3. Gender Population of Sitio Delta, Consuelo, Macabebe, Pampanga
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Figure 4. Age Group of Women in Sitio Delta, Consuelo, Macabebe,

Pampanga
Figure 5. Population Growth of Sitio Delta, Consuelo, Macabebe, Pampa
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B. Current Consumer
Since the beginning of the business until this year, their buyers have
remained consistent, with a focus on female consumers. Females are
increasingly buying online, and this pattern will probably persist as the
pandemic is one of the reasons why many consumers are encouraged to do
so due to the convenience and low prices.
V. Number of Employees
A. Organizational Structure
● Owner – Mrs. Versosa is the owner and who built this business, she built
this business together with her strategy in mind and to fulfill her dream to
have her own boutique. She is the one who is responsible for the transaction
with their supplier, selling or posting in social media, and responsible for
listing orders.
● Employee – Ms. Manansala is the only employee of this organization, she
is responsible for ironing the clothes, taking pictures, packing orders and
other stuff.
Figure 6. Organizational Chart of Sissums Preloved Collection
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VI. Other Relevant Information
A. Objectives
● To stand out from the competition by adopting sustainable marketing tactics
and strategies.
● To please clients by offering quality products in accordance with their
preferences and current fashion.
● To enhance visibility as one of the greatest thrift/clothing shops, to build
brand loyalty among both current and new customers.
● To elevate an ambassador to the position of a spokesperson of the
organization's objectives, one aims to create a community that is accessible
through the people.
B. Internal and External Scanning
The thrift shop is a sole proprietorship owned by Mrs. Les Lee Bautista-
Versosa at Consuelo, Macabebe, Pampanga. The aforementioned shop has one
employee that assists the owner in marketing their product. Because the owner lives
in a barrio and does not have easy access to clients, she relies on online visibility to
gain and retain customers from afar. It currently does not have a physical store and
relies entirely on online sales. Competition is one of the factors that affect the
business situation.
The firm, in order to captivate the consumers, needs to keep up to the
strategic moves of the other firm, for example, increasing or decreasing the prices
of their product.
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As we all know there is an increasing number of businesses starting to take
place in the market. Businesses shift their products strategically in accordance to
the customers' wants at a current period. For example selling clothes that are fitted
to summer season, or clothes that are suitable for chilly weather.
C. PESTEL Analysis
Economic: Low income of consumers. Nowadays, people spend their
money in a lot of ways, including on essentials like monthly bills and groceries
and sometimes their income is not enough to buy what they want. Because of
this, many customers choose not to purchase clothing—not because they dislike
it, but rather because their necessities come before their wants.
Socio Cultural: Society’s fashion. Humans tend to dress based on what they
observe in their surroundings, such as what is fashionable and what suits them
well. We see that many teens, especially lately, dress based on what they see
online and what is popular.
Technological: Online selling. Numerous online sellers have begun
selling their various goods online this year, particularly since the beginning of
pandemic. This kind of sales tactic may have an impact on the sales of the
business, and it may also make online shopping more accessible and convenient
for others as it reduces the need to leave your busy day to go shopping for
clothing.
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Environmental: Use of transportation. Because the company owner needs to

use a lot of transportation to obtain the goods she is going to sell, transferring things uses
a lot of gas. It may have an impact on our environment as well as it may have an impact
on the air we breathe, resulting in air pollution.
D. COMPETITORS
Due to the fact that it is currently the only thrift store in the barrio and the
area is not fully urbanized, it does not currently have any neighboring competitors
from a geographic standpoint. But because of the size of the market and the
expansion of clothing lines, and if we look at the internet platform, we can claim
that the thrift store has many competitors.
E. PRICING STRATEGIES
A pricing strategy is a technique used by an entity to competitively position
its items in the market. According to the owner of the Sissum Preloved Collection,
their pricing is based on the original cost of products from the supplier, adding a
small amount of percentage to have their profit. They refrain from adopting a low-
cost strategy because their items are of high quality and fulfill the cost value. The
floor price of the goods is ₱150, and the market's highest price is ₱350.
F. CURRENT SITUATION
Sissums Pre-loved Collection is now experiencing serious challenges as an
outcome of their current condition, which includes an overall decrease in sales and
a consequent reduction in staff.
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The firm could not handle the quantity of customers before when the
business was starting to grow with just two to three staff, so they had six employees
in addition to the owner at the start of the pandemic. As time goes on, the firm
similarly experiences losses and progressively removes workers in the sense that
the business can no longer make enough money to cover their salary. The owner is
a freelancer and a full-time mother to her kids, that is why the Facebook page of
their business is lacking advertisement and not giving their much attention to the
business.
G. STRATEGIC PLANS
They do not have a tried-and-true strategic plan because they are a small-
time business. It appears that they simply casually upload photos of their products
to online platforms to enable social media influence buyers. Additionally, they
haven't made any attempts to diversify their business outside their one major
product.
H. SWOT ANALYSIS
A SWOT analysis is a strategic planning tool used to identify the Strengths,
Weaknesses, Opportunities, and Threats of a business or organization. It is a
structured approach to evaluate the internal and external factors that can impact the
success or failure of a project, business, or organization.
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SWOT Analysis composed four sectors that needed to be thoroughly
studied. First is the strengths which are the positive internal factors that a business
or organization possesses. They include unique resources, skills, or assets that give
an advantage over competitors.
Another factor is the weaknesses which focus on negative internal factors
that a business or organization possesses. They can include limitations in resources,
skills, or assets that put the business at a disadvantage compared to competitors.
Second to the last is the business opportunities. These are external factors that can
positively impact a business or organization. They can include trends in the market,
emerging technologies, or changes in consumer behavior that can be leveraged to
create new opportunities.
Lastly is the threats to the business, which are the external factors that can
negatively impact a business or organization. They can include economic
conditions, changes in regulations, or the emergence of new competitors that can
threaten the success of the business.
By conducting a SWOT analysis, a business or organization can gain insight
into its internal and external factors that can influence its success. This information
can then be used to develop strategies and action plans to leverage strengths,
mitigate weaknesses, capitalize on opportunities, and mitigate threats.
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Strength
A variety of clothing styles at reasonable prices. The thrift shop has a wide
variety of dresses offered to the market. This became their strength because they
have a greater appeal to a wider customer base. Offering a variety of clothing styles
at reasonable prices attract a diverse range of customers with different tastes and
budgets. This helps the business to increase the customer base and generate more
sales for the business. They were also able to have a competitive advantage to other
clothing businesses. In a competitive market, offering a variety of clothing styles at
reasonable prices gives the business a competitive edge. Customers are more likely
to choose a brand that offers a wide range of styles at affordable prices compared
to a brand that offers limited styles at higher prices. Also, by offering reasonable
prices for a variety of clothing styles, they were able to sell more units, resulting in
increased sales volume and revenue for the business.
Figure 7. Clothes for sale that can be seen on their Facebook page.
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Weaknesses
Lacks brand recognition and market exposure. In a crowded market, a
clothing business needs to stand out to be successful. In this thrift shop business,
they only have a mere internet exposure and are having a hard time establishing a
name in their community because they don’t have a physical store.
Without strong brand recognition and market exposure, it can be difficult
for the business to differentiate itself from competitors. Overall, lack of brand
recognition and market exposure is a weakness for a clothing business as it can
limit customer base, differentiation, distribution channels, investment
opportunities, and pricing power. A clothing business needs to invest in building
brand recognition and market exposure to overcome this weakness and achieve
long-term success.
Figure 8. Facebook page of Sissums Preloved Collection
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Figure 9. Location of the house where the products are located.
Opportunities
A broader range of target markets through utilizing online platforms. The
pandemic lockdown has contributed to the expansion of online commerce. During
the epidemic year, the e-commerce platforms for clothes brands remained lucrative
(International Trade Administration: Philippine on E-commerce, 2022).
Expanding the target market through online platforms can be a significant
opportunity for a clothing business for several reasons (Christina Newberry, 2022):
One is the increase in market reach. Online platforms have a global reach and
enable clothing businesses to target a broader audience that would not have been
accessible through traditional brick-and-mortar stores.
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With online platforms, businesses can reach potential customers in different
geographical locations, allowing them to expand their customer base and
potentially increase sales.
Online platforms offer a cost-effective way to reach a broader audience.
With lower overhead costs compared to traditional brick-and-mortar stores,
clothing businesses can sell products at more competitive prices, making them more
appealing to a wider range of customers. They also enable clothing businesses to
personalize their marketing strategies to specific target markets. By analyzing
customer data, businesses can identify and understand their target audience's needs,
preferences, and purchasing habits, allowing them to tailor their product offerings
and marketing messages accordingly. Lastly, online platforms offer convenience to
customers who can browse and shop from the comfort of their own homes at any
time of the day.
This is particularly attractive to customers who may not have the time to
visit physical stores or who live in remote areas. In summary, expanding the target
market through online platforms provides clothing businesses with increased reach,
cost-effectiveness, personalization, and convenience. As a result, online platforms
offer a significant opportunity for clothing businesses to grow their customer base
and increase sales.
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Figure 10. A study conducted by International Trade Administration
Threats
Expanding rage of clothing e-commerce in the economy and the changes in
fashion trends. The fashion industry is extremely competitive and that no clothing
business has any influence over it due to the constantly shifting fashion trends. All
they need to do is stay up with the most recent fashion trend.
The organization’s expansion and success may be threatened by shifting
fashion trends. No matter how secure your position is in the industry, if you aren't
prepared for the new trends, you will lose market share. It would be really difficult
for you to compete with some of the established fashion labels that are already
fierce competitors in the market. With the rise of e-commerce, more and more
clothing businesses are shifting their focus online, resulting in increased
competition. This can make it difficult for smaller businesses, like the thrift shop,
to compete with larger, more established brands and attract customers.
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BUSINESS PROFILE
I. Day-to-day Operation
Sissum's Preloved Collection is a sole proprietorship type of business where
the owner is the one who is responsible for the transaction with their supplier,
posting on social media, and listing others. The owner had hired a total of six
employees before, but when the pandemic went away and they went under, she laid
them off and left only one employee who is flexible, effective, and efficient in
performing her task. The employee is responsible for ironing the clothes, taking
pictures, packing and ordering, and other stuff. The business operation starts at 8:00
AM and ends at 4:00 PM. As we all know, the standard total work hour is eight
hours, and the day-to-day operation of the business is accomplished at the owner's
house. But sometimes, when their sales increase and they receive a lot of inquiries,
it exceeds the end time of operation. The organization operates from Sunday
afternoon 3:00 to 5:00 PM and Monday to Friday from 8:00 AM to 4:00 PM.
Sunday is the posting of the collection that the business sells. Monday is when the
confirmation of orders after posting the dresses they sell. Tuesday to Wednesday,
sending invoices to get their information, including name, address, contact
information, etc., and also waiting for the payments of the customers before
shipping their orders. Friday, they do packing of orders that are ready for shipment
with the logistics partners.
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The business has a day off which is Saturday, this the only day that the
owner can spend time with her family, and they usually go to church every
Saturday. Further, the business does overtime when they sell all the dresses they
post, which usually range from 250 to 300 plus dresses every Sunday afternoon.
Every hour of overtime worked by the employees will be compensated by the
employer. According to the owner, for every hour worked, the equivalent
compensation is 100 pesos, and usually they work overtime up to 3 hours.
II. Benefits given to:
Customers
The merchandise offered by Sissums Preloved Collection offers customers
the best solution to their endless wardrobe conundrum. The online shopping
business sells thrifted dresses such as sundresses, bodycons, halters, maxi dresses,
etc. that are an absolute fashion staple, a must-have in a modern woman’s wardrobe.
As mentioned by Carley Smith (2022), a lot more stock is also available, so you
can always acquire the size and color you choose. Even out-of-stock items can be
ordered from some internet retailers, who will ship them as more inventory
becomes available. Dresses in the firm ooze elegance and give a classic touch to
beauty. The products are always trendy and stylish, available in different designs,
colors, layers, patterns that can accentuate the perfect bits, hence adding more grace
to a woman's look in any occasion.
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Sissums Preloved Collection strives to bring forth goods that are both
appealing to customers and up to their expectations. By providing the best service
in the industry and on-time delivery of the goods, the company will further acquire
the confidence of its customers.
It is also convenient for the customers to buy products in Sissums Preloved
Collection as it provides service via online. As stated by ANAMIKA S JAIN
(2023), there are no lines to wait in or cashiers to track down to help you with your
purchases, and you can do your shopping in minutes. Online shops give us the
opportunity to shop 24/7 and also reward us with a 'no pollution' shopping
experience. Buyers can choose and purchase the dresses they adore, avoiding trips
to the offline store and the potential time and hassle costs.
General Public
The Sissums also have a benefit to the general public, especially when
customers spend money on the products, which raises GDP and boosts employment
rates that are advantageous to society as a whole. According to data from the
Philippine Department of Trade and Industry (DTI), e-commerce contributed 3.4%,
or US$12 billion (PHP599 billion), to the country’s GDP in 2020 (Aineena Hani,
2021). When the firm invests more for the development of new products or for
business expansion, the economy grows, a rise in GDP is viewed as evidence of a
healthy economy.
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When the GDP increases, suppliers will be prompted to hire more workers
for their factories, which results in more money for workers. Based on News
Release (2023), the country’s unemployment rate improved to 4.8% in January
2023 from 6.4% in the same period a year earlier, even lower than pre-pandemic
levels.
III. Background of the Business
The Sissums Preloved Collection is an online shopping business owned by
Mrs. Les Lee Bautista-Versosa, which was established on May 18, 2018. The
business is just an online shop where products can be bought through an online
platform, specifically Facebook, and does not have any physical store; it is located
at Sitio Delta Consuelo, Macabebe, Pampanga, where the owner's house is located
and where the products are stored. Moreover, since the business is an online
business, it does not have any branches yet, and only they tend to sell products
through the use of social media and posting on Facebook with their Facebook page,
namely, SISSUMS PH. Buyers can easily access and view the Facebook page at
https://www.facebook.com/SissumsPrelovedCollection, where all products are
posted and listed. In addition, they do have an email address to be associated with:
sissumspreloved.col@gmail.com. Also, the business has a contact number to be
reached at: 0915-871-8117.
Where further information on how to buy the products is listed. The figure
below shows Sissum's Preloved Collection Facebook page.
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Figure 11: Sissums Preloved Collection Facebook Page
IV. External Environment Scanning
According to Alayna Wood (2022), A PESTLE analysis examines external
market factors – including Political, Economic, Social, Technological, Legal, and
Environmental – and market trends that might impact your organization’s direction,
performance, and position in the marketplace. This can assist the organization in
having an overview or understanding of the potential risks, opportunities, and
organizational strengths that the organization must preserve, as well as being
knowledgeable of what the organization needs to do.
Political factors are the regulations and policies established by the
government for our country that we must obey, whereas economic elements
represent our current economic performance. While socio-cultural elements include
cultural trends and demographic characteristics (age, gender, and so on), technical
factors include technology advances in all businesses.
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Environmental factors are the natural impacts of your business on the
environment, while legal factors are regulations and laws that have a direct impact
on your business while it is operating.
This PESTEL analysis is an excellent tool for analyzing the present situation
and what potential problems a business may face in the future. This will offer the
firm a strong and competitive edge since the business is prepared for any type of
crisis that it may face in the future. PESTEL analysis is not only a useful tool, but
it is also essential to the success of every firm.
Political
According to Marcio M. (2016), the political environment can impact
business organizations in many ways. It could add a risk factor and lead to a major
loss. An example of political factor is, Republic Act No. 4653 (1966) "An act to
safeguard the health of the people and maintain the dignity of the nation by
declaring it. A national policy to prohibit the commercial importation of Textile
articles commonly known as used clothing and rags." To safeguard the public's
health, this legislation prohibits the importing of "textile articles commonly known
as used clothing and rags" for commercial use. However, Sissums is not breaking
the law in this situation because it is only getting products within the country, not
in the foreign country. Since the firm is a secondhand or thrift store, it will be
necessary to export items from Manila; the rule prohibiting the importing of textiles
has no bearing on the operation.
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Businesses nowadays are also involved in this type of industry, which is
selling worn or pre-loved apparel, and many of them get their things from overseas.
In that instance, our exchange rates may suffer as a result.
More imports than exports might also result in more money leaving our
nation, less employment for the people of our nation, and less output because we
are obtaining things from other countries, also limiting our country's revenue.
Sissums are obtaining their things inside the nation, which is having a beneficial
influence on our country, particularly by starting a new business. Of course, starting
a business implies having more employment to provide, and in this situation, the
more jobs we can offer, the more money flowing in our country. The company is
not violating the law in our country, but it helps the government in increasing the
amount of money available to its residents.
Economic
This is the overall performance of the economy, beginning with the level of
inflation, the rate of interest, expansion of the economy, and demand and supply
movements. Rising the prices of every commodity, particularly the necessities for
our own survival, is a major issue for our country. It can also have an impact on our
economic growth; having an inflation rate as our population grows is one of the
difficulties we cannot control. As more enterprises emerge, the difficulties caused
by economic considerations can be addressed, but not fully.
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Nowadays, individuals spend their money in a variety of ways, including
on necessities like groceries and monthly payments, and occasionally their income
is insufficient to allow them to purchase all they desire.
As mentioned by Ferrolino (2019), consumer spending has traditionally
been the driving force behind the growth of the Philippine economy in recent years,
with households contributing the majority of aggregate expenditures. As a result, a
lot of people decide against buying clothing—not because they dislike it, but rather
because their needs take priority over what they would like.
Sissums offers its products at a price that its customers can afford, and
because our country's population is growing, we need to provide fundamental
necessities for its residents, one of which is clothes, and this business can meet
those demands. The business buys its products in bulk to reduce costs, so that the
supply that the business has can serve the community where its business or home
location is located.
Socio Cultural
As stated in CEOpedia (2023), social and cultural factors affecting business
include belief systems and practices, customs, traditions and behaviors of all people
in a given country, fashion trends and market activities influencing actions and
decisions. People often choose their clothing depending on what they see around
them, such as what is fashionable and what looks well on them. Teenagers often
dress depending on what they see online and what is fashionable, especially
recently.
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As one of the key external factors, sociocultural factors have been
contributing to determining the suitability of a business's products and services for
its customers' demands and needs: consumers' lifestyles, buying habits, education,
beliefs, demographics, social classes, sexuality, and attitudes. have been seen to be
one of the leading reasons why social and cultural factors should be considered and
identified in order to help the organization use them as a range in different scenarios
for improving and analyzing their business itself and as they can guide people,
especially the owner of a business, to create strategic decision-making.
Moreover, consumers' lifestyles and society's buying habits for fashion have
been significantly affected by how the buying behaviors of customers may certainly
differ. As Sissums Preloved Collection is only engaged in the thrift business type
of business and the products they offer may significantly only be for women, it has
been seen as one of the leading problems when it comes to analyzing the socio-
cultural factors of its business, which must be considered as one of the influencing
actions and decisions on how their potential customers may act. As stated above,
society's fashion on teenagers often depends on their behaviors, which seem to
depend on what they see online and all, so as this relation with the sissums preloved
collection, it will be evident that buying behaviors such as the lifestyles, beliefs,
and practices on fashion trends of teenagers, especially women, influence how they
will impact the business in a way of will they buy, how they buy, and does the
business provide their demands as their preferences on fashion, which are
nowadays relevant and high.
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Technological
These refer to how new advances in technology and equipment can affect
the way a business works, delivers its services and reaches particular markets, as
stated by Indeed Editorial Team (2022). This year, especially since the start of the
epidemic, many internet sellers have started selling their varied goods online. As it
eliminates the need to take time out of your busy day to go shopping for clothes,
this sort of sales approach may have an effect on the company's sales as well as
increase the accessibility and convenience of online shopping for others.
Nowadays, technology in business has significantly affected and
contributed to how businesses run and operate. It is definitely helping every
business operate; it helps increase the efficiency of systems, products, and services.
For online businesses, technology has been significantly helpful, as online selling
is indeed relevant nowadays. In fact,online selling helps to track and streamline
processes, as it can also enhance the management of contacts and employee records.
Also, through this type of technology, it increases the efficiency of operations and
makes them easier and more accessible.
Technological factors, including online selling under e-commerce, affect
how an organization operates, sells its products, interacts with, and gathers
intelligence on customers, suppliers, and also competitors.
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Thus, it is indeed contributing to how buyers and sellers may interact
digitally and in an easy way through a transaction.
Furthermore, online selling has been one of the key factors in Sissum's
Preloved Collection's ability to promote and sell its products in the market. This
approach has helped the business have increased accessibility and a more
convenient way of selling products to their potential customers. However,
analyzing this technological factor of the business may simply reveal some various
effects on the business itself, as there are instances of disadvantages to online
business. Moreover, when deeply analyzing this technological factor, it is indeed
visible how it affects Sissum's preloved collection in many ways.
Since the pandemic, this online set-up of selling has contributed to the
business in more ways than just that they tend to sell in the fastest way of transacting
with their customers; understanding this technological factor has also helped the
business identify the strategies put forward by technology, such as production
technology, which helps the production of products be accessible in a more
consistent way through technology.
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Environmental
As indicated by Ismael Moya-Clemente, Gabriela Ribes-Giner, and Odette
Pantoja-Díaz (2020), this implied that environmental factors strongly influenced
sustainable entrepreneurship over time than economic factors. Delivering items
requires a lot of gas since the business owner needs to use a lot of transportation to
get the products she will sell, also when delivering the goods to the buyer with the
logistics partners. Air pollution might come from it, which could have an effect on
both our environment and the air we breathe.
The business uses plastic instead of paper bags for safety delivery that make
the business less eco-friendly. But, eventually the company can enhance those
strategies by doing or using different analyses for improvement and betterment.
Conversely, As we move forward into a modern world where technology
and the use of the internet are the new trends, online shopping and selling are one
of the current businesses that are growing faster. However, online selling, as an
example, does affect the environment because of the items it sells. The environment
is prone to flooding when a natural calamity like a typhoon hits our country.
Thus, items like clothes in an online selling business can be a driving force
for a flood or flash flood to be more severe and have a high impact on people. For
instance, when the clothes that are old and tattered can't be sold and are put in the
trash, when they stack up, they can cause blockages.
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Furthermore, when this happens and an unexpected typhoon occurs, it can
cause flash floods or flooding. On the other hand, if these clothes are not sold, they
can be recycled as waste cloth or donated at the foundation's drive, where those in
need can use them. It will not just help the environment not be damaged but also
help other people who are in need.
Legal
Legal factors in a business environment are defined as law-related issues
and proceedings that the owner of a business must consider in order to run the
business seamlessly (Ireland, 2021).
Legal analysis plays a very important role in determining the success of any
business in the market. When a business enters a market, it must face different rules
and regulations that affect the company and its surroundings. There are laws that a
company must be aware of. Sissums Preloved Collections should comply with all
legal requirements in order for the business to continue its operations. Such as
paying tax, licensing and permitting, labor employment, privacy, etc., these are
some guidelines that a business must know to be a reliable organization that exists
without disobeying the laws. Therefore, with the compliance of the business with
legal requirements, it will help to maintain a strong market position and a good
relationship with the government, which can have an impact on the company.
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Also, the employee must be compensated properly and equally, have a safe
workplace, and be treated as family or a friend. Having a background in the
different laws in the business industry will help the company itself to encounter
conflicts legally and reduce the possibility of making illegal acts that are contrary
to the law, because those illegal acts can change the image of the business, which
may affect its ability to attract potential customers.
Additionally, One of the governing rules in a business is employment law.
We are all aware of the increasing unemployment rate in the Philippines. That is
why starting a new business in the country we live in is like giving others a chance
to get a job, helping to reduce the number of jobless people here in our country.
One of the businesses that can provide a possibility for others to have a work
is Sissums which is a thrift shop. It can also be possible to have this job as a part
time job while attending school for some working students
V. Competitors
Any individual or organization that works in the same or a related industry
or that provides customers with a comparable service or benefit is a competitor.
Due to price competition among competitors as they compete for market share by
dropping prices more than their rivals, the presence of competitors makes the
market competitive, resulting in reduced prices and profit margins for goods and
services (MBA Skool Team, 2020).
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Sissum's Preloved Collection presently has no nearby rivals from a business
standpoint because it is the only thrift store in the neighborhood and the area is not
fully developed from a geographic perspective.
But given the scale of the market competition and the growth of the clothing
industry by utilizing the internet platform, it may be asserted that the secondhand
store is surrounded by rivals. Online business covers a broad range of business
industries and may encounter direct or indirect competitors.
The fact that the business doesn't have a physical store and the only store
they have is on the internet, which is their Facebook page, creates intense
competition when the business is in the line of online platforms or is using
intermediaries because most businesses are using these strategies that are very
convenient for their customers.
Nowadays, using online platforms in business is a popular trend, and
customers are more prepared to shop online than they are to visit a physical store
to check out products.
VI. Opportunities
A broader range of target markets through intermediaries. Clothing
businesses can reach a wider audience through online platforms, which have a
global reach and are more accessible than physical storefronts. With the help of
internet platforms, businesses may connect with potential clients in a variety of
areas, expanding their customer base and perhaps even raising revenues. A less
expensive option to reach a larger audience is through online channels.
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Clothing businesses can sell their goods at more competitive prices since
they have lower overhead costs than typical traditional stores, which makes them
more appealing to a wider array of customers. They also give apparel companies
the ability to tailor their marketing campaigns to particular target audiences.
Customers who can use internet platforms benefit from their convenience.
At any time of day, people may explore and surf the online shop while in
their homes. Customers who might not have the time to visit are particularly drawn
to this. The business can build a strong relationship with different intermediaries
like Lzada and Shopee, which are very well known in terms of online shopping.
This intermediary can be their companion in acquiring a wide range of customers
and increasing their revenues.
VII. Threats
Expanding range and changes in fashion trends of clothing e-commerce -
Given how fiercely competitive fashion is, the ever-evolving fashion trends are
what give businesses any influence over it. All of them keep up with the newest
fashion trends. Fashion trends could harm the company's growth and prosperity.
No matter how strong your position in the industry, if you aren't ready for the new
trends, it will be hard for your business to adapt to changes. Also, it would be
extremely difficult for the business to compete with some of the major fashion
labels, which are fierce competitors. As e-commerce has grown, more clothing
retailers are relocating their operations online because of the increasing
competition.
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Smaller companies, like the thrift shop, may find it challenging to compete
with established, more well-known brands. Building brand loyalty for
organizations can be difficult given the variety of options available online that they
may find attractive. Businesses need to be flexible, inventive, and focused on
creating a solid foundation to reduce these dangers. The business must assure the
brand will connect with or build a relationship with consumers, to have potential
and loyal customers.
VIII. Proposed Mission and Vision
Mission Vision
To meet consumer demands now and in To have a reputable apparel brand that
the future while maintaining product sells its clients high-quality goods at
affordability and quality. fair prices.
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STRATEGY FORMULATION
I. Grand Strategy
Figure 12: Sissums Preloved Collection Grand Strategy
As an online shopping business, Sissums Preloved Connection's strategies
for delivering products are through logistics and delivery options. Primarily,
through J&T Express, this logistics method has been their source of product
distribution, allowing customers to acquire their orders online.
In accordance with Jenkins (2020), logistics primarily refers to the total
process of delivery of raw materials, packaging, shipment, and how resources are
acquired, restored, and transported to their eventual destination.
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Also, logistics delivery success in every business translates to enhanced
efficiency, lower costs, higher production rates, more efficient use of inventory
control, and customer satisfaction and experience.
In addition, using logistics for delivery purposes allowed the business to
acquire more time for packing and making sure the delivery schedules and
information have been checked and will soon be delivered as they are. Furthermore,
using logistics options as their way for product distribution allowed and helped
Sissums Preloved Collection with their transportation and delivery, storage,
packaging, cargo handling, distribution processing, and information processing
through their product until it was delivered to their buyers.
The business has been able to have a fast transaction with its supplier, as
they have a direct supplier for acquiring their products. It becomes a more
convenient way for the business, as it becomes easier and faster without any process
for acquiring resources for its business. Thus, it becomes faster, and it helps the
business acquire resources and products in a more convenient way with its direct
supplier.
As a startup in the online thrift store sector, the business's initial offering is
a wide range of clothing, including pants, shorts, dresses, t-shirts, and more, at first
it is operating well like a normal business, but when that day happens everything
changes.
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Beginning in the pandemic year, more individuals purchase goods from the
business, but as the epidemic season comes to an end, less people do so as well.
The business formerly supplied a range of women's clothing, but when the problem
arose, they also reduced the product that they sell.
Moreover, based on the study of Kopp (2023), As the business faces more
challenges, it will eventually try to replicate its success. It may lose market share
and begin to decline its products as a result of problems encountered by the
business. A decline in revenue is unfavorable to a business. If revenue declines, a
company risks not breaking even or having a very low sum of profit. In addition,
as sales declined, the business also dropped the variety of items it sold. They are
now concentrating more on dresses, particularly maxi dresses, sundresses,
bodycons, halters, etc. They didn't have any fresh ideas or innovations, but they did
come up with a new concept for their business.
When a business starts to enter the business world, it must be prepared for
the unanticipated risks and obstacles that may arise. Being new to the market, the
company has to make itself recognized by explaining what it offers to the general
public or to potential customers so that they can grasp what you're attempting to
sell them. As a business using social media, one of the best strategies the company
can use to introduce what it offers to the public is to do so there. Because a lot of
individuals use social media today, it can be advantageous for the company to have
digital marketing. Another is having the company's symbol or signs put outside
where it may be seen by nearby residents or those walking by.
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Additionally possessing a business card so that customers quickly find the
place of business if they want to walk in, it may be given to customers who stroll
in or regularly purchase goods from the shop. Since the store is run by a freelancer
and a full-time mother, one of the reasons why it can't perform well in the market,
there haven't been any adjustments to the business's performance as of now. As a
result, the owner isn't managing the company very effectively.
Additionally, decreasing the availability of the previously mentioned
products has a significant negative effect on the company since less options for
consumers results in a loss of large numbers of customers. Because its customers
are gradually missing out, the business's acquired strategy is ineffective.
Layoff actions are typically a result of declining sales or customers, cash
flow, and/or material resources inside the firm, and are not always the result of any
particular fault on the part of the employees. Layoffs are one tool businesses
employ to implement temporary methods to cut labor expenses.
As explained by Bahaudin G. Mujtaba & Tipakorn Senathip (2020),
downsizing or laying off employees is usually the strategically planned elimination
of large numbers of personnel or workforce to enhance organizational effectiveness
and economic outlook. When the firm started to expand with only two to three
employees, the business couldn't handle a large number of consumers, so they
decided to have six employees in addition to the owner.
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As time passes, the company suffers losses comparable to these and
gradually gets rid of employees since it can no longer generate enough revenue to
pay their salaries.
II. Five Forces of Michael Porter
Figure 13: Sissums Preloved Collection 5 Forces of Michael Porter
Michael Porter, a well-known marketing strategist, created and improved a
strategy framework called Porter's five forces that assists in assessing the
competitive landscape of every business. Porter's 1980 book Competitive Strategy:
Techniques for Analyzing Industries and Competitors incorporates the five-forces
model. The five forces are competitive factors, which determine industry
competition and include: supplier power, competitive rivalry, threat of substitution,
buyer power, and threat of new entry.
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In accordance with Isabelle, D. (2020), Porter’s framework revolutionized
the way managers and entrepreneurs analyze their industry’s competitive
environment by examining specific forces driving industry competition. It has
become one of the most popular business strategy tools.
In order to determine the competitiveness and profitability of a sector, one
must also take into account extra internal and external pressures specific to that
business. The foundation of Porter's approach is the understanding that an
organization's external environment presents both opportunities and risks that
should be addressed by its corporate strategy. Competitive strategy should focus on
understanding industry structures and how they change in particular. It assists
organizations in better understanding their industry's competitive dynamics and aid
in the development of more strategic decisions. Prior to doing a collective analysis,
each of the five factors has to be examined separately. By combining the five forces
framework with other significant findings, it can serve as a guide for creating
business strategies to increase the level of competitive advantage. Moreover, it
helps to analyze the five competitive forces that shape every industry or business
and determine their strengths and weaknesses. On the other hand, this analysis can
help Sissums Preloved Collective attain a competitive advantage by assessing
whether the forces are high or low.
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A. Suppliers Power - High
Suppliers play an important function in every business because they are the
ones who give quality materials to firms and retailers in order for them to resell the
products that they deal with. It is important to first conduct a transaction with both
the supplier and the business to guarantee that all parties receive what they agreed
upon.
In the instance of Sissums Thrift Shop, the company obtains the products
that it sells from a single source in order to maintain a strong relationship with the
supplier and, of course, to maintain the same quality of products that the company
previously sold. The supplier plays an essential part in the business's success. As a
retail business and as a thrift shop that purchases a lot of goods and sells them to
customers as-is, the impact of the supplier will form the basis of the company's
pricing strategy for its goods. Because the supplier is the one who provides the
items and determines whether they are available, the company owner depends on
how the supplier prices the products. Supplier selection affects the company’s
competitive advantage because it impacts cost structure, output quality, production
processes, and company profits, pursuant to Ahmad Nasrudin (2022).
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B. Threat of New Entry - High
As explained by CFI Team (2023), when new competitors enter into an
industry offering the same products or services, a company’s competitive position
will be at risk. Therefore, the threat of new entrants refers to the ability of new
companies to enter into an industry. The threat of new entry into the market plays
a significant role in the competitive structure of an industry.
Thus, a potential threat of new entry means new competitors are likely to
be attracted and can enter the industry with ease. This result can either increase or
decrease the market profitability of an existing entity and may result in a continuous
change in product level and price level. Moreover, several factors determine the
degree of the threat of new entry into a business.
Many of these fall into categories of entry barriers, whereas there are factors
that can influence whether the threat of new entries is high or low.
For example, no required economies of scale, low initial capital investment
requirements, low consumer switching costs, and easy access to distribution
channels all indicate that entry barriers are low and the threat of new entry is high.
To prior indicate this, Sissum's preloved collection may definitely face a high threat
of new entry as a lot of apparel shops, online clothing shops, and clothing
businesses have entered the market. With the low entry barriers, they have the
chance to become more competitive and become new competitors to other
businesses, just like the new competitors of Sissum's Preloved Collection in the
market.
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At the same time, current competitors are aware and definitely have
progressed on how their customers will eventually give attention to their products;
thus, as Sims Preloved Collection faces a high threat of new entry, it becomes weak
in terms of the competitive market along with other entries with the same line of
business.
C. Bargaining Power of Buyers - High
One of Porter's Five Forces for Industry Analysis, the Bargaining Power of
Buyers, refers to the demand that customers and consumers can exert on
organizations to deliver better products, better customer service, and/or cheaper or
lower pricing. (CFI TEAMS, 2023). Customers can influence how businesses
compete for business revenues, potential and loyal customers, investors, etc.
What they have is referred to as negotiating power, and it enables them to
demand improved product quality, reduced prices, superior customer service, and
lower pricing. Competitors frequently take advantage of each other in the
marketplace due to customers' negotiating power. rush to earn money.
The primary cost of the buyer's negotiating power is the industry's profits.
This impact is very apparent in the thrift clothing industry, where we find
businesses offering pre-owned clothing of comparable quality at a substantially
lower cost, whether it is just a second-hand product that the company makes sure
would definitely satisfy their target clients.
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The business benefits from price and quality control because they are solely
driven by the needs of the customer, and these customers might be your loyal buyers
because, through negotiation, the thrift shop can build a relationship with the
consumers in just negotiating a single product or what we call "tawad" moments.
When businesses intend lower revenues, they not only provide a reason to drop
their costs of purchase but also draw customers by adding value. The client is
always thinking about what will help them. When people see that their purchase
has additional worth, it appeals to them more.
It is appropriate to decide to preserve and even increase revenue even while
the company's earnings are lowered because more clients could result in extra sales.
It follows that customers can easily, without paying any extra fees, migrate from
Sissum's Preloved Collection to competing businesses. In the world of social media
platforms, when a business is aligned with the internet that is popular now, expect
that there are so many competitive rivals to encounter.
Therefore, it is possible that customers can easily switch or change from
Sissum's Preloved Collection to rival companies at no additional cost, especially in
the online shopping industry.
The said company's customers have access to correct information, such as
product descriptions, because over the internet you can find everything, and they
may simply choose their best option. Alternative shops or businesses surround it,
and with that, the customers will buy at cheap prices but quality products.
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D. Competitive Rivalry - High
Small firms might suffer a great deal from company rivalry due to numerous
labor expenses, manufacturing costs, and price considerations. According to BN92
(2022) there are many struggles that businesses face due to competition within
business, and it has a negative effect on many people. Businesses in the same
industry who don't provide run incentives are in danger of having all of their clients
leave and go to the first place where they can get a bonus or a discount. Sissums
Preloved Collection does not presently have any nearby rivals from a geographic
aspect because it is currently the sole thrift store in the barrio and the locale is not
fully industrialized.
However, given the size of the industry, the growth of clothing lines, and
the online platform, we can say that the thrift store faces a lot of competition. The
apparel or fashion industry has different techniques of competition with its rival to
maintain their customers. So, all of them try to offer affordable prices.
Sissums Preloved Collection has many competitors, previously Sissums
Preloved Collection main competitor was Kalida Vestis in selling dresses in
ecommerce channels both providing social media content, but Sissums Preloved
Collection broadened its view in its competitors in providing quality goods to their
customers. Currently, Trendy Thrifts is its main competitor as both companies are
providing trendy and authentic dresses thus competing for a similar market in this
sector.
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E. Threat of Substitution - High
It refers to the availability of alternative products or services that can satisfy
the same customer needs as the products or services offered by a particular
business. In the context of our business, which is a clothing business, the threat of
substitution would come from other companies that sell clothing, as well as from
companies that sell alternative products that can be used to achieve the same
purpose as clothing, such as swimwear, outerwear, or accessories. The threat of
substitution can have a significant impact on the profitability of a business. If there
are a number of close substitutes available, customers will have more choices and
will be more likely to switch to a competitor if they are not satisfied with the price,
quality, or other aspects of the products or services offered by a particular company.
This can lead to lower sales and profits for the business.
According to Porter (1980), there are a number of factors that can affect the
threat of substitution in a particular industry. These include the similarity of the
substitute products or services to the products or services offered by the company,
the price of the substitute products or services, the quality of the substitute products
or services, and the convenience of the substitute products or services.
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IV. Price Comparison
Comparing prices between identical goods from various manufacturers and
retailers is known as price comparison. Comparative shopping is currently
something that online consumers do as a result of the growth of the e-commerce
sector. In order to compare prices before making an online purchase, more than 10
million consumers are thought to utilize price comparison websites.
(Cloudways.Ltd, 2022) In order to accelerate the growth of your eCommerce
website as your online business grows, you'll need to make use of a wide range of
strategies and techniques. The objective is to broaden your horizons and present
your goods and services to potential customers. Including the price comparison,
which also plays a significant role in helping the business gain financial benefits.
A sufficient pricing strategy will help the business stay competitive, especially in
e-commerce businesses that are surrounded by different rivals, and those rivals who
want to enter the market will have higher barriers to entry. The pricing strategy will
position the business to attract potential customers and strengthen its position in the
market. In conclusion, a strong pricing strategy analysis compared with the e-
commerce competitors will make a difference for the company.
61
The Business (Sissums Preloved Collection)
Product Price
Maxi Dress P250 - P350
Sundress P150 - P250
Bodycon P200 - P300
Fitted Dress P150 - P250
Wrap Dress P200 - P300
Midi Dress P250 - P350

Table 1: Sissums Preloved Collection
Direct Competitors
Product Price
Sundress P100 - P180
Bodycon P100 - P180

Table 2: Trendy Thrifts
62
Product Price
Sundress P80 - P150
Bodycon P100 - P150

Table 3: Kalida Vestis
It becomes clear that there are discrepancies in terms of how they price thrift
dresses after doing an adequate pricing comparison between Sissum's Preloved
Collection and their main rivals, Trendy Thrift and Kakida Vestis. It indicates that
Sissum's Preloved Collection and its direct competitor have different strategies for
how their pricing strategies will be evident to their business. Each company has a
unique pricing approach to increase revenue, attract customers, and compensate for
expenses.
Indirect Competitors
Product Price
Trousers P400 - P900
Denim Pants P250 - P500
Jogger P200 - P400
Baggy Pants P400 - P700

Table 4: The Clowset
63
Product Price
Denim Short P50 - P250
Sweat Short P100 - P200
Skirt P100 - P250
Denim Jacket P100 - P250
Denim Pants P250 - P300
Jumper P250 - P300
Tops P100 -P150
Sweater P100 - P150

Table 5: Marj Preloved Collection
Sissum's Preloved Collection faces competition not only from their direct
competitors but also from indirect competitors within the vicinity of the business
where it is located. Indirect competitors are The Clowset and Marj Preloved, which
offer different varieties of clothes aside from dresses. Upon comparing the business
and its indirect competitors, there are big differences in how they price their
products. To set the prices of the thirties, they used quality, uniqueness, and branded
clothing. Therefore, the businesses have intense competition on how they attract
customers, and the consumers will choose based on their convenience and
preferences.
64
STRATEGIES, PROGRAM, ACTIVITIES, TASKS, AND REQUIREMENTS
Strategic planning activities are guided by the Strategies, Programs, Activities,
Tasks and Requirements (SPATRES) framework, which is also being adopted by leading
companies in their respective industries. Dr. Eduardo A. Morato, Jr. designed the strategic
planning framework and modified it to encompass strategies, programs, activities, tasks,
and requirements.
The business can make advantage of this useful planning process. This all-inclusive
planning tool may assist the company by offering a roadmap for going from strategy to
actions to solve challenges for the business in a favorable way. It entails creating strategies
for the issues at hand and outlining how the effort plans to resolve them. The next phase
for an organization after developing its strategies is to create the program, or whatever the
strategy will be termed. Last but not least, an organization's activity plan outlines in great
depth how strategies will be put into action to solve the issues in accordance with the
company. Each element of the strategies or activities that are to be implemented has its
own set of future steps defined. These contain the due date or the timing of each activity,
the person in charge or the person doing what, and the resources needed, including
assistance and resources.
Sissums Preloved Collection must discover a solution to eliminate its problems in
order to remove them. SPATRES assists organizations in achieving this.
65
By using this strategic planning framework, the company will be able to resolve its
problems, establish its goals, specify how to get there, and then create workable solutions
to make the necessary adjustments.
Problem 1: Replacement of equipment. Insufficient equipment to effectively and
efficiently do the activities; enhancement of cameras and laptop at Sissum's Preloved
collection.
Objective 1: To improve the quality of contents posted, electronic devices that will make
work efficient for the customers experience through shopping online at Sissum’s will
suffice their satisfaction.
Market Development
Strategy Program Activity Time-frame Person/Dep. Resources

in Charge
Strategy #1: "Quality Step 1: June 2023 Business Estimated:

Purchase contents" search for Onwards owner, ₱28,000
digital a quality Photographer
cameras digital /current Breakdown:
instead of cameras employee ₱25,000
using at a cheap (Purchased
personal price Camera)
phones. ₱3,000
Step 2: (Photogra-
Purchase pher’s
quality monthly
digital salary)
camera
Step 3:
Check
and try
the
cameras
capturing
66
the
clothes
Step 4:
Use the
new
cameras
for
posting
quality
pictures
and
videos.
Strategy #2: "Make works Step 1: June 2023 Business Breakdown:

Replacing of fast and Research Onwards Owner/Admi ₱30,000 for
a new laptop easier" a laptop ns for(tran- purchased
that can that is saction, laptop
accompany usually inquiries and
all the use for invoices)
activities online
within the store
business activities
Step 2:
Purchase
quality
laptop
that
suitable
for its
work
Step 3:
Check
and try
the laptop
purchase
for fast
and easy
works
Step 4:
Use the
laptop for
67
its
purpose
of buying,
such as
answering
inquiries,
posting
contents
and
invoices.
Table 6: SPATRES of Problem 1.
The digital cameras in Sissum's Preloved Collection play a crucial role in making
the business more appealing to customers' eyes. Quality pictures and videos can boost the
business by attracting potential customers and giving a clear picture to the public: "It's more
likely what you see is what you get". Especially if the business is an online store, it has a
profound impact if they have a quality camera for better posting of contents. Additionally,
as time goes by, the useful life of equipment lessens, and when the time comes that the
business needs to acquire something that is essential for the company, don't hesitate to buy
it as long as it is for improvement and development.
Electronic devices are necessary when businesses are aligned with what we call
online shopping. like laptops that make manpower tasks faster and easier. Online business
with a variety of tasks to complete, such as responding to inquiries and invoices and posting
on social media platforms about the thrift product. There are a lot of things they need to do
to satisfy their customers virtually, and with the help of electric devices, they can fulfill the
activities efficiently.
68
One of the problems that the business is facing is having to use low-quality pictures
and videos and slow electronic devices to carry out the tasks needed to fulfill them.
The programs "Quality Content" and "Make Work Fast and Easy" will help the
business address the issues. It includes two strategies: the first is to purchase digital
cameras instead of using phones to have separation practices between personal and
business. The second strategy is the replacement of a new laptop that can accompany all
the activities within the business effectively and efficiently. Under those strategies, we
have four activities to do for an inadequate online shopping business. Such research,
purchasing, testing, and using it to achieve the goal of the business
Replacement of equipment as needed is middling over its useful life and is ready to
acquire new. It is like innovation that will make a difference for the success of the company.
Problem 2: Broadening Product Offer. The selection of items offered by the business
is limited to be able to meet the wants of the consumer.
Objective 2: To expand the product offer for the business to meet the demand of the
consumers.
Product Development

in Charge
69
Strategy #1: “Flexibility Step 1: First week of Business Estimated:

The business for different Learn June 2023 - owner ₱ 8,000.00
may expand personalities” about the onwards
the range of demogra- Breakdown:
clothes to phics in ₱ 1,500
include the area to (Bundle
additional estimate tops for
options for the female)
men, women, amount of ₱ 1,500
toddlers, and items that (Bundle
people aged the tops for
30 and up. business male)
will ₱ 2,500
purchase. (Bundle
bottom wear
Step 2: female)
Choose ₱ 2,500
the (Bundle
category bottom wear
of items male)
that the
business
can
provide
depending
on the
demogra-
phic
informa-
tion
Step 3:
Budget
for the
selected
things
depending
on what is
demanda-
ble based
on the
data
acquired,
then
invest in
70
those
products
from the
supplier
and verify
to see if
they are
accurate.
Achieving the needs and wants of your customers is very important as a business
because they are inspired to spend more as a gesture for loyalty. It takes a lot of effort for
the business to provide it, and as a thrift shop, the business must be flexible on the various
problems that may arise.
As for Sissums, the company is struggling with this issue because, at the end of the
pandemic, the company's consumer base was gradually dropping due to new business
competitors, and now that the pandemic is over, people seem to prefer to shop in stores
rather than online, which is causing the company's loss. The starting point of this challenge
is also the starting point of the business to reduce the goods that they provide to the public
and focus their business on offering occasional clothing such as various types of dresses.
In order to recover from this type of situation, it is necessary to use strategies for
the business to continue operating for the years to come. To satisfy the demands and needs
71
of the consumer, the business must broaden the variety of clothing that it offers to the
public.
To do so, the business must first assess the demographics of the area where the
business is located or operating so that they can estimate the budget and the items that they
will purchase by knowing the type of clothing that is trendy and demandable.
In addition, make sure that the list of selected items by the number of the most
demandable items up to the least demandable is proper; now, as a business, choose the
items that are best to cater to the needs and wants of your consumers by providing different
kinds of product from toddler up to middle age and above; after that, the business can now
purchase the selected products from their supplier; however, before acquiring them, they
must first check to guarantee that the items being purchased are exact.
Upon the business implements the aforementioned strategies, customers can see the
mentioned goods in their social media account (Facebook), and the public can now enjoy
buying clothes without worrying about the limited selection that the business offers, as
there are numerous products from which they can select not just for themselves as well as
for their loved ones. The items will be organized based on the kind of apparel, such as
whether it is for men, women, children, or middle-aged people, and will be posted in
batches. The company is not only concerned with how much money they can make, but
also with how happy their customers may be when purchasing their items at low costs.
Problem 3: Lack of Brand Name. The entity has many similar logos and names on social
media, which is its major platform of the business.
Objective 3: To provide the business a unique identity that will help them increase their
exposure and range in the market.
72
Market Penetration

in Charge
Strategy 1: “Made to be Step 1: First week of The business Estimated:

One strategy Different, Start by June owner/person ₱5,000-
that can be Meant to be conductin onwards assigned to
implemented Different” g R&D. Breakdown:
to address thorough ₱5,000
the lack of a research (hiring a
brand name on the professional
is to develop business' artist to
a unique target create logo
brand name market, and brand
that competito name)
represents rs, and
the clothing existing
business brand
effectively. names in
the clo-
thing
industry.
Identify
gaps and
opportuni-
ties to
create a
distinctive
brand
name that
aligns
with the
business
values,
target
audience,
and
unique
selling
proposi-
tion.
Step 2:
Brain-
73
storm a
list of
potential
brand
names
that
reflect the
desired
brand
identity.
In the dynamic and competitive landscape of the clothing industry, establishing a
strong brand identity is essential for the business’ success. A comprehensive branding
strategy encompasses various elements, including a unique brand name that resonates with
consumers and sets your business apart from competitors.
Branding plays a pivotal role in the clothing industry, where consumers seek not
only stylish garments but also an emotional connection and sense of identity (Kim, 2019).
According to Kopp et. al. (2023), a well-defined brand establishes trust, loyalty, and
differentiation, providing a competitive edge in a crowded market. It enables businesses to
communicate their values, story, and unique selling proposition to customers, fostering
recognition, preference, and long-term relationships. To initiate the strategy, thorough
research is essential. By studying the target market, identifying gaps, and analyzing
competitors, businesses can gain insights into consumer preferences and industry trends.
Brainstorming a list of potential brand names enables the exploration of memorable,
relevant, and available options. Once a viable brand name is selected, the businesses then
must build a strong brand identity around it.
74
This involves developing a brand logo, color palette, tagline, and other visual
elements that encapsulate the essence and values of the clothing business. Marketing
Library (2022) discusses that a well-crafted brand story and unique value proposition
contribute to differentiation and customer engagement. businesses shift their focus towards
brand promotion and protection. A comprehensive marketing strategy utilizing various
channels such as social media, advertising, and public relations helps establish brand
awareness and reach the target audience. Consistent monitoring of potential infringements
and taking appropriate legal action when necessary protects the brand's identity and
reputation. The entity can benefit from establishing a unique brand name through the
benefits and return on investment such as brand recognition, which enhances recognition,
recall, and brand loyalty among consumers (Kenton, 2022).
Another benefit is the competitive advantage of the business in the market; a strong
brand identity sets a clothing business apart from competitors, influencing purchase
decisions and fostering customer trust. In the clothing industry, the lack of a strong brand
name can hinder a business's ability to establish a distinctive identity and compete
effectively (Hayes, 2022). By implementing a strategy focused on developing and
trademarking a brand name, clothing businesses can build a solid foundation for their brand
and unlock numerous benefits. From legal protection to enhanced brand recognition and
competitive advantage, this comprehensive branding strategy is a crucial step towards
long-term success in the clothing industry.
75
Problem 4: Online Marketing Strategy. The online business only has one social
media platform, which is inactive in the days after their posting schedule, such as uploading
pictures, reels, or videos that will boost the online store and gain more customers.
Objective 4: To enhance Sissums Preloved's advertising and marketing strategies in
order to benefit from social media's expanding influence.
Market Penetration

in Charge
Strategy #1. “Sissum's Step 1: Third Week Owner, Estimated:

Create more Preloved Create an of June 2023 Admin/Cont- ₱4,000
online Collection: online Onwards ent Creator
presences, Marketing business Breakdown:
such as on strategy account ₱3,000
Instagram development” on (Monthly
and TikTok, different Salary of
and upload social Admin/
pictures, media Content
reels, or platforms. Creator)
videos. Step 2:
Hire
admins to
manage
the
account,
such as
posting
contents
regarding
business
conditions
.
Step 3:
Checking
every-
thing and
testing the
76
compa-
ny's
online
account
before
launching
it to the
public.
Step 4:
Promote
the online
business
on its
different
social
media
platforms
and
regularly
upload
contents
to attract
potential
customer.
Human life has changed because of the adaptation of technology from ancient times
up to the present. The advancement of technology has a direct impact on how the world is
growing. Technology plays a major role in our lives, whether at the beginning or end of
the day. (Prasanna, 2021) The evident effect of social media is one of the greatest
technological achievements of the 21st century. Social media has had a big impact on
numerous areas of human existence, especially business.
77
A social media presence is necessary for businesses to increase recognition and
capture a broader range of consumers.However, Sissum's Preloved Collection yet only has
one social media account, which is a Facebook page that is inactive in the days after their
posting schedule.
But through uploading contents that serve as the advertisement of the business, it
becomes known or familiar to potential customers. Due to this, the company uses poor
advertising and has no sufficient marketing strategies.
A program called "Sissum's Preloved Collection: Marketing Strategy
Development" has been established to improve their marketing strategies and draw in more
potential clients. The method consists of four steps that work together to build strong online
marketing strategies, especially the advertising techniques: adding new accounts to social
media platforms that are popular right now, hiring admins to administer the accounts,
promoting on different social media platforms, and regularly uploading contents to attract
potential customers. The program is scheduled to start in June 2023, and the owner, along
with the hired admins and content creators, will be accountable for its execution.
The hired administrator or content creator who is in charge of carrying out the
activities will be given a budget of PHP 3,000, which will serve as his or her monthly
compensation. If the experiment has a successful outcome, Sissum's Preloved Collection,
which is an online shopping store, will become known outside of Consuelo, Macabebe,
and Pampanga.
The online thrift has a lot of competitive rivals because the internet plays an
important role in building a strong online presence, but developing this program will help
increase their customer base and popularity.
78
Problem 5: Customer's Ideals. The customers of the entity have different perceptions
and satisfaction which affect the market value of the business.
Objective 5: To create a positive customer view to the product based on their experiences
and interactions.
Market Penetration

in Charge
Strategy #1. “Not just a Step 1: June 2023 The owner/ No

Build service, but a Asking Onwards person who additional
customers' bond.” for is in charge cost
trust and reviews of social incurred.
positive that will media R&D.
image be posted
towards the to the
business. Facebook
page of
the entity.
Step 2:
Respon-
ding to
customer
reviews/
feedback
goes a
long way
toward
making
customers
feel that
you care.
Step 3:
Giving a
customer
support
79
quality for
inquiries,
concerns
and
issues.
Step 4:
Know
what the
customers
want for
the
product
by
conduc-
ting a
survey,
and then
come up
with
messa-
ging
around it.
The ability to obtain revenue impacted by how the customers view the Sissums
Preloved Collection. Customer perception has an influence on customer acquisition. But
for those who haven’t bought or customers who don't have a perception toward the Sissums
Preloved Collection have difficulty in deciding to purchase their product as Sissums
Preloved Collection doesn’t have reviews from the current customers.
80
According to Sarah Chambers (2023), ninety-three percent of customers read
online reviews before purchasing. Therefore, feedback posted online has a significant
influence on how potential buyers regard the company. Positive online reviews are great
for the image of the products to gain customer's trust.
That’s why improving interactions with clients suggests that the seller cares or is
able to provide great support. Responding to negative reviews might help the brand's
reputation among consumers. In addition, gathering insights from each of the reviews,
customer satisfaction responses, and social media comments will help to analyze sentiment.
The way the seller treats her customers and the way showing great customer support
illustrates that the seller cares and that she invests in the customer experience. In
conclusion, cultivating a favorable consumer perception is essential to your success.
Problem 6: Additional Employee. Doesn’t have enough time in business as the owner
is a full time mother.
Objective 6: To handle the demand of the customers immediately
Market Development

in Charge
81
Strategy #1. “Staff up” Step 1: Hire only as The owner Estimated:
Employ Think the business ₱3,000
another about can afford to
worker. where the pay for new Breakdown:
business hires. ₱3,000
needs (monthly
another salary)
employee.
Step 2:
Posting
the job on
employ-
ment
websites
or choo-
sing a
candidate
based on
who the
owner al-
ready
knows
and trusts.
Step 3:
Check the
job
references
of the
employee
if he/she is
suitable to
your
preference
s.
Step 4:
Train your
team for
all the
different
roles their
job could
entail so
82
they can
move
around if
schedules
change or
if things
get busy.
Table 6: SPATRES of Objective 6
The Sissums Preloved Collection only has 1 employee and still has difficulties in
managing the business. Meeting the demand of the customers needs a high consumable
time and strength, so the owner, even the employee have problems overworking especially
when there are a lot of customers needing attention.
Even when the owner is just working at home, she still doesn't have time to manage
the queries as she is a full time mom and needs to take care of her children. When the owner
finds herself bogged down by the phone calls of the customers and their acquisition, it is a
Considering the staff’s current workload, where Ms. Manansala (employee) is
responsible for ironing the clothes, taking pictures, packing orders and other stuff, shows
that the staff is conspicuously overworked. It is easy to tell when the employee is struggling
to keep up with the demands of her jobs. The employee may experience increased stress
levels, display a lack of attention to detail or request time off more frequently due to illness.
83
While hiring additional staff members can certainly help the Sissums Preloved
Collection tackle current and future tasks more efficiently, it's important to keep the budget
in mind. If the entity ramps up the hiring and doesn't experience a quick increase in sales,
it may strain the cash flow and have to lay off again its employees.
Determining the right moment to expand can be challenging because every business
has different requirements and difficulties. When their companies are just starting out,
some company owners feel the need to recruit a whole workforce, while others feel more
at ease waiting until their ventures have seen some early success.
However, Sissums Preloved Collection must take into account the necessity to hire
additional personnel when the entity’s sales increase so they can afford to expand.
Problem 7: Inventory Management. The business is encountering difficulties in

managing inventory, which result from issues with damaged and expended stocks of
products.
Objective 7: To properly manage and reduce the risk of damaged and expended inventories
in the business.
Product Development

in Charge
84
Strategy #1. “Quality is of Step 1: June 2023 Employee in No

Organize greater Establish onwards charge for additional
each product significance a weekly inventories cost.
of thrifted than assign- (owner, if
clothes quantity." ment of included)
according to manage-
their classes ment and
and labels. checking
of
inventorie
s with the
employee
s and
owner.
Step 2:
Practice
of
applying
methods
of
distingui-
shing the
classes
and labels
of the
products
for
thrifted
dresses
Step 3:
Apply the
skill of
"balan-
cing in-
ventory"
This is as
simple as
not over-
stocking
or under-
stocking
products.
85
In business, maintaining and enhancing adequate inventory levels to meet and
satisfy customers preferences and demands is decisive, as it sets out various methods to
properly manage inventories in a business. On the other hand, Sissum's Preloved Collection
is having difficulties properly managing inventories, resulting in possible damaged and
wasted products for its business. To definitely prevent this kind of problem within the
business, it is vital to consider and implement various strategies to ensure good inventory
management. Furthermore, organizing is one of the key factors to be implemented and
made; specifically, organizing each product of thrifted clothes according to their classes
and labels is one of the strategies to start managing the difficulties of having an adequate
level of inventory management within the business.
Moreover, it is imperative to implement a strategy in the business of Sissums
Preloved Collection to establish weekly checking of inventories to prioritize identifying
possible defects and damage within their products to prevent insufficient products from
being delivered to their customers. In addition, applying methods of identifying and
distinguishing every inventory is important, as it can help to properly locate and manage
each inventory.
According to Maples (2022), in her article titled "The Importance of Inventory
Balancing and How Your 3PL Provider Can Help," she stated that the "balance inventory"
practice must be applied as a strategy to be used by the business to reduce the risk of
improper management of inventories. This would also contribute to avoiding
86
understocking and overstocking of products within the business, as this would result in
possible damaged and expended products and end up causing a loss for the business itself.
Thus, in the case of Sissums Preloved Collection, an online business that does not
yet have a physical store, properly locating and managing inventories, even up to the
owner's house, can help ensure adequate inventory management. The strategies mentioned
above are one of the key factors to be implemented within the business as they will
contribute to properly managing each inventory of Sissum's Preloved Collection.
Also, as mentioned in the world of business, it is vital to consider the management
of inventories to also help prevent possible losses in a business, so as Sissums Preloved
Collection, the business must consider and implement such strategies to be used as their
tools to enhance this kind of management of inventories..
Problem 8: Shipping of Products to Different Locations. Because the business’ location
is far from the urbanized area of the municipality, it has difficulty in fulfilling the orders
of the customers from different locations.
Objective 8: To satisfy the customer’s demand and needs thru optimized logistic
processes of the products.
87
Market Development

in Charge
Strategy 1: “Happy Step 1: First week of The owner Estimated:

Establish a Shopping, Analyze June ₱1805
centralized Safe your onwards
distribution Shipping” customer Breakdown:
network base and ₱1,805 (for
which shipping every 20kl
involves con- destina- of parcel to
solidating tions anywhere in
your inven- through the
tory in a cen- identify- province)
tral location ing the
and strategi- key
cally distri- regions or
buting it to areas
various des- where
tinations your
from there. customers
are.
Step 2:
Evaluate
different
potential
locations
based on
factors
such as
proximity
to major
transporta
tion hub
Step 3:
Choose a
location
that
allows for
efficient
distribu-
88
tion to
your
target
areas.
Step 4:
Imple-
ment an
inventory
manage-
ment
system to
monitor
stock
levels,
track
incoming
and
outgoing
shipments
, and
ensure
sufficient
stock
availabilit
y at the
distribu-
tion
center.
Step 5:
Develop
streamline
d
processes
for order
processin
g and ful-
fillment at
the
distributio
n center.
Step 6:
Collabo-
89
rate with
reliable
shipping
carriers
who
specialize
in land
transporta
tion.
Table 8: SPATRES for Problem 8.
In today's competitive business landscape, efficient logistics operations are crucial
for the success of clothing businesses. One strategy that can significantly improve shipping
operations is implementing a centralized distribution network (Hayes, 2023).
Manza (2023) defined centralized distribution as a network involving consolidating
inventory in a central location and strategically distributing products to various
destinations. By centralizing operations, the businesses can streamline the logistics
processes, reduce costs, and enhance customer satisfaction. It serves as a vital solution for
the challenges associated with land shipping in the Philippines. Through centralizing
inventory, businesses can gain better control and visibility over stock levels, reducing the
risk of stockouts or excess inventory. This enables improved demand forecasting, efficient
replenishment, and streamlined order fulfillment processes. Additionally, consolidating
inventory in a single location allows for economies of scale. The entity can negotiate
favorable shipping rates with carriers due to higher shipment volumes, reducing
transportation costs.
90
Additionally, the elimination of multiple smaller warehouses lowers overhead
expenses associated with facility maintenance, staffing, and equipment. With a centralized
approach, products can be shipped more quickly and efficiently, resulting in faster delivery
times. This contributes to increased customer satisfaction and a competitive advantage in
the market.
In conclusion, implementing a centralized distribution network offers numerous
advantages for the businesses. The strategy enhances efficiency by optimizing inventory
management, reducing costs, and streamlining order processing. It improves customer
satisfaction through faster delivery, order tracking, and improved product availability.
Moreover, it provides a scalable platform for future growth and market penetration.
By adopting this comprehensive strategy, clothing businesses can gain a
competitive edge in the industry and establish themselves as reliable and efficient providers
in the market.
Problem 9: Intense Competition. Since there are multiple businesses that are launching
pre-loved or secondhand clothes, this business is under intense rivalry.
Objective 9: To have an impressive, unique, and affordable reputation among competitors.
91
Product Development
Strategy Program Activity Time- Person/Dep. Resources

frame in Charge
Strategy #1. “Always give Step 1: June 2023 - Business Computed

Innovate your Choose an onwards Owner in Objective
your brand customers individual 2
by using more than range of
unique they expect.” items for Additional:
concepts, the business
high-quality to provide. Estimated:
materials, Step 2: ₱ 600
exceptional Determine (1,000 pcs
client the quantity paper bags)
service, or of the listed
environment goods.
ally friendly Step 3:
activities. Evaluate the
quality of
the items
that the
business
will
acquire.
Step 4:
Select a
particular
supplier to
develop
customer
relationship
Step 5:
Learn about
the client
services to
offer and
for the
product
packaging
used paper
bags.
92
When it comes to business, the term "competitor" will never go away, especially in
this type of business, which sells pre-loved or secondhand clothes. Nowadays, as we scroll
through our social media, we can see numerous businesses offering the same product,
which is clothes. The fact that the firm is competitive has a good impact since it will work
harder to be the leading business among its competitors. According to Mike Robbins
(2021) competition can motivate employees, resulting in better results.
As humans, we dress to appear good for others and, of course, for ourselves, and
when we talk about clothes, there are many different types of attire that people seek for.
Many buyers nowadays are searching for outstanding quality, a unique product, and a low
price. As the business monitors the consumer's desires, there will be a chance to be the first
to cater to the consumer's preferences by deciding what sort of clothes they want. As time
passes, the way we dress varies based on what is popular in our society at the time, therefore
businesses must be prepared for any eventuality that may arise.
To accomplish this, the company must first focus on the products that they offer
because this will be the face of their business on the type of product they offer, companies
create products to fill a need in the market, and consumers expect products to meet that
need as the company advertises them (Indeed, 2023), if it has greater components than the
other business competitors the business has, and also how the company approaches their
consumers. In order to do these things, the company needs to have a trusted supplier who
can supply the exceptional quality that the company requires. This will also be a fantastic
chance to establish a consumer connection between the company and the supplier.
93
Furthermore, the business has a unique way of presenting to the general public in such a
way that they will be curious about the product that you sell and for them to try what you
cater, as well as enhance the way on how to deliver the items since the transaction is taking
place online, and know the things that the business's competitor does not have.
Problem 10: Lack of a Physical Store: The business lacks a physical store, which is one
of its weaknesses. The business's lack of a physical store results in having no established
store for customers to shop in or for its products to be displayed and stored.
Objective 10: To at least have a physical store for the customer to visit and shop in.
Market Development

in Charge
“Great place. Step 1: June 2023 The Owner Estimated:

Strategy #1. Great store. Find a onwards ₱10,000
Rent a place Great suitable
where the choices” place Breakdown:
business can within the ₱5,000
establish its area to (Deposit)
physical rent for
store. the ₱5,000
business (Advance
to be Payment)
establishe
d
Step 2:
Estimate
the
amount of
rent if
possible
to
determine
94
if the
business
can
shoulder
the
monthly
payment.
Step 3:
Examine
the place
to be
rented to
see if it
can help
attract
customers
within the
area to
acquire
potential
buyers.
Step 4:
Since the
business
can't
afford to
build a
store right
now due
to
financial
reasons,
try at least
to find a
location
to rent
that is
enough
for the
business
to display
and place
95
its
products
for
customers
to shop in.
A business establishment plays a crucial role in leading a business to its possible
success, as it can be one of their infrastructure assets, which can help them have an
establishment, a store for their products, where customers can visit and shop.
According to the article by Pezzini (2022) titled "Why physical stores are still vital
for retail," it has been identified that customers prefer to shop in a physical store as they
can examine, see, experience, and test products in person before buying.
This can help customers dispel their doubts about the products of a business and
help close a sale. Also, having a physical store can have the advantage of reducing the
chance of a product being returned for size, color, etc., which is beneficial to the business
itself. In the case of Sissum's Preloved Collection, as an online business itself, they do not
have a physical store, which has been one of their problems in terms of dealing with
customer demands. Putting together a strategy on how to deal with this one will require a
major analysis, as it will be a financial matter for the owner and the business itself.
96
Moreover, as the business can't afford right now to build a physical store for their
products, the strategy of renting a place to establish its store must be considered for now.
Furthermore, renting a place for the future physical store must be considered first, which
includes, first, determining and estimating the amount to be used in renting a place. This
must be considered, as it can help identify whether the business can afford to rent.
Moreover, in renting a place, the business must determine and find a suitable one within
its area that can be considered a good place for customers to shop. Considering that a place
to rent must be crucial as it can contribute to the overall performance of the business,
Sissum's Preloved Collection must rent a place where it is enough for its product to be
displayed and placed and where it is convenient for its customers to visit in a day-to-day
operation.
Prior to this, the strategy of renting a place can be a huge decision for the owner
itself, but it can help the business establish its physical store where most customers would
prefer to shop. As mentioned above, it was identified that customers would prefer to shop
at a physical store to visit. As to Sissum's Preloved Collection, as to their products, thrift
dresses, they must consider this strategy to properly allocate their products to help the
business meet its customer demands. Total breakdown of all resources less the total
revenue annually to see if the business is still profitable after acquiring these resources for
all suggested strategies
97
Total Revenue (2022)
₱115,000
SPARTES Resources:
Problem 1 ₱58,000
Problem 2 8,000
Problem 3 5,000
Problem 4 4,000
Problem 5 0
Problem 6 3,000
Problem 7 0
Problem 8 1,805
Problem 9 600
Problem 10 10,000
Total Resources: (₱90,405)

Total Revenue: ₱𝟐𝟒, 𝟓𝟗𝟓
98
DOCUMENTATION
99
Republic of the Philippines

Don Honorio Ventura State University
College of Business Studies
Villa de Bacolor, Pampanga
Dear Mrs. Les Lee Bautista-Versosa,

We are second-year students in the Bachelor of Science in Accountancy program at Don
Honorio Ventura State University and are currently conducting a strategic management
paper as our final requirement in our Strategic Management subject.
We would like to request permission to use the Sissums Preloved Collection as our chosen
organization in our paper. Also, we would like to ask for your permission to interview in
person and acquire valuable information about the organization. In line with this paper, our
purpose is to provide the owner of business strategies with good, valuable, and resourceful
benefits that will help the organization.
Moreover, we are asking for your time to participate in answering questions and giving
information that is important to the completion of our paper. Rest assured that the
information and all data will be kept confidential and that our group has no intention of
harming your business, as we are here to help the business itself. We hope that you will
consider our request to interview you as the owner and use Sissums Preloved Collection as
our chosen organization until the end of our interview and the completion of our paper.
Thank you, and God bless!
Sincerely,
Montero, Mikaella Jona M. Nool, Daisen Vanessa P.
Padernal, Jedah D. Pastor, Shikinah Isih L.
Perez, Rose Ann G.
Mr. Marc Ellouie T. Samonte

Instructor
Mrs. Les Lee Bautista-Versosa

Owner
100
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STRATEGIC MANAGEMENT PLAN FOR SISSUMS PRELOVED COLLECTION

DON HONORIO VENTURA STATE UNIVERSITY

This strategic management paper primarily focuses on a thorough analysis and

quality and uniqueness of the products.

investment from P 25,000.00 of investment cost to P864,324.00 gains. Sissums Preloved

Collection continues to be dedicated to fostering the development of the shop’s

needed in the study.

DON HONORIO VENTURA STATE UNIVERSITY

researchers to produce accurate information. Among them, the Strength, Weaknesses,

DON HONORIO VENTURA STATE UNIVERSITY

I. Background of the Business

Sissums Preloved Collection is an online shopping business that sells thrifted

Sort of thrifted and overruns clothes.

clothes at affordable prices.

DON HONORIO VENTURA STATE UNIVERSITY

Sissums Preloved Collection is just an online shopping business, where customers

DON HONORIO VENTURA STATE UNIVERSITY

II. Nature of Business

Sissums Preloved Collection is a sole proprietorship in the retail merchandising

Collection may offer things that will delight customers.

Sissums Preloved Collection leverages social media platform Facebook to display

customers in tracking their packages.

Even if Sissums Preloved Collection is a small business, it contributes to the

economy by enhancing productivity by allowing enterprises to produce more output, make

manner, it also encourages innovation and drives improved shopping experiences.

lowering carbon emissions.

DON HONORIO VENTURA STATE UNIVERSITY

B. Review of Related Literature

Gabriel Lip (2023) describes a sole proprietor as an unincorporated

entrepreneurship, sole trader, or simply proprietorship. The business owner,

also known as a proprietor or a trader, conducts business using their legal

name. As such, a 'Sole Proprietorship' company organization is one that is

fully owned, managed, and controlled by a single individual with complete

power, responsibility, and risk. According to Ashmore, M. Catherine, &

Pritz, Sandra G. (1983), sole proprietorships are a form of business

cheapest form to start. For this reason, it is common among small

businesses, freelancers, and other self-employed individuals. Although sole

proprietorships are free of government laws and have a simple

organizational structure, they might be dangerous. With a sole

proprietorship, you also do not need to fill out a tremendous amount of

license or permit, depending on your state and type of business.

DON HONORIO VENTURA STATE UNIVERSITY

Electronic commerce is a relatively new concept that crept into the

business vocabulary during the 1970s. A picture of electronic commerce is

retail landscape is again transforming with the advent of mobile commerce

(m-commerce), the buying and selling of goods and services through

wireless handheld devices such as smartphones and tablets. This puts

shopping literally at consumers’ fingertips while creating unprecedented

opportunities for businesses and signaling a new era of growth in online

known as electronic commerce or internet commerce. E-commerce is

powered by the internet. Customers access an online store to browse

Lutkevich et al., 2022). Vladimir Zwass (2023) stated that e-commerce, in

full electronic commerce, maintaining relationships and conducting

business transactions that include selling information, services, and goods

by means of computer telecommunications networks.

DON HONORIO VENTURA STATE UNIVERSITY

Modern electronic commerce typically uses the World Wide Web at

least at one point in the transaction's life-cycle, although it may encompass

a wider range of technologies such as e-mail, mobile devices, social media,

and telephones as well (Saimunur Rahman, 2014).

3. Situations with E-commerce in Philippines

The e-commerce market in the Philippines posted continuous