Camille loves fashion. For the past five years she has spent her free time running a small business selling fashion items such as dresses and accessories via Instagram and at local markets in the southern regions of Melbourne. She imports her items from China and Indonesia and runs the business from a spare room at her home. People love her unique style and she has built a significant following. COVID-19 has impacted many businesses across Melbourne, including Camilles. Shipping delays have led to customers being unhappy with her services and sales have dropped. At the same time, Camille has become concerned on the environmental impact of consumer fashion, such as the products she sells. Camille has decided to change tact and shift her business towards recycled fashion. With her market connections across Melbourne, she is aware of the growing demand for second-hand goods. Secondhand fashion is the logical next step. Camille has thought about some of the changes she will need to make to her business model. With these changes she believes she can increase her online orders and reduce overheads and shipping delays. She will manage product buying, the online platform and marketing herself and will look for a junior employee to assist with sending out orders and other administration matters. Over a coffee she sits down with you to discuss her ideas and business plans. While you want to encourage your friend and their dreams, you also think of the Business Model Canvas and say to her, I think you need to think about this a bit more.

Question 1. Reflecting on the business model canvas, Camilles original business and her proposed changes, identify elements of the business model canvas that Camille will need to make that have not been covered in the description above. Provide a reason why you think the changes would be required.

(10 marks available, 5 marks for business model canvas changes, five marks for your reasons)

Question 2. Identify two tools covered in this subject that Camille could utilise to help her better understand her customers and their changing needs. (6 marks available, 3 marks per tool and reason for your inclusion)

Question 3. What are some of the new costs that Camille will need to think about as she expands her business? List two costs and a reason why they could impact her business model. (4 marks available, 2 marks per cost)

Question 4. Camille has realised that there will be new costs in her new business approach. What could she adjust in order to maintain profits?

a) Increase the prices on her products

b) Source less expensive suppliers

c) Keep prices the same but sell more of her products

d) All of the above

(2 marks)

Question 5. Another popular Instagram fashion business operator, Ronnie Rox, is a close friend of Camille. She approaches Camille with an idea to trial a dedicated second-hand fashion market. They would bring together other Instagram influencers and second-hand fashion businesses. Each business would operate separately but they would share the costs of hosting the event. What type of business arrangement would this be considered?

a) Joint venture

b) Merger and acquisition

c) Coopetition

d) Joint business development

e) None of the above