Question

What is Zaggora’s main product and target market? Does this represent a good opportunity? Why or why not? Hint: Construct a Venture Opportunity Screener.

Answer 1

Zaggora is a British-based company specialising in women's activewear and health foods. The brand is particularly known for their Hotpants and Hotwear clothing line, which are claimed to help users lose weight and burn calories.

Opportunities are potential areas where the firm can identify potential for - growth, profits, and market share.

- Rapid Expansion of Economy As the US economy is improving faster than any other developed economy, it will provide Hotpants Zaggora an opportunity to expand into the US market. Hotpants Zaggora already have know-how to operate into the competitive US market.

- Trend of customers migrating to higher end products - It represents great opportunity for Hotpants Zaggora, as the firm has strong brand recognition in the premium segment, customers have experience with excellent customer services provided by Hotpants Zaggora brands in the lower segment. It can be a win-win for the company and provides an opportunity to increase the profitability.

- Local Collaboration - Tie-up with local players can also provide opportunities of growth for the Hotpants Zaggora in international markets. The local players have local expertise while Hotpants Zaggora can bring global processes and execution expertise on table.

- Increasing customer base in lower segments - As customers have to migrate from un-organized operators in the Entrepreneurship, Financial management, Innovation, Technology industry to licensed players. It will provide Hotpants Zaggora an opportunity to penetrate entry level market with a no-frill offering.

- Lower inflation rate - The low inflation rate bring more stability in the market, enable credit at lower interest rate to the customers of Hotpants Zaggora. This will increase the consumption of Hotpants Zaggora products.

- Accelerated technological innovations and advances are improving industrial productivity, allowing suppliers to manufacture vast array of products and services. This can help Hotpants Zaggora to significantly venture into adjacent products.