Threats

Threat is external factors that can influence and affect to the performance of business.
Basically the external factors are typically things that cannot be controlled such as market
trends, economic trends, and political, environmental and economic regulations.

The common threat in running business is competition from competitors that selling same
categorizes of product. From this situation, the consumer will became more choice to select
the shop to buy the cloths. KA Cute Boutique has to compete with other children’s clothing
stores near Pekan Changlun especially in C-Mart Complex. Since KA Cute Boutique just
opened in last June, many people do not know yet the existence of boutique. In addition, the
unique of interior design ideas more attracting customers to enter the other stores where in C-
Mart Complex. It also contributes on customer’s first impression toward those stores. For
example, the stores provide more quality and branded clothing compared to KA Cute
Boutique viewed as a low standard store. In reality, the quality of the product provided does
not make much difference. Other than that, the competitors get to provide the beautiful design
that Mrs Aida cannot get from supplier and the competitor’s price cheaper than KA Cute
Boutique’s price.

The second threat for KA Cute Boutique is weather. Weather may influence the number of
customers who visit the KA Cute Boutique. Usually in Malaysia, at the end of the year
between November and December are monsoon season. This may effects on the number of
customers visiting the boutique compared to normal weather.

The third threat for KA Cute Boutique is seasonal. Meaning that the sales of children’s
clothing depend on certain event or festival like Eid as the parents will be shopping new
clothes for their children. There is a huge difference between the revenue in ordinary days
compared with the revenue on festive season.

The fourth threat is changes in trend. Trends in the fashion industry are fickle, ever-changing
and often elusive. KA Cute Boutique has always to keep updating and follow the latest
trends. One misstep may result in excessive inventory, undermined credibility and confused
brand identity for the KA Cute Boutique.