Armen Asryan
Shoe production
Shushi City

Project Summary

Business history and work experience

I am working in shoe production sphere from 1990. I am specialized in woman and man shoes productions. I have worked in different countries of the Soviet Union. In 2004 I started my own production in Shushi. Now the company has two main sectors: shoe renovation and shoe production. I am the main specialist and designer of the company.

Description of Business Idea

I am planning to enlarge the production producing shoes for women and men.

Market Analysis and market share

Now the customers buy shoes from retail shops or from my company. From retail shops they buy no leather and imported shoes. The researching showed that the 60% of population want to buy leather shoes of the local production. Taking into consideration the research results and the company experience we can say that in Shushi shoes market is spend 18 million drams.
The company’s annual income was 9,6 million drams in 2009. The 6,0 million drams was from shoe production and 3,6 million drams from shoe renovation. Comparing the advantages and disadvantages of the company the shear of the company will be 60%. Taking into account the fact that the company has customers from other regions of the NKR too, the annual income for 2010 will be 12 million drams.

Competition Analysis

The main competitors are the shoe production companies in Yerevan and the shoe and clothes shops in Shushi. The company has advantages towards two competitors. Compared with the companies of Yerevan the company has low price and with shoe shops it has a big choice.

Project Financial Analysis

Project Costs: 
5.750.000
Total Equity: 
3.100.000
Profit : 
2.300.000
Profitability of Equity: 
74%
Current employees: 
3
New employees: 
1

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