Name Suraya Raina Patel NetID spt994 Group Number: 369 Website Link: http://infosys110s1group369.blogspot.co.nz/p/d1.html Tutorial Details Tutor: Day: Time: KitWah Wednesday 13:00 Time Spent on Assignment: 12hours Word Count: 1617
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2 DELIVERABLE TWO INTRODUCTION There is a problem of high, preventable, skin cancer rates around the world, especially in New Zealand. Consequently, we have designed a bracelet that when worn, will monitor the intensity of UVR (Ultra Violet rays) that are present in the environment the individual is in. When intensity is high, the bracelet will notify the individual and will also send data to the local DHB (District Health Board). This will allow DHBs to gather the prevalence of UVR intensity in different locations, enabling display of information, for everyone to see and be aware of. Subsequently, this is in aim to reduce the high prevalence of skin cancer rates in New Zealand. From the analysis below, we will look at how the product (bracelet) will be implemented within the health care industry, though our start-up company.
3. BUSINESS SECTION 3.1 Vision To provide a unique product that every individual can wear, while benefitting the populations health and wellbeing, every day, everywhere.
3.2 Industry Analysis: Health Care Industry Industry: Health Care Industry. Force: High/Low: Justification: Buyer power: High Buyers have many health care products they can choose from within the industry (Inderst & Wey, 2002). This allows them to have reasonably high power and control over what they purchase. Examples can be seen in products such as skin care products, drugs or lotions.
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3 Supplier power: High This is because there are limited legitimate health care product manufacturers (API Consumer Brands). This means that the health care industry has limited power when purchasing supplies, whereas the suppliers have high power as there are few of them. Subsequently, they can control prices. Threat of new entrants: Low The health care industry is hard to enter as it requires high levels of accurate, precise knowledge. It is also quite costly to enter as specific, high technological resources are required to manufacture products (API Consumer Brands). Thus the threat of subsequent entrants into the health care industry is quite low. Threat of substitutes: High The only alternative product to this bracelet in the industry is sunscreen (Mackay, 2012). Sunscreen is also typically the leading skin cancer preventative health care product used (Australian Government, 2014). This means that it is a threatening substitute when looking at prevention of skin cancer. Rivalry among existing competitors: High Different health care products consistently compete because there are many choices offered within the industry (Bare Escentuals Incorperated, 2008). These choices are mainly seen in order to keep up with trends and consumer preferences that are constantly
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4 changing (Bare Escentuals Incorperated, 2008). This shows healthy competition and thus rivalry among those in the health care industry. Overall attractiveness of the industry: Because 4 out of the 5 forces are high, this industry does not appear to be very attractive. This is especially the case where it is hard to get into the market, suppliers and buyers both have high power and there are significant alternative products which subsequently create rivalry in the market. This makes the industry seem that overall profits will be low, if wanting to enter. However, because the only substitute to our product is sunblock, there is a possibility that a new and unique product may thrive in this industry (Saraiya, et al., 2004). This could further be accomplished through core competencies of a strong business model (Porter, Argyres, & McGahan, 2002). 3.3 Customers and Thei r Needs Customers are anyone with access to shops that will supply our product, and are willing to pay money. Everyone is at risk of high UVR and subsequently, have increased risk of skin cancer (Ministry of Health, 2013). Therefore, our customer target is quite broad; however, all have the same need of enabling beneficial health status. This need is portrayed through the want of a product that can prevent high exposures of UVR. These customers will also be looking for a product that is an attractive accessory that they can enjoy wearing. 3.4 The Product and Service Our product satisfies the needs of customers who are concerned for their health and who want to benefit from the product but also enjoy doing so. By creating our product, high levels of UVR will be able to be recognised, enabling customers to be aware of risk, subsequently allowing them to take preventative measure such as relocating to shade. This allows decreased risk of skin cancer and possibility of beneficial health outcomes which addresses the needs of health conscious customers. Because our product will have multiple colourful designs and also light up when high exposures are present, all ages and types of customers will appeal to the fun design and be more willing to wear this accessory.
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5 3.5 Suppliers and Partners Suppliers: Health care product, technology manufacturers as they will provide the technological face of the bracelet that identifies the high levels of sun exposure. Strap suppliers, for example watch or bracelet strap suppliers who will supply the straps needed for the bracelet bands to be worn. Partners: The DHBs will help promote the product and work with us to create better health outcomes. For example, the DHBs will gather the data from the bracelets and display this data on boards around districts to portray the high levels of sun exposure in different areas. Vodafone will help create and maintain the IT part of the bracelets. For example they will allow the usage of a 3G internet connection for data transmission to the DHB databases. 3.6 Strategy: Cost Leadership Cost strategy is low cost, as we aim to make our product affordable to all customers, allowing everyone to be able to purchase it. Our competitive scope is broad market, thus available to all customers, subsequently also allowing everyone to access it, everywhere. The overall strategy is therefore Cost Leadership 3.7 Value Chain Activity: Market and Sell the Product The most important value chain activity for this business is to Market and Sell the Product By marketing and selling our product, we are delivering a health beneficial product, which is very unique, as shown through marketing, to all types of customers, everywhere, constantly. This interrelates to our vision statement but also our generic strategy of cost leadership, as it enables us to focus on providing to a wide range of customers at an affordable, attractive price. Consequently, providing the product to the customer is our main priority.
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6 3.8 Business Processes 3.8.1. MARKETING PROCESS - advertising of key features of the bracelet, allows attraction of customers who require our product. This is beneficial to our company as it informs customers of what the product entitles but also benefits the customer as they too become aware of the products entities. In this instance, the marketing process will involve attracting customers through the use of television advertisements. If this is not attracting customers, it will need to be revised, perhaps with other advertising measures like posters or magazine advertisements. Customer attraction processing system Marketing Department START Create marketing advertisement Stream advertisement on television Are customers being attracted? Find out why the advertisement is not working Implement change to the advertising Customers coming into store for product Customer decides to buy product END NO YES
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7 3.8.2. SALES PROCESS - the selling of our product, in stores, to customers. This will be done by scanning the product the customer brings to the counter, with sales staff processing the sale and payment and handing over the product to the customer. If the payment is not processed, staff must inform the customer as part of the sales process. Overall, this process is important to our organisation as it sees the revenue coming into the company and delivering the product.
END START Scan product that customer brings to counter Process payment Was payment accepted Notify customer of failed payment Process new payment Payment Accepted Hand receipt and product over to customer NO YES Product Scanning System Sales Department
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8 3.9 Functionalities 3.9.1. MARKETING PROCESS Advertise the video advertisement Count the amount of customers
3.9.2. SALES PROCESS Scan the product Accept a payment 3.10 Systems
3.10. 1. CUSTOMER ATTRACTION PROCESSING SYSTEM - selected in order to track and monitor the customers that are being attracted by the advertisements. This will allow us to determine whether our marketing is working sufficiently to generate sales and to provide our product to everyone.
3.10. 2. SALES PROCESSI NG SYSTEM - processing of sales allows customers to receive a product, for the functionality of accepting a payment. Subsequently, it allows us to see if we are gathering sufficient sales. This also enables us to see company profitability, but also allows us to recognise if our products are being sold and consequently benefiting our customers.
3.10. 3. PRODUCT SCANNI NG SYSTEM - involves transactions and scanning of products purchased and enables data to be stored about the frequency of purchases, as well as location of purchases. This allows us to recognise whether our product is targeting everybody, everywhere, everyday.
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9 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Market and sell the product 1. Marketing Process 1. Advertise the video advertisement
2. Count the amount of customers Customer attraction processing system
Customer attraction processing system Customer relationship management system
Decision suport system 2. Sales Process 1. Scan the product
2. Accept a payment Sales processing System
Product scanning system Transaction processing system
Transaction processing system
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10 CONCLUSION Therefore, in conclusion, we can see that although initially, the health care industry does not appear to be very attractive when taking into consideration entrance barriers; there are posibilitites where a new product, such as our bracelet, could thrive. This can be done through the value chain activity of marketing and selling the product with collaboration with IT and IS. This can be seen in specific systems such as customer attraction and sales processing systems, enabling functionalities, through IT. This allows creation of value within our start up company which is not only beneficial to us, but will also allow provision of a unique new product, to everyone, everywhere, in aim to benefit health outcomes.
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11 REFERENCES
API Consumer Brands. (n.d.). Overview. Retrieved from API: http://www.api.net.nz/manufacturing/overview Australian Government. (2014). Sunscreens: information for consumers. Retrieved from Australian Government Department of Health: http://www.tga.gov.au/consumers/sunscreens-2012.htm#.U3Q40fmSyTs Bare Escentuals Incorperated. (2008). Annual Report of Form 10-K. Bare Escentuals, Inc. Inderst, R., & Wey, C. (2002). Buyer Power and Supplier Incentives. London. Mackay, J. (2012, November). Sussing out sunscreen. Retrieved from The New Zealand Herald: http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&objectid=10848734 Porter, M., Argyres, N., & McGahan, A. (2002). An interview with Michael Porter. The Academy of Management Executive Journal, 16(2), 43-52. Saraiya, M., Glanz, K., Briss, P., Nichols, P., White, C., Das, D., . . . Rochester, P. (2004). Interventions to prevent skin cancer by reducing exposure to ultraviolet radiation. American journal of preventive medicine, 422-466. Tripp, M., Vernon, S., Gritz, E., Diamond, P., & Mullen, P. (2013). Children's Skin Cancer Prevention: A systematic review of parents' psychosocial measures. American Journal of Preventive Medicine, 267-273.