Name Huihui Yang NetID 5591380 Group Number: 24 Website Link: http://infosys110group024.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Claris Chung Saturday 5:30pm Time Spent on Assign- ment: 30 hours Word Count: 1440
2 2 ISSUE WITH DAILY SHOPPING ACTIVITY INTRODUCTION Time and money costing daily shopping activity is the fundamental problem we want to solve. This problem can be solved by providing an efficient and accessible shopping guide. Our best solution is to create a mobile applica- tion which intends to make our customers daily shopping easier and more efficient. 3. BUSINESS SECTION 3.1 VISION To provide a useful, convenient and accessible service for all New Zea- landers to shopping easily and effectively. Force: High/Low: Justification: Buyer power: High Customers have many choices as many mobile shopping apps are available to offer services, such as shopping savvy, Buzzillions Shop Nearby, Red- Laser. we will provide our customers with unique experience and keep our information update in real time, which would reduce buyer power Supplier power: Low There are plenty of mobile app developers in NZ, such as Mobile Apps New Zealand, MentorMate and The Oxagile mobile app developers. We can choose any one of them freely based on the price and the support it offers.(Webhosting)& (Web Search Direc- tor, 2014) 3 3 Threat of new en- trants: Low It is not easy for new competitors to enter the mar- ket as lots of time and money needed for develop- ing and supporting the apps. There are more than 16 well established mobile shopping applications existed in the market which is a barrier for new en- trants to enter.(Truong, 2010) Threat of substitutes: High There are many substitutes to mobile shopping guide, such as newspapers, magazines and coupons. Rivalry among existing competitors: High Competition is fierce in this market as there are many substitutes to the online shopping guide ser- vice, and most of the biggest retailers in NZ have or are developing their own mobile apps, such as Warehouse, CountDown, etc. We will offer a unique experience which fits good with our customers needs in order to reduce the rivals.(Truong, 2010)
3.2 INDUSTRY ANALYSIS: NZ ONLINE SHOPPING GUIDE INDUSTRY Overall attractiveness of the industry: Obviously, this is a relatively higher competitive market, however, we would provide our customers with a unique and high value services which would help us to gain comparative advantage. 3.3 CUSTOMERS AND THEIR NEEDS We provide service for all New Zealanders. Real and accessible shopping information well compared goods prices time and money saving support Mobile app is easy to use Information is updated in real time 4 4
3.4 THE PRODUCT AND SERVICE With the aim to help all New Zealander to shop effectively and easily, we will create a mo- bile application which is easy to use and presents the most relevant sales information.
Information will be updated in real time and all goods information are well processed and compared based on prices from various retailers in NZ. We will keep improving and updating our services based on customers interests and needs. 3.5 SUPPLIERS AND PARTNERS Our suppliers include: Mobile app developer who fits our needs and add value to our service Internet service company such that Vodafone will be our idea internet supplier because of its adaptable and widespread service TradeMe may be our potential supplier as we may want them to do advertise for our app Our partners include most of the retailers and supermarkets in NZ as we are running a shopping guide business.
3.6 STRATEGY: COST LEADERSHIP Our business strategy follows a cost leadership strategy. 1. Since our business focus on all New Zealanders it is a broad market. 2.Saving money and time is the real needs of our customers, therefore we will offer our cus- tomers the most effective shopping guide and only charge each customer $1.88 per year without any additional charge for further service. 3.7 VALUE CHAIN ACTIVITY: MAKE THE PRODUCT OR SERVICE The most important value chain activity for this business is making the product and service. It will be the most valuable activity of our business as it directly influ- ences what service will come to our customers and whether it fits customers need. It support our business vision of providing a service that all New Zealanders love.
3.8 Business Processes 5 5 3.8.1. PRODUCTS DESIGNING PROCESS - Products designing process is the first and the most valuable process of our business. It enable us to make a product which fits customers need. It determine whether our product will help customer save money and time. Providing the useful and effective information with unique experience will add value to our customers and which could help us to gain com- parative advantage.
PRODUCTS DESIGNING PROCESS MODEL:
6 6
7 7 3.8.2. INFORMATION UPDATING PROCESS: The information updating process ensures the quality of our products, which checks and updates information in real time. It is important as it is a real and close connection between us and the retail- ers who provides us sales information. It will reduce the time and efforts in infor- mation updating and improve customers satisfaction. From the view of long term operation it will help us to build a good business reputation.
INFORMATION UPDATING PROCESS MODEL 8 8
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3.9 Functionalities 3.9.1. PRODUCT DESIGNING PROCESS Support us to make product which fits customer needs Support for providing customers a unique experience 3.9.2. INFORMATION UPDATING PROCESS Support the capturing and updating of information Ensure the quality of information 3.10 Systems
3.10.1. PRODUCT PLANNING SYSTEM - It supports products designing activities through a systematic formulation. The system first captures the data from the market research, then analyses the data to generate the possible product modules and automatically send to the design team and other relevant departments. Each one of them will then communicate and provide ideas through the system. The sys- tem would help us to create most effective and valuable products by supporting products planning process.(Microsoft Dynamics AX 2012)
3.10.2. INFORMATION UPDATING SYSTEM Information updating is quite im- portant to our business as it ensures that our information are newest and correct. It would reduce the costs of date collection by supporting connection with the re- tailers and supermarkets in NZ, in other words, as long as the new prices or infor- mation were updated in retailers database it will be captured immediately by our system. The information updating system ensures the quality of our information, which would help us to improve customers satisfaction. 10 10 3.10.3. MARKETING CAMPAIGN SYSTEM-The marketing campaign system is used to support campaign planning, budgeting, and segmentation formulation. It helps to generate possible campaign model, target group and a budget. It reduce the cost and time to look for the new customers and rather help us to improve cus- tomers satisfaction with the effective planning, execution, evaluation process- es.(Microsoft, 2013)
11 11 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Infor- mation Sys- tem(s) Broad Infor- mation Sys- tem(s)
make the product and service 1. Products de- signing pro- cess 1. support us to make product which fits customers needs
2. support for provid- ing customers a unique experience Product planning system
Marketing cam- paign system Enterprise Re- source Planning System
Customer Rela- tionship Manage- ment System 2. Information updating process 1. support the captur- ing and updating of information
2. ensure the quality of information Information up- dating system Supply Chain Management Sys- tem
CONCLUSION With the arm to solve the problem of inconvenient and time costing daily shopping, we will create a mobile application based on the idea of making shopping easier and more effective. We provide real time updated Information and represent them based on customers inter- ests and locations, charge the lower annual fee of $1.88 per person. Making the product or service is our core business activity as it helps us to make product fits customers need. The activities are supported by product planning system, information up- dating system and marketing campaign system which works together will help us to gain competitive advantages. 12 12
REFERENCES
Liz MacPherson. (2014, March 20). Statistics New Zealand. Gross Domestic Prod- uct: December 2013 quarter Media Release. Retrieved from http://www.stats.govt.nz/ Statistics New Zealand. (2013, November 28). Household Economic Survey: Year ended June 2013 Retrieved from http://www.stats.govt.nz/ Matt & Sum. (2013, January 5). Higher cost of living expected. Retrieved from http://www.stuff.co.nz/business/money/8144999/Higher-cost-of-living-expected Constantinou, Andreas. (14 November 2008). The Mobile Application Store Phe- nomenon. Retrieved from http://www.visionmobile.com/blog/2008/11/the- mobile-application-store-phenomenon/ Consumer reports, 2013. Consumer union of United States. John Albertson. (May 2013). New Zealand Retailer Association. The Retail Market in New Zealand---An Analysis Truong, L. (2010). 16 Best Mobile Shopping Apps for Your Phone. Retrieved from http://www.wisebread.com/16-best-mobile-shopping-apps-for-your-phone Webhosting Search. (2014). Retrieved from http://www.webhostingsearch.com Microsoft. (2013). Microsoft Dynamics CRM 2013.Retrieved from http://www.microsoft.com/en-gb/dynamics/crm.aspx Microsoft Dynamics AX 2012 R3. Retrieved from http://www.microsoft.com/en- gb/dynamics/erp-ax-overview.aspx Statistics NZ. Innovation in New Zealand: 2013 tables. Retrieved from http://www.stats.govt.nz. Business Operations SurveyHOTP2013.aspx Shop savvy (2014). Online shopping guide for factory products. Retrieved from http://www.bargainshopping.co.nz Web Search Director. (2014). New Zealand Internet Providers. Retrieved from http://www.nzsearch.co.nz/category.aspx?id=705