This document provides an analysis of a proposed Bluetooth-connected motorcycle helmet business. It includes:
1) An industry analysis of the motorcycle helmet manufacturing industry, finding competition to be high with many existing companies and low barriers to entry.
2) Details on the proposed Bluetooth helmet product that would only allow motorcycles to start when connected to the helmet via Bluetooth to encourage helmet usage.
3) A business strategy focusing on a narrow market of those required to use the helmet, with the higher-cost Bluetooth technology product.
This document provides an analysis of a proposed Bluetooth-connected motorcycle helmet business. It includes:
1) An industry analysis of the motorcycle helmet manufacturing industry, finding competition to be high with many existing companies and low barriers to entry.
2) Details on the proposed Bluetooth helmet product that would only allow motorcycles to start when connected to the helmet via Bluetooth to encourage helmet usage.
3) A business strategy focusing on a narrow market of those required to use the helmet, with the higher-cost Bluetooth technology product.
This document provides an analysis of a proposed Bluetooth-connected motorcycle helmet business. It includes:
1) An industry analysis of the motorcycle helmet manufacturing industry, finding competition to be high with many existing companies and low barriers to entry.
2) Details on the proposed Bluetooth helmet product that would only allow motorcycles to start when connected to the helmet via Bluetooth to encourage helmet usage.
3) A business strategy focusing on a narrow market of those required to use the helmet, with the higher-cost Bluetooth technology product.
Name Heying li NetID Hli938 Group Number: 311 Website Link: http://infosys110group311.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Khushbu Thursday 12pm Time Spent on Assignment: 30 hours Word Count: 1647
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2 ANALYSIS REPORT INTRODUCTION Researches stated that riding motorcycle without a helmet is a severe safety problem and causes heaps of accident happened every year. Helmets are estimated to prevent 37 percent of crash deaths among motorcycle riders and 41 percent of crash deaths for motorcycle passengers.Cdc.gov(2010) We found out that a bluetooth connected helmet might be able to solve this problem as people can only start their motorcycles by connecting it to the helmet. Hopefully our product can make the road safer for riders. 3. BUSINESS SECTION 3.1 Vision You will never have a chance to forget your helmet. 3.2 Industry Analysis: helmet manufacturing industry Industry:motorcycle helmet manufacturing industry. Force: High/Low: Justification: Buyer power: High Buyers have a large variety of helmet brands to choose from. Buyers can choose according to price or quality. Because it is a competitive industry, companies always set a lower price to attract customers. Supplier power: Low Answers.com,. (2011) Modern helmets are constructed from plastics. Premium price helmets are made with fiberglass reinforced with Kevlar or carbon fiber. Those materials are not difficult to be found and there are heaps of suppliers around the world.
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3 Companies can find one supplier that can minimise their cost. Threat of new entrants: High One company only needs to follow the law to make laws requiring acceptable helmets. Such as New Zealand Standard NZS 5430: Protective helmets for vehicle users. Nzta.govt.nz(2010). For a small company, dont need a large amount of start up capital thus easy to enter. Threat of substitutes: Low Helmets reduce injuries and fatalities in motorcycle accidents (Jess F.1994), thus many countries have laws requiring acceptable helmets to be worn by motorcycle riders. So there are no substitutes for motorcycle helmets. Rivalry among existing competitors: High Rivalry among existing competitors is high when competition is fierce(Baltzan,Lynch,Blakey.2013). There are many existing helmet manufacturing businesses, all companies want to creat a competitive and lead the industry to appeal more customers. So competitive is high. Overall attractiveness of the industry: Wear a helmet when riding a motorcycle is enforced by law. So anyone who rides without a helmet will be fined, thus no threat of substitutes. But competition is high as many existing companies and low barriers to enter the market. 3.3 Customers and Thei r Needs Our company designed one kind of motorcycle that assembled with blue-tooth. Then need one device assembled with motorcycle start button. This device is similar to a circuit
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4 breaker. Motorcycle can only be started when the helmet connected with that device. Then the circuit inside the motorcycle can be connected to start the motorcycle. You may think that no one will ask for a trouble to buy this kind of helmet. But we still have customers. Riders got caught because they did not wear a helmet before may be enforced by police to buy this kind of helmet. Under this condition, even though they unwilling to buy this helmet, they have no choice. Teenagers who like riding motorcycle might be enforced by their parents to buy this helmet to ensure safety. Parents will worry about whether they wear a helmet while riding. With this helmet, they will feel at ease. 3.4 The Product and Service Our newly designed helmet includes two parts. One is the helmet itself and one is the device which uses to connect with the start bottom. Firstly we assemble that device to the motorcycle as described above. This device also has blue-tooth device installed. Once the device connected with the blue-tooth signal sent by the helmet, the motorcycle can be started. In order to avoid the rider put his helmet at the back of motorcycle instead of wearing it, we designed these two blue-tooth devices can only be connected within one meter distance. We will help our customers assemble this device to the motorcycle when they bought our helmet can then teach them how to connect the helmet to their motorcycles. We also provide 3 years guarantee in case some quality problems occur. 3.5 Suppliers and Partners As a manufacturer, we need raw material suppliers provide to make the basic helmet. As these raw materials are used by all helmet manufacturers, it is easy to find cheap suppliers. A blue-tooth devices supplier is also very important for us. As our company creats a competitive advantage through launchs this newly designed helmet, we have the first mover advantage as well. We need to maintain this competitive advantage by making the
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5 connection between helmet and motorcycle more reliable, which means we need a reliable blue-tooth devices supplier provides high-quality devices for us. Motorcycle retailer. Motorcycles and helmets are always selling together because they are cross-sell products. One will buy a helmet when he purchases a motorcycle as it is necessary. We are going to be partners with several motorcycle retailers and display our helmets in their shops. Then for every helmet sold by these shops, they can receive a percentage of selling price as a bonus. Delivery company After we manufactured our products, we need to deliver it to retailers for sale. It will be troublesome and cost more for a company to find random logistics company every time. So we need a partner, once we build a relationship with this company, we will save time and hopefully can get a lower charge. And for this logistic company will also have a stable source of income. 3.6 Strategy: narrow market high cost strategy. We focus on the relatively narrow market because if the person is willing to wear a helmet, he wont buy this kind of helmet. So we mainly focus on people who are enforced by others or really consider their own safety. This blue-tooth helmet is more expensive compare with normal helmets as it has blue-tooth devices assembled. More complicated technology needed. And the device assembled on the motorcycle will also be a cost. 3.7 Value Chain Activity: manufacturi ng the product The most important value chain activity is manufacturing the product. We creat competitive advantage by launching this blue-tooth connected helmet which has never been seen before in the market. We already have a first mover advantage. But in order to keep this competitive advantage, we need to keep updating our product, make it more reliable and effective, so we always need to keep improving the quality and efficiency of our helmets during the manufacturing activity.
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6 Under narrow market high cost strategy. Reliable blue tooth connection and high quality are really important because if our customers can always find problems when using it, such as the connection always instable, then that means this product cannot really deliver value what customers need. So every helmet should be made with care and skill to make sure our product and connection between helmet and motorcycle will always stay in good condition. According to our vision,we aim to reduce motorcycle accident by enforcing some wear helmet. So if the helmet we made is not reliable enough, this aim cannot be met. 3.8 Business Processes 3.8.1 HELMET MANUFACTURING PROCESS Firstly, we receive orders from customers, then the manufacturing manager processes the order to the factory. Manufactures wi ll make certain amount of helmet in based on customers order. Then workers will check stock inventories to see whether the raw material s are enough for manufacturing. If not, they will need to order more. Then workers start making helmets. This process ends when all works are completed.
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7 start Receive order from customers Check stock raw materials Enough raw materials left? Order more No Make helmets yes Reach the target quantity end Raw materials management department Ordering system Ordering system
3.8.2. HELMET QUALI TY TESTI NG PROCESS After all helmets have been completed, workers need to test the quality to make sure customers will receive high standard helmets. Then after the manager believes all helmets are error free, products will be shipping to retail shops or straight to customers. Finally, this process ends.
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8 start Choose samples from all products Test the quality of samples qualified Packaging yes Ready for shipping end Correct any fault or make new ones no Quality inspection department Quality inspection department Quality management system Quality management system
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9 3.9 Functionalities 3.9.1. HELMET MANUFACTURING PROCESS Receive order from customers Check stock raw materials 3.9.2. HELEMT QUALI TY TESTI NG PROCESS Test the quality. Correct any fault. 3.10 Systems
3.10. 1. ORDER MANAGEMENT SYSTEM- This is a specific system on how we process orders received from customers. Once we receive an order from customers, we will save the information in this system and then send the order to the factory for manufacturing helmets. This order will complete only after customers received products. This system will help our company process orders on time and get organised. 3.10. 2. RAW MATERI ALS MANAGEMENT SYSTEM The quantity of raw materials we stock in the factory should be under control. Then anytime when we receive an order, our system will automatically check the amount of raw materials we have and the amount we need, if there is a lack of materials, order will be made immediately, in this way we wont waste time on check inventory manually,shorten production life cycle. 3.10. 3. QUALI TY MANAGEMENT SYSTEM- to make sure all products are in good quality is a key aspect for a company to gain reputation and generate profit. Under this system,any error will be recorded and corrected and the percentage of the pass as well. So then for the data we collected,it is easy to analyse the efficiency of how the workers performed and what we should improve.
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10 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Manufacturing the product 1.make the helmet process 1.receive an order form customers
2.check stock raw materials
Ordering system
Raw materials managemnet system Transcation processing system 2.quality testing process 1.check the quality
2.Correct fault Quality managemnet system
Transcation processing system
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11 CONCLUSION Overall, We use information systems such as ordering system under TPS to help us manage and process customers orders. And use quantity management system under TPS to check quality and correct, determine how effectively we performed and what we should improve as well. Under the help from the information system and technology, hopefully this helmet can reduce the amount of the riders who are not wearing a helmet. As a consequence, fewer injuries and deaths make the world a better place. REFERENCES
1. Baltzan, Paige. (2013) Business driven information systems/ Paige Baltzan ,Kathy Lynch and Peter Blakey. (2nd ed.) Australia: Kate hickey.
2. CDC Features - Motorcycle SafetyCdc.gov,. (2010). CDC Features - Motorcycle Safety. Retrieved 24 May 2014, from http://www.cdc.gov/features/motorcyclesafety/
3. Jess F. Kraus, MPH, PhD; Corinne Peek, MPH; David L. McArthur, PhD, MPH; Allan Williams, PhD. JAMA. 1994. The Effect of the 1992 California Motorcycle Helmet Use Law on Motorcycle Crash Fatalities and Injuries;272(19):1506-1511
4. Motorcycle helmet.Answers.com,. (2011). Motorcycle helmet. Retrieved 24 May 2014, from http://www.answers.com/topic/motorcycle-helmet#Construction.
5. Nzta.govt.nz.the official new zealand road code for motorcyclists you and your motorcyclenzta.govt.nz,. (2010). The official new zealand road code for motorcyclists - you and your motorcycle. Retrieved 24 may 2014, from http://www.nzta.govt.nz/resources/roadcode/motorcycle-road-code/you-and-your- motorcycle/wearing-the-right-gear.html