The document provides details about a business plan for a company called The Muscle Band. The Muscle Band is an armband device that measures muscle tension to determine if a muscle has been sufficiently warmed up prior to physical activity in order to prevent injuries. The business plan outlines the company's vision, industry analysis, target customers and their needs, product and service description, suppliers and partners, differentiation strategy, key business processes including market research and sales checks, functionalities, and supporting systems.
The document provides details about a business plan for a company called The Muscle Band. The Muscle Band is an armband device that measures muscle tension to determine if a muscle has been sufficiently warmed up prior to physical activity in order to prevent injuries. The business plan outlines the company's vision, industry analysis, target customers and their needs, product and service description, suppliers and partners, differentiation strategy, key business processes including market research and sales checks, functionalities, and supporting systems.
The document provides details about a business plan for a company called The Muscle Band. The Muscle Band is an armband device that measures muscle tension to determine if a muscle has been sufficiently warmed up prior to physical activity in order to prevent injuries. The business plan outlines the company's vision, industry analysis, target customers and their needs, product and service description, suppliers and partners, differentiation strategy, key business processes including market research and sales checks, functionalities, and supporting systems.
Name Jacob Rennie NetID jren184 Group Number: 124 Website Link: http://infosys1102014fcgroup124.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Helen Chen Tuesday 11am Time Spent on Assignment: 21.5 hours Word Count:
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2 THE MUSCLE BAND INTRODUCTION Between July 2012 and June 2013 there were 374,186 (ACC, 2014) active ACC claims for sports related muscle injuries in New Zealand costing the taxpayer just over $2billion in payouts. This number has been on the rise over the last couple of years and the money spent on payouts could be used in a more constructive and benefcial way to society elsewhere. The is why we have created the Mucsle Band. The muscle band is an adjustable armband which the user places around a muscle of their choice. The band measures muscle tension using the electomyography(electrical activity produced by skeletal muscles) to compare a baseline measurement pre warm-up with an after warm-up measurement.The device send the measurements to an application to determine if the users muscle has been warmed up enough to recduce the risk of a mucsle injurie occuring . If not it will recommend exerices for the user to perform in order to redeuce the risk. 3. BUSINESS SECTION 3.1 Vision To be the world leaders at providing a premium product to assist in the prevention of muscular injuries. 3.2 Industry Analysis: Electronic Muscl e Injury Prevention Industry Industry: Electronic Muscle Injury Prevention Industry. This industry includes any electonic good which can assists in the prevention of muscular injuries. Force: High/Low: Justification: Buyer power: Low Buyer has limited choice avaliable to them apart from electrical stimulation devices although this
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3 is considered a dangerous activity. (FDA,2009) Supplier power: Low Supplies can be source from many other firms so the dont have the power to influence purchasing decisions in the industry. (Medical Expo, n.d.) Threat of new entrants: Low Signifcant entry barriers are in place in this industry due to health risks that may occur as a result of using the producs. (FDA,2009) Threat of substitutes: High There are many existing alternatives to help prevent muscles injuries such as regualar physiotherapy, compression gear and increasing carbohydrate intake before undertaking a task. (Physio Room, n.d.) Rivalry among existing competitors: Low The low numeber of companies currenty producing goods in this industry is very low and hence there is very limited competion and rivalry. (Compex, u.d)
Overall attractiveness of the industry: The overall attractviness of the electronic muscle injury prevention is high because there is little competition and the both buyer power and supplier power are both low meaning the firms within the industry hold a lot of power. Even though there are substitues, this industry will be of higher value to the customer due to it products being far more effective if they work properly. 3.3 Customers and Thei r Needs The Muscle Band is targeted towards individual customers or sports teams who want to reduce their risk of sustaining muscular injuries whilst performing a sporting activity. The product elements the guess work involved by athletes as to when they consider their body is warmed up adequately. They need this because incorrect warm up of muscles is one of the leading causes of muscular injuries (Health line, 2012)
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4 3.4 The Product and Service The Muscle Band will satisfy the consumers need by providing accurate information to the application and turning it into advice such as suggestion as to which warm up activity to perform in order to get the muscle to the optimum level it should be for the sporting activity. It will also allow a coach to manage a team if they are all wearing the device my send him notification as to when a specific person has warmed up enough. 3.5 Suppliers and Partners One supplier would be a call centre such as Teleperformance as they could have employees trained to provide help with customers problems with our product, and act as customer feedback to recognise faults, and therefore we can improve our product in the future by analysing the information collected . Another supplier would be the technology company involved in the updating of the apps to make sure it uses the latest technology and is hence a premium product. Potential partners for the muscle band are Nike as it could be incorporated into their Nike+ system they currently have which could enable the user to connect the device to an online platform and use it to make a snapshot of their sporting life. Also Tom-tom could be another partner if a gps system was placed in the device. 3.6 Strategy: Differentiation The competitive scope of the Muscle Band will focus on people that actively particpate in sport and this is a narrow market because only 24% of the worlds population regulaly partipate in an organized sport. (ABS, 2012) A high cost strategy will be in place as the Muscle Band as it isa premium product of high quality that has the latest technology systems integrated and hence it will be high cost. The overall strategy is therefore differentiation. 3.7 Value Chain Activity: Market and sell the product or service The most important value chain activity for this business is to market and sell the product or service. In order to become world leaders at providing a premium product that prevents muscle injures it is vital that the entire world is knowlegeable about the device and its capabilities. Marketing the product will be fundamental to the success of the firm espcially as the product only targets a narrow market. If the marketing campaign is prosperous the firm should be gain a significant market share in the industry and have a first-mover advantage. In order to achieve a successful campaign considerable market research must take place in order to decide the best way to market the product.
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5 Selling the product will come as a result of a marketing campaign that has achieved its goals that it set out to. In the proccess of selling the product it will be vitally important to check that the customer has credit and the item is in stock. 3.8 Business Processes 3.8.1. Market Research Process To have a successful marketing campaign the firm needs to carry out market research in order to decide the way in which they should market the product. In the case of the Muscle Band a marketing research team will firstly be appointed to carry out the research and then the marketing team can uses the results they have gathered and interpreted to base their campaign around. The market research process will produce meaningful information such as customer segments, helping to identify potential target markets and distinguishing the specific needs of the target market for the muscle band and hence the campaign will be better equipped to cater to their specific needs.
START Create Market Research team Carry out research Establish Goals of Research What is going to be asked Decide on research method Establish sample group Collaborate results Interpret results Analyse data collected Use interpreted results Has goals of research been achieved Yes END Marketing Management Team Marketing Management Team Data analysis system Data analysis system Redefine goals of research No
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3.8.2. Sales check Process To ensure the firm is providing a premium product the sales process has to be efficient and effective. In order for this to happen checks on credit and inventory must be done so the firm can do a couple of things. Credit must be checked in order to make sure that the product has been paid for in full at the time the order is delivered. Secondly there must be enough inventory in stock to deliver the product and if there isnt the customer will be automatically be notified of the back order by the order manage system.
START Item in stock Yes Customer notified of back order No Item packaged Inventory Ordered System checks inventory levels Warehouse receives order Invoice Prepared Invoice and Item shipped to customer Ordering Management System Ordering Management System Order Recieved Credit Checked Credit OK No Order Cancelled Order Apporved Yes Accounting Department Accounting Department END
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7 3.9 Functionalities 3.9.1. MARKET RESEARCH PROCESS Analyse and interpreting Data Indentifys target market charcteristics 3.9.2. SALES CHECK PROCESS Checks inventory levels Checks customer credit 3.10 Systems 3.10. 1. DATA ANALYSI S SYSTEM This system is used mainly in the market research process but is also used in the sales check process. The system will allow the market management team to efficiently and effectively analyse the information that they have collected. Hence it will fall within the business vision as it enables a premium product to be produced as it will mean that customer satisfaction is high and they consider the product to be of high value. 3.10. 2. ORDER MANAGEMENT SYSTEM The ordering management system will be used within the sales check process to enable the order to be transferred from the accounting department to the warehouse where they prepare the orders for delivery. This will allow for the order to be packed accurately and hence will the delivery to arrive IN-SPEC to the consumer and help play it part in being part of the perfect order making it a premium product. 3.10. 3. CUSTOMER BEHAVIOUR MODELLING SYSTEM This system will be used to build up information gathered during the market research process in order to build up profile of how different types of customers behave and what ways they will react to changes. This will therefore allow the firm to target different specific groups in the future with new products or to give them an opportunity to provide the firm information.
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8 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Research and Development 1. Market Research Process 1. Analyse and interpreting Data
2. Indentifys target market charcteristics
Data analysis system
Customer Behaviour modelling system Decision support System Decision support System
2. Sales Check Process 1. Checking inventory levels
2. Checking customer credit
Order management system
Order management system Transaction processing system
Customer relationship management system
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9 CONCLUSION In conlusion the Muscle Band could potentially be a very succesfull product if it was developed. The industry which it falls into is very attrative and the product itself is of high value to the consumer. A premium product could be created that would benefit society and make people happy. The muscle band could also have various other uses such as in the medical industry as a device for measuring swelling after major trauma. I personally believe the muscle band is a viable product that would change the world.
REFERENCES
1. ACC. (2014). Injury Statistics Results. Retrieved from http://www.acc.co.nz/about- acc/statistics/injury-statistics/index.htm#results