Name Ellie Cook NetID Ecoo714 Group Number: 038 Website Link: http://infosys1102014fcgroup38.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Claris Chung Monday 12pm Time Spent on Assignment: 11 hours Word Count: 1604
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2 SURDIVE SCUBA SAFTEY TECHNOLOGY INTRODUCTION SCUBA diving is the sport of underwater diving using self-contained breathing apparatus for the exploration of the mysterious and expansive underworld that is the ocean. An incredible experience yet a highly dangerous one with threat of shark attacks, net tanglings, lack of oxygen and health problems disabling freedom for deep sea divers. Lack of communication with the diver and dive boat has seen the safety of the divers around the world compromised as once they are underwater, they are essentially alone (Scuba Diving, 2013). With over 1.2 million participants (How Many People Scuba Dive? 2007), diving is such popular a sport that its risks deserve our attention. To target this communication issue, SurDive SCUBA Safety Technology will manufacture GPS tracking bracelets that the divers can wear underwater so the dive boat has constant access to their location providing increased safety for the deep sea sport. 3. BUSINESS SECTION 3.1 Vision Survive the Dive. At SurDive, our vision is to open up the world of ocean exploration through the innovation of reliable and affordable SCUBA safety technology. 3.2 Industry Analysis: SCUBA Diving Equipment Industry Industry: International SCUBA Diving Equipment Industry Force: High/Low: Justification: Buyer power: High With over 30 trusted SCUBA diving equipment retailers around the world (About.com, 2014), buyers have many different companies they can chose from when purchasing diving equipment so buyer power is high. Supplier power: Low With a quick search of global trading website Alibaba returning 587 suppliers for dive equipment (Alibaba.com, 2014), this industry has low supplier power as suppliers have a lot of competition amongst them.
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3 Threat of new entrants: High Dive equipment is often sold with a 100% mark-up (Walker, J. 2011). This indicates that it is a relatively profitbale and inexpensive industry to enter into causing the threat of new entrants in turn to be high. Threat of substitutes: High Threat of substitutes for the GPS Bracelet alone is high because tracking technology such as EPIRBS or PLBs already the basis for locating ones position (Marine Deals, 2014) and although not typically waterproof, the technology can be adapted as SurDive will. Rivalry among existing competitors: High Due to the high level of retailers (About.com,2014) and manufacturers (Alibaba.com, 2014), competition is fierce in this industry as a large number of firms compete in a small market. Overall, this industry is not an appealing industry to enter in to because the high threat of competition. Given that it targets one niche activity, the market has little room for growth and innovation , and where there is oppurtnity for first mover advantage, the large number of competing companies will quickly obliterate this lead with similar technology to stay on top of the industry. 3.3 Customers and Their Needs As a manufacturing company, the target market for the SurDive SCUBA GPS Bracelet is dive equipment merchandising companies. Instead of selling straight to divers, SurDive will become a supplier for already highly established brands including Aeris, DUI and Sherwood SCUBA (TechNavio, 2013) so that the product can maximise sales from the start. For these well respected merchandisers, they require an innovative and marketable product that the third party target market of divers will deem necessary for their safety while practicing SCUBA diving. 3.4 The Product and Service The main issue the product is trying to address and improve is the safety of the final customer; deep sea divers. In the form of a water-resitant bracelet fitted with GPS tracking devices such EPIRBS, this product will allow the dive boat to have constant monitoring of the
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4 divers location. With this new found communication divers can have more freedom to explore as they can be assured the boat will know of their whereabouts if something goes wrong and a panic button on the bracelet will also be able to alert the boat of any danger the diver is in once activated from underwater. 3.5 Suppliers and Partners Suppliers Wholesale EPIRB traders such as Alphatron Asia Private Limited and Global Marine Safety PTE Ltd will be outsourced to develop small enough EPIRB technology to fit into a small bracelet design. Award winning Dover Waterproofing Technologies Limitied will become the main supplier of waterproofing technology for the tasking of ensuring the bracelet will remain functional underwater Partners Collaborating with the worlds leading dive equipment merchandisers including Aeris, DUI and Sherwood SCUBA (TechNavio, 2013) will be important to maximise sales through their customer base and reputations while eliminating competition as they will not need to compete with the first mover when they are being supplied by the first mover. A partnership with the worlds leading SCUBA diving training organisation (PADI, 2014) would also be valuable for the Bracelets success as they have a global voice that could promote the importance of purchasing the product. They could also provide insight to customer demographics and needs which could help to improve the products functions and qualities. 3.6 Strategy: Differentiation Because of the specific sport and problem the product is targeting, the competitive scope SurDive will focus on is a narrow market. Due to the high costs involved in participating seriously in this activity and the importance of safety for more casual divers, expenses are
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5 not spared when purchasing equipment because divers know they cannot compromise their safety to save a dollar. This agreement to invest in the sport means SurDive can implement a high cost strategy to balance out the limited customer scope that is available to them so they are still able to make profit on their product. This narrow market, high cost strategy is a differentiation focused stratgy. 3.7 Value Chain Acti vi ty: Product Manufacturing One key value chain activity that is essential to the success of SurDive Safety Technoloy is the process of manufacturing the product. Both the vision and strategy market heavily the main inspiration of the products purpose and point of sale: safety. Improving the safety of the diving experience is therefore heavily reliant on the quality of the product that is ultimately produced and released to solve this problem. Through thorough safety checks SurDive will be able to release a product that is reliable enough for sale to a narrow market at a high cost to solve safety involved with SCUBA diving. 3.8 Business Processes 3.8.1. PRODUCT MANUFACTURING PROCESS Once the Operations Management department has identified the materials required to create the final product, an order is placed with suppliers. Raw materials are then received and paid for followed by the creation of the final product. To ensure quality and safety for customers, safety checks are then practiced until the product is ready for delivery to customer.
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6 Identify Materials Required Start Create & Send Purchase Order Receive Materials Receive Invoice Pay Invoice Manufacture Product Product Testing Product Meets Requirements? Deliver Product to Customers Finish Fix Products Problems Information Systems Operations Management Department Yes No
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7 3.8.2. PRODUCT SALES PROCESS As the sales receive customers orders, the required stock for the order is sourced from SurDives Warehouse. The product is then delivered to the customer and the accounting and finance department generate and send an invoice to the customer. The transaction is then finalised with the payment being received from the customer. Start Customer Order Received Required Stock Ordered Product Delivered to Customers Invoice Generated & Sent to Customers Payment Received Finish Sales Department Warehouse Accounting & Finance Department
3.9 Functionalities 3.9.1. PRODUCT MANUFACTURING PROCESS Purchase materials necessary for product manufacturing Fix any identified product discrepancies 3.9.2. PRODUCT SALES PROCESS Establish customer order requirements Produce correct amount of stock for delivery to customer
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3.10 Systems
3.10.1. INVOICE GENERATOR SYSTEM: This system supports the product sales process as it incorporates budget figures to produce a profit creating pricing guide so the invoice sent to customers is accurate for the product they are receiving and for the manufacturers profit requirments. 3.10.2. PRODUCT CONTROL SYSTEM: This system supports the product manufacturing process as it follows strict company and industry set guidelines to ensure the products quality and consistency for safety-prioritised divers who expect the product to be manufactured at the highest level. 3.10.3. STOCK ORDERING SYSTEM: This system supports product sales system as it takes into account information received from the sales team about customer orders and to avoid over or under stocking places an accurate order with the factory so the business can run smoothly and successfully.
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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)
Make the Product 1. Product Manufacturing Process
1. Purchase materials necessary for product manufacturing 2. Fix any identified product discrepancies Product Control System Executive Information Systems 2. Product Sales Process 3. Establish customer order requirements 4. Produce correct amount of stock for delivery to customer
Invoice Generator System
Stock Ordering System Transaction processing system Decision Support System
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10 CONCLUSION With first-mover advantage for this innovative communication and safety enabling GPS bracelet, SurDive will enter the diving market with a splash creating a differentiated producted the tailors to a narrow market at a premium price to garuntee the highest level of safety and efficiency. With this bracelet, divers will have emergency support underwater at the push of a button, and ocean exploration will become more available to a larger demographic. REFERENCES
1. Scuba Diving Smiles. How Many People Scuba Dive? (2007, revised 2013). Retrieved from http://www.scuba-diving-smiles.com/how-many-people-scuba-dive.html 2. National Oceanic and Atmospheric Admisitration. Scuba Diving. (Revised April 16, 2013). Retreived from http://oceanexplorer.noaa.gov/technology/diving/scuba/scuba.html 3. About.com. SCUBA Equipment Manufacturers. (2014). Retreived from http://scuba.about.com/od/equipmentmanufacturers/ 4. Alibaba.com. Product search: dive equipment. (1999, revised 2014). Retreived from http://www.alibaba.com/trade/search?fsb=y&IndexArea=product_en&CatId=&Searc hText=dive+equipment 5. Walker, J. Walker Underwater. (2011). Retreived from http://www.walkerunderwater.com/dive%20equipment/dive-equipment.html 6. Marine Deals. Looking for an EPIRB or PLB? (2014) Retreived from http://www.marine-deals.co.nz/epirb-plb?gclid=CjkKEQjwqYacBRDO- Mrk6_vr8eQBEiQAWJadfGtLgzIXykMvDHciWdJXjr6K0lESi1KNrJnBs2Mlo9zw_wcB 7. TechNavio. Top 19 SCUBA Diving Equipment Manufacturers. (2007, revised 2013). Retreived from http://www.technavio.com/blog/top-19-scuba-diving-equipment- manufacturers 8. PADI. About PADI. (2014). Retreived from http://www.padi.com/scuba/about- padi/default.aspx