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INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION
2014

Name Tashunka Bolton
NetID Tbol063
Group Number: 140
Website Link: http://infosys1102014fcgroup140.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kayur Saturday 2pm
Time Spent on
Assignment:
30 hours Word Count: 1638

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SUCCESS COMING IN THE FORM OF AN
APP
INTRODUCTION
In New Zealand, there are many well known retail clothing brands. From the more luxury
brands such as “ Gucci, Channel and Prada” to the more reasonably priced items such as “
Bilabong, Amazon and Rod and Gunn.” This however causes problems to people that wish to
open new retail stores. Stores that just can not compete with these large companies.
Therefore, we have created an app that allows small starting retailers to not only be able to
compete with these large companies, but also save money from advertising. We call this app
“That APP.”
3. BUSINESS SECTION
3.1 Vision
“To create an efficient system for retailers to communicate with customers to for fill their
needs and wants.”
3.2 Industry Analysis
Industry: The Retail Industry
Force: High/Low: Justification:
Buyer power: High Since retail as a whole is a competivtive industry,
consumers have a vast variety of choice when it
comes to a selection of products. Therefore
creating a High Buyer Power.)
Supplier power: Low Since the power of buyers is high, suppliers have
littler choice when it comes to whom they can
market to. For example, Wal-Mart holds a

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tremendous amount of power over its suppliers,
and can essentially make or break them with a
contract.
Threat of new entrants: Low The threat of new entrants is low, this is because
large retail companies have such an impressive
competitive advantage over small to medium
sized retail companies, that it is near impossible
for them to compete with these large companies.
However, with this being said, our app will allow
centralized buying for independent, small to
medium sized retailers. This will allow them to be
able to compete with these “retail giants.”
Threat of substitutes: High Because of avaliability being low, the retailers
that hold a unique product or service will have a
competitive edge, which will make a threat of
substitutes high.
Rivalry among existing
competitors:
High Rivalry amoung existing competitors is very high,
this is because retailers are consantly trying to
offer customers a product or serice at a better
price and a higher quality that other competitors.
Overall attractiveness of the industry: The retail industry does not look very attractive to
anyone that wants to open up a retail store. This is because of large retail companies with
there high competitve advantage. However, with this being said, the use of “THAT APP!” will
allow small to medium sized retailers to compete with these large companies, therefore
creating a more attractive look for these future retail owners.


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3.3 Customers and Thei r Needs
Customers who wish to purchase certain clothing products will either go online to try and
find the product that fits their critiera, or just go to the stores and have a look. This has
been the process for the past 10 years. However, to access the online data base of each
different retail store, the business must invest money into an efficent and easy to use
website. This can prove costly to these businesses, especially to the smaller retail busineses.
Therefore with our app, not only will it increase the variety of choices for customers, but
also help forfill their needs and wants through the increase of choices. The app will also
eliminate impatience and frustration felt by customers looking for their product over the
current systems.
3.4 The Product and Service
The App will contain a centralized library of all the products each company inserts into the
database. This database will not only have the large retailer’s products, but also the smaller
to medium sized retailers’ products. The app will allow consumers to search what they’re
looking for by brand; product, retailer, location etc and the system will present the
appropriate information. The information is gathered through businesses which register
with the system and share with us the details of their stock, location, business hours etc.
Their information is categorized and stored within the library, which is frequently updated.
Customers will be able to access this database through their searches for their wanted
product.
3.5 Suppliers and Partners
The suppliers needed are going to include app developers, and app distribution stores.
Potential app developers include Auckland based, Moa Creative, or New Zealand based,
Smudge Apps. Once the app is developed, co-ordination with retailers will commence. All
retail stores will be able to upload their database onto this app. The app will then need to be
offered on the various existing app stores for Smartphone users for public access, such as
the apple app store.

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As there is nothing currently similar to “THAT APP!” we will not be partnering with any
company or businesses. This will therefore require self-funding for this app.
3.6 Strategy
The cost strategy is high cost, this is because we will be self funding this app as we will not
be taking on any partners as there is currently nothing similar to our app based product.
Also the key objective is not to earn high profits, but rather to provide consumers and users
with a high quality service when searching for their desired products.
Our product is targeted to a broad market as retail itself is very broad and we will be
targeting small to large retail companies. As well as companies, we are planning to target
Smartphone users too as not everyone has access or own a Smartphone. We will be
focusing on differentiation, this is because we're the only company centralising independent
retail. The overall strategy is therefore Differentiation.
3.7 Value Chain Activity
The most important value chain activity our app is the service after the sale. This is viewed
as our most important value chain for two reasons. Firstly our vision states that we want to
create “an efficient system for retailers to communicate with customers to for fill their
needs and wants,” therefore it is vital we meet the standards of not only the retailers that
decide upload their database into “THAT APP” but also the standard of consumers that use
it.

The second reason is the app is constantly providing a service to the consumers that use it,
and so it is imperative to constantly update the database and install or update the system to
constantly make it more easier and efficent to use for consumers.
3.8 Business Processes
3.8.1. Application Management Process – This is an important process ensuring excellent
and efficient service delivery to consumers that use “THAT APP” and also provide an
excellent service for the retail companies. In order to provide an excellent service to
consumers, retailers will need to first send their shared drive with all their information
regarding stock, stock levels, business hours etc. Their application will be reviewed and if

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granted will have successfully been entered into our app system. Once processed, the
system will update the businesses requests regarding adding new stock into the database of
the app.


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3.8.2 Customer handling process- will allow us to be able to communitcate with the
consumers. This will help ensure an excellcent service provided by us to the consumer. Also
being able to handle their enquiry will ensure good feed back from the consumers thus
increasing our reputation and goodwill. Their enquirees will also be tracked to ensure a
maximum success rate for helping the consumers.



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3.9 Functionalities
3.9.1. Application Management Process
 Process retail business applications
 Update applications when necessary
3.9.2. Customer handling process
 Processing customer enquires
 Handling and tracking enquires
3.10 Systems

3.10. 1. Application Management System – This system is part of the Decision Support
System. The application management system is used for managing and providing access into
our app data base for retail businesses. This application management system is used to
review the applications of retail businesses that wish to be part of our app. When a business
wishes to enter, their application is reviewed. Once reviewed, one of two options will
appear, “Accepted or Declined”. When an application is declined, it will enter the review
section of the system to understand why it was declined. Once the problem is solved, it will
enter our review system again.
3.10. 2. Customer handling System- This system is part of the Transaction Processing
System. Its purpose, handle any questions or enquiries made by customers who are using
the app. Also, it will handle any enquiries made by the retailers that are entered into our
system. These enquiries can range from the general Questions and Answers, to more
elaborate ideas, such as feedback.







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3.10. 3. APP UPDATING SYSTEM - This is part of the Transaction Process System. The App
updating system is an important system for our app as it will constantly review the feed
back given from the Customer Handling System, and if accepted by the App updating
system, then it will be incorportated into our app. This is to promote a strong review of the
app and also to show we listen to the customers and their ideas they have to improve the
app.

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3.11. Summary Table: Value Chain to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Delivering
the System
1. Customer
Handling
process
1. Processing customer enquires

2. Handling enquires
Customer Handling System

App update system
Transaction Processing
System
Transaction Processing
System
2. Application
management
process
1. Processs retail business applications

2. Update applications when necessary
Process Management
system



Decision Support
System



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CONCLUSION
The retail industry is a very tough and rough for companies that are just starting up. Large
companies have emense power in them and place heavy pressure on the small to medium
sized retail businesses. This problem can now be solved through the use of the app we have
created called, “ THAT APP!” This will eliminate the competitve edge for large scaled retail
businesses inorder to provide small to medium sized businesses to be able to compete with
them.
REFERENCES


1) (2014, Investopedia US, A Division of IAC. Retrieved from)
http://www.investopedia.com/features/industryhandbook/retail.asp)

2) Moa Creative Auckland based app company, Retreived from
(http://www.moacreative.com/)

3) New Zealand based app designers Retrived from (http://www.smudgeapps.com/)

4) Competitive Advantage in Retail Industry (May 16 2010) retrieved from
(http://www.scribd.com/doc/31427438/Competitive-Advantage-in-Retail-
Industry)

5) Barbara Farfan (January 21, 2014) retrieved from
(http://retailindustry.about.com/b/2014/01/21/u-s-retail-dominates-worlds-largest-
retail-chain-rankings-2014-reports-biggest-changes-in-years-for-costco-amazon-
apple-dell-jcpenney.htm

6) Luxury Wholesale Online (2002) retrieved from
(http://www.luxurywholesaleonline.com/?hop=mr2013)




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