Name Suraya Raina Patel
NetID spt994
Group Number: 369
Website Link: http://infosys110s1group369.blogspot.co.nz/p/d1.html
Tutorial Details
Tutor: Day: Time:
KitWah Wednesday 13:00
Time Spent on
12hours Word Count: 1617


There is a problem of high, preventable, skin cancer rates around the world, especially in
New Zealand. Consequently, we have designed a bracelet that when worn, will monitor the
intensity of UVR (Ultra Violet rays) that are present in the environment the individual is in.
When intensity is high, the bracelet will notify the individual and will also send data to the
local DHB (District Health Board). This will allow DHB’s to gather the prevalence of UVR
intensity in different locations, enabling display of information, for everyone to see and be
aware of. Subsequently, this is in aim to reduce the high prevalence of skin cancer rates in
New Zealand. From the analysis below, we will look at how the product (bracelet) will be
implemented within the health care industry, though our start-up company.

3.1 Vision
“To provide a unique product that every individual can wear, while benefitting the
populations’ health and wellbeing, every day, everywhere.”

3.2 Industry Analysis: Health Care Industry
Industry: Health Care Industry.
Force: High/Low: Justification:
Buyer power: High Buyers have many health care products they can
choose from within the industry (Inderst & Wey,
2002). This allows them to have reasonably high
power and control over what they purchase.
Examples can be seen in products such as skin
care products, drugs or lotions.


Supplier power: High This is because there are limited legitimate health
care product manufacturers (API Consumer
Brands). This means that the health care industry
has limited power when purchasing supplies,
whereas the suppliers have high power as there
are few of them. Subsequently, they can control
Threat of new entrants: Low The health care industry is hard to enter as it
requires high levels of accurate, precise
knowledge. It is also quite costly to enter as
specific, high technological resources are required
to manufacture products (API Consumer Brands).
Thus the threat of subsequent entrants into the
health care industry is quite low.
Threat of substitutes: High The only alternative product to this bracelet in
the industry is sunscreen (Mackay, 2012).
Sunscreen is also typically the leading skin cancer
preventative health care product used (Australian
Government, 2014). This means that it is a
threatening substitute when looking at
prevention of skin cancer.
Rivalry among existing
High Different health care products consistently
compete because there are many choices offered
within the industry (Bare Escentuals
Incorperated, 2008). These choices are mainly
seen in order to keep up with trends and
consumer preferences that are constantly


changing (Bare Escentuals Incorperated, 2008).
This shows healthy competition and thus rivalry
among those in the health care industry.
Overall attractiveness of the industry: Because 4 out of the 5 forces are high, this industry
does not appear to be very attractive. This is especially the case where it is hard to get into
the market, suppliers and buyers both have high power and there are significant alternative
products which subsequently create rivalry in the market. This makes the industry seem that
overall profits will be low, if wanting to enter. However, because the only substitute to our
product is sunblock, there is a possibility that a new and unique product may thrive in this
industry (Saraiya, et al., 2004). This could further be accomplished through core
competencies of a strong business model (Porter, Argyres, & McGahan, 2002).
3.3 Customers and Thei r Needs
Customers are anyone with access to shops that will supply our product, and are willing to
pay money. Everyone is at risk of high UVR and subsequently, have increased risk of skin
cancer (Ministry of Health, 2013). Therefore, our customer target is quite broad; however,
all have the same need of enabling beneficial health status. This need is portrayed through
the want of a product that can prevent high exposures of UVR. These customers will also be
looking for a product that is an attractive accessory that they can enjoy wearing.
3.4 The Product and Service
Our product satisfies the needs of customers who are concerned for their health and who
want to benefit from the product but also enjoy doing so. By creating our product, high
levels of UVR will be able to be recognised, enabling customers to be aware of risk,
subsequently allowing them to take preventative measure such as relocating to shade. This
allows decreased risk of skin cancer and possibility of beneficial health outcomes which
addresses the needs of health conscious customers. Because our product will have multiple
colourful designs and also light up when high exposures are present, all ages and types of
customers will appeal to the fun design and be more willing to wear this accessory.


3.5 Suppliers and Partners
Health care product, technology manufacturers as they will provide the technological face
of the bracelet that identifies the high levels of sun exposure.
Strap suppliers, for example watch or bracelet strap suppliers who will supply the straps
needed for the bracelet bands to be worn.
The DHB’s will help promote the product and work with us to create better health
outcomes. For example, the DHBs will gather the data from the bracelets and display this
data on boards around districts to portray the high levels of sun exposure in different areas.
Vodafone will help create and maintain the IT part of the bracelets. For example they will
allow the usage of a 3G internet connection for data transmission to the DHB databases.
3.6 Strategy: Cost Leadership
Cost strategy is low cost, as we aim to make our product affordable to all customers,
allowing everyone to be able to purchase it. Our competitive scope is broad market, thus
available to all customers, subsequently also allowing everyone to access it, everywhere.
The overall strategy is therefore Cost Leadership
3.7 Value Chain Activity: Market and Sell the Product
The most important value chain activity for this business is to Market and Sell the Product
By marketing and selling our product, we are delivering a health beneficial product, which is
very unique, as shown through marketing, to all types of customers, everywhere,
constantly. This interrelates to our vision statement but also our generic strategy of cost
leadership, as it enables us to focus on providing to a wide range of customers at an
affordable, attractive price. Consequently, providing the product to the customer is our
main priority.


3.8 Business Processes
3.8.1. MARKETING PROCESS - advertising of key features of the bracelet, allows attraction of
customers who require our product. This is beneficial to our company as it informs
customers of what the product entitles but also benefits the customer as they too become
aware of the products entities. In this instance, the marketing process will involve attracting
customers through the use of television advertisements. If this is not attracting customers, it
will need to be revised, perhaps with other advertising measures like posters or magazine
Customer attraction
processing system
Marketing Department
Create marketing
advertisement on
Are customers
being attracted?
Find out why the
advertisement is
not working
Implement change
to the advertising
Customers coming
into store for
Customer decides
to buy product


3.8.2. SALES PROCESS - the selling of our product, in stores, to customers. This will be done
by scanning the product the customer brings to the counter, with sales staff processing the
sale and payment and handing over the product to the customer. If the payment is not
processed, staff must inform the customer as part of the sales process. Overall, this process
is important to our organisation as it sees the revenue coming into the company and
delivering the product.

Scan product that
customer brings to
Process payment
Was payment
Notify customer of
failed payment
Process new
Payment Accepted
Hand receipt and
product over to
Product Scanning
Sales Department


3.9 Functionalities
 Advertise the video advertisement
 ‘Count’ the amount of customers

 ‘Scan’ the product
 Accept a payment
3.10 Systems

3.10. 1. CUSTOMER ATTRACTION PROCESSING SYSTEM - selected in order to track and monitor
the customers that are being attracted by the advertisements. This will allow us to
determine whether our marketing is working sufficiently to generate sales and to provide
our product to everyone.

3.10. 2. SALES PROCESSI NG SYSTEM - processing of sales allows customers to receive a
product, for the functionality of accepting a payment. Subsequently, it allows us to see if we
are gathering sufficient sales. This also enables us to see company profitability, but also
allows us to recognise if our products are being sold and consequently benefiting our

3.10. 3. PRODUCT SCANNI NG SYSTEM - involves transactions and ‘scanning’ of products
purchased and enables data to be stored about the frequency of purchases, as well as
location of purchases. This allows us to recognise whether our product is targeting
everybody, everywhere, everyday.


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

Market and
sell the
1. Marketing
1. Advertise the video advertisement

2. ‘Count’ the amount of customers
Customer attraction
processing system

Customer attraction
processing system
Customer relationship
management system

Decision suport system
2. Sales Process 1. ‘Scan’ the product

2. Accept a payment
Sales processing System

Product scanning system
Transaction processing

Transaction processing


Therefore, in conclusion, we can see that although initially, the health care industry does
not appear to be very attractive when taking into consideration entrance barriers; there are
posibilitites where a new product, such as our bracelet, could thrive. This can be done
through the value chain activity of marketing and selling the product with collaboration with
IT and IS. This can be seen in specific systems such as customer attraction and sales
processing systems, enabling functionalities, through IT. This allows creation of value within
our start up company which is not only beneficial to us, but will also allow provision of a
unique new product, to everyone, everywhere, in aim to benefit health outcomes.



API Consumer Brands. (n.d.). Overview. Retrieved from API:
Australian Government. (2014). Sunscreens: information for consumers. Retrieved from
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Bare Escentuals Incorperated. (2008). Annual Report of Form 10-K. Bare Escentuals, Inc.
Inderst, R., & Wey, C. (2002). Buyer Power and Supplier Incentives. London.
Mackay, J. (2012, November). Sussing out sunscreen. Retrieved from The New Zealand
Porter, M., Argyres, N., & McGahan, A. (2002). An interview with Michael Porter. The
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Saraiya, M., Glanz, K., Briss, P., Nichols, P., White, C., Das, D., . . . Rochester, P. (2004).
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