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Name Vera Clarkson
NetID vcla436
Group Number: 110
Website Link:
Tutorial Details
Tutor: Day: Time:
Kit-Wah Huang Monday 9-10am
Time Spent on
30 hours Word Count: 1644


Wasted electricity in households is a worldwide issue and many people don’t realise how
much it is costing them, as well as our environment.
In all households, a significant amount of electricity is wasted due to people leaving their
appliances on when they are not using them. Additionally, just leaving appliances on stand-
by or plugged in uses up a significant amount of electricity over time. Although this wasted
electricity may seem insignificant, they can be extremely costly in the long run. According to
Ministry for the Environment (2011), New Zealanders waste over $100 million a year by
leaving appliances on stand-by. Wasted electricity also results in thousands of tonnes of
pollution being emmitted into the environment each year.
To minimise the wasted electricity in households, our company has invented the
Electrowise. This device is a control system that can be installed households to control and
monitor the electricity consumption throughout the house.
3.1 Vision
To provide households with an easy and affordable way to contribute to saving out planet,
and inspire people to become more aware of the importance of saving electricity.
3.2 Industry Analysis: Household energy-saving device industry
Industry: Household energy-saving devices Industry. Includes devices that focuses on saving
electricity in households, such as solar-powered chargers, energy-saving lightbulbs,
household heating controls, household electricity controls, etc.
Force: High/Low: Justification:


High Buyers have many choices because there are so many different
products in the industry, and there are many sellers that the
buyer can purchase them from. Efergy (n.d.) is one example of
the many sellers within the industry, offering a wide range of
energy-saving devices.
High The most important supply for companies in this industry is the
electrical tools needed to manufacture their products. There are
many suppliers that firms can purchase these from. Ebay (n.d) for
example has many different sellers of electrical tools, ranging
from cheap, low-quality tools to more expensive, high-quality
Threat of
High Some of the products in this industry are not too costly and
require very few and raw materials. E.g. energy-saving lightbulbs
are “inexpensive to produce” (lights-out saves energy, 2010). This
makes it easy for people to enter the industry.
Threat of
High There are many other ways to save electricity instead of using
energy-saving devices, such as switching appliances off at the
wall, using hot water more wisely, and insulating your home.
(Consumer.NZ, n.d.).
Low There are many firms in the industry, however rivalry is low
because they all sell different products with different features
and functions. E.g. there is very little competition between firms
selling solar-powered chargers and firms selling energy-saving
lightbulbs. Therefore the firms aren’t in direct competition.


Overall attractiveness of the industry: Overall, the industry is not very attractive. Buyers
have a lot of power, and there are many firms already in the industry. This makes it hard for
any firm in the industry to gain a decent proportion of market share.
3.3 Customers and Thei r Needs
Our customers are all NZ homeowners.
We understand that homeowners can be very busy with work, parenting, and other
commitments. Many homeowners therefore don’t have the time to unplug appliances
around the house every night to save electricity.
Homeowners also have many bills and expenses which they would like to minimise. One of
the biggest motivators homeowners have for conserving electricity in their homes is the
accumulated savings in their energy bills at the end of the year (Beth Asaff, n.d.).
3.4 The Product and Service
The ElectroWise is a simple and easy-to-use system that enables homeowners to have full
control of the electricity consumption in their house. It is connected to all the power plugs
throughout the household, and the sensors that we have installed in each of the rooms.
These sensors detect whether someone is in the room or not, and switches the power on
and off to selected power plugs in the room accordingly. To select the specific power plugs
to automatically control, the user can use the touch screen tablet-like device.
This touch screen device is the primary controller of the ElectroWise system. One of its main
features is that it can display a map of the house and the locations of all the individual
power plugs. The user can then use this to look around the house and select a specific
power plug to automatically control. They can also use this feature to see how much
electricity a specific power plug is consuming and monitor it over time.
Thus, our product provides a easy and convenient way to save electricity in households. It
allows household owners to save time while still being able to save thousands of dollars on
their power bills.


3.5 Suppliers and Partners
One of our company’s major partners is the EECA. They are an entity that is set up by the NZ
government to encourage and support energy conservation in our country (ECCA, 2014). .As
partners, we work together in achieving our goals. They help us by helping promote our
ElectroWise product through their EnergyWise programme, and we help them by
supporting homeowners to save electricity .
We have also partnered with Deloitte in NZ. Over the last few years, Deloitte has been
working towards becoming a true environmentally sustainable business (Carbon Reduction,
n.d.). We have now formed an alliance with them – their consulting team are providing us
with advice and support to grow our company, in return for providing the ElectroWise
system in their local offices.
Our main raw material of the ElectroWise is the tablet-like touchscreen devices. We
purchase these from as they are an affordable and very reliable supplier –
offering free shipping, 30 days money back guarantee, and a gauranteed safe shopping
experience (, n.d.).
We also require the tools that our technicians use in installing the product in homes, such as
wiring, pliers, and safety equipment. We purchase these from Toolware, NZ’s largest suplier
of quality trade tools (ToolWare, n.d.).
3.6 Strategy: broad market low cost
Our product is aimed to target a wide range of NZ households, from small to large. We
believe that every family can help contribute towards saving our planet by using our
product. Therefore we have a broad market competitive scope.
Our goal is to encourage everybody to start saving electricity, so we need to make the
product affordable so households of all different income levels can purchase it. Therefore
we have adopted a low cost strategy.
The overall strategy is therefore broad market low cost.


3.7 Value Chain Activity: Marketing and selling the product
The most important value chain activity for this business is marketing and selling the
Marketing and selling the product is an important aspect of growing our business. As we are
just a newly formed business and not many people know about us, we have to put a stong
focus on our marketing activities. We hope that this will help us to achieve our long term
goal – to encourage people to use our product to save electricity and contribute to saving
the planet, and inspire people to become more aware of the importance of saving
3.8 Business Processes
3.8.1. ADVERTISING CAMPAI GN PLANNING PROCESS – To successfully create awareness of our
new product and boost sales, we follow our advertising campaign planning process. As we
are just a newly formed company, this is an important process of our business.


Research customers
and market
Set advertising goals
Choose a
advertising venue
(e.g. TV, newspaper,
Place the ad
Marketing Department Marketing analysis system
Evaluate ad
advertising budget

3.8.2. SALES PROCESS – This is the process our company follows to successfully complete a
sale. To ensure maximum customer satisfaction, we need to make this process as simple
and carefree for the customer as possible. This process is important to the business


because we need to make successful sales and keep customers happy in order to gain a
good reputation and grow our business.
Receive customer
order through call
or website
Our local technician
visits/examines the
customer’s house
and gives customer
a quote
Technician goes to
customer’s house
and installs the
Total cost of
is determined back
at the office and
invoice is sent to
Payment is received
Retrieve and store
customer details
Sales Processing System Sales department

3.9 Functionalities
 Research customers and market


 Determine advertising budget
 Receive customer order though call or website
 Retrieve and store customer details
3.10 Systems

3.10. 1. MARKETING ANALYSIS SYSTEM – System that allows our company to analyse
customers and the market. It helps us answer questions such as: What is the best way to
target homeowners and convice them of the importance of saving electricity? And how
profitable will advertising be?
3.10. 2. SALES PROCESSING SYSTEM – System that receives and stores all information about
sales and our customers. This system is important because for our company to achieve its
goal of contibuting towards saving the planet, we must know how our sales are going, and
who our customers are.
3.10. 3. FINANCING MANAGEMENT SYSTEM – Takes information from financial statements and
uses it to determine what would be the best way to spend our money in order to achieve
our goal of supporting households to save electricity. This proccess is important because our
business must be financially stable in order to succeed.


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

Make the
1. Advertising
1. Research customers and market

2. Determine advertising budget
Marketing analysis system

Financing management
Decision Support System

Decision Support System
2. Sales process 1. Receive customer order through call or

2. Retrieve and store customer details
Sales processing system

Sales processing system
Transaction processing

Transaction processing


In conclusion, wasted electricity in households is a worldwide issue that is being faced,
however has not yet fully been addressed. It is costing New Zealanders $100 million each
year, and costing the environment thousands of tonnes of pollution. Our company has come
up with an IT solution that addresses this issue, called the ElectroWise, which aims to
provide households with an easy and affordable way to contribute to saving out planet. We
believe our company will be successful because our solution is unique and effective, and
focuses on targeting our customers needs.

1. Ministry for the Environment. (2011). What ETS means for householders and
individuals. Retrieved from

2. Efergy (n.d.) energy saving products – products. Retrieved from

3. Financial web (n.d). recent articles: saving. Retrieved from

4. Lights-out saves energy: fact or fiction? (2010). Retrieved from

5. Ebay (n.d.) . Electrical tools for sale | Ebay. Retrieved from

6. Consumer.NZ (n.d.). Consumer powerswitch – Saving energy. Retrieved from

7. Beth Asaff (n.d.). Understanding the importance of conserving electricity. Retrieved

8. ECCA (2014). What we do | Energy Efficiency and Coneservation Authority. Retrieved



9. Carbon Reduction (n.d.). Deloitte demonstrates commitment to embed sustainability
with a focus on reducing emissions. Retrieved from

10. (n.d.). Retrieved from

11. ToolWare (n.d.) Toolware sales Auckland: Quality trade tools. Retrieved from