Meitong Chen Group 028

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

Name Meitong Chen
NetID Mche986
Group Number: 028
Website Link: http://infosys1102014ssgroup028.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Nicholle Tutor Sunday 11am
Time Spent on Assignment: 24 hours Word Count: 1691
























Meitong Chen Group 028

SOLAR POWER VEHICHLE BUSINESS
REPORT
INTRODUCTION

In many New Zealand families, members of the families often appears to own more than one
vehicle, because the public transport isn’t efficient enough to please the general public. As a result
of this, the purchase of vehicles increase, but this has also lead to a more important problem, which
is environment pollution. Fortunately, existing solution such as solar energy is able to resolve this
problem. This report will explain in detail about setting up a solar energy vehicle business.

3. BUSINESS SECTION
3.1 Vision

To make a contribution to the world by making solar energy vehicles for the mind that protects our
environments.

3.2 Industry Analysis: Solar energy vehicle industry

Industry: Solar energy vehicle industry
Force: High/Low: Justification:
Buyer power: Low
As solar technology is still under developed, it would
require a huge amount of time and cost to improve
and turn into a sufficient product. In addition,
technologies in this type are beyond expensive, and
hard to own by the public. There are not many
competitors in solar power vehicle industry, and this
has leads to a situation where buyers don’t have many
options to choose from.

Supplier power: Low
There are many existing suppliers for my company to
choose upon. Therefore the supplier power is
theoretically low.

Meitong Chen Group 028

Threat of new entrants: Low
The threat of new entrants is low, because the barrier
for starting a business in the solar energy industry is
high. It requires a large amount of resource, skills, and
knowledge, and there are not many existing
companies in this field. Therefore, the effectiveness or
threat of new entrants is low.

Threat of substitutes: High
In terms of protecting the environment and avoid the
problem of environment pollution, traveling with solar
energy vehicles isn’t the most ideal way for a majority
of people, because there are many other methods
they can choose from. (I.e. walk, cycling etc.)



Rivalry among existing
competitors:
Low
Since the rivalry among existing competitors is low,
the competition between companies is not very
intense, because there are only a few companies
currently operating in this industry.

Overall attractiveness of the industry: Solar energy vehicles is the latest solution for saving energy.
It uses the solar power from the sun. Although such form of energy saving have not yet been spread
in New Zealand, but it has the potential for protecting our environment and reduce the chances of
globe warming.

3.3 Customers and Thei r Needs

In general, the potential target audience or customers are those who willing to purchase the product
and have a fair interest in the product. Additionally, this group of people is wealthy enough to afford
the product.
On the other hand, their needs would be the benefits they gain from using and purchasing the solar
energy vehicle. For example, when customers use solar energy vehicles, they can make a
contribution to our environment, because such product helps to reduce global warming. In addition,
using solar energy vehicles can save tones of dollars for the society, where less money is used for
protecting our planet from globe warming. In a long term, solar energy vehicles save money for the
customer, because the vehicle requires nothing but sunlight to operate. Last but not the least, my
company is promised to provide a friendly after-sale service for the customers.

Meitong Chen Group 028

3.4 The Product and Service

In order to provide a satisfying after sale service, my company will carry out different surveys to
gather feedbacks from our customers. These feedbacks will be used to improve our customer
services and products. Also, people who participated in the event have the chance to win a great
price from the winning draw. Lastly, our latest update can be seen on our official website. For
example, information on our new products and the current status of the globe environment will be
included in our website.

3.5 Suppliers and Partners

Solar King and Solar City were the chosen suppliers for my company, because both of these
companies are located in New Zealand. It is easier to communicate with my supplier when they are
located in the same country as mine.
On the other hand, Volkswagen, and IMPACTPR were the chosen partner for my company. Although
Volkswagen is not originated car company in New Zealand, but they have been bring the best cars to
our country for 60 years. I believe such company has the power to provide a range of high quality
vehicles and strongly reinforce my products. In terms of the advertisements of the company, I
decided to work with a company named IMPACTPR. It is a New Zealand company that has a huge
range of advertising strategies, which will assist my company when promoting products to my target
customers.

3.6 Strategy: Focused High Cost

Cost: Generally speaking costs for manufacturing solar energy vehicles is really expensive, because
the materials, skills, and technologies to start up the business is much higher than an ordinary
vehicle. Therefore, the prizing of these high class vehicles will be higher than usual.
Scope: In this scenario my business is basically focus at a narrow market, because we are only
targeting high class consumers who is able to afford our products.
Due to the limitations for starting the business and narrow market of this particular industry, the
overall strategy is therefore Focused high cost.

3.7 Value Chain Activity: Market and Sal e

The most important value chain activity for this business is market and sale, because the benefits of
solar vehicles have not yet been spread to the general public. Although, technology development is
an important aspect to the company, but the market and sales of a company is a more important
aspect for keeping any company running in a long term. Secondly, market and sale is the most
important value chain activity for my business, because the current focus market for our company is
Meitong Chen Group 028

narrowed. As a result, market and sale becomes the company’s first priorities. Lastly, we would like
more people to understand the idea of environment protect and the contribution our products are
making.

3.8 Business Processes

3.8.1. Marketing process: It is an important process as our company is communicating with our
new customers. Effective marketing idea such as using solar energy vehicles for delivering product
can be used to promote our brand. It can be used to increase the social awareness of our company,
and promote the company’s vision of contributing to the world by making and using solar energy
vehicles. The marketing process can be observed by looking at the generating value and customer
preferences. Therefore, consideration from customer preferences will be applied in our designs to
create a satisfying experience, and improve the efficiency of our marketing process.


Meitong Chen Group 028

3.8.2. Distribution process: Another important process for our company is distribution process. We
design specialize solar energy vehicles for the distribution process. It enables the company to deliver
the products internationally, and introduce the quality of the vehicle during the process. This deliver
strategy used for the company can create advantages when competing against other company,
because our new products can be delivered as soon as possible.

3.9 Functionalities

3.9.1. Marketing process
 Print customer’s details
 Online customer survey
3.9.2. Distribution process
 Updating order status
Meitong Chen Group 028

 Print order details

3.10 Systems

3.10.1. Inventory management system
Our company has to make sure that we don’t have too much inventory on hand, as their value would
become lower. We will reduce costs and improve productivity and improve customer satisfaction, by
ensuring the business is matching the demand and supply. Also, we will use our inventory
management system to maintain a sufficient level of inventory, it reduce cost by KPI (key
performance indicator). Surveys will be conduct through our website to find out usefully information
for estimating the amount of potential customers, and use the estimated outcome to determine the
size of inventory. This will allow our company to match our vision of protecting the environment by
keeping the inventory at a pleasing level.
3.10.2. Marketing management system.
This system helps us to deal with customers. We gather in opinions from customers and use it to
improve our service by creating products that meets the customers’ need and interests. We
maintain a habit of collecting feedback from customers using the CRM (customer relationship
management) system to increase customer experience along different stages of the purchase, and
provide friendly after sale service. We believe this tactic will strongly increase both our customer
service level and customer satisfaction.

3.10.3. Order processing system
This system will be use to accurately collect all data and transfer them from one place to another,
and then this system will turn any collected data into clear information. Our company exits to
generate a large amount of sales and profit, which makes the ordering processes much harder to
handle. As a result, we will be using a reliable order processing system to make sure everything is on
the right track. Order processing system also enables customers to track data on orders throughout
the purchasing stage. It can be use to establish a trustworthy relationship with our customers.

3.11. Summary Table: Value Chain to Systems

Value
Chain
Activity
Processes Functionalities Specific
Information
System(s)
Broad
Information
System(s)
Meitong Chen Group 028


Market
And
Sale
1. Market
ing
process
1. Print customer’s details

2. Online customer survey

Marketing
management
system

Order processing
system
Customer
relationship
management
System

Transaction
processing
system
2. Distrib
ution
process
1. Updating order status

2. Print order details
Inventory
management
system

Distribution
management
system
Supply Chain
management
system

Supply Chain
management
system
Meitong Chen Group 028

CONCLUSION

In conclusion, this business report has covered a brilliant idea about establishing a business in the
solar energy industry, and make contribution to our environment by manufacturing and selling solar
energy vehicles. Due to the specialty of the industry and size of market customer satisfaction
becomes the key of our business. Various amounts of strategies and systems such as CMS, TPS, and
SCM have been applied to the business to improve customer satisfaction. We strongly believe
providing satisfying customer service will help our business create an indestructible relationship with
our customers. Moreover, these improvements will create advantages when competing against
other companies within the industry.

REFERENCES
Elliott. H (2011). Why solar-powered cars won’t go: they can’t keep up with combustion engine .
Retrieved from http://www.forbes.com/sites/hannahelliott/2011/05/25/why-solar-power-wont-
work-it-isnt-keeping-up-with-the-combustion-engine/
IMPACTPR . (2014). IMPACTPR Home Page. Retrieved from http://www.impactpr.co.nz/

Shahan. Z (n.d). Advantages & Disadvantages of Solar Power. Retrieved from
http://cleantechnica.com/2013/10/08/advantages-disadvantages-solar-power/

Solar City. (n.d). Solar City Home Page. Retrieved from http://www.solarcity.co.nz/home

Solar King. (2014). Solar Energy Specialist Home Page. Retrieved from http://solarking.co.nz/

Volkswagen. (2014). Volkswagen Home Page. Retrieved from http://www.volkswagen.co.nz/

Wilkinson. J (2013). Buyer Bargaining Power. Retrieved from http://strategiccfo.com/wikicfo/buyer-
bargaining-power-one-of-porters-five-forces/