You are on page 1of 10



Name Andrea En-Yi Lim
NetID alim491
Group Number: 345
Website Link:
Tutorial Details
Tutor: Day: Time:
Kit-Wah Wednesday 1pm
Time Spent on
31 hours Word Count: 1,575


Road cyclists today face a myriad of dangers when cycling on roads. Accidents, both serious
and not so serious, are aplently and after much research, we realised that majority of such
accidents occur at intersections. The lack of indication from cyclists and unawareness of the
cyclists presence from drivers cause such accidents and has led us to improve on a
compulsory safety element for cyclists in New Zealand: helmets.
The Gleam is a better, more functional helmet that has indicators built into the back of the
helmet. By pushing on the reattachable buttons on the bicycle , it sends a Bluetooth signal
to the indicators, indicating if the cyclist plans to turn left or right. Designed with the
cyclist’s utmost safety in mind, drivers would be able to see the cyclist’s intentions and
predict his or her next move. We believe that the Gleam will reduce the risk of fatal
accidents occuring and making roads safer for all road cyclists.
3.1 Vision
To provide reliable, high quality products geared towards creating safer roads for cyclists
across the globe.
3.2 Industry Analysis: Cycling Safety Industry
Industry: Cycling Safety Industry
Force: High/Low: Justification:
Buyer power: Low It is compulsory for anyone who cycles in New
Zealand to wear helmets when they ride. Buyers
have no choice but to own a helmet, and they do
not have an option of not wearing a helmet due


to regulations. Hence, buyer power is low. (NZTA
Supplier power: Low This industry has many choices of suppliers to
choose from as it uses standardized parts, making
it easy to change suppliers when needed. (Global
Sources 2014)
Threat of new entrants: High It is easy for new competitors to enter the
industry as there are low barriers to entry.
Starting up new businesses in New Zealand is
easy and cycling is growing in popularity, about
4% growth in cycling every year. With a high
demand of customers, profitability is high and
new businesses are attracted the enter the
market. (Work and Income 2014, CAN Report
Threat of substitutes: Low Helmets are essential for cyclists in New Zealand,
and there are few alternatives that cyclists can
use that provide the same amount of head
protection. The law states clearly that a safety
helmet with the right standards must be worn
during riding. (Road User Rule 2004)
Rivalry among existing
High There is a high number of competitors that
provide a wide variety of cycling safety
accessories. As seen from the New Zealand
Herald, many bicycle stores are closing due to the
influx of big cycling chains. Rivalry is high and


competition is fierce in this market. (NZ Herald
Overall attractiveness of the industry: The cycling safety industry is relatively attractive to
enter as supplier power is low and entering the market is easy. Cycling is indeed growing in
popularity and there is a high demand for bicycles, and by default, their compulsory
complementary product, helmets. It is easy to enter the market despite the high rivalry as
our product is innovative and different from many other cycling safety accessories.
3.3 Customers and Thei r Needs
Our target group of customers are road cyclists. Approximately 9 out of 10 reported cyclist
casualties occurred on urban roads, from a time span from 2008 to 2012, and despite the
“Share the Road” campaigns, road cyclists still face a high level of danger from oncoming
traffic. 81% of crashes occur at intersections and cyclists cannot rely on old-fashioned hand
signals to indicate a change of direction in the long run. They need quality, protective gear
that can not only protect them during a crash but also reduce the risks of such accidents
occuring. (Crash Factsheet 2013)
3.4 The Product
Our company aims to further reduce this risk, meeting the needs of road cyclists in New
Zealand. By creating the Gleam, we feel that our product can reduce such crashes on the
roads. The indicators built onto the helmets can show an intended change of direction when
the buttons are pushed. We believe that having indicators built into the helmet will add
value to cycling as it will make cycling safer.
3.5 Suppliers and Partners
1) Helmet Suppliers – We intended to source from quality helmet makers such as Giro
to provide reliable helmets with the maximum amount of protection for customers.
2) LED Light Suppliers – Cree LED Lighting will be supplying the LED lights for the
indicators on the helmets. They have a great reputation in producing trusty LED light


parts, and the lights on the helmet must be reliable as other motorists must be able
to see the cyclists.
1) Bike Shops in New Zealand – We intend to sell the Gleam through stores such as Bike
Barn and AvantiPlus stores New Zealand wide. Partnering with them gives us a
platform to market our product.
2) Courier Companies – Besides selling the Gleam in physical stores, we aim to sell the
helmets online through our website. By partnering with DHL, we would be able to
get a good price for shipping and send the goods quickly to Kiwi customers who
prefer online shopping.
3.6 Strategy: Focused High Cost
Our cost strategy used is a high cost one. We aim to provide an product that is competitively
priced, using the best sourced, quality materials. Safety cannot be compromised and we
echo that belief by using the finest supplies to produce the Gleam.
We are looking towards a narrow market. The Gleam caters to primarily road cyclists, as
they would require such indicators compared to other recreational cyclists who cycle on
The overall strategy is therefore the Focused High Cost Strategy.
3.7 Value Chain Activity: Procurement
The most important value chain activity for this business is Procurement.
It is vital to focus on attaining the best quality supplies from suppliers. Our business prides
itself in producing the Gleam with high standards, as seen in the vision, and this can only be
done by using good quality parts. This relates to our strategy in order to retrieve the best
quality materials, we must be willing to pay the high cost related to the supplies.


3.8 Business Processes
3.8.1. SUPPLY TESTING PROCESS – Our company prides itself in providing the highest quality
product as safety is our number one priority. This is encapsulated in our vision, and hence,
we aim to gather the best and most competitively priced supplies from suppliers. In order to
do so, we have to identify good suppliers that can provide us with the reliable materials that
we need at the best prices. The testing process is rigorous, affirming that we use the best
suppliers available.

Search for Suppliers
Narrow down
Supply Network Planning System



Purchasing Department
Purchasing Department
Supply Quality
Does the supply meet
our quality standards?
Place order from
Send feedback to
Start looking for
new suppliers


3.8.2. CUSTOMER FEEDBACK PROCESS – This is another process that is paramount to our
business’s success. We aim to provide the best for our customers and want to continuously
provide quality products to them. One main way to do so is to gather feedback from
customers. Their feedback will be taken into consideration and helps ensure that the Gleam
is well suited to their needs. Constant input from customers help improve and maintain the
quality of our product, and gather feedback about the suppliers we have purchased from.

Surveys given to
Customer Service Feedback Management System
Feedback Received
Type of
Store compliments
into system
Send feedback to
Store complaints
into system
Where can we
Send feedback to
Email customers to
find out more
Was the feedback


3.9 Functionalities
 Acknowledge quality problems with supplies
 Validate order of supplies
 Send surveys to customers
 Notify departments of new feedback
3.10 Systems

3.10. 1. SUPPLY BENCHMARKING SYSTEM – During the supply quality testing, data is keyed
into the system whereby supply is checked and the results recorded into the system. If the
data does not meet the standard pre-set in the system, it is highlighted. This system helps to
maintain the standard of our product, as it ensures that managers can easily make the right
decision before purchasing from the supplier.
3.10. 2. ORDER PROCESSI NG SYSTEM – After a stringent testing process, managers can decide
which suppliers to eventually purchase from and send the order through the system. The
order is entered into the computer and immediately sent to suppliers. This guarantees that
there would be no delay in the transaction between supplier and our business, and our
product can be sent to the customer as soon as possible.
3.10. 3. FEEDBACK ANALYSIS SYSTEM – After receiving feeedback from customers, this system
stores and filters the type of feedback received. Responses are filtered and then sent to
specific departments for analysis. Based on the compliments or complaints, managers can
make a decision to set goals that maintain the high quality standards or improve on the


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

1. Supply
1. Acknowledge quality problems with supplies

2. Validate order of supplies

Supply Benchmarking

Order Processing System
Supply Chain Management
Transaction Processing
1. Customer
1. Send surveys to customers
2. Notify departments of new feedback

Feedback Analysis System

Customer Relationship
Management System


The Gleam is a product that will bring cycling safety to a whole new, revolutionary level. We
believe that it will change the way people view cycling: from a view that cycling is a
dangerous sport, to another opinion that cycling is a safe mode of transport. Our
organization will continually rely on the use of Information Technology to upgrade the
Gleam and any systems weaving the company together. We hope that our product will fulfil
our company’s ultimate aim of making roads safer for every cyclist, everywhere.

1. New Zealand Transport Agency. (2010). About Cycling. The Official New Zealand
Code for Cycling (pp.). (Original work published 2010). Retrieved from
2. Global Sources. (n.d.). Bicycle Accessory manufacturers & Bicycle Accessory
suppliers. Retrieved May 21, 2014, from
3. Work and Income New Zealand. (n.d.). Business Training and Advice Grant. Retrieved
May 22, 2014, from
4. Cycling Advocates Network. (2007). Facts About Cycling in New Zealand. CAN Cycling
Facts, Retrieved from
5. Parliamentary Counsel Office. (2004). Land Transport (Road User) Rule
2004. Retrieved May 23, 2014, from
6. Adams, C. (2011, October 22). Bicycle chains bump small stores. The New Zealand
Herald, Retrieved from
7. Ministry of Transport. (2013, November). Crash Statistics for the year ended 31
December 2013. Crash Factsheet, Retrieved from