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Name Shibo su
NetID ssu754
Group Number: 047
Website Link:
Tutorial Details
Tutor: Day: Time:
Nicholl Oblitas Costa Monday 2pm
Time Spent on
12 hours Word Count: 1617

Nowdays students is hard to go to school, because they need to carry heavy bags for their studies. Heavy school bags are ‘deforming’ children
as grow. After a long time, students will be tired to go to school. We need to let students be relaxed on their way to school. Our product is an
automatic moving luggage, the student can put everything that they need in the luggage and then students can use their smart phone send a
bluetooth signal, the luggage will receive the specific onwer’s signal. That means the luggage will follow studnet at all times and you don’t
need to carry it. The smart luggage will lock itself and alert onwers by vibrating their phone if it loses its signal.
3.1 Vision
Making it easier, healthy and faster way to walk. People will be relaxed when they walk with the heavy bags because bags always following
3.2 Industry Analysis: Automatic Moving Luggage Idustry
Industry: Automatic Moving Luggage Idustry. Making the luggage, and there are four wheels at the bottom of the luggage. The luggage will
receive the signal from owner’s smart phone and always following the onwers.
Force: High/Low: Justification:

Buyer power: Low The buyer power is high, because nowadays there
are not to many sellers to choose from in the
world, theres another similar product in the
world is innovaition product of Micro company, it
is named hand-free suitcase. So there are only
two companies sell this kind of product so far in
the world, the buyer get only two sellers to
choose from.
Supplier power: High For the biggest selling point of this product is
handsfree, so there must be a specific tecnology
or chip in the luggage. There are not too many
companies can supply this knid of technology, so
the supplier power is high.
Threat of new entrants: Low The technology reqiurment of the automatic
moving luggage is really high, because the
company need their own specific technology to
produce the product, such as the specific chip for
receiving the signal the making the luggage

flowing that signal. And the cost of product is
high as well, the company need to add that
specific technology in to the luggage. So focus on
the high techonology and cost barries, threat is
Threat of substitutes: Low There is no substitutes like this product can
achieve 100% handsfree, people don’t even touch
the bag, the bag just can follow the owners.
Rivalry among existing
Low Microsoft company’s innovation product being
only competitor in the world to the Automatic
Moving Lugagge company. So there is not too
many competitors.
Overall attractiveness of the industry: Overall the attractiveness of the industry is provided by 100% handsfree and let students be relaxed on
their way to school, and the speed of the luggage is controlled by their walking speed. This product also apply to the others such as the
travellers who do not like carry lot of things when they get a long way to walk.
3.3 Customers and Thei r Needs

The customers is weary of carrying lots of things to walk a long way, especially the students. Students need to carry a heavy bag every day to
the school. When they arrive in the school with the heavy bag, they are so tired and probaly there is no more energy to pay attention in the
class. Long time after, student will be tired to go to school. In addition, the heavy is harmful for students as well. Long-term ill effect is
damaging to the spine giving rise to problems like kyphosis.
Therefore, the customers need a bag can let them feel more relaxed and comfortable when they get a heavy bag. And the student need a bag
that can make them more healthy and easier to carry. They also hope there is handsfree bag and move automatically.

3.4 The Product and Service
For those who is tired of dragging the heavy bag throughout their walking way, a hand-free luggage will do all the work for you. Person can use
any of smart phone send the bluetooth signal to the luggage, and when the luggage revceive this specific signal, the luggage will start moving.
As the individual walking, the luggage will always flow the owner, and when the luggage lose the signal, it will lock itself immediately and
warning the owners by the phone. This product achieve 100% handsfree. With the automatic moving luggage, the student will go to school
very relaxed, and there is no ill effect anymore, students can put everything what they need inside. Person won’t worried about how to carry
those heavy baggages anymore when they travel around, and they will be relaxed and more enjoy their travel.
3.5 Suppliers and Partners
supplier: parts manufacturers. Because the consist of luggage is not only specific technology but also some basic parts for making a luggage
such as the wheels.
supplier: chip making company. They supply the Automatic moving luggage company a specific chip for product, so that the product can
identificant the owners’ specific signal.

Partner : software company. Customers need to use the specific software to send out bluetooth signal, so that the luggage can indentificant
that signal. The software company work with our industry to get more customers.

3.6 Strategy: Focused High Cost
Because the company need add the specific technologhy in the luggage to make the luggage receive the signal accurately, so there is a huge
cost on the technology for each product. And there must be a high selling price, because the company need to get profit, so not too many
people can afford it. Therefore, it is narrow market in the world, and it is focus high cost.
The overall strategy is therefore Focused High Cost
3.7 Value Chain Activity: Making product and service
The most important value chain activity for this business is Making product and service
Focus on the vision, the product is making person walk easier and relaxed, the luggage must get strong connection with the customers and not
affect on the speed even there lots of things in the luggage, so quality is the most important for making this product. Based on quality,
company need to make sure there is a strong accept function and no signal interruption under the signal cover area and never been broken
even there are lots of things inside, so that there are more and more customers like this product and getting more market for the company.
3.8 Business Processes

The main selling point of this product is moving automactically. For making the product, we need to make sure every step is correct and let the
customer satisfied with the product. So industry will generate value by making a high quality product.



The product is kind of electronic products; we can’t 100% sure all the electronic products will working all the times. And the company work
with Software Company, so they will provide the service after they sell products. This will generate value by providing a well after service that
increases both customer satisfaction and reputation.



3.9 Functionalities
Making sure the industry produce the a good quality product.
The company can get more and more market base on high qualiy product.
Let the company get a good relationship with customers.
The company can get better reputation if company do very well.

3.10 Systems

3.10. 1. CUSTOMER SERVI CE SYSTEM – the reputation is important for all the business, the customer service system is supporting the customer
service process. This system would add value by taking the customer feedback and imporve the product based on it. Ensure that the customer
is satisfied with the product and its performance, so that get better reputation for the company.
3.10. 2. DOCUMENT EXCHANGE SYSTEM – allowing the company collobaration with the software company in supporting its collobaration
process. In order to quickly develop the company, software company is really helpful for development. They are working together to exchange
the imformation about the product and improve the quality of the product. That’s will get more customers and profit for the our company and

Customer will pay it when they buy the product, however the sales scope is the whole world, so there are some customers would pay it
online. Invoicing need to be automated for it’s worldwide customers. In order for to improve the enterprise’s operating efficiency, so that
reduce the cycle time, because the time is also important for the business.

- 3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

Make the
product or
1. Product
1. Making a high quality product
2. Getting more market base on the high qualiy
Customer service system
Document exchange system
CRM system
Collaboration system
2. Customer

1. Have a nice relationship with customers
2. Get better reputation for the company
Invoicing system TPS system


Overall the Automatic Moving Luggage Industry get enough competitive advantage for
getting in the worldwide market. Because our product is 100% handsfree luggage. People
will not be weary of carry a lot things anymore, walking easier with the heavy bag, they
don’t need to carry it, the bag always following them. There will be more people like it,
because the convenience and relaxed.