REPORT PART A

Business activity:
1. What is the purpose of the business?
A. Primary: The main purpose of the business is to bring the
portability of writing and sharing to the individuals like students,
housewife, professional writers, businessmen. Bringing the
independence from the papers, whiteboards, notepads, notebooks
to new digital era.
B. Secondary: Security, identity, Artworks (creativity).

2. What is the category and the relative size and scope of that
category?
A. The category of the business is Electronics and the size of the
enterprise would be medium size(as per the capital included for the
start-up) and electronics and digitalization is the most ever
increasing/highest developer of innovative products in the business
market all over the world.
B. It is priced $968 million market that can be covered-up in the New
Zealand.

3. Where does our venture fit into it?

Ans. Our venture fits in as most potential market right now in New
Zealand.

PRODUCTS/SERVICES

What product are you selling?

Ans. The product is an electronic device which independently records

the writing on any surface: the name of the product is phree derived
from free adding it with the p from the pen. The use of the product is
for the educational purpose and creativity. It is an really innovative
product of the era. (OTM technologies, 2016)

What is the anticipated demand for the product?

Ans. According to the statistics 91% of the smart phone device owners
use the device everyday , so placing our device in market will have an

$968 Million market that can be covered in New Zealand. (Technology,

Media & Telecommunications Predictions, Deloitte., 2015)

Competitive advantage:

What makes your product innovative?

Ans. The innovative write-graphic sensor which is located at the tip of the
pen which
detects the writing; with near to zero error accuracy which is
one of kind in the market. Phree has 3D optical tracking engine which
measures its motion and sends a digital signal to any Bluetooth device
connected.

Identify your unique selling proposition or competitive

advantage. Why would your target market buy your
products over others?

Ans. the things that make our product innovative and unique is the
compact design and the 3D optical tracking engine which is build-in
first time in any products available now in the market and its patented
by the company and cannot be used by others unless copyright issued
by the company to produce the product. it is a unique accessories
connects with any compatible smart phone in the market, as the
product is designed to eliminate the use of paper and bring the writing
to paperless digital form , as many times in a situation we dont have
paper to write on to take the notes, as matter of fact the smart has
picked up the trend in New Zealand the statistics are as follows
(Technology, Media & Telecommunications Predictions, Deloitte., 2015):

72 % of the adult population in new Zealand owns a

notebook(laptop) or Ipad for personal use.
2/3rd of the adults have approximately 2-3 devices per head.
59% of the persons owning a smart phone have other device like
laptop or Ipad.
The purchase of the smart phones have significantly increased
from 48% in 2013 to 72% in 2015.while the ipads and tablets
have grown to 51% in 2015 from 29% in 2013.

3. Goals:
1. What are our short-term objectives?

Ans. Short-term objectives (Nelson Freitas, 2014):

To achieve $10 million market within 2 years.

To continuously increase the market and achieve 2 million
customers in 2 years.
To reduce the price by cutting manufacturing costs and import
taxes.

Long-term goals: (Nelson Freitas, 2014)

Increase the product line and introduce new product design.

Open 25 retail stores in top and most populated cities.
Eliminate the use of paper and make environment more green.

Business opportunities:
The immediate opportunities will be to capture the new market with the
patented optical translation measurement sensor which is one of its kind,
so for 20 years period of time there will be no direct competitor in the
market.
What is the anticipated growth?
The growth of the company is considered over capturing $1 billion capital
returns by next 20 years in the new Zealand market. The things that gives
the potential is the increasing residents in the country and New Zealand is
considered most green country in the world ,so our product will be the
best suitable thing to add more greenery to the country and the world is
already trending towards the digitalization and our product will help
achieve the 100% digitalization goal. With over 10 million potential
customers the market stands huge expansion scope $968 million revenue
market.
Vision
To make the world paper-less
Environmental scanning :

Macro Environment

Political:
Relations amongst Wellington and Jerusalem have had their ups and down
as of late, incorporating a column in 2004 over cases that two Mossad
operators in New Zealand had been taking travel permits, which prompted
conciliatory authorizations against Israel that were just lifted years after
the fact. The trade relations are better as there is $88 million trade
activities takes place annually on an average. (AHREN, 2015)
Economic:

Financial ties between the two nations keep on developing with innovation
connecting the huge geological separation. Albeit conventional sending
out and importing exist between the two nations the best chances to
cultivate financial ties are in community endeavors and joint endeavors
including regions of howdy tech, development farming and therapeutic
innovation. For instance, A New Zealand organization gives the equipment
and an Israeli organization gives the product and administration of the
biggest ranch in Vietnam. The Embassy plans to do help with any path
conceivable to keep building up this uncommon relationship between the
two nations.
So economically there is very sound opportunity and potential growth for
our business in New Zealand. (Isreal-NZ Govt., 2016)
Social:
The culture in New Zealand is the most unique which inspires other
country to go nuclear-free and free trade , plus our product is all about
making the planet more greener than before by eliminating the use of the
paper which will reduce the use of paper hence cutting down of trees will
significantly reduce and this will connect our product with the country
more intensely.
Technological:
Of the considerable number of gadgets, the cell phone was the most much
of the time utilized, with 91 percent of cell phone clients reporting that
they utilize their cell phone each day. In correlation, 41 percent of those
with an element telephone reported every day utilization of their
telephone, while around one-portion of those with a tablet (53 percent),
PC (53 percent) and/or tablet or iPad (52 percent) reported utilizing each
separate gadget once a day. (Technology, Media & Telecommunications
Predictions, Deloitte., 2015)

Legal:
Traditions depends on the supply the right and exhaustive data to
guarantee brief leeway of our products. Merchants submit clearances
electronically by means of Electronic Data Interchange (EDI), or over the
Internet utilizing the Customs Online Declarations site.
The import passage freedom that is required, as the shipper (or the
representative following up for your sake), to furnish us with definite data
about our merchandise. From this data we can affirm the obligations we
may need to pay or not pay, assessments, and any security or isolate
methods that may should be embraced.
On the off chance that it is for first time importing, one should have set up
customer codes and supplier codes and be enlisted to utilize the Customs
Online Declarations website. (NZ GOVT, 2016)

Environmental:
As our product will be manufactured outside the country so there will be
no manufacturing plants in New Zealand as New Zealand have a policy to
protect its environment from bio-hazard risks and our product is made
from 100 % recycled material, so there will be no issue to harm the
environment of new Zealand. (NZ govt)

Micro Environment:
Strength:
Weaknesses:
Patented optical translation
No capital
High price due to R& D
measurement sensor with 3D
involved in it.
laser interferometer
Third party gadget
Research and development
Limited connectivity range of
Compatible with the operating
the device
systems like windows, Osx

Networks
and
(apple),linux, android.
Unique and compact design
communications
comfortable in hands
Opportunity:
Threats:
Patent
rights
with
the
Smartphone
getting
more
company
so
no
direct
advanced and interactive
Advance voice recognition
potential competitor
Capturing
new
electronic
softwares already in the
market of gadgets.
market for taking notes
To eliminate the use of paper
Limited to only Bluetooth
and increase digitalization
connection devices.
Research:
With anticipated worldwide sales of 1.4 billion cell phones in 2015, cell
phone infiltration is relied upon to increment from a base of 1.8 billion
in 2014 to 2.2 billion in 2015. Further, Deloitte predicts that of the 1.4
billion cell phones sold in 2015, 1 billion will be acquired as updates, a
volume unparalleled among purchaser gadgets and more noteworthy in
units (and income) than the PC, TV, tablet and diversions console
divisions consolidated. (Technology, Media & Telecommunications
Predictions, Deloitte., 2015)
Key discoveries and patterns
There are four key discoveries and patterns:
1. Very nearly seventy five percent (72 percent) of all grown-up New
Zealanders now own or have admittance to a portable

2.

3.

4.
5.

workstation or journal for their private use (up from 66 percent in

2013). Likewise having a critical effect on the gadget business
sector are tablets and iPads (51 percent, up from 29 percent in
2013). Be that as it may, at 70 percent infiltration (up from 48
percent in 2013), cell phones are quick turning into the country's
most famous gadget. This is a 46 percent expansion in three
years. (Technology, Media & Telecommunications Predictions,
Deloitte., 2015)
Mirroring the lifecycle of the business sector, around 66% of all
grown-up New Zealanders now own or have entry to three or
more
gadgets
(64
percent).
(Technology,
Media
&
Telecommunications Predictions, Deloitte., 2015)
On account of this, a reasonable inclination is developing for cell
phones, with 59 percent of those with a cell phone and no less
than one other gadget, leaning toward their cell phone. This has
all the earmarks of being to the detriment of tablets and scratch
pad. (Technology, Media & Telecommunications Predictions,
Deloitte., 2015)
Right around three of each four New Zealanders have a
tablet/journal and/or a cell phone. (Technology, Media &
Telecommunications Predictions, Deloitte., 2015)
Truth to be told, except for cell phones, the day by day utilization
of every single other gadget is inclining. (Technology, Media &
Telecommunications Predictions, Deloitte., 2015)

Ownership for specialized gadgets differs altogether by age:

1. Smartphone and portable PC proprietorship was especially high
amongst 18-34 year olds (91 percent and 85 percent separately),
albeit more than seventy five percent of those matured 35-54
years additionally possessed or had entry to these gadgets.
(Technology, Media & Telecommunications Predictions, Deloitte.,
2015)
2. While one-portion of all grown-ups matured 55 and over
additionally possessed or had admittance to a tablet, not as
much as half of them (45 percent) had a cell phone. (Technology,
Media & Telecommunications Predictions, Deloitte., 2015)
3. Reflecting the inverse example to cell phones, highlight
telephones were all the more normally possessed by those
matured 55 and more than (47 percent, contrasted and 21
percent of those matured 18-34). (Technology, Media &
Telecommunications Predictions, Deloitte., 2015)

The market:
Marketing strategy:

Contacting the top electronic retailers like JBhife, Noel Leeming,

PB technologies, Jaycar electronics, Spark and distribute the
products.
Advertising on the social media platforms like Facebook,
Youtube , Instagram as it is the best platform to promote the
product.
Giving membership opportunities to first initial customers for
beta testing feedback to improve the product features.
Attributes of the product clearly positions itself into educational
gadgets.
Price of the product is kept $198 dollars inclusive all taxes to
compete similar near resembling gadgets in the market.

Organisation:
A hefty portion of our current laws apply to these electronic
exchanges. However e-business has likewise tested a considerable
lot of the conventional thoughts representing the way we work
together. At the point when is an email got by the beneficiary?
Which nation's law applies in a question between gatherings
managing over the Internet? Could an agreement be lawfully official
using an electronic mark? Could a New Zealand business be saddled
by remote assessment powers for merchandise sold by that
business over the Internet? (Chapmantripp, 2008)
The New Zealand Government introduced the Act in an attempt to
alleviate uncertainty and encourage e-commerce.
The following laws are to be considered which impacts our
business :

Consumer guarantee act

Fair trading act
Product safety regulations
Weights and measures
Radio communications act

Persons or associations importing electronic, electrical or radio

transmitting gear for on-offering in New Zealand must follow the
documentation and marking prerequisites as set in the Radio
correspondence (Compliance) Notice, Radio communications (EMC
Standards) Notice and Radio communications (Radio Standards) Notice as
proper. What's more suppliers of radio transmitting items must hold a
License to Supply. (Business NZ, 2016)
To consent to New Zealand's Radio communication Act 1989 and
Regulations 2001, electrical and electronic items must meet norms and
presentation a consistence mark. (RSM GOVT., 2015)

Organisation chart:

Number of employees required (approx.): 25-30

Business locations:
The best locations are the existing electronic stores which are in the urban
areas of New Zealand, space required for the product is a small separate
outlet in the store ,should be kept under the smartphone accessories
section.
Plant and locations:
For the manufacturing of the product following things are needed:

Electronic chips
Bio-degradable plastic
Led screen(compact)

Other things required to import the product and store are:

Warehouse
Transport vehicles
Retail store
Boxes
Papers and license
Website
Eftpos software installed devices(point of sale software)

Production process:

As ours is the import business we dont have production process involved

still following steps includes the process of purchasing and distribution:
1.
2.
3.
4.
5.
6.
7.
8.
9.

Making connections
Getting the goods
Making an agreement
Quotation
Terms of shipping
The freight forwarding
Letter of credit
Delivering the goods
Promotion

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Critical risks:
There are a larger number of risks connected with
importing than purchasing locally and one should know
about these to oversee them successfully. These
incorporate the accompanying quality and conveyance
concerns. (NZGOVT, 2015)

The separation amongst we and our supplier is awesome.

This implies it is harder for you to keep an eye on, or
manage, issues like quality control. (NZGOVT, 2015)
The conveyance separation is further and the conveyance
time longer, which makes returning products more
burdensome. (NZGOVT, 2015)
In light of the time it takes to convey, you may wind up in a
position where we need to acknowledge second rate
merchandise, just on the grounds that we can't source the

right quality substitution item in time if your supplier

disappoints us. (NZGOVT, 2015)

We'll have to take consideration to source respectable

suppliers, and just place orders on terms that give us cover
against non-conveyance and incorporate punishments for
late conveyance or for products that are not up to
standard. It additionally pays to source elective suppliers so
we have a go down if we require it. (NZGOVT, 2015)

Exchange rates are the potential risks which are to be

faced as a retailer as the goods priced in the different
currency which means final amount will be effected during
the time of payment. (NZGOVT, 2015)
Strategies to minimizing the risk (NZGOVT, 2015):
Asking the supplier to state the price in New Zealand
Dollar
Purchase forward cover to from price fluctuations
Add an exchange rate risk to the margins
Establish that there is demand for the product and
legally import them in the New Zealand.
List of reputed suppliers in the New Zealand.
Negotiate with the loss of goods protection
insurance.

References:
AHREN, R. (2015, june 1). diplomatic-leightweight-new-zealand-takes-on-peaceprocess.
Retrieved
from
www.timesofisrael.com:
http://www.timesofisrael.com/diplomatic-leightweight-new-zealand-takeson-peace-process/
Business
NZ.
(2016).
manufacturers-and-importers.
Retrieved
from
www.business.govt.nz/:
http://www.business.govt.nz/laws-andregulations/consumer-laws/manufacturers-and-importers
Chapmantripp. (2008, may 18). The-Electronic-Transactions-Act-what-it-meansfor-your-business.
Retrieved
from
www.chapmantripp.com:
http://www.chapmantripp.com/publications/Pages/The-ElectronicTransactions-Act-what-it-means-for-your-business.aspx
Isreal-NZ Govt. (2016). Relations. Retrieved from www.embassies.gov.il:
http://embassies.gov.il/wellington/Relations/Pages/New-Zealand05095721.aspx
Nelson Freitas. (2014, december). future-of-instore-digital-retail-guide. Retrieved
from www.smartinsights.com: http://www.smartinsights.com/guides/futureof-instore-digital-retail-guide/
NZ GOVT. (2016). importers-and-customs. Retrieved from www.business.govt.nz:
http://www.business.govt.nz/laws-and-regulations/importingexporting/importers-and-customs
NZ govt. (n.d.). what-biosecurity-means-for-importers. Retrieved from 2016:
http://www.business.govt.nz/laws-and-regulations/importingexporting/what-biosecurity-means-for-importers
NZGOVT. (2015, january 13). Ten tips before you import. Retrieved from
www.business.govt.nz:
http://www.business.govt.nz/laws-andregulations/importing-exporting/overview-of-importing-exportingregulations/ten-tips-before-you-import
OTM

technologies. (2016).
https://otmtech.com/

Phree.

Retrieved

from

www.otmtech.com:

RSM

GOVT. (2015, september 10). buying-electrical-electronic-and-radioproducts-from-overseas.

Retrieved
from
www.rsm.govt.nz:
http://www.rsm.govt.nz/consumers/buying-electrical-electronic-and-radioproducts-from-overseas

Technology, Media & Telecommunications Predictions, Deloitte. (2015). Research

New Zealand. A Report on a Survey of New Zealanders Use of
Smartphones and other Mobile Communication Devices 2015, 1-16.