CASE STUDY ENT600 Edited New
CASE STUDY ENT600 Edited New
CASE STUDY ENT600 Edited New
1 Acknowledgement
2 Executive summary
9 References
10 Appendices
ACKNOWLEDGEMENT
In order to perform and complete our case study assignment, our group has seek for
help and guidance from some renowned persons who deserve our deepest gratitude in
carrying out our assignment. Completing case study assignment gives us plenty of
gratification. Therefore, we would like to thanks and show our greatest gratitude to Sir Abang
Sulaiman, all ENT 600 Lecturer that involves in helping us to complete our case study and
UITM Cawangan Sarawak for giving us guidance to our assignment become succeed. We
also wish to express our sincere appreciation to those who directly and indirectly led us in
completing this task.
Besides that, our classmates and the team member itself have made such valuable
hardwork and brainstorming on completing the task itself. We would like to thanks to all the
people who help us directly and indirectly for us to complete the case study.
EXECUTIVE SUMMARY
This case study is focusing on home technology appliance product business that was
run by a family that placed in California. NewAir is a company that produce and invented
wide range of electronic products that focused on compact appliance for home from heating
to cooling. This family company are quite well known in America especially in California.
For the first part of our study, all general and useful information about NewAir was
collected and gathered from online source that include the company main page, company
customer review, company product information page and much more. From here, we can find
all useful information of the NewAir Company that can be used in this case study which
include list of their product, history of the company and even the strength of company or
problem the company have faced. In the second part of the case study report, contains the
specialized subject study which work on the background, organizational structure, products,
services and information on the company financial achievement that NewAir provides.
From our findings from analyzing the strength, weaknesses, opportunities and threats
of this company by using SWOT, we identify there are many problems that NewAir
Company have been facing that can be related to our theory and concept of lecture study that
need some improvement. Besides, problems that this company facing in term of their
weakness and threat that we can determined by observing the company in the NewAir
glassroom and reading on customer review from NewAir customer review site. From the
information, we know the most important strength of NewAir company is that they offers
customers various type of portable home appliances which have make the company special
due to the uniqueness concept of the product they offer.
Thus, in this case study we suggest the best solution and recommendation in order to
help resolve some problems faced by the NewAir Company based on their customer needs
and demands also making it as our innovation to be continued in new Product Development
task. This recommendation was made by analysing the problems, weakness, strength,
opportunity and threat of the company that may help in reducing the risk that they may face if
not being improve. The recommendation that we have found that should been done to
improve the company include reducing product price, expend target audience, introduce new
technological innovation and improving the customer service system.
1.0 INTRODUCTION
(NEYSA ANAK MICHAEL)
1.0 INTRODUCTION (Neysa anak Michael)
To find an appropriate subject for a case study whose main element is to identify a
product with great potential for innovation, the group found it would be most helpful to
research a product that many consumers need to use. Taking into consideration the sunny
local environment, approaching something that has to do with cooling – in this situation an
ice maker. Popular ice makers are historically hard to be used on public beaches, for example,
because they would often require a connected power connection and filtered water. The
concept came to the minds of some of the group members after they spent a day in a
sunny natural environment that makes all the foods and particularly the beverages unpleasant
after lengthy periods of time. Now a solution exists that is the very reason for drafting this
study as well as its subsequent cycle of innovation.
The aim of the case study is to obtain complete access to the specifics of this product
and its company in order to identify potential vulnerabilities and product related to factors
that group members might pick up to come up with a better solution of our ideas that will be
applied to the issue. Upon finalization of this analysis the aim is to determine a conceptual
model of innovation which will then be applied more efficiently and without any lost
elements in the blue print. Therefore, the case study is supposed to consider this matter from
any direction in order and provide all the information required for an appropriate business
plan.
1.3 BUSINESS PROBLEM
Nowadays the demand for ice makers is quite broad and its range ranges from devices
used in production processes to devices only used for individual interests.
The problem with this product is not within its saturation of the market but rather its
adaptation to the requirements of the customers. The basic principle is exactly the same
irrespective of whether we look at New Air, Igloo Coolers or any other rivals selling similar
products. The standard ice maker typically needs a wired power link, has minimal ice
capacity, lacks quality levels that allow long-term use, works only with purified and most
importantly does not cover many markets that allow business development. For example,
there is no product that specifically targets teenage-age people, which is a great deal of
wasted potential.
By this point our innovation steps in, which is supposed to improve the provided
product by including solar power to the simple idea through the aspect of wireless
transportation and electricity. There will also be a water purification system that allows for,
for example, wanderers to use any water supply they can use to make ice to cool off after a
hot day of hiking.
This is only one thing that the current definition lacks to gain more market share and
better satisfy clients.
NewAir company is a manufacturer of home appliances and air quality product. This
company was founded in 2002 by Luke Peter whom also the CEO of the company. NewAir
company is a family-owned manufacturer. The company was started at the small garage over
15 years ago. In the beginning their sold portable air conditioner and evaporative coolers.
Today their product categories nearly every part of the home. From heating to cooling, to
wine and beverage coolers.
After moving to large warehouse and the distribution center in 2016 the company offer
the customer free shipping and in-house warranty and repairs. The company increase from 35
employees to over 60 employees in 2017. Their motto of the company “to be the most trusted
name in compact appliances”. NewAir focusing on the quality products that meets their
customer’s needs.
2.2 PRODUCTS/SERVICES
Example of potable ice machine, NewAir Al-100BK Portable Ice maker.This machine
is very easy and ready to operate with no special installation required. Just have to plug it in
the power socket before adding some water in it. The ice will come out in less than 6-15
minutes on first batch.
Home ice maker is using the vapor-compression refrigeration cycle that used in an air
conditioner,refrigerator of freezer. This system based on the principle of heat transfer. This
occurs when the two systems with unequal temperatures come into contact with one another.
Heat flow from the warmer system into the cooler system until the two are equilibrium. The
ice makers using conduction instead of convection to speed up the ice making process.
1. First, water is added into the unit’s water reservoir, up to the fill line. The machine not
connected to a water line and must be filled manually.
2. The water is pumped via a hole in the bottom of the reservoir through the water filter
and up to the top of unit. Any overflow spills back to the reservoir.
3. Then, the refrigeration cycle begins, the 1/2-inch prongs on the heat exchanger are
lowered into the water of ice tray. These submerged spikes get cold very quickly, and
ice begins. To form on them in a matter of minutes.
4. The size of the ice cubes depend on how long the prongs are left in the water. A
longer cycle means thicker pieces of ice. Small ice usually takes about 6 minutes,
while large ice is about twice that, though freezing times can be affected by the
ambient temperature and how long the unit has been running.
5. When the ice has reached the proper size, the ice tray empties any remaining water
back into the water reservoir. At the same time, the heat exchanger reverses itself and
the spikes start to heat up just enough so that the ice pieces slide off the prongs and
tumble into the ice bin that’s above the water reservoir.
6. A second sensor on storage basket monitors the amount of stored ice, and shuts off the
system if it gets too full.
The company started sell their product through the small garage. As the company
grew bigger, people started to know NewAir as the most trusted brand in compact appliance.
The company promote their product through the social media such as Facebook, Instagram,
Pinterest and Youtube. Their well know about their product for home appliance and air
quality product. In addition, the customer can contact them directly through the social media.
The customer also can contact directly through the company number to ask about the product
that their interested.The people also can search about the product through their company
official website.
In order to increase their sell, the company shifted to B2B relationship in 2012. The
product was distributed to the large retailer as Amazon, Walmart, The Home Depot and many
more. This strategy is very good opportunity to the company, because their product will be
placed at the everyone can get.
The company also donate their profit to local charities. Every year the company
because send their employee volunteer to the local charities. This is the part of their culture.
The local charities: Lestonnac Free Clinc, Choc Children’s, The Salvation Army, Special
Olympics, Freedom Alliance Schoolarship Fund, American Red Cross.
3.0 COMPANY ANALYSIS
(NUR SYAZA SAHIRA)
3.0 COMPANY ANALYSIS (Nur Syaza Sahira)
POSITIVE NEGATIVE
L INTERNA
Strength Weakness
Opportunity Threat
1. Strength
B. Attractive design
NewAir Company have been producing a quite big range of variety product
for home appliance which are mostly much smaller in size and portable. Their
design also seems nice, cute and look like a high-quality product with a solid
material cover which give a nice impression to the product. This idea of design
has been attraction to customer as not many companies have also producing
this kind of design. This design can be a choice for customers who prefer
smaller size product that just nice, fit into their small apartment in the same
time can save so much space for their other needs, so their home will feel
much comfortable and not crowded.
2. Weakness
B. Expensive product
Although NewAir company product have significantly smaller in size than
other beverage company product for home appliance, the price they offer for
each of their product is quite expensive for a small size machine. For example,
Apartment size mini drier product (MiniDryer26W) which is cost 279.95
dollar is quite expensive for its size as it can used for only limited amount of
clothes to dry at one time. This have become NewAir Company weakness, as
people can get a cheaper price from other product brand with same function
and with almost similar size that only cost 252.60 dollar such as laundry dryer
from Magic Chef Company (MCSDRY15W).
3. Opportunity
As we know, our world now suffering from global warming from North Pole
to South Pole and wherever in between. This global warming has cause
significantly increase in temperature every day and indirectly resulting on hot
environment for human from all over the world. This can become a big
opportunity for NewAir company as they offer many products that related to
cooling or even heating which can be used in today’s world increasing
temperature also many seasons such as winter, monsoon season, spring and
summer. This fortunately will increase their product demand as people now
likely needs home appliance which can give comfy environment for their
house in this situation and in any seasons.
NewAir Company has the opportunity in the business expansion. The branch
of this Company is not necessarily big for the starter. The new location for the
new branch of this company in the bigger city with high family population
such as Carlifornia, Columbus and other really promising the profit in which
most of the resident in that area are mostly like to buy their product due to the
area have more small apartment and house which need a product that could
promising them less consume space benefits.
4. Threat
As we know, in this developing era for most of country in the world have been
causing so many company produce high technology products that offered a
well develop technology such as artificial intelligent technology that has an
ability to copy human intelligence processes, learn from experiences, adapt to
new information and perform human-like activities. This technology has been
applied to various kind of electronic device which help human with their life
to be much easier. For example, LG ThinQ. Kitchen Solution have produced
home appliance that equipped with artificial intelligence. Other than that,
some company also have been produced product or electronic machine that
have solar system which give much benefits to reduce the consuming of
electricity on daytime indirectly can reduce electricity cost. This can help
people to save a lot of their money to be used on something more necessary in
the future. This have been a biggest threat for NewAir Company as their
product have not been using any intelligence technology such as artificial
intelligence that can affecting their business as they have huge number of
competitors that may increasing by time.
4.0 FINDINGS AND DISCUSSION
(ANGELLIA SAMANTHA)
In general, the strength of the NewAir Company and the brand itself has many
positive aspects such as variety of portable products, attractive design, and a great marketing
strategy. Besides that, they also provide customer friendly terms in their products’ guarantee.
Despite all the strength that the NewAir Company have there are several problems in some
aspect that makes them lacking from other company that have become their competitors.
Several problems such as slow customer services, produce expensive products, short lifetime
product and their packaging for delivery is quite low in quality.
In general, NewAir Company has produced and invented such a huge brand within the
last few years, it still has some difficulties in spreading their products’ brand to all over the
world. This situation happens mainly because of their poor customer rates. Their products can
be expensive maybe because they want to cover up all their expenses for the production of
their products but if its good in terms of quality, customer would not mind the price and
instead they will just buy it. But, behind the expensive prices the product that their company
produces has short life time. According to their customer review, some of their product has
less than a year functioning properly which resulted the customer to become frustrated
because of the expensive price and the low-quality product. The reason for the low quality
product that the company produced is maybe due to the shortage or limited of materials that
they need to build the machine. Therefore, they need to buy from other country and in the
same time they need to cut their budget on the production expenses because importing the
material itself used quite a huge amount of money.
Next, in terms of the problem they had regarding the slow customer service, this may
happen because they has limited amount of worker. The company itself has 60 employees
which is quite a burden for 60 people to work efficiently and complete the production on time
for such a huge company. A huge company that produces electrical appliances may need 90
people and above to make their production and management team works efficiently. Besides
that, complaints from the customer about company’s delivery service are quite related to the
shortage of worker in the company. The management and production team need a really
qualified and enough amount of people for them to work in a great performance.
Based on the research that we have done for our case study, we can tell this company
may faces some problems because of their products’ quality and customer service. They
should take an immediate action in terms of their management system and production system
to give out a better performance. Much worse, almost all of the customer reviews have stated
that this company would not last longer if they keep on making their customer frustrated with
their products and services.
According to our discussion, they need to come up with a new product to change their
customer impression towards their product. For example, they should equip a solar power
instead of using electrical power for the ice maker. When they do such thing, it can give out a
great amount of benefit towards the customer. In a situation where people want to go out for
picnic with their family they can bring the portable ice maker to make refreshing drinks for
the whole family. They would have no worries that the ice that they brought along the
journey to their destination melt or they had to go to a nearby supermarket to buy some ice
for their drinks. Besides that, this product is also a convenient product because the product
does not used up too much storage when they placed it at home or bring it outside. To get
back the customer attention and trust is absolutely quite a tough job but producing such a
delightful product will win their heart back.
Overall, we have experienced some limitation when conducting a case study on this
company. This is because of the limited source of reference and the base company itself is
located in California. Besides that, some of the website that we found shows limited
information about the company.
5.0 CONCLUSION
&
6.1 RECOMMENDATION AND
IMPROVEMENT
(VANESSA BEATRICH)
The goal of this vision statement is to make it a reality by implementing the concept
of manufacturing a smaller, compact ice maker that will be supplied with solar energy as a
renewable energy source, so that the product will enter a whole different market in terms of
families, young people, wildlife enthusiasts and many more taking it out into nature to enjoy
ice wherever they need it, whenever they need it. Also, there will be a filter module applied to
this concept for the customers to be able to use any water source available.
Any of these improvements, general changes and developments still must be made
under the presumption of a few sensitive things, which the organization did not reveal to us in
time until this paper was completed.
7.1 REFERENCES
Websites:
Lopienski, K. (2019, October 11). How to Make Shipping Part of Your Ecommerce
Marketing Strategy. Retrieved from ShipBob:
https://www.shipbob.com/blog/shipping-ecommerce-marketing-strategy/
Sandip. (2019, April 4). Customer Service Advantages and Disadvantages For Your Business
Growth. Retrieved from SMART BUSINESS DAILY:
https://www.smartbusinessdaily.com/customer-service-advantages-disadvantages-
business-growth/