COMPANY ANALYSIS NewAir TECHNOLOGY ENTREPRENEURSHIP (ENT600) : CASE STUDY PDF

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COMPANY ANALYSIS NewAir TECHNOLOGY ENTREPRENEURSHIP (ENT600) : CASE STUDY FACULTY & PROGRAMME : FKM – EM220, Exchange Program SEMESTER : 7 PROJECT TITLE : NewAir Company Case Study GOUP MEMBERS : 1. Kristin Hülpüsch 2017143029 2. Cindy Heinrichs 2017385183 3. Gerrit van Schwartzenberg 2017571115...

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COMPANY ANALYSIS NewAir

TECHNOLOGY ENTREPRENEURSHIP (ENT600) : CASE STUDY FACULTY & PROGRAMME

: FKM – EM220, Exchange Program

SEMESTER

: 7

PROJECT TITLE

: NewAir Company Case Study

GOUP MEMBERS

: 1. Kristin Hülpüsch 2017143029 2. Cindy Heinrichs 2017385183 3. Gerrit van Schwartzenberg 2017571115 4. Fetisia Helena Anak Pengadau 2015126409 5. Amirul Azrai bin Zohari 2015136953

LECTURER

: Dr. Mohd Ali Bahari Abdul Kadir

CASE STUDY(ENT600)

ACKNOWLEDGEMENT In performing our assignment, we had to take the help and guideline of some respected persons, who deserve our greatest gratitude. The completion of this assignment gives us much pleasure. We would like to show our gratitude Dr. Mohd Ali Bahari Bin Abdul Kadir, ENT 600 Lecturer, UiTM Shah Alam for giving us a good guideline for assignment throughout numerous consultations. We would also like to expand our deepest gratitude to all those who have directly and indirectly guided us in writing this assignment. Many people, especially our classmates and team members itself, have made valuable comment suggestions on this proposal which gave us an inspiration to improve our assignment. We thank all the people for their help directly and indirectly to complete our assignment.

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TABLE OF CONTENT ACKNOWLEDGEMENT .................................................................................................................. 2 LIST OF FIGURES ......................................................................................................................... 4 LIST OF TABLES ............................................................................................................................ 5 EXECUTIVE SUMMARY ................................................................................................................ 6 1.

2.

INTRODUCTION ..................................................................................................................... 7 1.1.

Background and motivation behind the study .................................................................... 7

1.2.

Purpose of the study ......................................................................................................... 7

1.3.

Business Problem ............................................................................................................. 8

1.4.

Informational Background and Supporting Theory ............................................................ 8

COMPANY INFORMATION ..................................................................................................... 9 2.1 Background ........................................................................................................................... 9 2.2 Products/Services................................................................................................................ 10 2.3 Technology .......................................................................................................................... 12 2.4 Business, marketing, operational strategy ........................................................................... 14

3.

COMPANY ANALYSIS .......................................................................................................... 15 3.1.

SWOT Analysis ............................................................................................................... 15

3.2.

Consumer Trend Canvas ................................................................................................ 16

4.

FINDINGS AND DISCUSSION .............................................................................................. 17

5.

CONCLUSION ....................................................................................................................... 19

6.

RECOMMENDATION AND IMPROVEMENT ........................................................................ 20

7.

6.1.

Customer service system ................................................................................................ 20

6.2.

Price of the product ......................................................................................................... 20

6.3.

Target audience .............................................................................................................. 20

6.4.

Product Innovation .......................................................................................................... 20

REFERENCES ...................................................................................................................... 21

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LIST OF FIGURES Figure 1: Luke Peters ...................................................................................................................... 9 Figure 2: NewAir Al-250W ............................................................................................................. 10 Figure 3: NewAir Al-100BK ........................................................................................................... 10 Figure 4: NewAir ClearIce40 ......................................................................................................... 11 Figure 5: NewAir Al-215SS ........................................................................................................... 11 Figure 6: Luma Comfort IM200SS ................................................................................................. 11 Figure 7: Technology of IceMakers ............................................................................................... 13 Figure 8: Logo amazon ................................................................................................................. 14 Figure 9: Logo BestBuy................................................................................................................. 14 Figure 10: Logo HomeDepot ......................................................................................................... 14 Figure 11: Logo Kohl's .................................................................................................................. 14 Figure 12: Logo Target.................................................................................................................. 14 Figure 13: Logo Walmart............................................................................................................... 14 Figure 14: Logo wayfair................................................................................................................. 14 Figure 15: Logo Facebook ............................................................................................................ 14 Figure 16: Logo YouTube ............................................................................................................. 14 Figure 17: Logo Instagram ............................................................................................................ 14 Figure 18: Logo Pinterest .............................................................................................................. 14

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LIST OF TABLES Table 1: SWOT Analysis ............................................................................................................... 15 Table 2: Consumer Trend Canvas ................................................................................................ 16

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EXECUTIVE SUMMARY This is an attempt to know how the theories can be applied to practical situation. As a student in UiTM Shah Alam, it is a part of study for everyone to undergo a case study project. So, for this purpose, we got the opportunity to research a company which manufactured the same product that we want to develop, which is NewAir ice maker company, currently based in California. In the first part of the project report, the general information of the company has been collected. Information is gathered through the primary and secondary source as well. In the second part of the report, contains the specialized subject study. Objective of the project is to work on the background, organizational structure, products and services that NewAir provides. Next, we study about the technology of NewAir ice maker, which is basically a normal technology used by the refrigerator in freezer section, as well as business, marketing and its operational strategy used by the company to promote their products which we find quite interesting. Lastly, we research about the company financial achievements regarding how they manage their financial as well as achievements gain from the financial management. Goals indicate what a business unit wants to achieve. Strategy is an action plan for getting the goals. Every business must design a strategy for achieving its goals, consisting of a marketing strategy, and an effective management. In this case study, we analysed the strength, weaknesses, opportunities and threats of this company in real business world by using SWOT analysis. Thus, from the needs and demands from the existing consumers of this company, we analysed and find a solution to overcome and to fulfil their needs in Consumer Trend Canvas (CTC) analysis, making it as our innovation to be continued in new Product Development task.

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1. INTRODUCTION ‘’Either wright something worth reading or do something worth writing.’’ – Benjamin Franklin1

1.1. Background and motivation behind the study In order to find a suitable topic for a case study which key element it is to identify a product that has significant potential to be innovated, the group figured it would be most useful to study a product that many people require to use. Considering the local hot weather, it would only make sense to address something that has to do with cooling – in this case an ice maker. Common ice makers are traditionally difficult to use for instance on public beaches, since they would mostly require a wired power connection and filtered water. The idea came to the minds of some of the group members since they spent a day in a hot natural environment which after long period of time made all the foods and especially the beverages unenjoyable. A solution is now required which is the very reason for composing this study and its following innovational process.

1.2. Purpose of the study The purpose of the case study is to fully get access to the details of this product and its company to detect possible flaws and product regarding aspects that can be picked up by the group members to come up with the best implementation of our innovations that were going to be added to the given problem. At the completion of this study the goal is to have evaluated a broad innovation concept which implementation in the blue print will then occur more smoothly and without any aspects missing. The case study therefore is supposed to regard this matter from each and every direction to provide all the needed information for a fitting business plan.

1

Ismail ab.Wahad, Zanariah Zainal Abidin, Hardy Loh Rahim(2017)"Fundamentals of Technology Entrpreneurship", Global Mediastreet Sdn Bhd, pages xiii

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1.3. Business Problem The market of ice makers nowadays is quite large and its range longs from devices used in manufacturing processes to devices that are only used for personal interests only. The problem of this product doesn’t lie within its market saturation but rather of its adaption to the customers’ needs. The general concept is mostly the same no matter if we look at NewAir, Igloo Coolers or any other competitors that promote similar products. The basic ice maker usually requires a wired power connection, has limited ice capacity, lacks quality standards that enable a long-term use, only work with filtered and most significantly do not cover many markets that enable company growth. For instance, there is no product that targets people of young age directly, which is a great amount of unused potential. At this point our idea steps in, which is supposed to enhance the given product by the aspect of wireless transportation and power by adding solar power to the basic concept. Also, there will be a water filtration system that enables e.g. wanderers to use any water source they find to use for making ice to cool off after a long day of walking. This is only one aspect the current concept is missing to generate more market share and satisfy customers properly.

1.4. Informational Background and Supporting Theory To be generally informed about the functions and misfunctions of a product it is first of all important to collect personal experience data from product reviews given on the online webpages of the retailers. These ideas then may be picked up to generate ideas and compose innovations based on relevant customer complaints, such as design, power usage, isolation and many more. Since the general function behind an ice maker is the one of a common freezer, information has been collected from science books in terms of fluid dynamics, or to be exact, what components an ice maker consists of and how they function by the means of having an overview of the materials which are going to be used for a prototype. In order to be highly informed about the very product this study is about, the presented company by the name of NewAir has been contacted via social media, their corporate contact platform and E-Mail to increase the chance of being provided with actual company information so that assumptions wouldn’t have to be made.

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2. COMPANY INFORMATION The company NewAir is a manufacturer of luxery compact home appliances.

2.1 Background 

Founded in 2002



Family Owned o

Luke Peters – founder and CEO

Figure 1: Luke Peters2



2

California Based o

6600 Katella Ave, Cypress

o

+1 657-2574349



Over 60 employees



100.000 sqm distribution centre



Sister Brand: luma comfort

https://www.businessnewsdaily.com/10410-luke-peters-newair.html (Status: 07/04/2018)

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2.2 Products/Services NewAir’s products are: o

Ice Makers

o

Wine & Beverage Coolers

o

Portable Air-Conditioners

o

Evaporative Coolers

o

Water Dispensers

o

Cigar Coolers

o

Dehumidifiers

o

Heaters

o

Fans

NewAir’s portable Ice Maker: NewAir AI-250W Model: AI-250W Product Type: 50-Pound Portable Icemaker in White Product Dimensions: 13.58"L x 15.75"W x 13.70"H Product Weight: 21.61 lbs. Prize: $239.95 Figure 2: NewAir Al-250W3

NewAir AI-100BK Model: AI-100BK Product Type: 28-Pound Portable Ice Maker in Black Product Dimensions: 14.50"L x 11.75"W x 15.00"H Product Weight: 24.30 lbs. Prize: $189.95 Figure 3: NewAir Al-100BK4

3 4

www.newair.com/ice-makers/ www.newair.com/ice-makers/

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NewAir ClearIce40 Model: ClearIce40 Product Type: 40 Pound Clear Portable Ice Maker Product Dimensions: 14.76"L x 11.30"W x 14.06"H Product Weight: 23.15 lbs. Prize: $249.95 Figure 4: NewAir ClearIce405

NewAir AI-215SS Model: AI-215SS Product Type: Portable Ice Maker - 50 Lbs. Daily Capacity Product Dimensions: 14.25"L x 16.88"W x 16.75"H Product Weight: 37.60 lbs. Prize: $279.95 Figure 5: NewAir Al-215SS6

Luma Comfort IM200SS Model: IM200SS Product Type: 28 Pound Clear Portable Ice Maker Product Dimensions: 11.13"L x 14.25"W x 13.88"H Product Weight: 25.30 lbs. Prize: $239.99 Figure 6: Luma Comfort IM200SS7

5

www.newair.com/ice-makers/ www.newair.com/ice-makers/ 7 www.newair.com/ice-makers/ 6

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2.3 Technology The process of ice making by using ice makers is pretty much the same with the process done by common refrigerators. Clear ice makers, for example, do not freeze whole pockets of water at a time like refrigerator ice makers do. Instead, they lay down thin layers of water, freezing from the inside out so that there are no microscopic cracks from escaping particles and the ice stays clear. A portable icemaker works a little differently compared to commercial ice makers. A portable ice maker freezes the water directly instead of filling an ice mold with water and then putting the ice mold into a freezer. Thus it takes much less time to complete a batch of ice. How NewAir’s portable ice maker works. 1) Water is added manually into the unit’s water reservoir, up to the fill line. 2) The water is pumped in the bottom via a hole of the reservoir through a water filter and up to an ice tray at the top of the unit. Any overflow spills back into the reservoir. 3) When the refrigeration cycle begins, the 1/2-inch prongs on the heat exchanger are lowered into the water of the ice tray. Ice begins to form on the submerged spikes 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. Refrigeration Cycle The vapor-compression refrigeration cycle used in a Newair’s portable ice maker is the same that is used in an air conditioner, refrigerator or freezer. In a freezer or refrigerator, the cold air produced by the evaporator is collected in the unit’s insulated interior. In an air conditioner, the cold air is distributed throughout the room by means of a fan. In a portable ice maker, however, the cold produced by the evaporator is concentrated in the prongs attached to the evaporator, so that ice forms on them when they are immersed in fresh water.

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This process is based on the scientific principle of thermodynamics, which explains the transfer of heat during evaporation. When a coolant, like refrigerant, transforms from a liquid into a gas, it is able to absorb the surrounding heat during the transformation. The coolant then releases that heat when it changes back into a liquid. The coolant that being used in Newair’s portable ice maker is R134a Refrigerant. R134a is also known as Tetrafluoroethane (CF3CH2F). A refrigeration system has four main components that fa...