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Aqualiza case study

Aqualiza case study

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AquaLisa Case Study

Central problem

Aqualisa quartz shower, was a state-of-the-art product of Aqualisa. It was launched in

May 2001. Quartz was the result of the intense market research, fantastic piece of

technology and design. Harry Rawlinson’s dilemma was regarding this innovation, it was

not seen as an opportunity instead as a problem. The case central issue is that Quartz

sales were suffering for Aqualisa. This case shows there is a disconnect between the

consumers and the plumbers in understanding the value of the new product. This could

be a result of a slow adoption process from the stigma of previous electric shower

failures, that there is no faith in quality of this shower.

Environmental Scan:

From (Peng, Wang and Jiang, 2008) we learn external environment can improve the

position of a company and maintain their growth or it can have rippling effects on culture

and business. Environmental issues being considered in this case study are competing

electric showers, demographic, economic, political legal and socio-cultural.

Demographic

There are individual customers and plumbers around the world that will benefit from

electric showers. The customers vary between people doing their own DIY and the

plumbers. Understanding this is important as it is one of the key factors in forecasting

an economy. Other factors are how is the plumbing happening, if it is gravity fed

plumbing (meaning slow water pressure), with varying temperatures this is a problem

that impacts the buyer. Consumers and plumbers do not have much faith in the current

quality of existing shower products much less an electronic version. Plumbers chose the

shower most suitable for the customers. Thus, they were very influential. Due to their

influence the plumbers needed a product they were familiar with. Installation of

showers take time, so everyone wanted to have the ability to do a quick safe and easy

install. Other consumers were the developers. With the foot and mouth crisis

happening it was crucial to have hygiene and good showers be available. The

distributors from whom showers are brought segregate the consumers. Consumers

were ranging from the high-end customers who buy from showrooms, to value

customers who obtain showers from DIY sheds and developers who are the home

owners. Understanding this enables the understanding of why the showers needed to

be easy to install, attractive, safe, and affordable.

Economic

2001 UK economy was reasonable. There were numerous indicators of the rapid

downfall. Economy had managed to survive on of the major domestic shocks in the

form of foot and mouth crisis without a major downturn. UK was also impacted by the

global economy. The first recession was seen for UK in over a decade. US had an 8-

month recession in 2001 which began in March and ended in November (National

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Bureau of Economic Research, 2003). The US economy was recovering in the 4th

quarter, but unemployment rates were still high and kept climbing till 2003 stopping at

6%. Both the Federal Reserve in US and the Bank of England in UK had responded to

the recession by relaxing monetary policy, it was not enough to offset the recessionary

forces (Turner, P. 2001).

Political-Legal

International trade laws were being amended. Certain goods were still being restricted,

but the trades were being sanctioned, and the goods were now becoming global. There

were penalties for incorrectly exporting importing goods, these are listed under the

Customs Excise Management Act 1954(CEMA). This was being modified and PartV of

CEMA contains provisions on the enforcement of export rules including the restrictions

(Article 68, CEMA).

Other laws to consider are building and safety regulations. The Building Act of 1984

was being modified and different regulations were being added. This is another

important factor to consider, as if shower is not placed correctly several other issues

can result (UK legislation). This law is different in different states and globally and

should also be understood to know how to target different niches.

Social distancing laws were being developed to help control the outbreak of foot and

mouth. The laws were important as this was a pandemic that hit and there was no

solution, to stop spreading this became an important law. Other laws were that of safe

food hygiene as contaminated food could cause the disease to spread. The food

hygiene expanded to general hygiene as well.

Patent law needs to be considered. How long will the patent be valid with the changes

being made to the Patents Act 1977.

Excavation, safety were other things to also consider when installing showers.

Socio Cultural

Normally plumbing was a field that only men dominated. DIY developers could have

women. Predominately the industry was male dominated, this is important to

understand as it shows the vivid image of the niche market being targeted.

Competitive Analysis

Competition is a strong force that drives the business to success or sinks it to peril. The

competition for electric showers is rising both in UK and around the globe. The

company undergoing such competition can analyze business Intelligent Systems (BIS)

to see why their products are failing and use this with the Recency Frequency Monetary

(RFM) factors to develop solutions to survive the competition. Better business and

marketing strategies is the optimal solution for differentiation in a competitive market.

The other option is to seek a legal injunction to protect the organization from any

impacts while it invests in strategies to recover the losses. Companies need to

understand the market saturation, how and when to penetrate the markets to aid in

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AquaLisa Case Study Central problem Aqualisa quartz shower, was a state-of-the-art product of Aqualisa. It was launched in May 2001. Quartz was the result of the intense market research, fantastic piece of technology and design. Harry Rawlinson’s dilemma was regarding this innovation, it was not seen as an opportunity instead as a problem. The case central issue is that Quartz sales were suffering for Aqualisa. This case shows there is a disconnect between the consumers and the plumbers in understanding the value of the new product. This could be a result of a slow adoption process from the stigma of previous electric shower failures, that there is no faith in quality of this shower. Environmental Scan: From (Peng, Wang and Jiang, 2008) we learn external environment can improve the position of a company and maintain their growth or it can have rippling effects on culture and business. Environmental issues being considered in this case study are competing electric showers, demographic, economic, political legal and socio-cultural. Demographic There are individual customers and plumbers around the world that will benefit from electric showers. The customers vary between people doing their own DIY and the plumbers. Understanding this is important as it is one of the key factors in forecasting an economy. Other factors are how is the plumbing happening, if it is gravity fed plumbing (meaning slow water pressure), with varying temperatures this is a problem that impacts the bu ...
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