Name Kimberley Ea NetID kea616 Group Number: 511 Website Link: http://www.group511d2.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Kirsten Thursday 12pm Time Spent on Assignment: 19 hours Word Count: 1627 2
INTRODUCTION Want a better transportation method to get to school, work or exploring the city? Why not try Ubike! Ubike is a public rental bike system that allows you to rent the bike from point A to point B using your AT hop card. Instead of being stuck in public transport due to congestion at North Shore and the central business district (CBD), Ubike will solve all your problems as you pay and go. 3.1 Vision To deliver our customers to their destination in a fast, efficient and stylish way with the latest technology at a affordable price. 3.2 Industry Analysis: Transportation Analysis The Ubike is classified under the transportation industry as it is a service for the public to use to get to their destination. Force: High/Low: Justification: Buyer power: Low Consumers only have the option of buses or train in New Zealand. With only two choices of public transportation, they can charge at a higher price due to less competition. Supplier power: High Consumers only have a limited of choice to choose from.This highlights the need to provide greater transport choices to achieve a more resilient, efficient and reliable transport system.(Matt, 2014) Threat of new entrants: low There is not enough demand for a new source of public transport. Consultants have ranked Auckland last out of 14 cities - in New Zealand, Australia, Canada and the United States - included in a benchmark study for the average number of public transport trips taken annually by its residents. (Dearnaley, 2011) 2
3 Overall attractiveness of the industry: It is attractive as the industry has mainly low threats. With that being said, it will take a company who has a lot of money to start up their own transportation company as successful as Auckland Transport. With Auckland Transport being around since the beginning, it will take a lot of advertising and marketing to compete with them. But if its done right, it will be very rewarding as you will be the only successful individual transport system that is not owned by the government.
3.3 Customers and Their Needs The Ubike is aimed towards those who want to reach their destination faster without the congestion from the CBD and in the North Shore. These consumers could be students, workers or visitors to New Zealand. According to Dearnaley (2014) Auckland Transport too slow' making cycling safer Consumers want to get to their destination as safe as they can and as fast as possible. With the Badly organised bus system, it was said that the government would add more bus lanes to help the traffic congestions around CBD.it was not good enough that no bus lanes had been built when more were needed. (Orsman, 2013) But with the creation of Ubike, customers can be assured that their needs have been met. 3.4 The Product and Service The Ubike is a product that is different from the average bike. For instance, when you sit on the bike, it detects your weight and Body Mass Index. Not only that, but it indicates how much calories you have burned off. This allows you to fit in your gym session that some people cant afford to attend due to time. Its a two in one, allowing you to exercise unintentionally and with style. For the Ubike customers, they have their own lane to bike on allowing them to take advantage of the safety measures that has been applied, as no other type of vehicle are allowed on their lane. With their own allocated lane, Ubike users can avoid lanes used by cars, motorist, buses and taxis.
Threat of substitutes: high Consumers can use their own cars to get to their destinations. Walking, biking, carpooling, taxis and motor vehicle is also an option. Rivalry among existing competitors: Low According to Wikipedia(n.d.)Services are coordinated by Auckland Transport this makes the rivalry non existant. 3
4 3.5 Suppliers and Partners Supplier is someone whose business is to supply a particular service or commodity. Ubike suppliers are those items that are needed to operate the product. Urban Effect would supply Ubike with a bike stand as the Ubike would need to be supported by something. Avantiplus would be a supplier that supplies rubber used to produce tyres for the Ubike to operate. A Partner is a person who takes part in an undertaking with another or others, especially in a business or firm with shared risks and profits. Auckland Council would be a partner as it will give consumers access to use their AT Hop card on the Ubike. Another partner would be AT public transport as they will help promote the new transportation method. By increasing the use of Ubike, the traffic congestion will decrease allowing buses to stick to their timetable.
3.6 Strategy: Focused Low Cost For this particular product, it is classified under Focused Low Cost in Porters Generic Strategy. This is because Ubike is solely focused on the narrow market as only those who are in the North Shore and the CBD area can access it. Ubike is free for the first 30 minutes and after that is is a flat rate charge of $1 every additional 30 minutes.
3.7 Value Chain Activity: Making the Product/Service The most important value chain activity for this business is making the product. The Ubike is all about what consumers want. By creating something that consumers want like a transportation system that is more efficient, affordable and faster. The outcome would be the Ubike. Its important to listen and ask what consumers want as they are the ones who will buy and use the product. Since the Ubike is affordable as the first 30 minutes are free and traffic congestion is mainly focused around the North Shore and the CBD. Consumers will want to use the Ubike resulting a decrease in traffic congestions, allowing school kids and workers to get to school and work faster. According to Turei (2014) 93% of parents who drive their kids to school said they would prefer for them to walk or cycle, but only if they knew it was safe. 4
5 3.8 BUSINESS PROCESSES - MAKING THE PRODUCT 3.8.1. Make the Product - Making the product is an excruciatingly important process for any company. It defines what and who you represent. It is the main success in your organisation as it solely relies on the income of your product. By making a product like the Ubike using the business process, it guarantees a successful product at the end of the day. 5
Making the Product 6 3.8.2. Product testing - The product testing is important to making the product business process as it is the guide to making a improved, successful and efficient product. Conducting tests to see if the product can sustain situations that would and wouldnt happen daily for the Ubike, would assure consumers that it is a safe method to travel. 6
7 3.9 FUNCTIONALITIES 3.9.1. Making the Product/Service Process
Delivering Consumers to point A to point B
Consumers can exercise while going to their desired destination.
3.9.2. Product Testing Process
Successful operating public Transportation System
Issuing a efficient Ubike for Consumer Use
3.10 SYSTEMS
3.10.1. Delivering Management System- This system relates to the functionality of delivering consumers to point A to point B as it focuses on the process of consumers getting to their destination 3.10.2. Operating System- This system relates to the functionality of successful operating public transport system as it works how to successfully operate the product by featuring the demands of consumers want. 3.10.3. Marketing Information System- This system relates to the functionality of Issuing a efficient Ubike for Consumer use. It promotes the success of the product by advertising the answers to what consumers wants. 7
8 3.11. SUMMARY TABLE: VALUE CHAIN TO SYSTEMS
Value Chain Activit y Processes Functionalities Specific Information System(s) Broad Information System(s)
Making the Produc t/ Service 1. Making the Produc t 1. Delivering Consumers to point A to point B
2. Consumers can exercise while going to their desired destination. Delivering Management System
Perk Management System Transactional Processing System (TPS)
Decisional Support System (DSS) 2. Testing the Produc t 1. Successful operating public Transportation System
2. Issuing a efficient Ubike for Consumer Use Operating System Marketing Information System Transactional Processing System (TPS)
Transactional Processing System (TPS) 8
9 CONCLUSION In conclusion, The idea of Ubike is fantastic. The transportation Industry has low threats therefore allowing us to enter the market easily. Ubike aims to satisfy consumers wants by creating a system that is efficient, fast and stylish. It incorporates a system that decreases the the traffic congestion around North Shore and CBD. With more consumers using the Ubike, it decreases the use of cars and the use of the bus system. This will then decrease the traffic congestion allowing buses to be more efficient.
REFERENCES
1. Mathew Dearnaley ( Jan 10, 2014.).Auckland Transport 'too slow' making cycling safer. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11183890
2. Metiria Turei ( Mar 13, 2014.).Greens launch Safe Walking and Cycling to School policy https://www.greens.org.nz/press-releases/greens-launch-safe-walking-and- cycling-school-policy
3. L Matt. (Mar 11, 2014). The Role of Cycling in Auckland.http:// transportblog.co.nz/2014/03/11/the-role-of-cycling-in-auckland/
4. Mathew Dearnaley ( Oct 10, 2011.). Auckland in last place for public transport use http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10757884
5. Wikipedia (n.d) http://en.wikipedia.org/wiki/Public_transport_in_Auckland