Our business aims to promote physical activity and provide free public transport tickets. We will place machines in stations that give tickets in exchange for exercises like squats or lunges, detected by motion sensors. Partnering with Nintendo for their exercise technology and the Transport Agency for tickets, the machines encourage fitness through competition and social media sharing. While funding may be challenging, the strategy uses strengths like ease of use, health benefits, and social outreach to overcome weaknesses and threats from economic changes or copycats.
Our business aims to promote physical activity and provide free public transport tickets. We will place machines in stations that give tickets in exchange for exercises like squats or lunges, detected by motion sensors. Partnering with Nintendo for their exercise technology and the Transport Agency for tickets, the machines encourage fitness through competition and social media sharing. While funding may be challenging, the strategy uses strengths like ease of use, health benefits, and social outreach to overcome weaknesses and threats from economic changes or copycats.
Our business aims to promote physical activity and provide free public transport tickets. We will place machines in stations that give tickets in exchange for exercises like squats or lunges, detected by motion sensors. Partnering with Nintendo for their exercise technology and the Transport Agency for tickets, the machines encourage fitness through competition and social media sharing. While funding may be challenging, the strategy uses strengths like ease of use, health benefits, and social outreach to overcome weaknesses and threats from economic changes or copycats.
Name Aisling Doyle NetID adoy877 Group Number: 210 Website Link: http://infosysgroup210.blogspot.co.nz Tutorial Details Tutor: Day: Time: Johnnie Shubert Wednesday 11am Time Spent on Assignment: 18 Word Count: 2072
Promotion of Physical Activity Through Free Transport Tickets
I ntroduction
In an age where technology has the ability to do everything for us, it seems we are becoming increasingly sedentary. Our fitness levels are decreasing with a clear correlation to mental illness emerging, and obesity is on the rise. In order to promote awareness and engagement in physical activity, our business idea is to place ticket machines in bus and train stations that provide free tickets in exchange for exercise. Using motion detecting technology, the machines will know when the set amount of exercise has been reached and will print a ticket. Having a time limit of two minutes to reach the requirement of either 20 squats, 30 lunges or 40 star jumps means that participants will become more competitive, have more fun, and not have to queue for too long. The machines will also be fitted with the ability to upload photos of customers participating to Facebook, twitter, tumblr or Instagram, in the hope that the social media attention will promote fitness even further. Our machines also offer a great alternative to customers who may not have the money to buy a transport ticket.
3.1 Vision
To raise awareness of the importance of physical activity and encourage New Zealanders to exercise by providing them with a fun, easy-to-use option that has the added impetus of a free public transport ticket.
3.2 I ndustry Analysis
Industry: Not-for-profit sector
Force High/Low Justification Buyer Power: Low As the first and, therefore ,only product of its kind in the industry it has a monopoly effect. Buyers who are willing, or would prefer, to buy a transport ticket than do exercise would have a higher buyer power. Buyers who would prefer to pay for their ticket via a method other than money, or would like to try something less conventional and more fun, only have our machines as their alternative. Supplier Power: High Being in a monopoly market situation, means that to the suppliers we are a monopsony, giving them a high supplier power. As a not-for- profit business we rely heavily on funding from other companies, organisations and private bodies. Ultimately, anyone who is prepared to fund our business has very high power over our business as without them we would not be able to proceed or continue. Threat of new entrants: Low New entrants are most commonly attracted by the profitability of an industry and consumer demand for the product/service. As a not-for- profit product/service that requires funding without any financial return, it is highly unlikely that new businesses would be interested in entering our industry. New entrants would also need to find a source of funding for the start-up costs and long term running and operating of the machines.
Force High/Low Justification Threat of substitutes: Low Substitutes in the area of public transport tickets would have to offer other payment methods such as singing rather than exercising, or buying something at a shop and receiving a free ticket with the purchase. As the purchasing of transport tickets is a specific market and there is little demand for there to be alternative methods of obtaining the tickets, it is unlikely there will be substitutes. The main threat to our product/service would be in the substitution of funding. If a new businesses overtook our share of funding, it would largely impact our product/service. Rivalry among existing competitors: Low Our product/service is currently the only free method of obtaining a transport ticket, meaning there is no rivalry. Our only competitor is the normal transport ticket machines and cards which use monetary payments.
Overall attractiveness of the industry: As most businesses aim to make a return on investment, they would find it to be an unattractive industry as there is no profit to be made. The most attractive aspect of this industry to businesses is the positive marketing that comes from funding a not-for-profit business.
3.3 Customers and Their Needs
As our product/service is used to provide public transport tickets, our customer base is very broad. The only customer discrimination is against those who may not be able to perform the physical activities required. Our clients may be of any age or socio-economic form as there are different exercise options to suit each customers mobility and there is no price barrier. Being of a health and fitness nature, it is likely that our product/service will appeal more to those who are interested in health and fitness, however, many members of the public who would like to try
something different, dont want to pay for a train ticket, or think it looks like fun, would also find it appealing. Our customers needs are very clear; they want a public transport ticket.
3.4 The Product and Service
Our product fulfills the customers needs by printing a public transport ticket in exchange for exercise, rather them having to pay for it with money. With three options of exercise to choose from, we ensure that all customers will find an action they are comfortable with and able to perform. With the use of motion-detecting technology the ticket machine will know when the required activity has been met and will print the ticket. Keeping a low number of exercises needed and a time limit means that customers wont take too long to complete the task, and the next customer in line can have their turn.
3.5 Suppliers and Partners
Our product/service is designed with the idea that it is partnered with Nintendo and the New Zealand Transport Agency. The partnership with Nintendo would be based on the use of their Wii Fit technology in developing our product. By using their technology to develop a not-for-profit product that is useful to the community and promotes health and fitness, it is anticipated that they would be willing to fund the project, as the positive marketing behind it would benefit them greatly. The New Zealand Transport Agency would have to be a partner with us in order for the machines to be able to print transport tickets and to be placed in the various transport stations. As our product does not require many resources we will not need many suppliers. The start up manufacturing would be outsourced, and the only ongoing supplies would be ink and paper for the tickets, which the New Zealand Transport Agency would already have a supplier for.
3.6 Strategy
Although out business is not-for-profit, the strategy used in its development may still be similar to that of a profitable business. With the use of SWOT as our strategy, we will be able to weigh up our variables, permitting us to generate plans to combat any issues we may for-see. Using SWOT analysis we can identify these characteristics;
Strengths - Our product/service is easy to use - Our product/service is beneficial to the community and is healthy - Our product/service is unique - Our product has a competitive advantage - The use of social media broadens our ability to reach customers - The use of social media makes it a more personal experience - Our product is free for customers to use
Weaknesses - Funding may be hard to find and/or maintain - There is a limited choice of exercises - The New Zealand Travel Agency have a large bearing on how our business will run e.g. location of machines, number of machines, ticket sales
Opportunity - We can add more exercise options if needed - If popularity increases, more companies may want to partner with us and fund us - Companies may want to adapt our machines for uses other than public transport - Social media provides free advertising to a wide, varied audience
Threats - An economic downturn could mean funding is reduced or cut completely - Other businesses may try to copy or adapt our idea as their own business - Other businesses may steal our funding
PEST analysis is also a useful strategy for our business as many of our business factors fall into the categories. Using PEST would give us a more in-depth understanding of these factors and how they can be utilised to our benefit. PEST illustrates the following;
Political - Promoting a healthy lifestyle and fitness is constantly on the political agenda (could lead to government funding) - Supports the use of public transport - Provides an option for those who cannot afford to catch public transport
Economic - Funding relies heavily on the current state and stability of the economy - High start up cost - Low ongoing and maintenance costs
Social - Use of social media makes our business more personable and accessible - Encouraging fitness and health is positive for the community - Media and public view health focused businesses as good
Technological - Being technologically astute allows us to keep up to date with new social media aspects that may improve our business. - Using the technology already crafted by Nintendo will save a lot of development time and enable us to focus on other aspects. - Having a social media customer interface allows for customers to interact and communicate more easily, as well as providing numerous opportunities in the future.
Our business will be running under Cost Leadership (Low cost, broad market) but with low cost being more like no cost.
3.7 Value Chain Activity: Promotion of Fitness and Physical Activity
The most important value chain activity for our business is the promotion of fitness and physical activity. While the basic, face function of our product/service is to provide an alternative to paying for public transport, its main purpose and the origin of the idea was to promote physical activity and to find a method of encouraging people to exercise in a way that is fun, competitive and benefits them in a more materialistic way than just being fit. Promoting participation as a fun, competitive exercise that can be uploaded onto social media means that I wider audience will view our product/service and will be more inclined to take part. Our hope is that these people will then realise how enjoyable and fun exercise can be, encouraging them to become more physically active in their own time and therefore improve their health and productivity. The funding and partnership for our product/service is based on its exercise intention, and the overall purpose for it is to raise awareness for fitness, meaning the value chain activity of promoting fitness and physically activity is the most important. If we can successfully promote fitness and physical activity then we can consider our business to be successful.
3.8 Business Processes
3.8.1. Uploading of photos onto social media The ability for customers to upload images of them using our product/service is a vital business process in the value chain mentioned above as it provides access and advertisement to a wider audience and allows our customers to interact with our product/service on a more personal level. Having this capability in our machine appeals more to the younger generations who use social media as a basic foundation for communication and daily life. Having customers upload their photos will be a fantastic source of advertisement and will encourage more people to take part so that they can upload their photos too. Ultimately, the process of uploading photos to social media will allow us to reach a wider customer base, will allow a more personal level of interaction, and will draw in more customers. This will ensure our business is successful in promoting fitness and physical activity.
Start Photos taken of customer while exercising and using machine Customer selects and edits the photo the want to use Customer decides which social media site they would like the photo uploaded to Photo is uploaded Friends on social media site see the photo(s) Physical activity has been promoted End Friends interested in trying the machine too
3.8.2. Creation and retention of customers Creating customer loyalty is another vital business process to the value chain. For our business to succeed it is extremely important that we are able to build a loyal customer base who will continue to use our product/service and will tell their friends about it too. As we will be operating in a market that sees a majority of the customers being the same people each day, it is crucial that we please the customers so that they continue to use our machine in the future. Without these regular customers we will have very little business if we are relying on one-off travellers. Potential customers who may have been apprehensive may be convinced to try our machine by satisfied customers talking about their positive experience. If we are able to draw in these customers, retain them and increase them, then we our ability to promote fitness and physical activity will increase to an astounding degree.
Start Exercise option is chosen by customer Exercise is performed by customer Customer enjoys using the machine Customer collects free transport ticket Physical activity has been promoted End Customer tells other possible customers of their positive experience Customer would like to use machine again, or exercise at home
3.9 Functionalities
3.9.1. Social Media - To take photos - To upload photos to social media sites
3.9.2. Customer Satisfaction - To print transport tickets - To count the number of exercises
3.10 Systems
3.10.1. Social Media System (SMS) Our Social Media System is the system that enables our customers to choose which social media site they would like to upload to. The SMS will support the use of Facebook, Instagram, Tumblr and Twitter. This will allow customers to upload their images as they wish, on a secure network, and will log them out after to protect their privacy. The SMS will provide our customers with access to their preferred social media site in an easy-to-use manner.
3.10.2. Exercise Recognition System (ERS) ERS is the system that activates and uses the motion detecting technology to count how many exercises have been performed by our customers. By taking count of the exercises it will tell customers when they have completed the task and will then prompt the ticket printer to print the ticket.
3.10.3. Photo Editing System (PES) Our PES is the system our customers use when selecting which photos they would like to upload. They will have the option of editing their photos (cropping, boarders, filters, text). Allowing customers the chance to add a personal touch to their photos will make them feel more valued and will particularly appeal to the younger generation who will feel that the use of our product and exercise can be a part of their online social life.
3.11 Summary Table: Value Chain to Systems
Value Chain Activity Process Functionalities Specific Information Systems Broad Information Systems Promotion of Fitness and Physical Activity Uploading of photos onto social media - To take photos
- To upload photos to social media sites
Social Media System
Photo Editing System Content Management System (CMS)
Customer Relationship Management (CRM) Creation and retention of customers - To print transport tickets
- To count the number of exercises
Exercise Recognition System
Social Media System Supply Chain Management (SCM)
Enterprise Resource Planning (ERP)
Conclusion
In conclusion of this report, we can depict that our business operates in a not-for-profit industry and therefore relies heavily on the funding from willing bodies. Our reliance on these funding partners will be the most subservient at the beginning of the setup when resource costs are at their highest. However, the ongoing costs of our business will be minimal, allowing the main focus to be moved to the satisfaction and retention of customers. This customer base will enable us to use social media as a way of promoting physical activity as fun, accessible and sociable. As social media has a strong marketing ability, it is likely that more businesses would be interested in funding us for the purpose of their own free marketing. The use of our Social Media System and Photo Editing System will ensure customers feel cared for and that our machine has a more personal interaction with there lives. Overall, with the implementation of the business factors discussed in this report, our business should be able to run and operate triumphantly whilst remaining faithful its vision.
References
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Handfield, R. (2011, January 11). What is Supply Chain Management?. Retrieved from the North Carolina State University, Poole College of Management SCRC website: http://scm.ncsu.edu/scm- articles/article/what-is-supply-chain-management
Jurevicius, O. (2013, February 13). PEST & PESTEL Analysis. Strategic Management Insight. Retrieved from http://www.strategicmanagementinsight.com/tools/pest-pestel-analysis.html
Sheehan, R. M. (2005, November 18). What is Nonprofit Strategy. Retrieved from http://www.nationalcne.org/index.cfm?fuseaction=feature.display&feature_id=137
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