Assignment - 02

BUS321: Principle of Entrepreneurship

Section 01

Submitted By

Resalat Bin Khair (20104033)

Email: resalat.bin.khair@g.bracu.ac.bd

Submitted to

Ahmed Abir Choudhury

Lecturer, BRAC Business School

BRAC University

Date of Submission: 17th July, 2022

Summary of the Proposed Business Idea:

The startup business that I have proposed will be named as “Breezy Bike” which is basically an electric
bike renting service in Bangladesh. I want this service to be executed specially in Dhaka city where it will
help the consumers most. The main motive of this start up business is to lend users an electric bike for a
variable period of time so they can use it independently to travel to any local locations for however long
they choose.

There will be very simple method of using this service like the user firstly needs to find his nearby
“Breezy Bike” renting station where there will be sufficient amount of bike to serve them. The user will
need to download the mobile application to scan the QR code attaching to every bike and by that way the
will be able to his preferable bike to rent. Initially the user need to pay certain amount of money to rent
the service and they will pay the rest of the fare based on his usage like how much distance he covered
and time he has taken. Users will be able to pay this fare through cash or online payment methods and
the fare will be visible on the mobile app for their convenient. This business has huge opportunity to grab
the user attention, especially place like Dhaka where traffic jam causes huge problem for the locals. This
app will save the time of people who are in rush to reach their destination in time. Moreover, this will be
reasonable for the students as well as there will be availability of using the app for everyone. There was
an opportunity gap like people didn’t have the freedom to have their own bike while using ride sharing
service. But Breezy Bike will open the window for them as it gives the privilege to use the bike in our
own will and it will be much flexible for all class of people.
Feasibility of the business: Product Desirability and Product Demand are the 2 key components
of feasibility. These two determines whether the product or service is feasible or not.

Desirability of Breezy Bike:

Concept testing-

The city people of Bangladesh are absolutely unfamiliar with our bike rental service. This is a lot more
adaptable and practical mode of transportation for a lone traveler who wants to get where he's going on
time. Compared to the ride-sharing services offered in Bangladesh, this saves both time and money. It
will also be value for money to people as they will have the freedom of their own while using this service.

We will primarily target our customers between the ages of 16 and older, as well as middle-aged and
older folks. This could apply to students, workers, businesspeople, office employees etc. The majority of
these consumers typically require transportation everyday of their life.

Additionally, this is an electric bike that a consumer can rent from the bike station of Breezy Bike for as
many hours they like and whenever they wants as our service will be available for 24 hours a day. We
will accept Tk 250 from the clients as a fixed deposit into their account, and they can then rent the bike
starting at Tk 10 whenever the get access to each bike, which would eventually climb by Tk 2 each
minute. This is similar to the price of Yulu Bike in India. (Thakkar)

So, we can say this startup will be profitable for us as we can easily attract local people to use our service
and it won’t be hard for them to adapt to this as it has that much of flexibility. Also, it is time saving for
these people and a very good transportation option for customers of Bangladesh. Thus, people of this city
will surely desire to have our service.

Demand of Breezy Bike:

We can conduct a survey utilizing several questionnaires to determine whether the clients have the
capacity to utilize our electric bike renting service. Below is an example survey questionnaire:

1. Residential Area of living?

a) Inside Dhaka b) Outside Dhaka
2. Age group?
(a) 15-18 years (b) 19-25 years (c) 25+ years
3. Which transport you use frequently to reach you destination? (Checkbox)
 (a) Bus (b) Rickshaw (c) Car (d) CNG (e) Bike
4. Can you ride bicycle?
(a) Yes (b) No
5. Do you agree with having the flexibility of your own bike?
1 2 3 4 5 6 7
Agree Disagree
6. How much you are willing to pay to reach your destination on you own bike?
(a) 50-150 taka (b) 150-250 taka (c) 250+ taka
7. ? While using this bike renting service,
Agree Neutral Disagree
(a) You will pay as much as you drive. O O O
(b) Take helmet and other safety provided by us. O O O
(c) Use online payment service. O O O
8. What is your thought about the transportation system of Bangladesh especially about Dhaka city?

The demand for our product will be determined by the responses to this survey form.

Feasibility of the external/internal environment:

The Seven Domains of attractive opportunities

Macro level Market: In this developing globe, our electric bike rental service Breezy Bike is hardly a
completely new business concept. Many industrialized and developing nations already have this kind of
business concept. The Bangladeshi market, where traffic congestion is a huge concern for every age of
people, can use the same concept. Therefore, it will save both time and money overall. This is a far more
adaptable kind of transportation for everyone as it has the advantage of consumers flexibility.

Micro level Market: We have divided the market at the micro level into segments for young clients,
those attending college or a university, people who are employed, etc. They are the clients who utilize
various ride-sharing services on a daily basis, and the majority of them are dissatisfied owing to high
prices or poor service. Therefore, Breezy Bike could be a great solution for them.

Industry Attractiveness: we will discuss the Porters’s Five Competitive Force Model to
determine this industry attractiveness.

Threats of new entrants: Since this concept is absolutely new to our nation and is a very
original company concept, there is less likelihood of new entrants in the market in the short term
if we follow the business plan we established.
Threats of Substitute: In our country there are various ride sharing services like Obhai, Shohoz, Pathao
etc. But I don’t think there will be any substitute product or service available in the country as our service
will provide the advantage and freedom of having someone’s own bike.

Rivalry among existing firms: As our business idea is completely new to the environment of
Bangladesh, there shouldn’t be any rival or competitor available right now.

 Power of buyers: Here the buyer or consumer will not get the scope of any sorts of bargaining as the
fare and costs will be fixed with their usage. Moreover, this has the convenient for the customers as the
fares a worth of their rides.

Power of Suppliers: We can enter into a deal with an e-bike manufacturer to receive a big number of
bikes, and we can also maintain them using the labor force we already have in place.

Sustainable Advantage: In near future, new rivals will imitate our business strategy and will try to
participate in the competition. This potential to adapt our business model is currently available to many
ride-sharing organizations across the world. If we decide at that point that our company can no longer
compete with upcoming competitors, we can sell it to one of those enormous corporations so that our
endeavor can continue to expand in the future. So, this is a great opportunity to watch out for our start up.

Team Domains: This is a brand-new business concept from a Bangladeshi standpoint; hence it carries a
significant amount of risk. The users of this transportation service might not get used to it. In that
scenario, the company would suffer a loss. Therefore, there is unquestionably a great risk involved. On
the other hand, this plan can be put into action. We can already observe that this kind of e-bike service
exists in our neighboring country, India. All we need to do is create a solid app, learn how to maintain it,
and make some investments. Maintaining the value chain is also necessary to keep the firm running
properly.

Competitive Advantage:

VRIO framework of analysis-

Feature/Resource Is it Is it Is it Is organization Impact

valuable? rare? difficult to organized
imitate? around?
Vulnerability check yes yes yes no Unused
Competitive
advantage
Potentiality in yes yes no - Temporary
customer satisfaction competitive
advantage
Value for money yes yes yes yes Sustainable
Competitive
advantage
Part 2: Industry Related Issues

Low Potential (-1) Moderate Potential High Potential (+1)

(0)
Number of competitors Very few

Stage of Industry Cycle Growth phase

Growth Rate of Industry (not

yet applicable as the startup is
N/A N/A N/A
not yet brought to operation
Importance of industry’s
products and services to
Would like to have
customers
Industry Operating Margins
(not yet known as this company
N/A N/A N/A
is still not operating)

Part 1: Strength of Business Idea

Low Potential (-1) Moderate Potential High Potential (+1)
(0)
Extent to which the idea: Strong
● Takes advantage of
an environmental
trend
● Solves a problem
Addresses an unfilled gap in the
marketplace

Timeliness of entry to market Moderately timely

Extent to which the idea adds Very high

value for its buyers

Extent to which customer is Moderately satisfied

satisfied by competing products
that are already available
Part 3: Target Market and Customer Related issues

Low Potential (-1) Moderate Potential (0) High Potential (+1)

Identification of target market for

the proposed new venture
Identified

Ability to create barriers to entry

for potential competitors
May or may not be able
to create.
Purchasing power of customers
(not known yet as product is still
Low
not launched)

Overall potential

Overall potential of the Suggestions for improving the

business idea based on each
part
Part 1: Strength of Business Idea High Potential
Part 2: Industry Related Issues Low Potential
Part 3: Target Market and Customer Related
issues
Moderate Potential
potential
Can have more customer
satisfaction by make the service
available to everyone.
As this is in its growth stage, it
should maintain consistency by
providing service effectively.