Our group hasn’t had the chance to spend much time together will week. It has been busy due to assignment hand in’s and some personal unavoidable issues by myself and others.
This week I looked at the business plan and tried to fill in some of section 12 about managing market risks and 13. about pricing.
I tried writing down some bullet points about market risks and how we can help combat them. For example one risk could be that competitor enters the area in the future, this means we need to quickly develop brand loyalty – based on marketing and user experience. We would also need to ensure that our prices are lower or service is better than the competitor, if they entered the market.
Another market risk could be the cost of materials rising (e.g. steel, aluminium), raising the cost of our bikes. We would need to ensure that we have regular reviews of costs, to make sure that this is reflected in our rental pricing. We will need to regular review alternative suppliers to leverage the best deal, or make an agreement with an existing supplier that prices will be fixed for a period of time.
Regarding the pricing – we have informally already compared with competitors to construct a price table, so this time I compared our price table with national competitors, as we haven’t located local competitors renting standard bikes. Using the information now gathered we can fill in section 13., giving the price range of a competitors against ours, for equal or equivalent service. We will however have to identify a genuine reason for these lower costs, this could be due to lower costs outside of a city, or through the use of additional revenue schemes.
Over the weekend I reviewed our presentation just to remind myself where were are currently at with the project. I also looked at the technology plan, to watch out for any mistakes as some ideas have developed since original drawings.
As you can see, there has not been a high work rate this week. I believe that we are at the level of other groups, however we need to put in a lot of hours over the next week, otherwise we are bound to fall behind and lose marks.
Own: 4 hours. Group: 2 hours