Barcelona, May 23 - 2014

Final Master Project

OnlyOne







Program: Mster of International Business
Course: Final Master Project
Members: Robert Albornoz, Tapan Chaudhary, Wan Ching Li, Anglica Moreno
Teacher: John Wetherell
Assignment: Final Project Proposal





INDEX

Introduction of the machine ONLY ONE ............................................................................ 1
Mission and Vision Statement ........................................................................................... 5
Customer Value .................................................................................................................. 5
Sustainable competitive advantage ................................................................................... 5
The reason for investment ................................................................................................. 6
PESTEL analysis .................................................................................................................. 8
Competitive environment and competitive sector (Porters 5 Forces) ............................. 9
Estimation of the size for the machine-OnlyOne ............................................................ 13
Estimation the number of competitors from initial research on those competitors ...... 15
A Competitors Analysis. Brand Positioning & Market Mapping ..................................... 15




















1

Introduction of the machine ONLY ONE
Self-service device-ONLYONE

Recent years, the tourism industry is booming and for conforming the tendency, we want
to create one easy machine that offers the service for tourism to operate and easy to get
useful information when they arrive in Spain
The machine has touch screen with simple icons so the customer could operate it easily.
And also with a display to insert credit cards, debit cards to make payments, it includes a
placement to insert the paper and coin box to make the payment. Each feature will have
design icons to demonstrate various choices to let customers understand and operate it
easily.
Regarding to activity ticket features, the chart will have offer the expositions of the best-
sellers activities such us museums, opera, flamingo, etc., because its the best way for
tourist recommendation.
This service will be accompanied by an app for mobile phones for IOS and Android
system; it will be more practical and convenient for users with smartphone.
We designed interface of screen with different languages: English, French, Italian,
Chinese, Japanese and Korean in order to a lot of tourists come from foreign countries
Machine Model:



2

Main Features

The chart describes the draft design of screen of the machine initially:


Tickets:
For the transportation aspect, the company will negotiate with Catalua
government to do agreement that selling subway and train ticket. Although
the metro station is nearby around, but it is also offer another way for
customer and the tickets also can be used for bus, FGC, TRAM and
Rodalies. It will be easier to get tickets for tourists.
On the other hand, the train ticket can be bought in this machine, it will
save tourists time to wait a line for buying train tickets in the train station
and customers dont need to go to train stations in particular to buy their
advance tickets for avoid missing the assigned train intraday. By this way,
those customers who live far away from train stations could buy their train
tickets easily and get them immediately.


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For the activity aspect, the following partnerships will be the initial
cooperation partners for the business, so will exist a negotiation with them
to do agreement that allow to take tickets directly by this service.
Museums:
The selected museums may be few of the potential partners and the key to
promote tourism. Also, it will offer discounts or coupons for encouraging
consumers to use this service. Some of them are:

Archaeology Museum of Barcelona (MAC)
Museu d'Art Contemporani de Barcelona (MACBA)
Museu del Modernisme Catal (MMCAT)
CaixaForum Barcelona
Casa sia
Centre d'Art Santa Mnica (CASM)
Centre de Cultura Contempornia de Barcelona (CCCB)
Cosmocaixa Barcelona (former Museu de la Cincia de Barcelona)
Espai Gaud (La Pedrera)
FC Barcelona Museum
Fundaci Antoni Tpies
Fundaci Joan Mir
Fundaci Suol
Gracia Arts Project
Institut Botnic de Barcelona
La Capella
Museu Barbier-Mueller d'Art Precolomb
Museu Can Framis, Modern Art
Jard Botnic de Barcelona
Museu Egipci de Barcelona
Museu de l'Ertica de Barcelona
Museu Etnolgic de Barcelona
Museu Europeu d'Art Modern
Museu Gaud
Museu d'Histria de Catalunya
Barcelona City History Museum (MUHBA)
Barcelona City History Museum - MUHBA Park Gell
National Art Museum of Catalonia (MNAC)
Museu Picasso


4

Olympic and Sports Museum Joan Antoni Samaranch
Palau Robert
Sala Ciutat
Sagrada Familia


Opera:
Negotiations with theater to promote cultural activities which are famous
in Barcelona or want to attract more attention of the public or promote
their work.
Flamengo:
Negotiation with dance clubs or dance schools if they want to promote
their shows.
Football:
It will offer customers to check the date of the match, the vacancies and
the price of the tickets.
Amusement Park (Port Aventura):
Offering tourists one choice of activity and also offer discount with buying
train tickets.

Payment:
Negotiation with three main telecommunication company (Orange,
Vodafone, Yoigo) in Barcelona to do agreement that offering tourists to top
up sim card. On the other hand, as it mentioned in first feature of tickets,
all tickets could be paid by cash, credit card and debit card when buy them
via this machine.

Printer:
Negotiation with four budget airline companies (Vueling, Easyjet, Rynair,
Iberia) to offer tourists to print their boarding passes (QR CODE), even
though those companies has own app that providing customers could on-
line check in and get boarding pass by smartphone, but this service
certainly could benefit the people who dont have smartphones and print
it.




5

Mission and Vision Statement

Mission Statement
Being a company that offers an indispensable travel tool for tourists who visit
Barcelona, putting the OnlyOne machines in main touristic spots around the
city

Vision Statement
Redefining the whole tourism experience, by simplifying the life of travelers

Customer Value

Integrate main telecommunication companies in Barcelona to provide customer
an easier approach to the market. When tourists come to Barcelona, they have
three or more telecommunication companies to choose in preferential thinking if
they know the machine has the top-up service, it will be convenient for customer
because they dont need to look for shops specifically and it could resolve their
inconvenience right away.
Coordinate with main budget airlines companies in Europe to provide customers a
saving-time process (on-line check-in). This service will be a big benefit for
customer because they do not need to upload each budget airline app., not to
mention people without smartphone. Travelers buy different tickets, so they can
save time to operate their boarding pass by OnlyOne machine and print it.
Offering a variety of choices for customer to discover cultural activities in
Barcelona. The customer value is apparent because this service exactly offer many
choices for customers to create more and more tourist business and also help
those organizations to promote their activity.
The most important customer value is high prospective for customer because they
believe in this machine and expect it to create more and more opportunities and
use them to get sufficient and useful information.

Sustainable competitive advantage

OnlyOne will be the pioneer doing this kind of business in Spain, having strengths
to convince the partners to invest in us. If in the future appears some direct
competition, it will exist the commitment of the partnerships because for has


6

been the first in the market. Certainly it is a successful access to the market and
changing environment gradually.
Partnerships who join the company will help to expand the business and create
more and more opportunities in the future, as different features or expand the
functions of the machine.
Innovation: Improving technology and creating more functions accordance with
changing tendency. Exactly, there is no doubt that society is changing fast, so the
machine must be easy to operate for public and the company would invest time
and effort to investigate technological advances to add more functions according
to the tendency.
A lot of opportunities to expand this service in more cities of Spain and in the
future to going abroad to the most touristic cities of the world.
Been the first in the market with this kind of business model, It will provide the
power of negotiation with different city capitals in Europe, to go abroad on new
markets and make more sustainable the business on the time.
Strengthens relationship with clients will provide better understanding of needs
and problems of the customers and also will Increases the loyalty.
Access to new partnerships will provide more diversification on the business
model.

The reason for investment

The following diagram which it is created to explain why someone is interested
and want to invest in the OnlyOne business. Also, can figure out that those four
reasons are linked closely, if company invests this business, they can get more
profits according to service machine popularized in Barcelona and to the other
sides, in terms of longer view, and company could understand deeply the current
market and evaluate the potential market to come up with new ideas and
profitable business.

The profit could be evaluated due to by this service, it is create a new market
channels for tourists and if the service works well, it is assumed that this self-
service device will be tendency because technology will substitute labor; the self-
service machine can increase the amount of tickets without doubt.

Also it will be an advertisement way for company to exposure their brand in the
market, not only maintain the local market but also could make tourists to know
Spanish brands even introduce upcoming tourist to use them.


7


















8

PESTEL analysis

PESTEL ANALYSIS
Political Economic
Political factors are important, as
the government intervenes such as
tax law, trade restrictions and tariffs
and political stability could affect the
business model.
Sometimes the type of government
also which is present in the host
country could improve the
opportunity of expiation.
Local authorities (Catalua
Government) are providing support
to new technologies that are
supporting tourism in the city as
they see Barcelona as a tourist
HotSpot.
Economic factors such as Interest
rates, Inflation rates and exchange
rates and fiscal policy set around us.
In the local market it will be the taxes
ratios.
Exchange rates can affect the price of
the machine in importing from other
country to Spain.
Climate of the economy can also play
vital role within the society such as
consumers because of the economic
crisis.
Socio-cultural Technological
Social forces affect costumers
attitudes, opinions and interest.
Media play a vital role in that point
especially because their comments
with colleagues and friends lead
them how to behave and ultimately
do the purchase.
Population changes can also have
impact on the businesses.
As our product is concerned about
people, socio cultural will not impact
as much as could be, but we cannot
ignore it.
The New Technology in the Machine
should update according to the
technological needs as our machine is
totally dependent on the Internet.
Faster exchange of Information can
benefit business as they are able to
react quickly according to the
operating environment.
Been in a globalization society, the
odds of be copy the idea, is higher.
Higher number of IT companies been
starting operations around the world
could be future competitors.



9

Competitive environment and competitive sector (Porters 5 Forces)



Competitive Rivalry
Number of competitors
o There is no direct competitor with the same practical presentation.
o The indirect competitors are:
Web pages of tourism that offer tickets for the attractions
and discounts. For example:
http://bcnshop.barcelonaturisme.com/ and
http://www.barcelona-tourist-guide.com/sp/
TicketMasters sales tickets for the most popular attractions
in their points of sales and by webpage -
http://www.ticketmaster.es/nav/es/mucho_mas/barcelona
/la_pedrera_08az/la_pedrera_de_dia/index.html
Directly web pages of the attractions -
http://www.lapedrera.com/es/home
Direct local sales in the attractions, tickets of metro, tickets
of train and web pages of our partners.


10

Quality of differences
o With this new machine all customers can acquire all their tourism
attractions, get metro and train tickets and print boarding passes of
flight only in one place that would be located in specific points of
the city.
Switching cost
o The switching cost between buy the tickets in different sites (web
pages or in the touristic places) and use the other applications
directly from the attractions or by web pages, and so on.
o All of them have the same cost as our product, is only matter of
customers convenience.
Customer loyalty
o The choice of the client to choose the practicality of affords their
ticket attractions in one place.
Cost of leaving market
o Initial investment
o Less practicality for the users

Threats of New Entry
Time and cost of entry
o High initial investment for importing the machines and assembling
with local server company to set the features according to the
Spanish needs.
o Difficulties with the partnership of the companies that manage the
services offer in the machine.
o Acceptance of the partners for the incurred cost to put their
services in the machine.
o Spanish of Catalua government supports the tourism and services
that facilitates the tourism, but if the company cannot get the
proper permissions it will be consume more time.
o Cost of installation and maintenance, hired a telecom company to
manage the system daily.
o Acceptance of the user for this new system.
Specialist knowledge
o Features of each services offer according to the needs of the
market.
o No patents for this new system


11

o Accustom users to the system
o Partners agree with the configurations of their services in the
machine.
Cost advantages
o Just the initial investment is high
o Agree with the telecom company for a fixed cost of maintained.
Technology protection
o Found a telecom company that provides the services of the
machine
o Partners must approve the design
Barriers to entry
o Government from Barcelona supports new companies directed to
tourism, mostly if it simplifies it.
o Approval from partner (idea and costs)
o Technology adaptations

Supplier Power
Number of suppliers
o Machine would be imported from Asian cities that have the custom
of demand vending machines off all types, so there is a lot of offer
of its.
Uniqueness of service
o High tech machine with touch screen and print application.
o Features according the user needs
o One machine for many services and many applications
Your ability to substitute
o The company, have many different suppliers that can offer the
machine abroad, that will help us to avoid the power of the supplier
over us.
Cost of changing
o New investment of all the project as a new one
o New cost of maintenance to the telecom company
o New cost invested in configurations of the features offer

Threats of Substitution
Substitute of performance


12

o Web pages of tourism that offer tickets for the attractions and
discounts
o Directly web pages of the attractions
o Direct local sales in the attractions, tickets of metro and train, web
pages of our partners
Cost of change
o No extra cost of change, it is just a matter of time and convenience
of the customers

Buyer Power
Number of customers
o It is expected to capture more than 40% percentage of the tourists
that come to the Barcelona. In 2012 the annual number of tourism
was 7.44 million of people and in accordance of the government is
expected that for the current years this number increase slightly.
Size of each order
o In Spain the European tourists are the 90% of the total of visitors
(Between 2012 - 2013)
o The precedence of the tourism in Barcelona is: 20% of Spanish
visitors, from other European countries are 53% and 25% of other
part of the world. (Source 2013: IDESCAT Hotel Occupation)
Price sensibility
o The final price of the different ticket that it will be offered on the
machine, will not have differences with the real prices, because our
feed it will be charge to the partnerships that we will have.
o Discounts offered for directly sales
Ability to Substitute
o Always adapted to accept new users, even if they do not use this
service frequently
Cost of changing
o No extra cost of change, it is just a matter of time and convenience
of the customers







13

Estimation of the size for the machine-OnlyOne

Taking the premise that the company will established an initial agreement with the local
council (Catalua City Hall), the market it is expressed in the amount of tourist that can
use this machine and will have the opportunity to enjoy the facilities of it. Having said
this, our estimated size of the total market for the product it takes it from the annual
report of Department of Tourism office of Catalua as below.
Characteristics of the Market
Characteristics of the demand
Number of tourists and overnights in
hotels


1990 2000 2010 2012 2013
Tourists


1.732.902 3.141.162 7.133.524 7.440.113 7.571.766



Font / Fuente / Source: Gremi dHotels de Barcelona per a/para/for Turisme de
Barcelona.
Cegos (2010-2013) tractament de les dades / tratamiento de los datos / data
processing
Tourists by country of origin


2011 2012 2013 2013
Estat espanyol / Spain

23,6 21,8 20 1.517.378
Catalunya / Catalonia

5,8 5,7 5,6 422.116
Madrid

5,6 4,7 4,4 336.073
Andalusia / Andalucia

2,2 1,9 1,7 130.727
Pas Valenci / Valencia

2 1,7 1,6 123.626
Altres / Others

8 7,8 6,7 504.836
Europa* / Europe*

51,2 51,5 53,1 4.014.199
Frana / France

8 7,7 8,4 636.903
Regne Unit / United Kingdom

7,2 8 8,3 629.969
Alemanya / Germany

5,4 5,6 6 453.102
Itlia / Italy

7,6 6,6 5,9 447.721
Altres Europa / Other Europe

23 23,6 24,5 1.846.504
Altres pasos / Other countries

25,2 26,7 26,9 2.040.189
Estats Units / USA

8,2 8,5 8,3 627.412
Resta dAmrica / Rest of America

7,7 7,4 6,6 501.721
Jap / Japan

2,1 2,2 2,2 170.092
Resta del mn / Rest of the World

7,2 8,6 9,8 740.964
Total 7.571.766


14

Characteristics of the final customer


Knowing the characteristics of the market and the profile of the final customers, it can be
inferred that to find the overall market potential (that is the potential market volume), it
needs to multiply the number of target customers by the penetration rate, it will be at
least at 40% in our case.

Market volume = Number of target customers Penetration rate
Market volume = 7.571.766 * 40%
Market volume = 3.028.706,4 customers





15

Estimation the number of competitors from initial research on
those competitors

Since an internal point of view as a company (with the project):

At the beginning the company will not have direct competitors, because it is the first one
in the market with specific technology applied to this market, Tourism in Spain. OnlyOne
is dealing as a company, with the potential rejection of the project by the local council,
who are partners and who will provide a range of facilities to carry out the project.

In this case that of dealing with a rejection of the local council, it would be necessary to
appeal private investor and private partnership such as hotel, parks, entertainment
places, and so on.

Since an internal point of view as a service (the machine):

The competitors are already have been existing machines that can provide the same
service to the final customer, but the issue is that, these competitors are in separate
machines or places. As well, the ticket offices of each service are the indirect competitors
that will be provided. Having said that, it can be identified the indirect competitors as:
o Subway dispenser machine
o Box office ticket sales (In each tourist attraction, it count as one)
o Tourism offices (22 points of information)
o Travel companies (Around the world)
o Bus tourist attractions

A Competitors Analysis. Brand Positioning & Market Mapping

Step one- Select two determinant attributes that consumer relies on their purchase
decision. In other words, determinant attributes are quite important to them and
consumers use them to help differentiate competitive offerings.
-. Easy to access Vs. Difficult to access
-. High variety of options Vs. Low variety of options






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Step two- List the main competitors in the product category
-. Subway dispenser machine
-. Tourism offices
-. Travel companies

Step three Create scores for these brands

Access Variety
1 = is difficult to access and 5 = is
easy to access
1 = low variety of options and 5 = high
variety of options
Subway dispenser machine 5

1
Tourism offices 3

5
Travel companies 2

4
OnlyOne Machine 5

5








The graphic show how the OnlyOne machine has an important market, not even explorer
yet. As its explained on the previous points, exits different services to access, to the
different features that the machine will offer. But, its visible on the graphic that the
OnlyOne machine its the only one who offer the better qualities between access and
variety on the market.


-6
-4
-2
0
2
4
6
-6 -4 -2 0 2 4 6 A
C
C
E
S
S

VARIETY
Access Vs. Variety


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REFERENCES

Web references
o http://www.bcn.cat/estadistica/castella/
o http://www.barcelonaturisme.com/
o http://wikipedia.com
o http://barcelonaactiva.cat
o http://tw.kiosk101.com/Company/navigation_eng.aspx
o http://pubsonline.informs.org/doi/abs/10.1287/mksc.5.4.275 (The Choice Theory
Approach to Market Research)


Book references
o Porter, M.E. (1980) Competitive Strategy, Free Press, New York.
o Joseph A. Covello, Brian J. Hazelgren. (1995) The Complete Book of Business Plans,
Sourcebooks, USA.