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Barcelona, May 23 - 2014

Final Master ProjectOnlyOne

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

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IN EX

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

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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 fortourist 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:

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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 - MUHBAPark Gell

National Art Museum of Catalonia (MNAC)

Museu Picasso

http://en.wikipedia.org/wiki/Archaeology_Museum_of_Barcelonahttp://en.wikipedia.org/wiki/Barcelona_Museum_of_Contemporary_Arthttp://www.mmcat.cat/http://en.wikipedia.org/wiki/CaixaForum_Barcelonahttp://en.wikipedia.org/w/index.php?title=Casa_%C3%80sia&action=edit&redlink=1http://en.wikipedia.org/wiki/Centre_d%27Art_Santa_M%C3%B2nicahttp://en.wikipedia.org/wiki/Centre_de_Cultura_Contempor%C3%A0nia_de_Barcelonahttp://en.wikipedia.org/wiki/Cosmocaixa_Barcelonahttp://en.wikipedia.org/w/index.php?title=Espai_Gaud%C3%AD_(La_Pedrera)&action=edit&redlink=1http://en.wikipedia.org/wiki/FC_Barcelona_Museumhttp://en.wikipedia.org/wiki/Fundaci%C3%B3_Antoni_T%C3%A0pieshttp://en.wikipedia.org/wiki/Fundaci%C3%B3_Joan_Mir%C3%B3http://www.fundaciosunol.org/http://en.wikipedia.org/wiki/Gracia_Arts_Projecthttp://en.wikipedia.org/wiki/Institut_Bot%C3%A0nic_de_Barcelonahttp://en.wikipedia.org/w/index.php?title=La_Capella&action=edit&redlink=1http://en.wikipedia.org/wiki/Museu_Barbier-Mueller_d%27Art_Precolomb%C3%ADhttp://www.fundaciovilacasas.com/en/museums-and-art-galleries/can-framis-museum-barcelona/_m:3/http://en.wikipedia.org/wiki/Jard%C3%AD_Bot%C3%A0nic_de_Barcelonahttp://en.wikipedia.org/w/index.php?title=Museu_Egipci_de_Barcelona&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Museu_de_l%27Er%C3%B2tica_de_Barcelona&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Museu_Etnol%C3%B2gic_de_Barcelona&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Museu_Europeu_d%27Art_Modern&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Museu_Gaud%C3%AD&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Museu_d%27Hist%C3%B2ria_de_Catalunya&action=edit&redlink=1http://en.wikipedia.org/wiki/Barcelona_City_History_Museumhttp://en.wikipedia.org/wiki/Barcelona_City_History_Museumhttp://en.wikipedia.org/wiki/Park_G%C3%BCellhttp://en.wikipedia.org/wiki/Museu_Nacional_d%27Art_de_Catalunyahttp://en.wikipedia.org/wiki/Museu_Picassohttp://en.wikipedia.org/wiki/Museu_Picassohttp://en.wikipedia.org/wiki/Museu_Nacional_d%27Art_de_Catalunyahttp://en.wikipedia.org/wiki/Park_G%C3%BCellhttp://en.wikipedia.org/wiki/Barcelona_City_History_Museumhttp://en.wikipedia.org/wiki/Barcelona_City_History_Museumhttp://en.wikipedia.org/w/index.php?title=Museu_d%27Hist%C3%B2ria_de_Catalunya&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Museu_Gaud%C3%AD&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Museu_Europeu_d%27Art_Modern&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Museu_Etnol%C3%B2gic_de_Barcelona&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Museu_de_l%27Er%C3%B2tica_de_Barcelona&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Museu_Egipci_de_Barcelona&action=edit&redlink=1http://en.wikipedia.org/wiki/Jard%C3%AD_Bot%C3%A0nic_de_Barcelonahttp://www.fundaciovilacasas.com/en/museums-and-art-galleries/can-framis-museum-barcelona/_m:3/http://en.wikipedia.org/wiki/Museu_Barbier-Mueller_d%27Art_Precolomb%C3%ADhttp://en.wikipedia.org/w/index.php?title=La_Capella&action=edit&redlink=1http://en.wikipedia.org/wiki/Institut_Bot%C3%A0nic_de_Barcelonahttp://en.wikipedia.org/wiki/Gracia_Arts_Projecthttp://www.fundaciosunol.org/http://en.wikipedia.org/wiki/Fundaci%C3%B3_Joan_Mir%C3%B3http://en.wikipedia.org/wiki/Fundaci%C3%B3_Antoni_T%C3%A0pieshttp://en.wikipedia.org/wiki/FC_Barcelona_Museumhttp://en.wikipedia.org/w/index.php?title=Espai_Gaud%C3%AD_(La_Pedrera)&action=edit&redlink=1http://en.wikipedia.org/wiki/Cosmocaixa_Barcelonahttp://en.wikipedia.org/wiki/Centre_de_Cultura_Contempor%C3%A0nia_de_Barcelonahttp://en.wikipedia.org/wiki/Centre_d%27Art_Santa_M%C3%B2nicahttp://en.wikipedia.org/w/index.php?title=Casa_%C3%80sia&action=edit&redlink=1http://en.wikipedia.org/wiki/CaixaForum_Barcelonahttp://www.mmcat.cat/http://en.wikipedia.org/wiki/Barcelona_Museum_of_Contemporary_Arthttp://en.wikipedia.org/wiki/Archaeology_Museum_of_Barcelona

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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), eventhough 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.

http://en.wikipedia.org/wiki/Olympic_and_Sports_Museum_Joan_Antoni_Samaranchhttp://en.wikipedia.org/wiki/Palau_Roberthttp://en.wikipedia.org/w/index.php?title=Sala_Ciutat&action=edit&redlink=1http://en.wikipedia.org/wiki/Sagrada_Familiahttp://en.wikipedia.org/wiki/Sagrada_Familiahttp://en.wikipedia.org/w/index.php?title=Sala_Ciutat&action=edit&redlink=1http://en.wikipedia.org/wiki/Palau_Roberthttp://en.wikipedia.org/wiki/Olympic_and_Sports_Museum_Joan_Antoni_Samaranch

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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 thecity

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 OnlyOnemachine 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

OnlyOnewill 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

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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 newmarkets 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 interestedand want to invest in the OnlyOnebusiness. 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.

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PESTEL analysis

PESTEL ANALYSIS

Political Economic

Political factors are important, asthe government intervenes such astax law, trade restrictions and tariffsand political stability could affect thebusiness model.

Sometimes the type of governmentalso which is present in the host

country could improve theopportunity of expiation.

Local authorities (CataluaGovernment) are providing supportto new technologies that aresupporting tourism in the city asthey see Barcelona as a touristHotSpot.

Economic factors such as Interestrates, Inflation rates and exchangerates and fiscal policy set around us.In the local market it will be the taxesratios.

Exchange rates can affect the price ofthe machine in importing from other

country to Spain. Climate of the economy can also play

vital role within the society such asconsumers because of the economiccrisis.

Socio-cultural Technological

Social forces affect costumersattitudes, opinions and interest.Media play a vital role in that pointespecially because their commentswith colleagues and friends leadthem how to behave and ultimatelydo the purchase.

Population changes can also have

impact on the businesses. As our product is concerned about

people, socio cultural will not impactas much as could be, but we cannotignore it.

The New Technology in the Machineshould update according to thetechnological needs as our machine istotally dependent on the Internet.

Faster exchange of Information canbenefit business as they are able toreact quickly according to theoperating environment.

Been in a globalization society, theodds of be copy the idea, is higher.Higher number of IT companies beenstarting operations around the worldcould be future competitors.

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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.

http://bcnshop.barcelonaturisme.com/http://bcnshop.barcelonaturisme.com/http://www.barcelona-tourist-guide.com/sp/http://www.barcelona-tourist-guide.com/sp/http://www.ticketmaster.es/nav/es/mucho_mas/barcelona/la_pedrera_08az/la_pedrera_de_dia/index.htmlhttp://www.ticketmaster.es/nav/es/mucho_mas/barcelona/la_pedrera_08az/la_pedrera_de_dia/index.htmlhttp://www.ticketmaster.es/nav/es/mucho_mas/barcelona/la_pedrera_08az/la_pedrera_de_dia/index.htmlhttp://www.lapedrera.com/es/homehttp://www.lapedrera.com/es/homehttp://www.lapedrera.com/es/homehttp://www.ticketmaster.es/nav/es/mucho_mas/barcelona/la_pedrera_08az/la_pedrera_de_dia/index.htmlhttp://www.ticketmaster.es/nav/es/mucho_mas/barcelona/la_pedrera_08az/la_pedrera_de_dia/index.htmlhttp://www.barcelona-tourist-guide.com/sp/http://bcnshop.barcelonaturisme.com/

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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 theSpanish 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

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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: IDESCATHotel 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

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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 saidthis, 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 / dataprocessing

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 5,6 422.116Madrid 5,6 4,7 4,4 336.073Andalusia / Andalucia 2,2 1,9 1,7 130.727Pas Valenci / Valencia 2 1,7 1,6 123.626Altres / Others 8 7,8 6,7 504.836Europa* / Europe* 51,2 51,5 53,1 4.014.199

Frana / France 8 7,7 8,4 636.903Regne Unit / United Kingdom 7,2 8 8,3 629.969Alemanya / Germany 5,4 5,6 6 453.102Itlia / Italy 7,6 6,6 5,9 447.721

Altres Europa / Other Europe 23 23,6 24,5 1.846.504Altres pasos / Other countries 25,2 26,7 26,9 2.040.189Estats Units / USA 8,2 8,5 8,3 627.412Resta dAmrica / Rest of America 7,7 7,4 6,6 501.721Jap / Japan 2,1 2,2 2,2 170.092Resta del mn / Rest of the World 7,2 8,6 9,8 740.964

Total 7.571.766

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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

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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.

-. Easyto access Vs. Difficult to access

-. Highvariety 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 threeCreate scores for these brands

Access Variety

1 = is difficult to access and 5 = iseasyto access

1 = lowvariety of options and 5 = highvariety of options

Subway dispenser machine 5 1Tourism offices 3 5Travel companies 2 4OnlyOneMachine 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 theOnlyOne machine its the only one who offer the better quali ties between access and

variety on the market.

-6

-4

-2

0

2

4

6

-6 -4 -2 0 2 4 6ACCESS

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.

http://www.bcn.cat/estadistica/castella/http://www.barcelonaturisme.com/http://wikipedia.com/http://barcelonaactiva.cat/http://pubsonline.informs.org/doi/abs/10.1287/mksc.5.4.275http://pubsonline.informs.org/doi/abs/10.1287/mksc.5.4.275http://barcelonaactiva.cat/http://wikipedia.com/http://www.barcelonaturisme.com/http://www.bcn.cat/estadistica/castella/