Name Timothy Llorando
NetID tllo664
Group Number: 454
Website Link: http://infosys1102014group454.blogspot.co.nz
Tutorial Details
Tutor: Day: Time:
Yvonne Hong Thursday 10am
Time Spent on
27 hours Word Count:
1650 (excluding
coverpage and


Thousands of New-Zealnders are afected by traffic congestion, spending up to 101 hours a year in
peak-hour traffic, adding stress to their everyday lives (TomTom, 2013). Its said that New-Zealand
has one of the worst cases of traffic congestion in the world (Cox, 2013). Carpoolme is an online
network service that aims to help people travel to their destinations faster and easier by connecting
users together to make carpooling groups and therefore helping to lessen the number of vehicles on
NZ roads.
3.1 Vision
A New-Zealand based online carpooling service that aims to reduce New-Zealand traffic congestion
by connecting people together, and create a more convenient and enjoyable way to commute to
their destinations. “Connect, Commute, Carpool.”
3.2 Industry Analysis: Carpooling Services Application Industry
Industry: Carpooling Services Application Industry
Force: High/Low: Justification:
Buyer-power: Low
The carpooling industry, has only recently become
globally interesting. (Dimitrijevic, Dimitrieski, & Nedic,
2013) Consequently there are not much businesses
that offer online carpooling services in New-Zealand.
However, more specifically, there are no current
“Online carpooling application services” available in
NZ, meaning buyer bargaining power is low as there
aren’t any other applications available that buyers can
choose from.


Supplier-power: Low
Its easy to hire someone to create a straightforward
application, and doesn’t have to come from a
company or software developer (Eg. a student in IT or
computer-science would be able to create a decent
application). Therefore supplier bargaining power is
low due to the large number of options a business can
choose in terms of who can develop the application.
Threat of new entrants: High Its relatively easy and cheap to create a simple
application and it is quite possible for someone to
copy the idea of offering a carpooling application
Threat of substitutes: Low
Many carpooling solutions have
been developed previously, but hardly have they been
able to reach a large user base (Dimitrijevic,
Dimitrieski, & Nedic, 2013) Therefore due to the lack
of successful solutions, there is only a handful of ways
of connecting people to form carpooling groups;
this includes websites, or simply through word of
mouth. Because there aren’t much other options of
organising carpool groups, the threat of subsitutes in
this industry is low.
Rivalry among existing
Low There are no other carpool service application
available in NZ for this industry. Although there are
various existing carpool application services available
for other countries, there are none that offers a
reliable service for New-Zealand. Therefore rivalry
amongst existing competitors is low. (Google Play,
Overall attractiveness of the industry: This industry is quite attractive due to its low buyer-power
and low supplier-power allowing new companies to have a large influence over supplier and


customer bargaining. Because there are no other competitors in this industry, rivalry is low, as well
as the threat of substitutes, strenghtening the attractiveness of this industry. However, one aspect
that is not ideal in this industry is the threat of new entrants. Because it is very easy to create a
simple application, new entrants could copy an idea and become a competitor in this industry.
3.3 Customers and Thei r Needs
Although our application is available for anyone with a smart device, the majority of customers who
would be most interested in our application would be those who want to commute to tertiary-
education or to work on a daily-basis, as well as those who don’t have the means of transport to get
to their destined locations. It is stated that 1% of NZ’s GDP is lost due to traffic congestion, thus
businesses would want to reduce traffic congestion in-order to increase productivity (Sankaran, Gore
and Coldwell, 2005).
For customers, the most important need is customer satisfaction. The customers must be able to get
to their destinations efficiently and safely with high quality service. Costs are another need that has
to be considered. Customers don’t want to spend a large amount of money for the application,
therefore low costs is essential to satisfy users.
3.4 The Product and Service
Our product involves an application that helps oraganise commuters into carpooling-groups
according to similar destinations with ease. It aims to lessen traffic congestion in New-Zealand by
creating a large number of carpooling groups, reducing the number of vehicles on busy roads.
With a feedback/reward system as a key performance indicator, the application will provide ratings
and reviews on the competency and behaviours of fellow carpoolers, rewarding those with high
reviews and eliminateing those who have very low ratings. This ensures that our product delivers a
safe service and ensures that the service provided to the customers is high quality.

3.5 Suppliers and Partners
To make the application, we must hire software developers to build on different aspects of the
appplication in-order to prevent one person from potentially taking our idea. Another supplier
would be the platform providers of our application. In-order to offer a service, we must have a
platform provided (such as Android, i-phone).


One partner that would be important would be petrol stations. Their partnership is important for
our business as we will be providing petrol vouchers as rewards to our users and ensures that our
reward-system stays in tact. We must develop a mutually beneficial relationship with a selected
petrol service so that our application gets promoted, as well as their company. Another partner
would be other companies who wish to advertise themselves on our application service. This is
important as advertising is one way we will be gaining funds. We must also develop a mutually
beneficail relationship with company advertisers so that they get publicity, and we earn funds to
keep our service running.
3.6 Strategy: Cost Leadership Strategy
Our strategy would be a cost leadership strategy because our application is accessible to anyone
with a smart device. Therefore accessible to a broad market in terms of our competetive scope.
Because our service will earn funds entirely from advertising, our application will provide a free
service to customers therefore making our application a low cost product.
The overall strategy is therefore Cost Leadership Strategy as this reflects the competetve scope of
our market and the cost of our application .
3.7 Value Chain Activity: Service after Sale
It is important that people continue to use the app in-order to stay in business. We believe that
service after sale is important as we need to ensure that customers stay satisfied and enthusiastic
whilst using our application. Service after sale is focused on customer service and the feedback
received from users. This is very important, as we can use the information from customer feedback
and add value to our product. Furthermore, reward points and rewards are incentives that keep
customers interested in our product.
3.8 Business Processes


CUSTOMER RATINGS COLLECTION PROCESS – The customer rating collection process is important
for our business because customers give feedback on the reliability of the carpool users that use our
service (eg. Customer competence, driver safety feedback). This process allows us to collect
information on the dependability of other users, and then allows other customers see the ratings of
each user in terms of their fitness in a carpooling group.


USER-GROUP TRANSFER MANAGEMENT PROCESS – This is important because it allows users to
request a transfer of carpooling groups when they feel like their group isn’t the best fit. This process
allows us to analyze the request and check if its valid. Furthermore this process is important as it
allows us to get feedback from the transferring user about why they are transferring and gives us
information on the quality of the service the other members of the group are providing.



 Initiate rating and feedback application
 Allocate reward points to matching user account
 Process and analyze group change details
 Initiate user feedback form about reason of transfer
3.10 Systems

CUSTOMER FEEDBACK PROCESSING SYSTEM – This system will process feedback sent in by users
about other users. Customer service will use this system to analyze the ratings and reviews the user
has given the other members and this information will help in the allocation of reward-points.
FEEDBACK MANAGEMENT SYSTEM – This system will manage and organize the feedback provided
by users about the fellow members of the group. Customer service team will use this system to
compile information and send notifications to the group-members affected about the transfer.
GROUP INFORMATION PROCESSING SYSTEM – This system will acknowledge the availability of the
other carpool groups the user requests to transfer into (this is important to prevent group-
overcrowding). Customer service team will use this system to recommend available groups to the


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

after Sale
1. Customer
1. Initiate rating and feedback application.

2. Allocate reward points to matching user
Feedback Management

Customer Feedback
Processing System
Collaboration System

Customer Relationship
2. User-Group
1. Process and analyze group change details.

2. Initiate user feedback form about reason of
Group Information
Processing System

Feedback Management

Decision Support System

Collaboration System


I believe that Carpoolme’s services wouldn’t be alive without the support of IT/IS. Information-
Systems play a fundemental role in making sure every business process is functioning correctly and
enhances the business overall through the specific functionalities that add value to the
product/service we provide. IT/IS is important in making sure efficiency is high and unnecesssary
processes are low, further assisting the business in all aspects, such-as creating competetive
advantages with competitors, generating growth in-terms of funds and customers, and most
importantly, expanding customer satisfaction through our feedback and reward-point systems.

1) Cox, W. (2013). New Zealand has worst traffic: International Data. Retrieved from

2) Dimitrijevic, D., Dimitrieski, V. & Nedic, N. (2013). Real-Time Carpooling and Ride-Sharing: Position
Paper on Design Concepts, Distribution and Cloud Computing Strategies. In M. Ganzha, L.
A. Maciaszek & M. Paprzycki (eds.), FedCSIS (p./pp. 781-786).

3) Google Play. (2014). App search. Retrieved from

4) Sankaran, JK., Gore, A., Coldwell, B. (2005). The impact of road traffic congestion on supply chains:
Insights from Auckland, New Zealand. International Journal of Logistics Research and
Applications, 8(2), 159-180. doi: 10.1080/13675560500166780
5) Tomtom. (2013). New Zealand Cities Among Top 20 Most Congested Cities In The World. Australia
& New Zealand Congestion Index, 7-10. Retrieved from