King Fahd University of Petroleum and Minerals

Department of Management and Marketing

BUS 200
Term 222

Team Entrepreneurship Project

Section: 16
Team Number: 1

Name: ID:
Ayman Alharbi 202014100
Omar Alzahrani 202014620
Ali Alafif 202064260
Abdulrahim Albedaiwi 201915690

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TABLE OF CONTENTS
Executive Summary ......................................................................................................................................... 3
Industry Analysis ............................................................................................................................................... 4
Business Problems and Validation ................................................................................................................. 5
Business Ideas and Value Proposition Validation ........................................................................................ 6
Value Proposition Canvas .............................................................................................................................. 7
Minimum Viable Product (MVP) and Validation ......................................................................................... 8
Business Model Canvas................................................................................................................................... 9
Conclusion ...................................................................................................................................................... 10
References ...................................................................................................................................................... 11

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1- Executive Summary

The strengths, weaknesses, opportunities, and threats (SWOT) that the transportation sector in
Saudi Arabia faces have an impact on the economy. This research will undertake a thorough analysis
of the transportation sector, considering all relevant PESTEL (Political, Economic, Social and
Cultural, Technological, Environmental and Legal) issues. Additionally, we will list the key players
in the sector and highlight the four issues that our survey results revealed.

The proposed service seeks to ease customers' search for the best and most affordable shipping
and travel options while also addressing their pain points, such as the challenge of comparing costs
and features across various websites and uncertainty regarding the dependability and caliber of
various options.
These
We will also give an outline of the minimal viable product and validation process, which will
direct the product's development and testing, to assure the success of this new service. With the
suggested travel and shipping service, this paper seeks to offer a thorough analysis of Saudi Arabia's
transportation sector as well as a workable solution to the issues raised.

To get buy-in and support from industry stakeholders, we will emphasize the value proposition of
the suggested service and its potential client benefits.

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2- Industry Analysis

Introduction

The transportation industry in Saudi Arabia is an Important component in our daily life. Saudi
Arabia's transportation sector has experienced tremendous expansion in recent years because of the
country's high population growth, expanding economic operations, and rising demand for
transportation services. As we know in Saudi Arabia's transportation industry, services like Uber and
Careem are growing in popularity. These services are spreading across the nation and are having an
influence on the traditional taxi industry

Analysis

SWOT
Strengths
• Growing potential for hybrid and electric
vehicles, driven by government incentives and
initiatives to promote sustainable transportation
• Significant investment in the existing rail
network, with plans for further expansion
• High level of quality in the public transportation
network in major cities, such as Riyadh and
Jeddah
Weaknesses
• High expectations about the level of transport
connectivity, which can lead to frustration and
dissatisfaction among users when expectations are
not met
• Low occupancy rates of cars, which can lead to
traffic congestion and environmental concerns

Opportunities
• Political initiatives addressing climate change
and growing ecological consciousness that may
open doors for the creation of environmentally
friendly transportation options
• Multimodal transportation has been made
possible by the digital revolution, giving users of
public transit more convenient and effective travel
options.
Threats
• Rising fuel costs, which may have an influence on
the profitability of transportation businesses and
increase consumer expenditures.
• An increase in mobility needs brought on by
immigration may strain the transportation system
and result in congestion and longer travel times.

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Stakeholders:

• Supplier: a business that offers products or services to the transportation sector, such as fuel
distributors, automakers, and providers of accessories.

• Employees and employers: Stakeholders in the transportation industry's labor force, such as drivers,
technicians, mechanics, and managers.

• Government: The KSA government is a major player in overseeing and assisting the transportation
sector. This covers laws and rules governing finance, the construction of infrastructure, and standards
for safety, the environment, and licensing.

• Service provider: a business that provides customers with transportation services, such as airlines,
shipping firms, taxicab businesses, and bus companies.

• Customer: Any individual, company, or organization that needs transportation services. Also known
as the end-users of the transportation industry.

• Investors: People or organizations that contribute money to the transportation sector, including
businessmen, private equity firms, and angel investors.

• Citizen: People who are impacted by the transportation sector in many ways, such as through noise
pollution, traffic congestion, and environmental effects.

• Competitors: Stakeholders that face off against other businesses in the transportation sector for
market share, such as domestic and foreign airlines, shipping firms, and ground transportation
providers.

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 PESTEL
Political
Government transportation policies and rules, including those that support using public transit,
encourage spending on infrastructure, and create global transportation networks.

Economic
The transportation industry's financial performance is influenced by several variables, such as fuel
prices, inflation, economic growth, and taxation. so, attracting more investors could boost economic
growth and revitalize this industry.

Social-cultural
For all community classes, there should be more transportation options. For example, those who are
incapable to use airlines will have access to railroads as a substitute.

Technological
possessing cutting-edge technology to run its operations quickly. Work diligently to automate the
services as well to help deliver higher-quality services.

Environmental
The impact of transportation on the environment, such as the pollutants and carbon emissions
produced by commercial cars, as well as the acceptance of alternative fuels and environmentally
friendly transportation by the government and the public.

Legal.
Airlines should exercise caution when it comes to certain employee conditions and flight schedules.
It can assist them in providing a secure and friendly service.

In terms of disasters and accidents, airlines are typically held accountable. They might become mired
in the legal process. Both their reputation and their business may suffer as a result.

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3 & 4- Business Problems and Validation

We discussed four problems, and they were from the transportation industry. In addition, the
problems are validated by obtaining surveys to make sure that they are real problems in the
transportation industry. Then, we conclude with one problem statement. The number of people who
participated in this survey was 100.
The choices below for the problems:
1: Strongly disagree
2: Disagree
3: Neutral
4: Agree
5: Strongly agree

- Finding the cheapest and best way to transport oneself to a destination can be difficult.

Figure 1 shows the result of the validation of problem #1.

- Finding a gas station, whether in the city or on a highway, can be a problem for some
people.

Figure 2 shows the result of the validation of problem #2.

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 - Some people face a high cost of shipment delivery.

Figure 3 shows the result of the validation of problem #3.

- Finding parking in public places can be a problem for some people.

Figure 4 shows the result of the validation of problem #4.

Problem statement:

We conclude with the problem statement which is a significant number of people face a
problem in finding the best and cheapest way to arrive at a destination or deliver their shipments
purchase effectively.

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5 & 6- Business Ideas and Value Proposition Validation
We discussed three business ideas for the problem statement above which is a significant
number of people face a problem in finding the best and cheapest way to arrive at a destination or
deliver their shipments purchase effectively. In addition, the solutions are validated by obtaining
surveys to make sure that they are real business ideas in the transportation industry. Then, we
conclude with a value proposition statement. The number of people who participated in this survey
was 75.

The choices below for the solutions:

1: Strongly disagree
2: Disagree
3: Neutral
4: Agree
5: Strongly agree

- The first business idea is to develop a website that brings together various travel and shipping
options from different sources, offering users a complete overview of available choices. The
website could also offer tailored suggestions based on individual customer preferences and past
usage, in addition to providing up-to-date information on the status of travel itineraries and
shipments. To generate revenue, the website could establish affiliate marketing partnerships
with travel and shipping providers, earning a commission on any bookings made through the
platform.

Figure 5 shows the validation of the first business idea.

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- The Second business idea is to create an app that links users with similar travel or shipping
requirements and who are heading to the same location. The app would enable users to input
their travel or shipping information, including destination, travel or shipping dates, and the
dimensions and weight of their items. Afterward, the app would search for other users with
comparable travel or shipping needs and connect them with each other.

Figure 6 shows the validation of the second business idea.

- The third business idea is to create an app that integrates both ride-sharing and delivery services
on a single platform. This app would enable users to request rides and schedule deliveries,
saving them time and effort. Depending on their transportation or delivery requirements, users
would have the option to select from a range of vehicles.

Figure 7 shows the validation of the third business idea.

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Value proposition statement:

This problem could be solved with a simple solution which is to Create an app or website that
combines multiple transportation and delivery companies’ databases to find the most efficient and cost-
effective options for users to travel or deliver their shipments. This will provide users with a one-stop-
shop platform to search, compare and book the best deals, ultimately saving them time, effort, and
money. The validation was obtained by the first solution (figure 5).

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7- Value Proposition Canvas

Customer jobs:

Nowadays, many people book their tickets online which requires searching to get the best and the
cheapest for their choices. In addition, that will take time to get the best and cheapest tickets. Most people
get their shipments through shipping companies which requires comparing the prices and the most
effective ones.

Customer gains:

Customers would like to have the ability to save both time and money by having special travel and
shipping options from a single source, without that process that requires searching for their requirements
on multiple websites. Additionally, the website provides recommendations based on customer
preferences, which allows customers to save time. Furthermore, customers would like to have a website
that will be used easily for the booking and payment process for selected options, reducing the risk of
errors. Customers would like to see updates of their shipments, allowing them to plan their schedules
and ensure timely delivery.

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Customer pains:

Customers have a lot of pains that are related to this problem. Firstly, time-consuming to the search
process associated with identifying the best option for their budget and their needs. Secondly, customers
should know many companies to compare the prices and features which is a challenging process that
leads to uncertainty.

Pain relievers:

The website minimize the time and effort needed to locate the required travel and shipping options.
Moreover, the website offers a comprehensive and straightforward overview of available choices, from
different companies helping customers compare prices and features across various websites. Customers
can have the ability to use the filtration method regarding the quality and reliability of various travel and
shipping options, which reduces uncertainty. Finally, the website simplifies the booking and payment
process for travel and shipping.

Gain creators:

The benefits provided by a website that identifies the cheapest and the best option for the customer
will save time and money. In addition, the customer will have a filtration button that will allow him to
choose his requirements. Moreover, customers will have an easy process for booking and payment.
Leading to an easy way to travel or for shipping.

Products & services:

The website is designed to be easy to use and gather travel and shipping options from multiple

sources that will allow the customers to choose the best and the cheapest choice. The website also

provides recommendations, which is leading to saving time and money. Furthermore, the booking and

payment process for selected options is easy, reducing the time used for that. Lastly, customer service

and support are available to deal with any concerns or issues that may happen during the travel or

shipping process.

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8 & 9 - Minimum Viable Product (MVP) and Validation
1- Logging in information page

This page shows the logo of our brand which combine the three main transportation systems
Bus, Plain and train in smart way. Also, this page asks the user to enter his personal account in order
to access the application services and preview previous orders linked to the account. In the case the
user do not have an account there is also “Register” button to create one.

2- Welcoming page

The homepage of this application is designed to serve as a welcoming gateway for users, offering
two primary options for navigating the site. The first button, labeled "Main," directs users to the
delivery and shipment services offered by the platform. This function allows users to quickly and
easily access the various delivery options available to them. The second button, labeled "Account,"
provides users with the ability to preview their personal information, including their email address,
phone number, and physical address. Additionally, users can access their previous orders through this
feature.

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 3- Transportation type page

The transportation selection page of this application presents two prominent options for the user
to choose from: "Destination" and "Shipment." The first button directs users to a variety of pick-up and
ride services, including trains, car rides, airlines, and buses. This feature allows for a quick and easy
selection of transportation options that best suit the user's needs. On the other hand, the "Shipment"
button leads users to both local and international shipment services, providing a comprehensive range
of options for the user's shipping needs.

4- Destination type page

The destination selection page of this application is designed to provide users with a range of
options for selecting their preferred mode of transportation. The page features four prominent
buttons that users can choose from, including airlines, trains, rides, and buses. Each button directs
the user to a separate page where they can input the necessary details to complete their order, such
as departure and arrival locations, dates, and preferred class of service.

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 5- Shipment type page

The shipment selection page of this application is designed to allow users to choose between local
and international shipping options. The page features two prominent buttons that direct the user to
separate pages, where they can input the necessary details to complete their shipment order. This
includes information such as the shipping address, pick-up and drop-off points, and any additional
instructions or requirements.

6- Shipment details page

The shipment details page of this application is designed to allow users to input the specifics of
their shipment, such as the origin and destination cities. Once this information has been entered, the
application generates a list of available shipping services for the user to choose from. Each service is
accompanied by relevant information such as price, delivery time, and any additional features
offered.

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 7- Destination type for buses

This page appears after the user selects their preferred mode of transportation from the four
available options. For instance, if the user selects buses, this page will prompt them to provide
additional information regarding their trip, such as whether it is an inside or outside city ride. The
page is designed to capture the necessary details required to complete the user's order, such as the
departure and arrival locations, dates, and any other specific requirements.

8- Travel details page

The airlines selection page of this application is designed to allow users to input their travel
details, such as the date of travel and destination. Upon selecting the airlines option, the user is
presented with two choices: "Direct" and "Non-Direct" flights. Each button directs the user to a
separate page featuring a list of available flights that match their selected criteria.
Example:

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 Validation:

After we made the MVP, we created another survey for validation purposes. The survey consist of
the general idea of our website, our logo and the following question supported by special cell to enter
any notes or suggestions.

As illustrated in the figure, 100% of the responses (15 response) were agreeing to support our
website as a beneficial service with 64.3% of them strongly agreeing, which indicate how demanded is
our idea.

In addition, we found out that many of the responders are sharing mainly three recommendations to
improve our services, which are:

- Developing the website in a way that it can indicate the time when there are road congestion
and the times were the prices are lowered to improve the customer experience.
- Focusing on one service in the website and develop each of the other services for multiple
website (multi-branding) in order to have deep improvement or each service.
- Adding the ability to compare between the most wanted offers in order to ease the way for the
customer to choose the best offer that suit his need.

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10 - Business Model Canvas

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 Business Model Canvas: Cheapest Transportation and Shipment Services App

1. Value Propositions

Our app offers customers the ability to find the cheapest transportation options, such as
cars, trains, buses, and planes, by comparing prices and routes from multiple providers. We
also provide competitive shipment services to cater to various needs. With a seamless, user-
friendly experience, our app tailors personalized recommendations based on the preferences
of each user, ensuring a truly customized experience.

2. Customer Segments

Our target customer segments include budget-conscious travelers, commuters seeking

affordable transportation options, and small businesses or individuals looking for cost-
effective shipment services. We also cater to travel agencies and partners who aim to provide
their customers with affordable transportation options.

3. Distribution Channels

Both an Android and iOS mobile app and a responsive website that works on a variety of
devices are available for accessing our services. To reach our audience, we make use of social
media, internet advertising, and cooperative relationships with tour operators and
transportation companies. Furthermore, we encourage word of mouth and referral programs to
foster growth.

4. Customer Relationships

Our self-service platform enables users to easily find and book transportation options,
while in-app customer support and an FAQ section cater to any inquiries. Email and chat
support are also available to assist customers. To enhance user experience, we offer account
management with saved preferences, booking history, and periodic promotions, discounts,
and loyalty programs.

5. Key Activities

Our primary activities include developing and maintaining the mobile app and website,
partnering with transportation and shipment service providers, and aggregating data for
accurate price comparisons and recommendations. We also focus on marketing and
promotional activities to attract new users and continuously improve the user experience and
features.

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6. Key Resources

Our key resources consist of a skilled development team for the mobile app and website,
data sources for transportation and shipment pricing, partnerships with transportation and
shipment providers, and dedicated marketing and customer support teams. Our intellectual
property, including algorithms and branding, is also a valuable asset.

7. Key Partners

Our key partners include transportation providers such as car rental companies, train
operators, bus companies, and airlines, as well as shipment service providers like couriers and
postal services. We also collaborate with travel agencies, booking platforms, online payment
service providers, and marketing and advertising partners.

8. Cost Structure

Our cost structure comprises app and website development and maintenance costs,
marketing and advertising expenses, salaries for development, marketing, and customer
support teams, and partnership fees and commissions to transportation and shipment
providers. Additional costs include hosting and data storage, as well as legal and regulatory
compliance expenses.

9. Revenue Streams

Our revenue streams include commission fees from transportation bookings and shipment
services, either fixed or percentage-based, along with featured listings and advertising
revenue from transportation and shipment providers. We also offer subscription fees for
premium features like an ad-free experience and personalized recommendations. Affiliate
revenue from partner services, such as travel insurance and accommodation bookings, further
contributes to our earnings.

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11 - Conclusion

The report outlines business ideas for selected problems in a specific industry which is
the transportation industry with their validations. Then we decide on a business idea for the
problem that we discussed above which is to create a website that combines multiple
transportation and delivery company databases to provide users with the most efficient and
cost-effective options for travel or shipment delivery. The report includes a business canvas,
value proposition canvas, MVP, and industry analysis to support the viability of the
proposed business, with their validations

The business canvas highlights the key components of the business, including the
customer segments, value proposition, revenue streams, and key activities. The value
proposition canvas outlines how the business will create value for its customers by
addressing their needs and pain points.

The industry analysis evaluates the market size, competition, and potential growth
opportunities for the proposed business. The analysis suggests that the transportation and
delivery industry is ripe for disruption, and the proposed business has the potential to gain a
significant market share. Overall, the report provides a comprehensive analysis of the
proposed business idea and its potential for success.

As for our team reflection and lessons learned, we found that the process of creating a
business canvas, value proposition canvas, MVP, and industry analysis was a valuable
exercise in assessing the feasibility of a business idea. In addition, we have learned more
about validations for the problems and their solutions. We learned that it is important to
thoroughly research the market and competition, as well as to identify and address customer
pain points in the value proposition. Additionally, we found that collaboration and
communication were crucial in creating a cohesive and comprehensive report

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12 - References

Amin, S. H., Yan, N., & Morris, D. (2018). Analysis of Transportation Modes Evaluating
SWOT Factors and Pairwise Comparisons: A Case Study. In InTech eBooks. InTech.
https://doi.orq/10.5772/intechopen.72882

Strategic Management Department. (n.d.). Swift Transportation Company

PESTEL Analysis & Environment Analysis. Fern Fort University.
http://fernfortuniversity.com/term-papers/pestel/nyse4/3181-swift-transportation-
company.ph

Parodos, L., Tsolakis, O., Tsoukos, G., Xenou, E., & Aifadopoulou, G. (2022).
Business Model Analysis of Smart City Logistics Solutions Using the Business Model
Canvas: The Case of an On-Demand Warehousing E-Marketplace. Future
Transportation, 2(2), 467-481.
https://doi.org/10.3390/futuretransp2020026

Team, S. (2020, December 21). MVP for Passenger Transportation - Top

Digital Agency. Top Digital Agency.
https://topdigital.agency/case-study|mvp-forpassenger-transportation

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