Developing a startup for school bus service in ho chi minh city from 2023 to 2030

VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY NGUYEN DUNG UYEN THI DEVELOPING A STARTUP FOR SCHOOL BUS SERVICE IN HO CHI MINH CITY FROM 2023 TO 2030 Major: Business Administration Major code: 8340101 MASTER'S THESIS HO CHI MINH CITY, July 2022 THIS RESEARCH IS COMPLETED AT UNIVERSITY OF TECHNOLOGY – VNU – HCM CITY Instructor: Lê Th Thanh Xuân, D.B.A Examiner 1: Dr Phan Tri u Anh Examiner 2: Thanh L u Master's thesis is defended at HCM city University of Technology, VNUHCM City on 22/07/2022 The board of the Master's Thesis Defense Council includes: Chairman: Dr Nguy n V Quang Member: Lê Th Thanh Xuân, D.B.A Secretary: Dr Nguy n Th c Nguyên Reviewer 1: Dr Phan Tri u Anh Reviewer 2: Dr Thanh L u Verification of the Chairman of the Master's Thesis Defense Council and the Dean of School of Industrial Management after the thesis being corrected (If any) CHAIRMAN OF THE COUNCIL DEAN OF INDUSTRIAL MANAGEMENT VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom - Happiness THE TASK SHEET OF MASTER'S THESIS Full name: Nguy n D ng Uyên Thi Student code: 2070609 Date of birth: 22/01/1997 Place of birth: TPHCM Major: Business Administration Major code: 8340101 I THESIS TOPIC: Developing a startup for school bus service in Ho Chi Minh City from 2023 to 2030 tr II TÀI LU N V N: Phát tri n k ho ch kh i nghi p cho d ch v xe buýt ng h c t i Thành ph H Chí Minh t 2023 đ n 2030 TASKS AND CONTENTS: Identifying the business opportunities Identifying business model Analyzing the economy, industry, market Developing business plan Sustainability analysis III TASKS STARTING DATE: 1/3/2022 IV TASKS ENDING DATE: 30/6/2022 V INSTRUCTOR: Lê Th Thanh Xuân, D.B.A HCM City, 20/6/2022 INSTRUCTOR (Full name and signature) HEAD OF DEPARTMENT (Full name and signature) DEAN OF INDUSTRIAL MANAGEMENT (Full name and signature) i ACKNOWLEDGEMENT I would like to express my deep appreciation to my instructor, Dr Le Thi Thanh Xuan The completion of my Master's thesis would not have been possible without the generous support and constructive feedback of Dr Xuan I would also like to extend my thank to Ms Lien, all the friends and student's parents who spent your valuable time to take the survey and participate in my interview sessions Special thanks should be given to my leader and colleagues who provided great support so that I had time to complete my thesis Finally, I wish to thank my parents and friends for their support and encouragement throughout my study ii ABSTRACT Student transportation is one of the issues that received great concern of the society in the recent years since the number of students grows up every year, the traffic jam and student's accidents also happen more often These problems lead to the need for a high quality and modern school bus service in the market To develop a business plan, the related models and frameworks are researched: PESTEL, Porter's five forces, and Business model canvas The related studies and research are also reviewed to have better idea on developing school bus service in customer and technical aspects The business's environment, industry and market are analyzed through data from organizations and government, surveys, and interview sessions After researching and analyzing the environment, the author presents a new kind of school bus service in Ho Chi Minh City which applies modern technology to resolve problems of current service in the market The business operations plan is described in detail which provides the resource planning and operational planning for this new service from 2023 to 2030 Limitations and future works are also pointed out for later development iii TÓM T T LU N V N a đón h c sinh m t nh ng v n đ nh n đ nh ng n m g n s l c s quan tâm c a xã h i ng h c sinh t ng lên hàng n m, tình tr ng k t xe tai n n v i h c sinh c ng x y th ng xuyên h n Nh ng v n đ d n đ n nhu c u v d ch v xe đ a đón h c sinh hi n đ i ch t l ng cao th tr ng tri n m t k ho ch kinh doanh, mơ hình khung lý thuy t liên quan đ c u: PESTEL, mơ hình n m l c l ng l u ý v vi c phát tri n d ch v xe buýt tr k thu t Môi tr c nghiên ng c nh tranh c a Porter Business model canvas Các báo nghiên c u liên quan c ng đ t phát ng, ngành th tr c tham kh o đ tìm ý ng h c khía c nh khách hàng ng c a doanh nghi p đ c phân tích thơng qua d li u t t ch c ph , cu c kh o sát bu i ph ng v n Sau nghiên c u phân tích mơi tr ng, tác gi trình bày m t lo i hình d ch v xe đ a đón h c sinh m i t i Thành ph H Chí Minh, áp d ng cơng ngh hi n đ i đ gi i quy t v n đ c a d ch v hi n th tr doanh đ ng K ho ch ho t đ ng kinh c mô t chi ti t, cung c p k ho ch ngu n l c l p k ho ch ho t đ ng cho d ch v m i t n m 2023 đ n n m 2030 Các h n ch c a lu n v n đ h ng phát tri n t ng lai c ng đ phát tri n c a mơ hình kinh doanh c đ xu t nh m đ nh h c ch ng cho s iv DECLARATION I declare that this thesis has been composed solely by myself and that it has not been submitted, in whole or in part, in any previous application for a degree Except where states otherwise by reference or acknowledgement, the work presented is entirely my own Author Nguy n D ng Uyên Thi v TABLE OF CONTENT CHAPTER INTRODUCTION 1.1 Background 1.2 Business opportunity 1.3 Objective of the thesis 1.4 Introduction of methodology 1.5 Key contents of the thesis CHAPTER 2.1 LITERATURE REVIEW 11 Frameworks/models to analyze economic, industry, and market environment 11 2.1.1 PESTEL analysis (Matovic, 2020) 11 2.1.2 Porter's five forces (Porter, 1980) 12 2.2 Methods/tools to collect data to measure market potential 14 2.3 Methods for feasibility business analysis 15 2.4 Related studies and research 17 2.4.1 The study of L u a Phú (2013) 17 2.4.2 The research of Blakrishnan, Dharshini, Harini, and Kamali (2019) 18 2.4.3 The research of Abhimanyu, Akshay, Pankaj, Sachin and Prof.Swati (2017) 18 2.4.4 Summary of research review 18 CHAPTER 3.1 BUSINESS ENVIRONMENT, INDUSTRY AND MARKET ANALYSIS 20 Business Environment Analysis 20 3.1.1 Political forces 20 3.1.2 Economic forces 21 3.1.3 Social forces 23 3.1.4 Technological forces 24 3.1.5 Environmental forces 26 3.1.6 Legal forces 27 3.1.7 Summary of PESTEL analysis 28 3.2 Industry Analysis 29 3.2.1 Competition in the industry 30 3.2.2 Potential of new entrants into the industry 31 3.2.3 Power of suppliers 32 3.2.4 Power of customers 33 3.2.5 Threat of substitutes 34 vi 3.2.6 3.3 Summary of Five Forces effects 35 Market analysis 35 3.3.1 Market size 35 3.3.2 Customer characteristics 36 3.3.3 Expected price 38 3.3.4 Summary of market analysis 39 CHAPTER BUSINESS MODEL INTRODUCTION 40 4.1 Industry overview 40 4.2 Introduction of the service 42 4.3 Business Canvas Model 44 4.4 Ethical and legal considerations 46 CHAPTER BUSINESS PLAN 49 5.1 Competitive advantage 49 5.2 Business resource planning 49 5.2.1 Physical resources 50 5.2.2 Human resources 51 5.2.3 Intellectual resources 55 5.3 Operational planning 56 5.3.1 Daily operation 56 5.3.2 School bus service operation 57 CHAPTER CONCLUSIONS, LIMITATIONS AND FUTURE WORK 62 6.1 Conclusions 62 6.2 Limitations 62 6.3 Future work 63 REFERENCES 64 APPENDIX 67 vii TABLE OF TABLES Table 1.1 Advantages and disadvantages of different means of student's transportation Table 1.2 Objectives of thesis Table 3.1 PESTEL summary 28 Table 3.2 Summary of service providers 31 Table 3.3 Five Forces effects 35 Table 3.4 Market's characteristics 39 Table 4.1 Current systems' features and enhancement of new system 41 Table 4.2 Gaps in the market and solutions of new school bus service 43 Table 5.1 Number of vehicles to serve students 50 60 application The whole process is followed up by the helpdesk team to assure the students' safety After the driver returns to the office to park the vehicles at the end of the day, the Coordination team check all of the student's status, camera, and data to make sure all students are returned home safely After researching the user journey and workflow of the service, the application is designed to satisfy the customer's needs The application should provide the main screen which helps parents easily to check the status and journey of the students There can also be the dashboard to review the time students going to school and returning home from school, so that parents can have an overview of the service's timing For better visualization, the map should be displayed for parents to follow their children's location and traffic at the moment in order to understand the situation during the journey The application's screens are presented in Figure 5.8 below Figure 5.8 Home screen and map view On the notification page, parents can review the notifications along with the status and image of student's check-in and check-out To review the every-day process and 61 time, parents can go to the History page for supplement information The prototype is firstly presented to describe the application visually The application's screens are presented in Figure 5.9 below reflecting the view of the parents about the notifications and history data Figure 5.9 Notification screen and History screen 62 CHAPTER CONCLUSIONS, LIMITATIONS AND FUTURE WORK 6.1 Conclusions Given the huge number of students in Ho Chi Minh City, the alarming number of accidences for students and the bad traffic jams occurring every day in front of schools make transferring to school an important activity needed the attention of the society The concentration of the society in this social issue brings about opportunities and concerns for the student transportation service industry About opportunities, in order to reduce the traffic jams and improve the air quality, the government suggested transferring students to school using school bus This way declines the number of parent's personal vehicles assemble too many in front of schools A certain percentage of student number going to school by bus is set for each period of time, the number is 15% in 2020, 20.5% in 2025, 29.3% in 2030 The government also provides regulations that support the student transportation's service in financial and process aspects The large number of students is another strength of this market which will bring about large number of customers to the service providers Regarding to concerns for this industry, the quality of service and the student's safety is the most vital aspect the service provider should carefully consider To ensure the quality, the vehicles are often checked before going to pick students up and maintenance after a period of time The process to manage students are also automated to prevent human's mistake and assure the student's safety 6.2 Limitations Due to the limit of researching time, this thesis contains limitations which should be recognized, considered, and improved in the future Firstly, this business plan only provides one part of the full business plan, which states limitedly the operation plan, therefore, does not supply with all the necessary information of a startup business plan 63 Secondly, the data collected should be for the latest year which is 2022 However, the thesis is conducted in the first half of the year, therefore, the information collected is the data of the previous years - 2021 or 2020 Another limitation about the data is that several research of the General Statistics of Vietnam may be held once for each three or five years Hence, the latest data from this office may be several years ago and things have changed for now Thirdly, this thesis is conducted during the Covid-19 pandemic, which caused the instability in the whole industry and society For this reason, the status and scenarios of this service in recent years is abnormal After the world overcome this global pandemic, all forces in the environment will be changed and the plan may not be suitable for the future state 6.3 Future work As pointed out in the Limitations section, there are several items should be research further and continuously improved in the future Firstly, the full business plan including strategic plan, financial plan, and marketing plan should be conducted to provide the complete plan for the startup Through providing the plan as a whole, the startup founders and the fund raiser can review and evaluate all aspect of the startup business to support it launch in the market Secondly, the data should be continuously collected, and the current situation should be quickly recognized and analyzed so that the business can catch up with the changes in the external environment The after-pandemic state of all the forces in the global environment should be researched and the plan should be updated relevantly 64 REFERENCES Abhimanyu J., Akshay K., Pankaj S., Sachin A & Prof.Swati S (2017) Smart bus system implementation of smart ticketing and bus tracking system International Education & Research Journal,, E-ISSN No 2454-9916 3(1) Abraham, A., Mathew, J., & Thomas, S (2022) 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2022, from https://tuoitre.vn/dung-de-moi-ngay-den-truong-la-mot-ngay-lo20211104225944908.htm Xuân, K (2020, 28) m b o đ a đón h c sinh h c an toàn Nhân Dân Retrieved March 15, 2022, from https://nhandan.vn/cung-suy-ngam/bao-dam-dua-don-hoc-sinh-di-hoc-an-toan614650/ Yamane, T (1967) Statistics, An Introductory Analysis, 2nd Ed New York: Harper and Row 67 APPENDIX A Purpose of questions in questionnaire Questions 1, are to understand the current situation actual need for a solution in the market To be successful with innovation, there must be a clear problem that has to be solved – otherwise, there would be no apparent market need The critical element to determine is whether purchasers are actively seeking a solution to their problem and are willing to make a purchase as a result (Karen Mundy, S Gary Bullen, Kent Wolfe, n.d) Question is to find out about the competitors in the market This question is critical because it allows for competitive study by those with firsthand knowledge While a firm grasp on the largest competitors may already exist, this may reveal new and eyeopening insights — such as where the innovation has the most (and least) competitors geographically, which specific competitors were mentioned the most, which unique aspects of the solution differentiate it from the competition, and whether smaller, upand-coming competitors across the globe exist When this list of competitors is compared to qualitative insights gleaned from user comments, a new, more accurate picture of the global competitive environment emerges (Weil, n.d) Question is to ask about the acceptance of customers toward the existence of the new service, Following the determination of market need, it is critical to ascertain the solution's market relevance This inquiry elucidates the innovation's relevance to the issue at hand as well as its general market viability Additionally, respondents will be able to determine whether the innovation is more or less relevant than other existing solutions on the market, showing the competitive landscape's strength and the innovation's position in comparison The findings will indicate whether or not the innovation is unique, and if so, what makes it such Determine whether the invention possesses qualities or advantages not supplied by existing solutions, hence improving its chances of success (Weil, n.d) 68 Question is to define the range of price for the service Pricing the solution correctly can have a significant impact on its market success This question enables the inventor to solicit dozens of pricing proposals from industry experts via a concrete, numerical range, resulting in an average recommended price from which the entrepreneur may assess if revisions are necessary Additionally, respondents can specify precisely what they expect for a certain price, such as a lifetime warranty, monthly support, or free updates (Weil, n.d) B Questionnaire's questions and answers Questions 69 70 Responses Gia đình anh/ch dùng ph ng ti n đ cho h c m i ngày? áp án Xe máy Xe ôm Xe h i Xe đ p Xe đ a r S l ng 135 5 10 Anh/Ch c m th y d ch v đ a r c Xe buýt ib T ng 170 c h c sinh có c n thi t khơng? áp án Có Khơng T ng S l ng 104 66 170 N u câu tr l i cho câu h i Khơng, anh/ch cịn khó kh n hay lo l ng v d ch v xe đ a r c? áp án S l Kém an tồn Xe khơng đ n t n nhà Giá cao Nhà g n tr ng không c n xe đ a r c Không có ng i nhà đón h c sinh Ch xe đ a r c t n th i gian T ng Anh/Ch có đ ng ý s d ng d ch v đ a r áp án S l ng Giá d ch v đ a r Có 125 Khơng 20 c cơng ngh cao? Có th cân nh c 25 T ng 170 c nh th phù h p v i anh/ch ? áp án D i 200,000 đ ng/tháng 200,000 - 500,000 đ ng/tháng 500,000 - 1,000,000 đ ng/tháng 1,000,000 - 2,000,000 đ ng/tháng T ng Nh c đ n d ch v đ a r áp án Xe đ a r c nhà tr Thanh Hùng Thái D ng ng 80 35 28 11 170 ng S l ng 10 115 40 170 c, anh/ch ngh đ n nhà xe đ u tiên? S l ng 17 10 71 Vin Bus Hồng Ngun Khơng bi t T ng Y u t 123 170 d ch v xe đ a r áp án c quan tr ng nh t đ i v i anh/ch ? S l ng 91 39 22 18 170 An toàn An toàn ch t l ng An toàn giá c An toàn, ch t l ng, giá c T ng tu i áp án S l ng 20-30 47 30-40 56 40-50 52 50 tr lên 15 T ng 170 Ngh nghi p áp án Cán b viên ch c, Nhân viên v n phòng, K thu t viên Kinh doanh, Ti u th ng Công nhân, lao đ ng t T ng S l ng 148 11 11 170 C Expert's interview transcript ánh giá v c nh tranh th tr a S l ng xe đ a r c TPHCM ng đ i th c nh tranh nhi u ít? Tr l i: "Nhi u đ i th c nh tranh Nhi u đ n v làm d ch v nh ng ch d ch v ph , m ng kinh doanh cho thuê xe du l ch." b Giá c c a d ch v xe đ a r c hi n nay? Tr l i: "Các d ch v xe hi n có nhi u giá, tu theo phân khúc Ví d phân khúc xe ph c v tr t qu c t s có giá cao h n, phân khúc ph c v tr t m 700,000 – 2,000,000." c Th m nh/ i m y u c a d ch v xe th tr ng? ng bình th ng ng s 72 - V ch t l ng? Tr l i: "M t s công ty mua xe x n nh p kh u Các công ty l n tài x có ch ng ch hành ngh , b ng lái đ y đ , nh ng cơng ty nh th ng khơng đ c ki m tra Thái đ tài x nhi u d ch v không t t." - V danh ti ng? Tr l i: "Các cơng ty th không mu n đ a r ng không dám qu ng bá r m r c làm d ch v Ngun nhân khơng có lu t quy đ nh rõ cho ngành d ch v đ a r c h c sinh, r c r i làm vi c v i h c sinh." - V th ph n? Tr l i: "M i công ty ph c v s khu v c tr ng h c Khơng có cơng ty q n i ti ng ph c v nhi u khách hàng." ánh giá chung: "Mình ngh v c nh tranh s đánh giá M nh" Ti m n ng c a đ i th m i vào ngành M t công ty m i vào ngành s g p nh ng khó kh n gì? Có d dàng tham gia làm kinh doanh ngành TPHCM không? Tr l i: "D dàng tham gia vào ngành, nhi u ràng bu c Tuy nhiên s c c nh tranh ban đ u y u nhà cung c p m i ch a có dc danh ti ng, uy tín th tr đ đ n n m m i th t s n đ nh đ ng, ph i m t kho ng c." ánh giá chung: "V ti m n ng c a doanh nghi p m i đánh giá Trung bình y u." S c m nh c a nhà cung c p Các nhà cung c p bao g m: xe, ch nhà cho thuê, m ng, cho thuê bãi đ u,thi t b c a h th ng a Có nhi u nhà cung c p không? Tr l i: "R t nhi u Ch bán xe m i, ch bán xe c , nhi u ch nhi u giá Thi t b h th ng, m ng, nhà, sân bãi cho thuê c ng r t nhi u thành ph " b Các nhà cung c p có c nh tranh v giá, ch t l ng s n ph m? Tr l i: " Tu phân khúc v trí mà giá c có th chênh l ch đơi chút Nh ng nhìn chung giá c c a h c nh tranh Giá t ng đ i t m c không m c r " ánh giá chung: "Do có r t nhi u nhà cung c p nên ph n ngh Y u." S c m nh c a khách hàng 73 a M i cơng ty có nhi u khách hàng không? Tr l i: "Nhi u khách hàng." b Khách hàng có u c u đ c bi t đ l a ch n công ty không? Tr l i: "Ch y u d a vào uy tín, nh ph huynh khác gi i thi u, g i ý." c Cơng ty có t n vi c tìm khách hàng m i khơng? Tr l i: "T n vi c tìm khách hàng Khách hàng có th l a ch n khơng ty khác n u cơng ty có ph t, có s su t Ho c n u tìm dc cơng ty giá r h n mà có uy tín ti ng t m t ng ng." ánh giá chung: "Khách hàng có s c m nh r t l n nh h l ng đ n giá c , ch t ng uy tín c a cơng ty ánh giá m c M nh." e t d ch v thay th Có d ch v đ a r c khác th tr ng có th thay th xe đ a r c? Tr l i: "Hi n ngồi xe đ a đón ph huynh cịn có th th nh ng ng i ch y xe ơm truy n th ng có quen bi t v i h , ho c ph huynh có th đ t xe grab cho Nh ng s l l n s đ a đón đ ng th y c ng so v i em xe đ a r c nhi u h c sinh h n xe ôm." ánh giá chung: "Ph n cho Trung bình y u." c, PROFILE Full name: Nguyen Dung Uyen Thi Date of birth: 22/01/1997 Place of birth: Ho Chi Minh City Address: Binh Thanh, Ho Chi Minh City TRAINING PROCESS 2015 – 2019 Ho Chi Minh City University of Technology Bachelor of Engineering – Major: Computer Science WORKING PROCESS Jun 2018 – Aug 2018 Speranza – Business Analyst Intern Sep 2019 – Apr 2020 KMS Technology – Business Analyst Jul 2020 – Now Aperia Solutions – Business Analyst ... in Ho Chi Minh City According to data from a number of air monitoring applications, the AQI (Air Quality Index) - an index that reports daily air quality - shows that the air in Ho Chi Minh City. .. Public information about advantages, and Operation competitors in the market plan Sustainability Analyze the limitations and Data from chapter and analysis future work of the business plan 1.4 Introduction... Research/studies related to business canvas model bus service Developing Providing detail operations Primary data from interview business plan plan including resources, business and other research