INTRODUCTION
Background
Ho Chi Minh City has a student population of approximately 1.3 to 1.4 million, with a peak of nearly 3 million in 2018 due to local beliefs about auspicious ages (Tổng cục Thống kê, 2022; Nguyễn, 2018) This significant number highlights the high demand for school transportation, contributing to severe traffic congestion near schools In response to this issue, the Department of Education and Training, along with the Department of Transportation, has set a goal for 15% of students to utilize school bus services (Hà, 2017).
Figure 1.1 Number of students in Ho Chi Minh City
Urbanization has significantly increased the demand for student pick-up services, impacting both urban and rural areas near large cities In the 2001-2002 school year, Ho Chi Minh City introduced school buses, with only 6 schools and 252 students participating This number peaked in 2013, reaching 289 schools and 160,413 students However, by 2020, participation had declined to just 89 schools and 21,625 students, failing to meet the government's goal of 15% Currently, only 1.6% of students in Ho Chi Minh City utilize school bus services.
Figure 1.2 Number of students using school buses
Figure 1.3 Number of schools using school buses
The decline in the use of school buses is not due to a lack of demand, but rather an increase in accidents during student pick-ups Notably, in August 2019, a tragic incident at Gateway International School in Hanoi involved a first grader who died after being left unattended in a van for hours The school reported that the child had fallen asleep on the bus, and the assigned teacher failed to wake him Additionally, a similar situation occurred at Do Re Mi Kindergarten in Bac Ninh Furthermore, an alarming event in Dong Nai saw five students thrown from a moving shuttle These incidents have raised significant concerns among parents, leading to hesitation in registering for school pick-up services.
Urbanization in Ho Chi Minh City has rapidly increased the number of laborers in recent years, resulting in a growing trend of parents entering the workforce As illustrated in Figure 1.4 (T ng c c Th ng kê, 2021), this shift has significant implications for the city's labor dynamics, with typical working hours averaging around eight hours per day.
The overlapping hours of 5:30 PM and the school schedule from 6:30 AM to 5 PM create significant challenges for parents trying to transport their children Additionally, the disastrous traffic jams during rush hour exacerbate the difficulty of managing school drop-offs and pick-ups.
Figure 1.4 Number of laborers in Ho Chi Minh City
To meet market demand, pick-up services were established to assist parents in transporting their children between home and school There are two main types of services: those contracted with schools and the government, and independent providers that cater to both regular and student transportation The most prevalent service is offered by international private schools, which have been operating since the first international school opened in Ho Chi Minh City in 1993 Initially, pick-up services were exclusive to these schools, but as the need grew, additional providers emerged to serve families with children in various educational institutions These service providers register with the government as contracted student transportation services, primarily collaborating with transportation cooperatives This model was first introduced in Ho Chi Minh City in 2001, supported by government funding.
In 2016, various service providers operated independently without government contracts, including small companies like Thai Duong Limousine, Thanh Hung traveling service, Dat Phuong Nam, and Bus to School, which offer car pick-up services A unique service called Vrada provides motorcycle transportation High-tech transportation options such as Grab, Be, and Gojek are also popular, with motorbike transportation being the most commonly used However, these companies do not establish contracts with schools or parents for student transportation services.
Business opportunity
The government of Ho Chi Minh City is actively discussing regulations aimed at alleviating traffic congestion and addressing transportation and environmental issues To combat these challenges, the government has set a target for 15% of students to use buses for school commutes by 2020, with an increase to 20.5% by 2025, in order to reduce traffic jams and lower gas emissions.
By 2030, the projected rate of students using school buses is expected to reach 29.3% (Minh, 2019) However, as of 2020, only 1.6% of students are utilizing school bus services, indicating a significant shortfall The current quality, pricing, and availability of transportation options fall short of parental expectations, making it challenging for the government to achieve its transportation goals.
The quality of transportation services for students raises significant concerns, as highlighted in a 2020 report by the Department of Education and Training Out of 8,511 serviced cars providing nationwide pick-up services, only 7,990 are deemed qualified, leaving 521 vehicles—nearly 6%—unsafe for student use Furthermore, not all services are registered or assured by schools, with only 44% managed by educational institutions while the remaining 56% are overseen by private individuals These statistics indicate a lack of strict control and management by schools and government authorities, ultimately jeopardizing the safety of children during their commutes to school.
The cost of services provided by non-contractual service providers is often prohibitively high for average parents According to an article in Tien Phong online newspaper (Nguyen & Uyen, 2019), international schools charge between 20 to 40 million VND annually, which includes supervision and transportation services, ensuring students receive more careful management compared to smaller private services Similarly, other independent services that do not collaborate with schools are also unaffordable for many public school parents, with fees reaching around 1 million VND per month.
Many private transportation services for students operate offline, requiring parents to contract directly with providers or register through schools, limiting their ability to monitor their children's safety during commutes When parents arrange services independently, they lose oversight of their children's journey to school Although school supervisors are tasked with ensuring student attendance, lapses in their vigilance can lead to dangerous situations, as evidenced by incidents like the one at Gateway School, where a first-grade student was inadvertently left on a bus Fortunately, a few providers now leverage modern technology to keep parents informed of their children's real-time status Notably, only two services, Bus2School and Vrada, integrate offline transport with an application that allows parents to track their children's location and safety, with Bus2School offering car services and Vrada specializing in motorcycle transportation.
Modern technology services like Grab, Be, and Gojek dominate the transportation market, boasting substantial numbers of driver-partners—175,000 for Grab as of 2018, 200,000 for Gojek in April 2021, and 100,000 for Be in January 2021 Despite their popularity, these companies do not have official contracts with schools or parents for student pick-up services, which leaves them unregulated in terms of student safety This lack of oversight has raised concerns about the presence of fake drivers, as criminals can easily impersonate legitimate drivers, leading to incidents of theft, robbery, and even kidnapping Alarmingly, there have also been cases where actual Grab drivers have committed crimes themselves.
The public sector offers affordable transportation options for students, with a journey costing approximately 3,000 VND and an annual fee of around 4 million VND, significantly lower than international schools and other services Despite this cost advantage, the availability of public buses is limited, with only 7 companies operating 295 buses Additionally, safety concerns such as kidnapping and theft deter parents from using public transportation for their children.
The growing market for student pick-up services presents opportunities to address concerns related to service availability, quality, and pricing By enhancing features and incorporating modern technology, providers can effectively fill the existing gaps in this sector The key issues are outlined in Table 1.1 below.
Table 1.1 Advantages and disadvantages of different means of student's transportation
Means of transportation Advantages Disadvantages
Traffic jam Too many vehicles reducing air quality
Public bus Low price Not enough vehicles
No supervisor Cannot pick up at home Parents cannot check up on their children Crimes on bus
Private bus Can pick up at home
Supervisor during journey Several services provide parent with application to follow up with children
Low vehicle quality Supervisor carelessness High price
Objective of the thesis
The main objective of this thesis is to provide a feasible operations plan for a startup school bus service in Ho Chi Minh City focusing on District 1 and District 3 period
2023 - 2030 within 6 months In detail, there are smaller objectives to achieve the main objectives described in Table 1.2 below.
No Objectives Method Data source
Finding the gaps in the market, opportunities to fill in the gaps, and supports of forces in the business environment
Secondary data from the government and newspaper
Analyzing the economy, industry, market
Analyze forces in the external environment, market size and characteristics to understand opportunities and challenges in the market
Models/Survey from research papers and books Primary data from survey/ interview
Secondary data from the government, research, and newspapers
Providing details about business overview, vision, mission, scope of work, business canvas model
Refer to businesses in the same industry
Research/studies related to bus service
Providing detail operations plan including business resources, competitive advantages, and Operation plan
Primary data from interview and other research
Public information about competitors in the market
Analyze the limitations and future work of the business plan
Introduction of methodology
This thesis aims to develop an operational plan for a school bus service by conducting comprehensive analyses of the business environment, industry, and market to identify potential opportunities and challenges To assess the business environment, various methods such as PEST analysis, PESTEL analysis, Task environment analysis, and the Five Forces model will be utilized Specifically, PESTEL analysis will be employed to address environmental and legal factors related to air pollution and regulatory gaps, alongside political, economic, social, and technological influences Additionally, the Five Forces model will be used to evaluate industry dynamics and identify key factors impacting the business.
To effectively understand the market, it is essential to analyze key dynamics such as market volume, value, customer segments, buying patterns, demand, and competition Common market research techniques include surveys, interviews, focus groups, and customer observation This thesis will specifically utilize surveys and customer observations to conduct a comprehensive market analysis.
Key contents of the thesis
This thesis consists of the following sections:
This article presents an overview of the business plan, highlighting the project's background and opportunities It outlines the objectives, introduces the methodology, and details the key components, establishing a clear structure and purpose for the thesis.
Methodology for Business plan analysis in which the frameworks, models, and theories are studied and described to support the analysis of this business plan in the next steps
Analyzing the business environment, industry, and market is essential for understanding market potential and customer behavior This comprehensive analysis includes identifying target customers, assessing market size, and developing an effective business model, such as the business model canvas, to guide strategic decisions.
Business concept introduction presents the service and the innovative way of doing business, focus on the industry, key partnerships, and ethical and legal considerations
Business plan is the main part of the thesis which describes in detail the business resources, competitive advantage, and operations plan
Sustainability analysis considers the conclusions, limitations and points out the future work of this thesis.
LITERATURE REVIEW
Frameworks/models to analyze economic, industry, and market environment
PESTEL analysis is a crucial framework for examining the general environment of an organization, encompassing Political, Economic, Social, Technological, Environmental, and Legal factors This analysis aids in crafting strategic initiatives, marketing campaigns, and new product or service developments Clearly defining the objectives of the PESTEL analysis and identifying all relevant external components is essential For startups, which are typically innovative organizations introducing either existing or novel products, PESTEL analysis is invaluable for assessing and comparing various markets, ultimately enhancing the likelihood of success in a competitive landscape.
In order to understand the external environment of the school bus service, the following essential environmental dimensions are investigated:
Political aspects: The rules and regulations related to passenger transportation such as tax reduction during supporting the state of covid 19, rules for student transportation services, registration of vehicles, etc
This article examines the economic landscape of Ho Chi Minh City, focusing on the growth rate of the transportation service industry It also analyzes key financial indicators such as banking rates and inflation Additionally, the study delves into the labor force dynamics within this sector, exploring job search trends and the actual demand for human resources.
Social aspects: This group of variables has a major effect on the overall assessment
This article examines essential demographic data, including statistics on migration, education levels, and family planning among residents of Ho Chi Minh City Understanding these factors is crucial for analyzing living conditions and customer behaviors, which will inform effective business planning strategies.
In the corporate landscape, particularly for startups in Ho Chi Minh City, understanding technological considerations is crucial Key aspects include assessing the level of technological development, fostering innovation, monitoring the rate of technological change, and implementing effective technological development strategies.
When examining the ecological elements of transportation services in Ho Chi Minh City, it is essential to address the current state of air pollution, the government's strategies and interest in addressing the issue, and the daily actions taken by residents to mitigate environmental impact.
Legal elements: The legal factors that are most frequently discussed include laws, regulations, and other legal constraints related to transportation services
Porter's Five Forces is a strategic business analysis model introduced by Michael E Porter in his 1980 book "Competitive Strategy: Techniques for Analyzing Industries and Competitors." This model helps assess how various industries sustain different levels of profitability by examining five key competitive forces.
The Five Forces model, developed by Porter in 1980, is a crucial framework for analyzing a company's industry structure and corporate strategy It identifies five essential forces that influence market dynamics: industry competition, the threat of new entrants, supplier power, customer power, and the risk of substitute products These forces are instrumental in evaluating the competitiveness, attractiveness, and profitability of any industry In the context of the new school bus service, an in-depth investigation of these five factors is essential for understanding the market landscape.
When evaluating the market for student transport services, it's crucial to analyze the competition A higher number of competitors offering similar services can weaken a company's market position, while fewer competitors may enhance its strength Understanding this dynamic is essential for developing effective business strategies.
The entry of new competitors into a market significantly impacts the power of existing businesses In Ho Chi Minh City's transportation sector, the costs and time required for rivals to enter and compete effectively are crucial factors High entry barriers in this industry can advantage established companies, enabling them to set higher prices and secure more favorable terms.
In the five forces model, suppliers play a crucial role in the smart transportation industry The number of suppliers providing essential inputs, the uniqueness of these components, and the cost associated with switching suppliers are key factors to consider A limited number of suppliers can give them leverage, allowing them to raise input costs and seek other advantages Conversely, if a school bus service has access to numerous suppliers or faces low switching costs, it can effectively lower input expenses and enhance profitability.
Customer bargaining power significantly impacts price reductions, making it one of the five key forces in the market A stronger client base enhances each customer's ability to negotiate lower rates and improved deals Therefore, it is essential to analyze the constraints and limitations customers face when choosing school bus services for their children, as this understanding can inform strategies to increase prices and enhance profitability.
The final force in the analysis is the threat of substitutes, which poses a significant risk to school bus services When alternative transportation options exist, customers may choose them over the school bus service However, if there are few or no close substitutes available, the school bus service can increase prices and secure favorable terms more effectively.
Methods/tools to collect data to measure market potential
Questionnaires are the most effective tool for gauging customer needs and preferences regarding modern and innovative services or products (Atkinson, 2007) This research focuses on determining the number of individuals interested in utilizing the pick-up service, highlighting the importance of understanding consumer demand in shaping service offerings.
The initial crucial step in conducting the survey is to identify the target market segment and stakeholders involved This research focuses on services tailored for students, particularly those in elementary to high school, with parents of school-aged children being the primary customers in need of transportation services for their kids.
A survey will be conducted to assess parents' willingness to utilize the school bus service, with a target of interviewing a minimum of 164 parents This sample size is determined using a specific statistical formula to ensure accurate analysis.
(Yamane, 1967) with confident level = 90% => Z = 1.64 (Z table), p = 0.5, e = 0.05
To effectively gather insights, the next step involves creating a market research questionnaire designed to elicit opinions through targeted questions This approach ensures that respondents can easily share their thoughts on key points The questions are outlined below.
1 What means of transportation that your family uses to transport your children to school?
2 Do you think the pick-up service is necessary? If the answer is No, what is the concern? What criteria you concern the most about school bus service?
3 If there is a pickup service that allows you to follow your children's status and position in real-time and see the image of them arriving at school, will you choose to use that service?
4 Speaking of pick-up service, what service provider do you think of first?
5 What price of the service do you think would be acceptable?
After conducting the survey and analyzing the collected results, the data will be summarized to identify current popular means of transportation The willingness of customers to purchase will be calculated based on the total survey participants for questions 2 and 3 Additionally, an assessment of competitors will reveal the most competitive entities in the market Finally, the analysis will determine the acceptable price range, identifying the most favorable pricing for potential customers.
Methods for feasibility business analysis
The Business Model Canvas (Joyce & Paquin, 2016) described in Figure 2.2 (Joyce
The Business Model Canvas, as highlighted by Paquin (2016, p 1476), is an essential strategic management tool that facilitates the quick and easy design and communication of business concepts This one-page document effectively guides readers through the crucial elements of a business or product, presenting the idea in a clear and logical manner.
The Business Model Canvas is divided into two sides: the right side focuses on customer-related aspects, while the left side addresses internal business elements These external and internal components converge around the value proposition, representing the mutual value exchange between the company and its customers.
A business's value proposition is essential for its success, particularly for a school bus service in Ho Chi Minh City This section outlines the fundamental value exchange between the service and its customers, emphasizing the importance of identifying market gaps and understanding customer segments By addressing customer pain points, the service can effectively highlight its features that meet the needs of families, ultimately bridging the gaps in the local market.
In the Customer Segments section, we categorize the school bus service's clientele by common traits, including age, gender, interests, and buying behaviors Identifying these customer segments is essential for understanding customer behavior and developing effective strategies during the planning phase.
Customer relationships encompass the interactions between a service provider and its clients, specifically in the context of school bus services This section outlines the various touchpoints and communication channels utilized to engage with customers, helping the business define its overall operations and identify opportunities for automation.
After outlining customer relationship activities and methods, the next step is to clarify the communication channels, which are integral to the business's marketing strategy Service providers can engage with customers through various channels, including social media, public speaking, email marketing, viral marketing, targeted blogs, and sales promotions that offer commissions.
Key business activities are essential actions taken to deliver value to customers, such as facilitating student transportation to school To effectively operate these services, specific key resources are required, including physical assets like information systems, human resources, and transportation vehicles.
Key Partners are essential external companies, suppliers, or parties that support a business in executing critical activities, such as student transportation These partners provide valuable resources and technology, enhancing the service delivery and ultimately contributing to the value offered to customers.
Cost Structures The cost structure of this service is defined as the monetary cost of doing business such as operating costs, and investment costs
Revenue Streams This section identifies the sources of revenue that the service gets from, such as the revenue from customers' registration.
Related studies and research
In Lu's master thesis, four key factors influencing the decision to continue using school bus services are identified: psychology, environment, personality, and marketing Notably, psychology plays the most significant role, as parents' trust and positive impressions of the service greatly affect their engagement The author recommends that service providers enhance their public image and improve customer care quality to foster trust and positive sentiments among both current and prospective customers.
2.4.2 The research of Blakrishnan, Dharshini, Harini, and Kamali (2019)
This study focuses on developing a cost-effective bus notification and monitoring system The author examines existing systems and introduces an innovative solution that leverages software and hardware technology to enhance the efficiency of school buses while minimizing expenses.
The proposed system integrates a GPS module and GSM technology to accurately locate vehicles and calculate their estimated arrival and delay times By utilizing Google Maps for real-time tracking, students receive alerts via Firebase when the bus approaches their location Additionally, a mini attendance system employs QR codes to monitor student attendance, with notifications of student presence sent directly to parents and staff.
2.4.3 The research of Abhimanyu, Akshay, Pankaj, Sachin and Prof.Swati (2017)
The proposed smart bus system features an innovative ticketing and tracking solution that utilizes GPS technology to provide real-time bus locations on a map, along with estimated arrival times and current passenger counts This passenger data is accurately tracked through RFID technology, where individuals scan their RFID-enabled cards upon boarding to increase the passenger count and process payment for their journey Upon disembarking, passengers scan their cards again, allowing the system to update the passenger count and reflect the changes on the application interface seamlessly.
Building a successful new business requires a focus on customer psychology, particularly in fostering trust and creating a positive impression Key strategies include enhancing the service's public image through professional staff training, ensuring smooth operations to demonstrate value, and leveraging various channels to boost brand reputation Additionally, implementing a smart bus system can enhance student safety during school transfers while improving communication between parents and their children Utilizing modern technologies like GPS for vehicle tracking, IoT for device connectivity, and smart cards for managing student check-ins and check-outs can significantly improve the overall service experience.
BUSINESS ENVIRONMENT, INDUSTRY AND MARKET ANALYSIS
Business Environment Analysis
In terms of the economic environment that affects the school bus service, there are forces which can be named as Politics, Economy, Social, Technology, Environment, and Legal
Regarding politics, the current government policies have supportive effects on the school bus service
The Vietnamese government is promoting public transportation to alleviate traffic congestion, reduce accidents, and minimize environmental pollution, particularly in areas near schools during peak hours To encourage bus usage, the Ho Chi Minh City Department of Transport is focusing on user convenience by enhancing bus infrastructure, integrating information technology into bus operations, and auctioning bus routes to attract private investment for new vehicles and routes.
The Department of Transport in Ho Chi Minh City is advancing the project "Strengthening Public Passenger Transport Combined with Controlling the Use of Private Motor Vehicles." According to Director Tran Quang Lam, the objective is for buses to fulfill 15% of the city's travel needs by 2025, increasing to 25% by 2030 Additionally, the government is prioritizing social safety in public transportation Mr Tran Chi Trung, Director of the Center for Management and Operation of Public Passenger Transport, emphasized that to ensure passenger safety and order, the Center has signed a contract with the Police Department for Investigation and Prevention of Crimes.
Social Order (PC45) - City Police through providing hotlines and extracting camera data to quickly, promptly, and accurately receive people's reflections." (Tr n, 2017)
According to Decree No 103/2021/ND-CP, effective December 1, 2021, a 50% reduction in registration fees will apply to domestically produced and assembled cars, trailers, and similar vehicles Additionally, the Government has proposed a reduction in the VAT rate from 10% to 8% for various goods and services, excluding certain sectors such as telecommunications, finance, banking, insurance, real estate, and metal production The VAT reduction package, aimed at supporting businesses and consumers, is estimated to be around 49,400 billion VND for 2022 The continuation of these VAT exemptions and reductions in 2023 will be evaluated by the National Assembly based on the economic situation in 2022 and forecasts for 2023.
In 2021, Ho Chi Minh City's socio-economic status showed limited positive developments amid a recovering global economy, as the ongoing effects of the Covid-19 pandemic dampened growth momentum.
Ho Chi Minh City experienced a significant decline in its gross domestic product (GRDP), estimated at approximately 1,299 trillion VND, marking a 6.78% decrease compared to the previous year— the steepest drop in its history The General Statistics Office reported that all components contributing to the GRDP have seen reductions Additionally, from January 1, 2021, to October 15, 2021, the city registered 23,847 new businesses, with a total registered capital of 392,624 billion VND.
Compared to the same period last year, the number of licenses decreased by 28.1% and capital decreased by 47% (T ng c c th ng kê, 2021)
A recent survey by the Center for Forecasting Human Needs and Labor Market Information in Ho Chi Minh City revealed that 84.94% of the 13,286 responding enterprises were impacted by the epidemic The sectors most affected include vehicle repair services at 36.74%, the processing and manufacturing industry at 16.42%, transportation and warehousing at 6.66%, and administrative activities and support services at 4.85% Many businesses are struggling to find customers, with 42.7% reporting issues with product consumption, while 27.15% face capital difficulties and require support.
State's policies accounted for 18.23%; lack of materials and production materials accounted for 11.92% (T ng c c th ng kê, 2021)
To address the economic impact of the COVID-19 pandemic, the State introduced Resolution No 11/NQ-CP, launching a Socio-economic Development and Recovery Program, alongside Resolution No 43/2022/QH15 Specifically, the banking sector will provide a 2% annual interest rate support policy for the years 2022-2023, facilitating commercial loans to businesses, cooperatives, and business households through commercial banks.
Since 2015, inflation in Vietnam has been effectively managed, maintaining a range of 2-3%, with core inflation at a low 1-2%, according to a representative from the National Financial Supervision Commission This level of inflation control is commendable for a developing economy like Vietnam.
The trade-service sector represents a significant 63.14% of total human resource demand, with recruitment heavily focused on areas such as wholesale and retail, vehicle repair, administrative support, professional and scientific services, information and communication, real estate, finance, banking, insurance, education, and transportation This substantial demand in the trade-service sector facilitates easier recruitment of new staff for companies within these industries.
The 2019 Population and Housing Census of Ho Chi Minh City, conducted by the General Statistics Office, gathered essential data on various social aspects, including demographics, migration status, education levels, family planning, and the housing and living conditions of households.
Preliminary results of the 2019 population and housing census, as of 0:00 on April 1,
As of 2019, Ho Chi Minh City is home to 2,558,914 households, with 79.2% being urban (2,026,763) and 20.8% rural (532,151) The city's total population stands at 8,993,082, comprising 4,381,242 men (48.7%) and 4,611,840 women (51.3%), resulting in a sex ratio of 95.0 males for every 100 females Educational attainment has significantly improved, with 92.9% of the population of upper school age currently enrolled in school and a literacy rate of 99.0% for those aged 15 and older Over the past two decades, the gap in literacy rates between men and women has narrowed considerably, indicating minimal gender inequality in education.
Job demands are categorized based on professional and technical qualifications, as illustrated in Figure 3.1, according to the 2021 report from the Human Resource Demand Forecast Center and Labor Market Information in Ho Chi Minh City.
University degree or higher: There are 57,349 people looking for work, accounting for 42.32% of the total job search demand
College degree: There are 22,861 people with job needs, accounting for 16.87% of the total job search demand
Intermediate level: There are 14,662 people looking for work, accounting for 10.82% of the total job search demand
Primary level: There are 12,006 people looking for work, accounting for 8.86% of the total job search demand
Figure 3.1 Job demands categorized by professional level
In 2021, one-third of businesses in Ho Chi Minh City engaged in innovative activities, with the highest rates of innovation observed in management methods and organization at 19.2%, closely followed by innovations in production processes and service provision at 19.3%.
In 2022, the Department restructured its scientific research, technology development, and innovation programs to focus on an enterprise-centered approach This initiative emphasizes the development, decoding, application, and transfer of technology to directly support industries, services, and smart urban projects, with a strong emphasis on integrating artificial intelligence.
The digital economy in Vietnam, as outlined in the document by the National Center for Socio-Economic Information and Forecasting, represents economic activities that leverage digital information, technology, and data to enhance labor productivity Despite its relatively recent emergence, the digital economy has experienced significant growth, achieving breakthroughs in various sectors This evolution has not only transformed management and operational methods but has also led to the development of innovative production and business models across multiple industries.
Industry Analysis
To analyze the transport industry, particularly the student pickup service sector, we utilize Porter's Five Forces model, which examines five key factors: industry competition, the threat of new entrants, supplier power, customer power, and the threat of substitute products Additionally, insights from an interview with Mr Nguyen Duc Tho, Operation Manager of Thanh Tan Transportation Service, provide a deeper understanding of the dynamics within this field.
Ho Chi Minh City has a competitive landscape for student pickup services, featuring well-known providers like Thai Duong, Thanh Hung, and Xe Mien Nam, alongside others such as Ho Gia and Dat Phuong Nam Many of these services operate without government oversight, as school bus services are not officially classified under Vietnamese transportation law, allowing any contracted transportation service to offer student pickup This lack of regulation raises concerns about service quality, particularly if schools do not rigorously verify the licenses and vehicle conditions Prices for these services typically range from 600,000 to 1,000,000 VND, but only a few incorporate modern safety technologies, such as cameras and parent applications, while others lack adequate security measures Additionally, some schools provide their own transportation by purchasing vehicles and hiring drivers, which ensures better quality control, yet these services may still lack advanced safety technologies to monitor students effectively.
Mr Nguyen Duc Tho, Operation Manager of Thanh Tan Transportation Service, notes that while there are many competitors in the transportation sector, most focus primarily on travel transport, with student transport being a secondary service due to its lower revenue potential and legal responsibilities Pricing among service providers is generally consistent, as it is a key competitive factor Vehicle quality and driver qualifications vary widely across companies, and customer service, particularly among smaller providers, often falls short Additionally, most companies are reluctant to invest in marketing for their student services since it is not their primary focus Each company typically collaborates with several schools and parent groups, resulting in a fragmented market without any dominant players Overall, competition in this market remains intense.
With the mentioned information, competitors in the market can be summarized as follows:
Table 3.2 Summary of service providers
Registered as student pickup service
HCMC Over 15 years of operation
45 seats 400,000 HCMC Only pick students up at bus stops
With the current situation, the price and quality of the business must be competitive compared to the other service providers in the market
3.2.2 Potential of new entrants into the industry
The current climate is not favorable for new entrants in the passenger transportation industry, particularly following the surge of the 4th Covid-19 epidemic that began in late April 2021, which has complicated transport operations In the first seven months of 2021, passenger transport numbers fell to 1,917.8 million, a 9.6% decrease from the previous year, while passenger-kilometers also dropped by 17.5% Although the epidemic has been largely controlled in Vietnam, leading to stable domestic transport activities, overall sales have significantly declined compared to the previous year Additionally, the presence of numerous school bus services in Ho Chi Minh City means that any new competitor must leverage modern technology, innovative business models, or competitive pricing to succeed in the market.
According to Mr Nguyen Duc Tho, the Operation Manager of Thanh Tan Transportation Service, the potential for new entrants in the transportation industry is medium-low While entering the industry legally is relatively easy, new companies often struggle to attract a significant customer base in their initial years due to a lack of established reputation and trust It typically takes about 3 to 5 years for a new company to solidify its position in the market.
The business relies on two primary types of suppliers: vehicle retailers and technology providers The vehicle market in Vietnam is diverse, featuring various brands from both domestic and international sources, including vehicles manufactured and assembled locally, as well as those imported from abroad This diversity ensures that businesses can easily find suitable vehicle suppliers at different price points On the technology front, Vietnam boasts numerous suppliers, with major players like FPT, TMA, Viettel, CMC, VNG, and HTC, alongside many small to medium-sized IT companies offering operational platforms and solutions Vietnamese tech firms often outsource for foreign companies, allowing them to stay updated on global technology trends Consequently, businesses can readily find and negotiate with suppliers to secure quality products at competitive prices.
Mr Nguyen Duc Tho, Operation Manager of Thanh Tan Transportation Service, highlights that suppliers in the transportation sector hold limited power due to intense competition in vehicle supply, parking services, and network systems As a result, the quality and pricing of products and services are competitive, making it easy to negotiate with suppliers The increasing number of technical suppliers has further facilitated access to high-quality and reasonably priced offerings in the market.
The bargaining power of customers, a key component of Porter's Five Forces of Industry Analysis, highlights the influence consumers have on businesses to enhance product quality, improve customer service, and lower prices Factors such as price sensitivity significantly impact customer decisions, as many parents are likely to switch to more affordable services when facing high costs associated with their children's needs Additionally, buyer independence plays a crucial role, as parents have the freedom to choose whether or not to utilize optional services like school transportation In Ho Chi Minh City, the low switching costs and the availability of various student transportation options further empower parents to seek better alternatives Consequently, service providers must focus on delivering high-quality and trustworthy services to remain competitive in this dynamic market.
Mr Nguyen Duc Tho, Operation Manager of Thanh Tan Transportation Service, emphasizes the significant power customers hold over service providers in the sensitive student service sector The reputation of service providers can quickly diminish due to even minor issues involving students Parents, who are not bound by national laws or school regulations to register for services, wield considerable influence in deciding whether to continue or discontinue their use Their close-knit relationships enable them to share information and take collective action regarding student services Consequently, companies in this field must prioritize building their reputation and trustworthiness, as attracting new customers requires substantial time and effort.
Student transportation offers various options, including parent-driven vehicles, public buses, bicycles, and taxis shared among neighborhood students However, except for parental transport, these alternatives pose significant risks, such as a higher likelihood of accidents or potential criminal threats Consequently, when parents are unable to transport their children, the school bus emerges as one of the safest and most reliable choices for getting students to and from school.
According to Mr Nguyen Duc Tho, Operation Manager of Thanh Tan Transportation Service, parents have various alternatives for transporting their children to school, such as negotiating with local motorbike drivers or registering for a monthly Grab service However, these options have not gained significant popularity compared to the school bus service, as they do not accommodate a large number of students Additionally, the government supports public transport, which can effectively address the needs of transporting many students As a result, the demand for school bus services remains essential and irreplaceable, indicating that the threat from substitute transportation options is minimal.
3.2.6 Summary of Five Forces effects
According to Mr Nguyen Duc Tho, the Operation Manager of Thanh Tan Transportation Service, the analysis of the five forces reveals their strengths, which are summarized in the accompanying table.
Potential of new entrants to the industry x
Market analysis
Ho Chi Minh City has a significant student population, with approximately 1.3 to 1.4 million students over the past five years, showing a steady annual increase However, only a small fraction, around 21,000 students, utilized school bus services in 2020 The government plans to increase this figure, aiming for at least 20% of students to use school buses To achieve this goal, service providers must address existing market gaps and enhance parental trust and assurance regarding student safety.
In the realm of student transportation, while students from primary to high school are the direct users, it is the parents who hold the decision-making power This dynamic reveals that the characteristics of parents can vary widely, yet there are several common traits shared among them Understanding these parental characteristics is crucial for effectively catering to their needs in the student transportation sector.
The age of parents significantly influences their willingness to utilize modern technology in educational services A survey revealed that among 170 participants, the highest percentage of parents eager to adopt these services is 38%, specifically those aged 20 to 30 Following this group, 29% of parents fall into the next age category, indicating a trend where younger parents are more inclined to embrace technological advancements compared to their older counterparts.
Parents aged 20 to 40 are the primary target demographic for high-tech services, as they demonstrate a strong willingness to adapt to and utilize technology in their daily lives In contrast, only 20% of parents aged 40 to 50 and 13% of those over 50 are inclined to embrace such services As technology becomes increasingly integrated into daily routines, this age range may expand in the future to include older demographics who are more engaged with technology.
Figure 3.2 Parents willing to use the high-tech service categorized by age
A recent survey reveals that the majority of parents interested in utilizing high-tech services are professional office workers, civil servants, and technicians, comprising 89% of respondents In contrast, parents employed as salespersons, small traders, or self-employed individuals are less inclined to adopt these services, as their flexible working hours enable them to manage their children's transportation between home and school more easily.
Figure 3.3 Parents willing to use the high-tech service categorized by occupation
When selecting a transportation service, the safety of students is the top priority for parents A recent survey revealed that 47% of parents who do not allow their children to use the school bus cite safety concerns as their primary reason.
Figure 3.4 Parent's reason for not registering school bus
When selecting a transportation service provider, 54% of parents prioritize safety above all else, while others consider safety alongside additional criteria, as illustrated in Figure 3.5 This data underscores that parents' primary concern is the safety of their children during transportation.
Figure 3.5 Parent's most important criteria for selecting school bus service
There is a wide range of school bus services available, each with varying prices To gauge parents' expectations for a new service, a survey was conducted, revealing that 68% of respondents believe the monthly cost should fall between 200,000 and 500,000 VND, as illustrated in Figure 3.6.
Figure 3.6 Expected price for the new school bus service
After analyzing the market as the above sections, the main characteristics are summarized as the below table:
Market size Number of students is 1.3 - 1.4 million Potentially 20% of students will use school bus service
Age: 22-60 Younger parents tend to use the modern service more than older ones since they are familiar with the modern technology
Parents employed as office workers, civil servants, and technicians are more likely to utilize school bus services compared to those who are small traders, laborers, or self-employed, as their work schedules often clash with school hours.
Concern: Student's safety Expected price 200,000-500,000 VND/month
BUSINESS MODEL INTRODUCTION
Industry overview
Vietnam's passenger transport industry has seen positive growth alongside the country's industrial development, but the Covid-19 pandemic has hindered this progress, creating challenges for companies in the sector Specifically, student transport services are divided into two categories: those receiving government fee support and independent services.
Fee-supported bus services cater to 30 to 50 passengers and operate along main roads with designated stops, making them inaccessible to areas with narrow streets These large buses are heavily subsidized by the government, resulting in low fares ranging from 4,000 to 6,000 VND, making them affordable for low-income individuals The government is also investing in upgrading these buses to meet environmental and technological standards, covering 70% of the interest on new vehicles, while companies only need to pay the remaining 30% Additional policies are being implemented to enhance the overall quality of public bus services.
The independent sector includes school buses provided by international schools and services from privately-owned companies that contract with parents Numerous companies in this sector are registered as contracted passenger-transport service providers, but the government struggles to regulate their pick-up activities since these services are not officially recognized as student transportation Consequently, the quality of these services remains uncertain However, some providers, like Bus2School and Vrada, utilize modern technology, offering mobile applications that allow parents to track their children's whereabouts These applications notify parents when their children arrive at school or home and display a map indicating their location and status.
Figure 4.1 Bus2School application for parents Figure 4.2 Vrada application
The system features of these few companies are summarized in Table 4.1 below:
Table 4.1 Current systems' features and enhancement of new system
System Current system on the market New system to be developed
Features Reflect student's position on map
Update student's status and notify parent
Display supervisor name, driver name, license plates
Current features + Forecast bus arrival time at home Trigger notification by smart card Notification contains real image of student
Comment Supervisor carelessness can lead to incorrect status of student
The mentioned services have lower prices than that of the international schools (20-
The high cost of traditional transportation services, averaging between 600,000 and 1,000,000 VND per month, can be a burden for many parents, especially considering the annual expenditure of 40 million VND In contrast, modern high-tech transportation options like Grab, Be, and GoJek offer more affordable solutions These companies provide mobile app-based ride booking services, allowing users to track their journeys in real-time With a monthly plan priced at approximately 450,000 VND for 40 rides over 30 days, these services present a cost-effective alternative for families seeking convenient transportation.
Introduction of the service
To address market demands, a new pickup service has been launched, offering essential facilities and human resources to transport students from home to school and back, catering to busy parents This innovative service incorporates modern technology, enabling parents to monitor their children's location and receive notifications upon their safe arrival Additionally, the school's management team can track student attendance as they arrive at school, enhancing overall safety and communication.
The service addresses critical gaps in the market by providing reliable transportation for students, easing the burden on busy parents It not only helps reduce traffic congestion during rush hour, supported by government initiatives (Hà, 2017), but also alleviates safety concerns associated with student pick-up services With an alarming rise in accidents, parents can now track their children's journeys in real-time through a mobile application, receiving updates and images upon their safe arrival at school or home This innovative business model effectively fills these gaps, as detailed in Table 4.2.
Table 4.2 Gaps in the market and solutions of new school bus service
Too many individual vehicles cause traffic jams and pollution
School bus transport multiple students at a time
Low quality Qualified bus and registered legally
Large bus cannot pickup at home Small bus
Unsafety due to criminals or supervisor's carelessness
Smart system using camera and smart card
Parent cannot follow up on their children Mobile application for parents
The new service is initially launched in Districts 1 and 3, the city's central areas known for their narrow roads and numerous intersections, which often experience severe traffic congestion To address this issue, a viable traffic solution is necessary for the city center Additionally, residents in these districts enjoy a high standard of living and are open to enrolling their children in supplementary services This initiative aims to benefit parents and students residing in and attending schools within these two districts.
Vision: Become one of the top school bus service providers in Vietnam
Mission: To provide modern and safe school bus service for students in Vietnam.
Business Canvas Model
The business concept is described in detail via the business canvas model in Figure 4.4 below
Figure 4.4 School bus service's Business canvas model
The business focuses on the student's safety which provides parents a method to follow their children during the journey to school at a good price
By transferring students to school by bus, the traffic jams in the school area can be enhanced which also contributes to the reduction of air pollution
The main activities of this business are transferring students between home and school via school bus and managing students during the journey
The company offers a pickup service with its own fleet of vehicles and drivers As the business grows and faces increased demand, it will partner with other transportation services to enhance its resources by establishing temporary contracts for additional drivers and vehicles.
The service offers comprehensive transportation facilities and mobile applications, relying on key partners such as transportation retailers, service providers, and drivers Additionally, technology solution companies play a crucial role by supplying mobile applications, communication platforms, websites, network connections, and database systems A vital aspect of this service's sustainability includes partnerships with schools ranging from elementary to high school in Ho Chi Minh City.
Monthly surveys will enhance customer engagement by enabling feedback that helps improve services Additionally, regular training sessions will be conducted every month or quarter to address societal issues concerning student safety, equipping parents with effective strategies to protect their children from potential threats.
The business engages with customers through various channels, including social media, email, contact points, and hotlines, while also offering offline sessions and services for a more interactive and convenient customer experience.
Our service is dedicated to customers in Ho Chi Minh City, specifically targeting primary to high schools in Districts 1 and 3 We aim to establish strong connections between principals and parents to effectively introduce and implement our service within these educational institutions.
When launching a startup service, it's essential to categorize costs effectively Initial investments should focus on the careful purchase of automobiles, information systems, and office equipment Operational expenses include office rent, server hosting, network and electricity costs, automobile maintenance, insurance for students and drivers, marketing efforts, and employee salaries.
The primary revenue stream comes from service fees charged to schools and parents Additionally, on weekends, the business offers car rental services for individual travelers, creating another source of income The website and mobile applications will feature advertisements, with organizations paying to register for ad placements, further enhancing revenue opportunities.
Ethical and legal considerations
Current transportation laws do not categorize student pick-up services as a form of transportation service When registering with the government, companies offering these pick-up services identify themselves solely as contracted passenger-transportation services.
According to the Ministry of Transport, the road transport business is classified as a conditional investment line under the Investment Law, as outlined in Article 64 and Appendix 4 of the Law on Road Traffic The Law on Road Traffic 2008 specifies five types of passenger transport businesses: fixed-route transport, bus transport, taxi transport, tourist transport, and contracted passenger transport Currently, student transport vehicles are licensed by the Department of Transport to operate under the category of contracted passenger transport, as reported by local authorities.
According to the Ministry of Transport, Decree No 86/2014 and Circular No 63/2014 mandate that vehicles engaged in passenger transport under contracts must belong to licensed transportation entities, including enterprises, cooperatives, and business households These vehicles must have received appropriate transport business licenses from the Department of Transport and be equipped with badges and GSHT equipment as required by law.
To enhance student safety during school transportation, the Department of Transport has implemented new regulations These rules mandate that service providers, who contract with schools or parents for student transport, must conduct thorough checks to ensure no child is left behind in buses or cars after each journey.
The Ministry of Education and Training has proposed a review and enhancement of regulations governing passenger transport for students from preschool to high school In response, the Ministry of Transport has reported to the Prime Minister about implementing stricter management measures while ensuring that regulations align with real-world conditions Notably, the draft Decree includes a new provision in clause 6, Article 7, which requires passenger transport businesses contracted for transporting students, officials, and employees to notify the relevant authorities about the minimum contract details before execution Additionally, any changes to the transportation itinerary, schedule, or pick-up and drop-off locations must also be communicated promptly.
Article 11 of the draft Decree is also more strictly added the implementation of traffic safety assurance in the transport business by car In which, the regulation content has been added: "There must be a controlling plan to ensure that passengers are not left on the vehicle at the end of the journey (applicable to passenger transport business vehicles)" The Ministry of Transport requested the Ministry of Education and Training to direct the Departments of Education and Training to guide schools when organizing the transportation of students to choose transport business units that are eligible for transportation business by cars under the law (Tr n, 2019)
Our contracted transport service for children is fully registered with the government and adheres to all relevant laws and regulations We prioritize student safety by ensuring that all staff involved in school bus operations, including drivers and coordinators, receive comprehensive training to protect and safeguard the children in our care.
BUSINESS PLAN
Competitive advantage
In the realm of competitive advantage, businesses can leverage five key strategies: cost-based advantage, differentiated products or services, first mover advantage, time-based advantage, and technology-based advantage This business stands out with its technology-based advantage, utilizing advanced integrations such as GPS for real-time tracking of vehicles and students, alongside a smart card and camera system for attendance management This automated system minimizes human errors, significantly reducing accidents linked to carelessness and enhancing student safety Enhanced features of this innovative business are detailed in Table 3.1, showcasing its superiority over existing market options.
The new business gains a competitive edge by exclusively focusing on student services, enabling the development of effective strategies and high-quality offerings Legally registered and committed to student safety, the company ensures that its staff is well-trained to meet the specific needs of students during their commutes Additionally, targeted marketing strategies will be implemented to earn parents' trust and establish a strong market reputation.
Business resource planning
In 2021, District 1 had approximately 56,000 students, while District 3 had around 51,000, totaling about 107,000 students The government aims for 25% of these students to commute to school by bus.
2030 as mentioned in section 1.2 Therefore, the maximum number of students going to school by bus is around 26,750 The business's targets are:
錨 1% of the market share until 2024, serving about 270 students
錨 2.8% of the market share until 2027, serving about 750 students
錨 5.6% of the market share until 2030, serving about 1500 students
In terms of vehicles, to serve the target number of students, specific numbers of vehicles of different sizes are predicted as below
Table 5.1 Number of vehicles to serve students
Target number of students Vehicle size 270 750 1500
Traffic congestion near schools in Districts 1 and 3 makes it challenging for buses to navigate and reach students' homes As discussed in sections 1.1 and 3.3.2, smaller vehicles are essential to adapt to these conditions Consequently, small buses with capacities of 16 and 7 passengers are the most suitable options for this environment.
The initial customer estimation for the business may not accurately reflect reality, making it essential to prepare a sufficient number of vehicles at launch The company plans to invest in 13 vehicles, comprising 4 larger 16-passenger vans and 9 smaller 7-passenger vehicles Should customer demand exceed expectations during operations, the business will utilize external vehicle rental services to accommodate the increased need.
The business will operate in District 1 and District 3, which are adjacent to each other, allowing for easy travel between the two locations Given that the service offered does not necessitate frequent direct interactions between customers and the company, only one office will be established in one of these districts.
To accommodate the growing team size, office equipment such as desks, chairs, workstations, and laptops must be scaled appropriately Initially, the office will support two co-founders, with plans to expand to four and eventually ten staff members as the business develops It's essential to adjust the office supplies in line with the changing workforce to ensure a productive environment Key equipment necessary for every office includes essential furniture and technology tailored to meet the needs of the expanding team.
• Machines: printers, fax machines, shredders, security cameras, card-swiping machines
• Information system: Wi-Fi routers, network facilities, office software
Human resources are crucial for the success of any business, especially for startups that require a dedicated team of passionate entrepreneurs with complementary skills in product development, marketing, and sales Establishing clear objectives and fostering a mindset geared towards achievement is essential for these teams A diverse group, with varied personalities and expertise, can significantly enhance performance and adaptability By effectively leveraging their collective strengths, entrepreneurial teams can exceed individual capabilities Additionally, it's important for the organization and size of the team to evolve in response to the startup's growth, particularly through the five stages of development and funding rounds that influence human resource management (Abraham et al., 2022).
In the early stages of a startup, titles and hierarchy are unnecessary, as the focus is on the collaboration between two co-founders working in a garage with a shared idea To minimize conflict, their skills should complement rather than overlap, fostering mutual trust that allows for independent decision-making without bottlenecks Founders often need to balance their existing jobs with startup responsibilities, working nights and weekends to secure funding The key to success lies in their willingness to put in the effort and make sacrifices for growth Typically, one co-founder takes on a technical role, focusing on product development, while the other handles the business vision and non-technical aspects, ensuring a balanced approach to building the company.
To achieve early growth at the seed stage, a company must establish an agile internal organization that can effectively execute its product vision The focus should be on generating proof of concept for the idea, which necessitates a lean and adaptable team.
The CEO oversees all administrative duties and product strategy while actively seeking new funding To enhance business development, the team comprises three sub-teams, as outlined in Figure 5.2 The Chief Technology Officer manages technical aspects and consults on the student pickup service and office operations The Service Manager focuses on developing the student pickup service by researching and improving its features and activities The Growth Manager is responsible for strategic decision-making, seeking opportunities to strengthen the brand's reputation and maintain positive customer relationships Each manager may have one or two staff members to assist with task completion.
By the Series A funding round, a startup typically has a minimum viable product that shows early traction and growth potential The main challenge now is to scale and enhance the product quickly, which requires expanding the leadership team to effectively manage various functions This includes the Head of Service, who drives the product vision; the Head of Growth, who focuses on client acquisition; and the Head of Operations, who manages internal activities Fortunately, the CEO can still handle the administrative responsibilities.
In the Series B stage, a business prioritizes sustaining growth and generating income while enhancing its commercial and marketing operations Growth metrics become more defined, encompassing distinct areas such as Sales, Marketing, and Finance As administrative costs rise, the need for dedicated personnel to manage finance and legal matters increases The organization typically requires senior executives, like a COO, to alleviate the CEO's operational burdens Operations are further segmented into specific domains, including Human Resources and Operations Service management is executed by specialized sub-teams in Marketing, Sales, and R&D, aimed at refining product offerings in the market Additionally, Financial and Legal activities are best managed by specialized teams to ensure efficiency and compliance.
Following the C round, the company is entering a scaling phase in preparation for its initial public offering (IPO), which requires the hiring of an experienced CFO to facilitate this transition The finance department will evolve from an operational focus to a strategic role encompassing both Finance and Accounting As the firm grows, the need for additional senior executives becomes essential to effectively manage the expanding organization While HR issues may have been overlooked during early expansion, they now demand immediate attention Additionally, legal considerations, particularly regarding contracts and student protection laws, must be prioritized to ensure compliance and safeguard the company's interests.
Intellectual resources are crucial assets for the company, providing a competitive edge in the market Key components of these resources include the smart system for school buses, which encompasses a mobile application, a smart card module, onboard cameras, a monitoring station, and seamless communication between various subsystems.
Building a system from the outset allows for long-term use with minimal maintenance, making it beneficial for businesses to partner with specialized consulting firms for development and deployment These solution companies possess the expertise and experienced professionals necessary to expedite the product's completion while ensuring high quality, often surpassing the results of an in-house development team.
Once the system is operational, businesses must maintain their servers for data storage and system functionality Service providers like Google, Amazon, and Firebase offer competitive pricing and even first-year free trials for small-scale users, allowing businesses to capitalize on these offers to minimize initial investment costs As the business grows and generates revenue, the demand for increased connections and storage will lead to higher charges from service providers At this point, it may be prudent for the business to consider migrating to its own server.
Operational planning
An operations plan outlines the processes, personnel, and materials involved in a business's workflow, detailing daily operations and staff activities It illustrates the production line and how services are delivered to customers, ensuring a seamless operational flow (Ward, 2020)
The working hours at the company vary by team, as each department has distinct schedules tailored to the nature of their tasks and the specific needs of their internal or external customers.
For sales and customer service teams, the working time is from 6 AM to 8 PM to suit with the school's start - end time and parent's working time
The Sales team is dedicated to assisting customers who visit the office for transactions while actively seeking new clients through various channels, including social media and phone outreach Additionally, the Customer Support team operates around the clock, ensuring that customer concerns and issues are addressed promptly through the contact center.
The Coordination team oversees school bus operations from 6 AM to 6 PM, managing driver assignments, vehicle distribution, and monitoring each journey to promptly address any issues that arise.
The Technology team will oversee the inspection of automobiles and provide recommendations for maintenance or upgrades To ensure effective collaboration, their working hours must align with the Coordination team.
Departments such as operations, technical, marketing, human resources, and finance, which do not engage directly with external customers, operate during office hours from 8 AM to 4 PM These teams consistently carry out their daily tasks and report to their managers at the start of each day.
• Technology team working on maintaining the information system and support internal teams with issues related to network, computers, software and hardware
The Operations department develops comprehensive plans for the company over weeks, months, and years by utilizing advanced business intelligence techniques and tools They also assess reports from other departments and ensure the quality of both external services and internal products.
The Service department's teams, including Marketing and R&D, focus on market research and customer behavior analysis to effectively reach and satisfy more customers They actively engage with the market and customers through social media channels and communication platforms, enhancing interaction and understanding of customer needs.
The Finance team plays a crucial role in managing the organization's financial health by reviewing receipts, income, and expenses from all departments They handle financial requests related to departmental plans and ensure timely salary payments Additionally, the team collaborates with leadership to provide insights and guidance on business development and investment strategies.
The Legal team ensures compliance by drafting contracts between the business and its suppliers and customers, meticulously reviewing documents, and collaborating with various departments and leadership during the planning process.
The primary revenue source for the business is the operation of school buses, managed by the Coordination team Ensuring a seamless daily operation involves efficiently distributing drivers and vehicles while monitoring student arrivals.
Every morning at 6 AM, the Coordination and Technical teams conduct a thorough check of the smart systems and quality of each vehicle Simultaneously, another group within the Coordination team reviews and updates routes, assigning drivers accordingly This information is then updated in the parent's application, which displays the relevant license plate and driver details Drivers follow the established schedule to pick up students from their homes, with the outward journey processes illustrated in Figure 5.6 below.
Figure 5.6 Process of taking students from home to school
The mobile application displays the bus's location and estimated arrival time at each student's home, allowing parents and students to prepare accordingly Upon arrival, the app sends a notification, and the driver contacts parents if the student is not present at the pickup point As the student boards the bus, they check in with a smart card, while a camera captures their image This check-in time and image are instantly shared with parents through the app Throughout the journey, the bus's real-time location is available on the map, enabling parents to monitor their children's progress.
At the office, the Coordination team also follow up with the buses' status and journey
If a bus remains stationary for over 15 minutes, helpdesk staff will contact the driver to assess the situation and offer timely assistance Parents are notified of any issues through their application Upon arrival at school, students use their smart cards to check out, and the logged date, time, and images are sent to the parents' app, along with notifications, ensuring that the students' statuses are updated accordingly.
The return journey for students mirrors the process of their transfer to school, with the exception of a vehicle inspection conducted by the technical team The detailed procedures for the return trip are illustrated in Figure 5.7 below.
Figure 5.7 Process of taking students from school to home
CONCLUSIONS, LIMITATIONS AND FUTURE WORK
Conclusions
In Ho Chi Minh City, the high student population coupled with a significant number of accidents and daily traffic jams near schools highlights the critical need for improved student transportation This pressing social issue not only demands public attention but also creates both opportunities and challenges for the student transportation service industry.
To alleviate traffic congestion and enhance air quality, the government has proposed a school bus initiative to transport students, thereby reducing the influx of personal vehicles near schools The initiative aims for a gradual increase in the percentage of students using school buses, targeting 15% in 2020, 20.5% by 2025, and 29.3% in 2030 Additionally, the government has implemented regulations to support the financial and operational aspects of student transportation services This initiative capitalizes on the large student population, creating significant market opportunities for service providers.
In the service industry, prioritizing the quality of service and student safety is crucial for providers To uphold high standards, vehicles undergo regular inspections before student pickups and are maintained periodically Additionally, the management of student processes is automated to minimize human error and enhance safety.
Limitations
Due to the limit of researching time, this thesis contains limitations which should be recognized, considered, and improved in the future
This business plan focuses solely on the operational aspects, offering a limited view of the overall strategy, and does not include all the essential information typically found in a comprehensive startup business plan.
The data utilized in this thesis is primarily from 2021 and 2020, as the research was conducted in the first half of 2022 A significant limitation is that some studies conducted by the General Statistics Office of Vietnam occur only once every three to five years, resulting in potentially outdated information that may not accurately reflect current conditions.
This thesis is conducted amidst the Covid-19 pandemic, which has led to significant instability across various industries and society as a whole Consequently, the current status and scenarios surrounding this service are atypical As the world emerges from this global crisis, the dynamics of the environment will shift, rendering existing plans potentially unsuitable for future conditions.
Future work
As pointed out in the Limitations section, there are several items should be research further and continuously improved in the future
To successfully launch a startup, it is essential to develop a comprehensive business plan that encompasses a strategic plan, financial plan, and marketing plan This holistic approach allows founders and investors to thoroughly assess and evaluate every aspect of the business, ensuring a well-supported market entry.
To stay competitive, businesses must continuously gather data and swiftly analyze their current circumstances to adapt to changes in the external environment It is essential to research the post-pandemic landscape of global forces and update strategic plans accordingly.
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Để thu hút học sinh đi học bằng xe buýt, cần cải thiện chất lượng dịch vụ xe buýt và đảm bảo an toàn cho học sinh Việc cung cấp thông tin rõ ràng về lịch trình và tuyến đường xe buýt sẽ giúp phụ huynh yên tâm hơn Ngoài ra, các biện pháp khuyến khích như giảm giá vé cho học sinh cũng có thể tạo động lực cho các em sử dụng phương tiện công cộng Tăng cường giáo dục về lợi ích của việc đi xe buýt và bảo vệ môi trường cũng là một yếu tố quan trọng trong việc thay đổi thói quen di chuyển của học sinh.
Bài viết của Hàn N (2021) trên Sài Gòn Giải Phóng Online đề cập đến việc giảm thuế trước bạ đối với ô tô, trong bối cảnh lượng xe đăng ký tăng mạnh Thông tin này cho thấy sự gia tăng nhu cầu sở hữu xe hơi trong xã hội, đồng thời nêu bật những chính sách hỗ trợ từ chính phủ nhằm kích thích thị trường ô tô Các biện pháp này không chỉ giúp giảm bớt gánh nặng tài chính cho người tiêu dùng mà còn thúc đẩy sự phát triển kinh tế địa phương.
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In the face of increasing pressure on students in Ho Chi Minh City, educational institutions are adapting to meet the evolving demands of the academic landscape This shift highlights the importance of understanding external factors that influence educational success, as illustrated in the PESTEL analysis of the startup environment By examining political, economic, social, technological, environmental, and legal factors, stakeholders can better navigate challenges and enhance the educational experience for students.
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22, 2022, from https://laodong.vn/xa-hoi/tphcm-cam-xe-may-tu-nam-2030-dan-di-lai-bang- gi-658641.ldo
Nghị quyết 43/2022/QH15, ban hành vào ngày 11 tháng 1 năm 2022, tập trung vào các chính sách tài khóa nhằm phục hồi và phát triển kinh tế - xã hội Văn bản này được Thư viện Pháp luật cung cấp, đóng vai trò quan trọng trong việc hướng dẫn các biện pháp hỗ trợ cho nền kinh tế trong bối cảnh khó khăn Nghị quyết nhấn mạnh tầm quan trọng của việc triển khai các chính sách kịp thời và hiệu quả để thúc đẩy sự phát triển bền vững trong tương lai.
Hơn 21.000 học sinh tại TP.HCM đã đi học bằng xe đạp, giảm 8 lần so với 7 năm trước Sự thay đổi này phản ánh nỗ lực của thành phố trong việc khuyến khích học sinh sử dụng phương tiện giao thông xanh và bảo vệ môi trường.
Dịch vụ xe đưa đón học sinh đã trở thành một phần quan trọng trong cuộc sống của nhiều gia đình hiện nay Việc đưa đón con cái đến trường không chỉ giúp tiết kiệm thời gian mà còn đảm bảo an toàn cho trẻ Theo các chuyên gia, việc phụ huynh lựa chọn dịch vụ này không chỉ thể hiện sự quan tâm mà còn là một cách để tạo điều kiện cho trẻ phát triển tốt hơn trong môi trường học tập **Tầm quan trọng của dịch vụ đưa đón**Dịch vụ xe đưa đón học sinh không chỉ giúp phụ huynh yên tâm mà còn mang lại nhiều lợi ích cho trẻ em, như giảm thiểu áp lực và tạo thói quen tự lập Việc được đưa đón an toàn và đúng giờ sẽ giúp các em có thêm thời gian học tập và vui chơi **Kết luận**Với những lợi ích rõ rệt, dịch vụ xe đưa đón học sinh ngày càng được nhiều gia đình lựa chọn, tạo nên một xu hướng mới trong việc chăm sóc và giáo dục trẻ em.
Nội dung bài viết đề cập đến yêu cầu về tiêu chuẩn an toàn cho xe đưa đón học sinh Các phương tiện này cần đảm bảo các điều kiện nhất định để bảo vệ sự an toàn cho trẻ em trong quá trình di chuyển Việc tuân thủ các tiêu chuẩn này không chỉ giúp giảm thiểu rủi ro mà còn nâng cao chất lượng dịch vụ đưa đón học sinh Các cơ quan chức năng cần thường xuyên kiểm tra và giám sát để đảm bảo các xe đưa đón đều đạt yêu cầu an toàn.
Nguy n, T (2018, 6 16) N m h c m i 2018-2019 TPHCM t ng 60000 h c sinh Giáo D c Online Retieved January 2, 2022, from https://www.giaoduc.edu.vn/nam-hoc-moi-2018-2019- tphcm-tang-60000-hoc-sinh.htm
Ph m, N (2021, 4 29) Gojek, Be, Grab có bao nhiêu tài x t i Vi t Nam? 24h Retrieved March
15, 2022, https://www.24h.com.vn/cong-nghe-thong-tin/gojek-be-grab-dang-co-bao-nhieu- tai-xe-tai-viet-nam-c55a1247751.html
Ph m, T T (2019, 10 15) Xe đ a đón h c sinh c n chính sách đ c bi t VOV Giao Thông
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Porter, M E (1980) Techniques for analyzing industries and competitors New York: Competitive Strategy
Sở Khoa học và Công nghệ Thành phố Hồ Chí Minh đã thực hiện các hoạt động đổi mới sáng tạo trong lĩnh vực khoa học công nghệ theo hướng phát triển kinh tế số Những nỗ lực này nhằm nâng cao tiềm lực và khả năng cạnh tranh của thành phố trong bối cảnh chuyển đổi số toàn cầu Thông tin chi tiết có thể được tìm thấy tại trang web chính thức của sở.
Công bố kết luận điều tra vụ việc học sinh trường Gateway tử vong trên xe đưa đón đã được thực hiện bởi Thân, H và Danh, T vào ngày 16 tháng 12 năm 2019 Vụ việc này đã thu hút sự chú ý lớn từ dư luận và các cơ quan chức năng Kết luận điều tra nêu rõ nguyên nhân dẫn đến sự việc đau lòng và đề xuất các biện pháp nhằm đảm bảo an toàn cho học sinh trong tương lai Thông tin chi tiết có thể được tìm thấy trên trang Tuổi Trẻ Online.