Developing Deliverable Strategies – Trams Study 2

More on the tram company pre-work for the strategy course.

Having identified one option fairly quickly by applying constraints thinking, I went on to use the [bliki]PARTS analysis[/bliki]:

Players

Using the [bliki]value net[/bliki] approach, who are the various players, and what do we know about them?

ValueNet Biddiford Trams

Customers

The customers fall into two groups:

  • The local residents

    We know that they are price-sensitive, and regard the trip to Old Orchard Bay as only one option competing for their leisure time and spend.

  • Peak-season tourists

    We are told that they regard the tram ride as a key feature of their visit and the fare is immaterial.

Combining these two factors gave rise to the seasonally-adjusted pricing strategy.

Suppliers

The only suppliers mentioned are:

  • The contracted-out tram maintenance company.

    They are only mentioned in passing, so it is presumed they do a reasonable job.

  • The staff who work for the tram company.

    It’s noted that the staff are on flexible contracts, and that there may be an opportunity to reduce staffing by making the driver role multi-functional. Training new drivers only takes 2-3 hours so it may be reasonable to assume that finding replacements for any who leave is relatively easy. So a later part of the strategy could be to reduce costs by introducing multi-skilling

Substitutors

There don’t appear to be any – the case study describes the tram company as having an effective monopoly on transport to Old Orchard Bay. A broader consideration, however, would be to consider the tram ride as an entertainment experience, therefore the Substitutors would be competing sources of entertainment that do not require the customers to take a tram ride – e.g. the attractions in Biddiford itself.

Complementors

The most obvious Complementors are the companies providing entertainment in Old Orchard bay, e.g. the bars and restaurants. They need the tram service to deliver their customers; the tram service needs them, to some extent, to create a demand for travel to the Bay. There may be demand stimulation strategies that are based on co-operation with Collaborators. Going further and considering how to stimulate competition amongst the Collaborators, there may be a way to exploit some kind of preferential relationship.

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Julian Elve
Proactive application of technology to business

My interests include technology, personal knowledge management, social change

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