• Rivalry among competing firms

BICITY will operate in some of the busiest transmilenio stations by the Bogota's population, to go there the people use conventional means of transportation and alternative means such as bicycles, bicitaxi and vans or private cars. The great demand for transportation to these stations and little service offering creates a great opportunity for entry the industry. The bicitaxis have the greatest market share, they provide long distances in less time at moderate, easy money to take on the station to their final destination but not vice versa. While using vans or private cars, often operating illegally, provides transportation at low prices peaking from some point to transmilenio stations. Finally the use of a bicycle provides the user to take long distances in a short time exercising at a moderate price.

 

 

• Bargaining power of suppliers

The relationship between price-quality should also add elements such as the cost of negotiation and responsiveness when choosing the supplier. It's really important to have a strategic alliance with suppliers, because the bikes are a fundamental part of our business, the acquisition of these bikes or parts for maintenance should be as fast and flexible as possible.

The market offers a variety of designs mechanical types and brands of bicycles and electric bicycles, which means that there are a variety of suppliers for our business also worth noting that few substitute commodities are in business.

Also we find a wide range of providers all sorts of implements and tools for running the business; these can be achieved at a great price at any time.

On the other hand, the supplier that provides us the lot to operate, have much influence in our business, because the scarce and expensive offer of terrain near transmilenio stations. It is critical to have good relationships with this supplier to operate; otherwise our permanence in the industry will be in danger.

 

 

Potential Development of Substitute Products

Piratical public service: This method lends itself usually in tour or scholar buses, in particular public service vans and taxis that are located in places where the supply of legal public transport fails. The 'pirate' transport also includes the called ‘mototaxismo’. The ‘Bicitaxis’, other service not recognized by the Ministry of Transport , appear in areas such as Tintal , Patio Bonito, Hayuelos , Suba and Bosa. Their drivers staged several protests ago in search of legalizing service shortly. Bogotá is estimated that there are about 3,200 of these vehicles.

This represents a major threat to our industry as they provide a means of transportation that can replace ours and despite being illegal, people opt for it because of their low costs.

 

El Tiempo. (2009, Mayo 10). Bogotá, sitiada por el transporte 'pirata'; EL TIEMPO revela los puntos donde más se presenta.

 

Potential Entry of New Competitors

In recent years there has been a considerable increase in the use of bicycles, with an increasing trend, becoming a formal transportation alternative for daily mobility.

For this we have created spaces that help cyclists to leave their bikes in safe places and also connect directly to the TransMilenio system. These spaces are called 'Cicloparqueaderos'.

Currently, this service is offered in geographical locations different from the focus of our industry, however, the continued growth of the industry poses a threat because they could locate ‘Cicloparqueaderos’ close to our area of influence, and this would be bad because it is a service free to the public.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SITP. (2015, Febrero 22). Cicloparqueaderos. Bogotá, Cundinamarca, Colombia.

 

 

Bargaining Power of Consumers

Bargaining power of consumers in transport industry is really high, due to the service is standard and undifferentiated, its focused on solving a necessity more than in innovations or creativity, so the consumers can inexpensively switch to competing brands or substitutes which represents a major threat for our industry. Furthermore, they have enough information about seller’s services, prices and costs.