Business Case for Traveller's Buddy App: Market and SWOT Analysis

This project analyzes a business case for a new travel application, 'Traveller's Buddy,' designed to assist solo travelers. The study employs the Business Model Canvas to explore customer segmentation, value proposition (including offline maps, currency conversion, and language support), channels, customer relationships, revenue streams, partnerships, resources, activities, and cost structure. It details customer and competitor analyses, 7 P's of marketing, major findings, barriers, and the product's potential for success. The SWOT analysis provides insights into the app's strengths, weaknesses, opportunities, and threats. The app aims to eliminate language barriers, provide economical travel solutions, and connect travelers with local experiences. The project highlights the app's features, including offline maps, currency conversion, and local transport information, and provides a detailed strategic plan for its launch and future development, including marketing and customer relationship management strategies. The project concludes with an assessment of the application's potential in the market and how it will be beneficial for the travellers.

Running Head: GUIDE: TRAVELLER’S BUDDY
Guide: Traveller’s Buddy
Name of the Student:
Name of the University:
Author Note:

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Executive Summary
The study focuses on the full analysis of a new application which is being launched in the market.
The study provides a detailed and clear idea regarding the application and its usefulness to the
travellers as well as to the people all around the world. It provides the idea how the application
works and what are the features present which will attract the consumer and turn the potential
customer into loyal ones. The SWOT analysis gives information about the company’s or more
precisely about the application success in the market. Lastly, the conclusion part will give a clear
idea about the successful campaign and how the product is going to work in the near future.

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Table of Contents
Introduction..........................................................................................................................................3
Business Model Canvas.......................................................................................................................3
Customer Segmentation...................................................................................................................3
Value Proposition............................................................................................................................4
Channels...........................................................................................................................................5
Customer Relationship.....................................................................................................................5
Revenue Stream...............................................................................................................................6
Partnerships......................................................................................................................................6
Resources.........................................................................................................................................7
Activities..........................................................................................................................................7
Cost Structure..................................................................................................................................8
Major Findings.................................................................................................................................9
Barriers.........................................................................................................................................9
Customer and Competitors’ Analysis........................................................................................10
7 P’s of Marketing.....................................................................................................................10
Success of the Product...............................................................................................................10
Conclusion.........................................................................................................................................11
References..........................................................................................................................................12
Appendix............................................................................................................................................14
SWOT Analysis.............................................................................................................................14

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Introduction
The app which is developed actually helps the travellers who loves to travel around the
world. Those who stuck while travelling to unknown places now get a companion to help them out
to locate places, helps them to know the value of money through converting so that they can be
economical so that they can spend what is required and also provide the information about the local
transport in user known language which can be understand by the end user. This automatically
eliminate the language barrier for the user. This is completely a new application in the market so
there is a chance of doing great in the market because now-a-days everyone possess the knowledge
of using smartphone apps even the small kids due to advancement in the technology.
Business Model Canvas
This is a strategic management concept for developing new as well as previous business
model to analyse various aspects of the business. It helps to understand customer segmentation,
value proposition and channels of the products or services (Joyce & Paquin, 2016). The elaboration
are as follows with respect to the application which is being developed.
Customer Segmentation
Customer segmentation helps to analyse the market and target consumers in terms of age,
gender and relationship along with relevance, location, interest, communication methods and
drivers. It provides a clear idea regarding the segmentation so that it become easy for the company
to segregate the market and can identify the potential user of the products and services
(Muhtaroğlu, Demir, Obalı & Girgin, 2013).
As per the theory, the application which is being developed it mainly targets the travellers
who likes to travel around the world. It targets all male and female of the age group from 18 to 25
years of age. The application mainly targets the upper class and middle class of the society as they
usually travels to different countries or different places and not the people below poverty level as

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they can hardly travel. The application also helps the traveller to segregate the transport in terms of
expensive and cheap. The application will also help the traveller to find out places near them
according to their hobbies, interest, religion as well as culture. This helps to segregate the market
from the basic level which will automatically attract the consumer to use this application which is
helpful to them in all aspect. Even the application provides offline map feature which is new in the
market as no other application provide this feature in them.
Value Proposition
Value proposition is a type of promise that the company does to the customer to provide
quality service to them which is equivalent to their money they pay to the company. In this part the
value can be calculated by subtracting cost from benefits (Osterwalder, Pigneur, Bernarda & Smith,
2014). The customer can become loyal customer to the company only if the company provide
proper benefits to them because it is important for the customer to get services from the product
they purchase from any company (Haas & Swan, 2014). To provide quality benefits to the
customer through market segmentation to be done and research work needs to be done so that the
company can identify where the competing company is lacking behind so that they can make that
their strong point to attract the customer (Whittaker, Montgomery & Acosta, 2015).
The application which is created will provide high value to the customer as it provide the
information about how local people are enjoying in their cities, it also helps the traveller to contact
with the locals and meet them to show you around their city so that the traveller can experience the
history as well. The solo traveller need not to be worried about the plan or tour book as the
application provide that feature to them. In case, if the traveller is unable to make any plan the
application itself will recommend one. The application not only give benefits only to the traveller it
also gives an opportunity to the host to show off their city’s famous places to the traveller which
will automatically enhance the value of their city. It also gives an opportunity to the traveller to
know about the present scenario of the city as customer are realistic in nature.

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Channels
Communication channel helps to spread the information about the product or service in the
market. A strong communication channel can attract the customer and helps the company to sustain
and grow in the market (Berger & Iyengar, 2013). The success of a particular company or brand
depends on the communication channel to some extent as it helps the company to get introduced in
the market and reach out to the customer in less possible time to make them aware of the
company’s existence and inform them (Kvan, West & Vera, 2015).
The application can be channelized through different media to make the customer aware
and inform them about the application which gives a proper guidance to the travellers who loves
travelling. The company can launch their product in different social media platform which is faster
mode of media in recent times. The product can be advertise in big hoardings, app store, YouTube
channels of popular YouTuber and different websites. Even the information can be circulated with
the help of word of mouth which is also considered as an effective mode of transferring
information. There are various barriers as the medium is not physical so there lies a chance of
tampering of information by different hackers which can affect the company. So, it is advisable to
maintain proper security every single time.
Customer Relationship
Customer relationship management enables the company to maintain an effective and
proper relation between the company and the customer. It helps to retain the existing customer and
turn the potential customer into a loyal customer (Khodakarami & Chan, 2014). Customer
relationship management helps the company to enhance their sales growth and to earn more and
more profit as the customer are involved in certain activities organized by the company such as
earning loyalty points or refers points which they can redeem in the future. This automatically
boosts the interest of the customer to become a loyal customer and also refer to their friends
(Tzokas, Kim, Akbar & Al-Dajani, 2015).

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The company structured a strong customer relationship management as the company will
keep the customer on a loop by providing them with discounts or loyalty points. The application is
useful to the customer as the application provide offline maps which is a unique feature in it as no
other company provide this feature where internet connection is not required. The company is
actually engaging the customer with locals who are willing to guide the travellers which
automatically is an additional advantage to the company. This is actually an effective way to retain
the customer and also to change the potential customer to loyal customer.
Revenue Stream
Revenue stream is the main source through which money is flowing in and out in the
business which support the company to run smoothly in the market. There are different types of
revenue stream which need to be considered by the company to set up the business in the market
(Saarikallio & Tyrväinen, 2014). There are four main types of revenue stream in corporate
company such as project revenue, transaction based revenue and recurring revenue along with
service revenue but on the other hand in government sector the main source of revenue stream is
taxes (Jayachandran, 2013).
The company can keep the revenue stream high by charging the advertisers who are
collaborating with the company. They can also charge the transport agency who are enlisting in the
application as the company will recommend them through their application. The company can also
charge minor membership from the customers as well from providing so much benefits. They can
also charge the tourists’ guides as it will keep the revenue stream in running condition. By
providing all this they can ultimately provide free application which will automatically attract the
customers to join the application especially those who are travellers.
Partnerships
Partnership is an agreement where a group with mutual interest and help each other to grow
and become successful in the market. The partners can be individual, interest based organization,

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schools, businesses, governments or combinations (Hahn & Gold, 2014). There are different forms
of partners such as general, limited and silent which can be followed by the company to run in the
market so that they can achieve success as an organization (Dijkman, Sprenkels, Peeters & Janssen,
2015).
In this case the partners are mainly follows silent partnership who do not have direct debt or
liabilities but share the amount of profit by providing constant support to the company. The main
partners of the company are namely hotels, hostels, restaurants, bars, pubs and other application
company who provide constant support to the company. They are recognized as silent partners just
because they do not share debts or liabilities which is mainly incurred by the main company but
share some amount of profit with the help of the main company.
Resources
Resources for business are those which are economic as well as productive in nature to
achieve an activity or desired outcome. Resources are essential to keep the flow of the organization
in running condition (Hahn & Gold, 2014). There are different types of resources which are
required by the organization namely land, capital and labour but there are other resources as well
which also plays a major role in the success of the organization (Noe, Hollenbeck, Gerhart &
Wright, 2017).
The resources in this case are investors, communication strategy to maintain an effective
communication with the customers, data which is collected to sustain in the market and make profit
out of it and websites analytics who will provide guidance and maintenance of the website.
Activities
Business activity are those which involve primary purpose to generate profit. There are
three types of activities such as operational, financing and investing. The activities should be given
importance as well to achieve the success of the company in the long-run. So, they need to maintain

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a proper balance between all the sections of the organization. This will ultimately help the
organization to grow and earn profit in the market (Achtenhagen, Melin & Naldi, 2013).
In this case, the activities can be identify as management, accounting and marketing. The
management will look after the managerial part of the company to manage all the other department.
The accounting department will look into the financial issues as well as legal aspect of the company
so that the money is not channelized to unwanted direction and should be properly channelized in
the right path. The marketing department will market the product in the market through different
channel so that large number of customer can be attracted and potential customer are converted to
loyal customer.
Cost Structure
The cost structure will provide the detailed information about the cost break-up of the
company who are providing the traveller a companion (Department of Industry, Innovation and
Science [AU], 2019). The cost structure are as follows:
Cost Up Cost ($) Equipment/Capital Costs Cost ($)
Registrations 495 Business purchase price 2500
Business name 35 Franchise fees -
Licences - Start-up capital 100000
Permits -
Domain names 504.51
Trademark/designs/patents 180 Computer equipment 500
Membership fees - Phones 250
Accountant fees 200
Internet connection 79
Computer software 50

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Training 250
Wages 8750
Public liability 800
Product liability 700
Workers compensation 250
Business assets 1000
Business revenue 10000
Stationery & office supplies 250
Marketing & advertising 5000
Total start-up costs 28543.51
Assumptions:
All figures are GST exclusive
Total equipment/capital costs 103250
Fig 1: Cost Structure
(Source: Created by Author)
Major Findings
This section gives a clear idea about the findings which is observed with the help of the
study. This includes barriers, customer and competitors’ analysis, 7P’s and likelihood of success of
the product when it enters the chosen market.
Barriers
There are certain barriers which need to be addressed properly so that the company can earn
profit in the long-run. There is a language barrier which need to be focused and addressed properly.
There is a physical barrier as the company is based only on a specific location and not around the
whole world.

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Customer and Competitors’ Analysis
The customers are especially teens and adults, even those who have the knowledge of using
smartphones as this is an application based company. The travellers are the main target audience as
the application is for the travellers.
There are no competitors as such as the product is unique in nature. There are other
innovative features which people do not get usually on one application.
7 P’s of Marketing
The 7P’s are product, price, place, promotion, packaging, positioning and people. The
product is unique in nature as it is innovative and new in the market. The price of the application is
free in the app store which will attract the customer in the long-run. The place of the company is
constant to one country but if the company gain success the company might expand. The
promotional work is done in different social media platform as well as hoarding and billboards. The
packaging can attract the customer as it helps the travellers to locate different places in different
countries. The application is positioned very efficiently as people love to travel and if they get this
kind of application which guide them it’s a cherry on the cake. Lastly, the people are the ultimate
user who will use this application to know about the local places and what fun thing is happening in
the local area. The satisfaction of the consumer is important for the company.
Success of the Product
There is a scope for the success of the product as the product is unique compare to the other
product and it is an application based product which provides an additional benefit to the company.
In recent times, the user of smartphones are high and that of user of application. So, it provides an
extra benefit to the company. The main thing which attracts the customer is that the application
provides assistance to the travellers and people loves to travel around the world. This will
automatically help in the success of the product and the company.

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Conclusion
In the end, it can be concluded that the application which is made is useful and innovative in
nature and mostly useful for the travellers’ who likes to travel around the globe. The travellers who
loves to travel all alone the application gives them a helping hand by providing all the essential
information about the same. The company targeted those who are young and can use smartphones
and in recent times each and every person knows how to use smart phone. There are advantages as
well for the user to know about the local events and it also gives an opportunity to the local people
to participate and guide the travellers to show case their towns famous places. The application also
helps in converting the currency which give the travellers an idea about the difference so that they
can plan their next destination economically. Lastly, it can be said that this application will reach
great heights in the near future.

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References
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design more
sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Muhtaroğlu, F. C. P., Demir, S., Obalı, M., & Girgin, C. (2013, October). Business model canvas
perspective on big data applications. In 2013 IEEE International Conference on Big Data (pp. 32-
37). IEEE.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How to
create products and services customers want. John Wiley & Sons.
Haas, S. A., & Swan, B. A. (2014). Developing the value proposition for registered nurse care
coordination and transition management role in ambulatory care settings. Nursing
economic$, 32(2).
Whittaker, J. A., Montgomery, B. L., & Acosta, V. G. M. (2015). Retention of underrepresented
minority faculty: Strategic initiatives for institutional value proposition based on perspectives from
a range of academic institutions. Journal of Undergraduate Neuroscience Education, 13(3), A136.
Berger, J., & Iyengar, R. (2013). Communication channels and word of mouth: How the medium
shapes the message. Journal of consumer research, 40(3), 567-579.
Kvan, T., West, R., & Vera, A. H. (2015). Tools and channels of communication: Dealing with the
effects of computer mediation on design communication.
Khodakarami, F., & Chan, Y. E. (2014). Exploring the role of customer relationship management
(CRM) systems in customer knowledge creation. Information & Management, 51(1), 27-42.
Tzokas, N., Kim, Y. A., Akbar, H., & Al-Dajani, H. (2015). Absorptive capacity and performance:
The role of customer relationship and technological capabilities in high-tech SMEs. Industrial
Marketing Management, 47, 134-142.

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Saarikallio, M., & Tyrväinen, P. (2014, June). Following the Money: Revenue Stream Constituents
in Case of Within-firm Variation. In International Conference of Software Business(pp. 88-99).
Springer, Cham.
Jayachandran, S. (2013). Liquidity constraints and deforestation: The limitations of payments for
ecosystem services. American Economic Review, 103(3), 309-13.
Hahn, R., & Gold, S. (2014). Resources and governance in “base of the pyramid”-partnerships:
Assessing collaborations between businesses and non-business actors. Journal of Business
Research, 67(7), 1321-1333.
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the Internet
of Things. International Journal of Information Management, 35(6), 672-678.
Hahn, R., & Gold, S. (2014). Resources and governance in “base of the pyramid”-partnerships:
Assessing collaborations between businesses and non-business actors. Journal of Business
Research, 67(7), 1321-1333.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management:
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Department of Industry, Innovation and Science [AU]. (2019). Start up costing of your business.
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business-plan/start-up-costing-of-your-business

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Appendix
SWOT Analysis
Strength Weakness
 The application is innovative and new
in the market.
 The target group is young and
travellers.
 The feature attracts the customer as
well as the investors due to its
uniqueness.
 The application only provides
information which might vary as per
present situation and circumstances of
the country.
Opportunity Threats
 There is a wide opportunity for the
company to grow and achieve success
in the market as the idea is unique.
 There is chance of earning high profits.
 There lies a scope of monopoly market
which the company can enjoy.
 There lies the threat of hacking as this
is an online application.
 If the product is not accepted by the
consumer then the company may suffer
huge loss as this is a start-up.