24A – Venture Concept No. 1

Venture Concept Write-Up:

Opportunity:

A giant need exists in metropolitan areas with no adequate public transportation methods. The people of these large areas are either forced to drive a car and sit in traffic, or ride a bus and sit in traffic. In major cities we have seen metros and other train transportation methods be built and thrive. Potential customers would include people who can’t afford a car, or simply have to travel distances that would make more sense to use this new product. In large areas, there are more and more people crowding roadways which is causing it harder and harder to get around. In L.A. alone, drivers are forced to wait in traffic for hours to only go short distances. The market exists in large metropolitan areas that do not have any real public tram systems. Tampa, and Los Angeles are a few cities that come to mind when that is said. People are also on a budget would be interested as this would be a much more cost effective way to travel around their city. Current customers do not have many options when it comes to getting around other than the bus and car, therefore they are forced to not only settle but do not have any other choice. There is a large opportunity because population will continue to grow and traffic will continue to become more abundant. I believe the window of opportunity will remain open until somebody fills it. Like I mentioned, everybody is looking for a better way to get places will it being more time efficient. The goal for everybody is to connect the city and make the time of travel shorter. While doing all of this for a more cost efficient price. This need will stay open until somebody plugs to hole, which I plan to do. 

Innovation:

The innovation that I would like to address is an overhaul of the public transportation in Los Angeles County, specifically the major cities of Burbank, Glendale, Hollywood, Los Angeles, Downtown L.A., Sherman Oaks, Pasadena, and Santa Clarita. This innovation is long overdue and would provide a great service to the community, and the city. It also has the potential to generate large amounts of revenue. Everyone has heard about how bad Los Angeles traffic is. It has almost become a legend that has been spread to visitors. Having been to Los Angeles and experienced this traffic first-hand, I realized that something had to change and that this was unacceptable for such a major U.S. city. It has almost no means of public transportation, and the transportation that is there is old and inefficient. For these reasons I would like to create a subway system throughout the cities that people would be able to use to get to almost any location they desire. Los Angeles’ current subway system is old and run down. It also is very limited in the place that it can take you. This overhaul of the subway system would provide transportation for those that can’t afford to owner a car, and it would also create a faster means of travel as opposed to sitting in three hours of rush hour traffic. We would follow a similar payment plan to that used in New York City and their subway system. We would charge $2.75 for a single ride. We would also offer seven day passed for $32 and thirty day passes for $121. This should provide large amounts of revenue as there is a massive need for a subway system in Los Angeles. There would be a quick overhaul of how people travel in the county and the project would quickly flourish.

 Venture Concept:

This product is something that everybody needs. It will benefit the communities as a whole and will add a lot of new ways to get around. The reason customers will buy this is because it is more efficient and less expensive then what they are currently doing to transport in their city. In my idea, we would upgrade/build an entire new rail system which allows for the residents to get around faster. For most of the customers they would have not had this option in the past so they will be more inclined to try the new system since it has had so much success in other markets. I think we will battle with them trying to get out of their daily routine. Most customers have a way they have done things for many years so it may be tough, but once they see how efficient it is, I believe we will have them hooked. Location and price is everything for this business. We need to be able to connect the entire city and still keep it at a low cost. The good thing is we do not have to hire a bunch of employees. We will continue to have to keep up the train’s condition and handle any maintenance issues that arise. We will start in a few cities, and look to expand into other markets. The ultimate goal is to provide every city with this system. We would have to hire some workers to man the phones in case of customer support but the system would run pretty self-dependent. Each person would have a card that can be recharged, which would allow them to just swipe and ride. This system is used in many different markets and I can recreate and market it to these new markets.