“Quicklook” Assessment of Greater Adelaide's Assets & Challenges ...

Entrepreneurial Infrastructure
• In place overseas but not established locally
Issues
• False start with Tellstra
• Can’t build business case with Smart Card to make it return required investment
dollars
Perceived Life Cycle Status
• Perceived by public sector as embryonic life cycle stage
Porter’s 5 Forces
Rivalry – Moderate to High
• Two to three dominate technologies
• Slow market growth and acceptance
• High asset costs
• High switching costs
• Low level of product differentiation at consumer level
• High strategic stakes for market share
• High exit barriers
• Potential issues with cultural barriers
Substitutes – High
• Cash
• Credit cards
Buyer Power - High
• High because of few buyers (gov’t)
Supplier Power – High
• Switching costs are high for single source readers
Barriers to Entry / Exit - High
• Non standard adoption by other states
• Card reader specificity
• High start-up costs for readers
• High exit barrier because of required asset investment
Things to Consider
Must resolve the card reader issues
• High initial cost and potentially costly exit barriers
• Single use of reader
• Single platform capabilities of reader.
• Security to protect privacy information from getting into wrong hands
Interview Notes
Reasons for the Smart Card
• Public transport ticketing – 16 different operators of public transport are now
present
COMMERCIAL IN CONFIDENCE
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