ATB: Digital Disruption in the Parking Meter Industry Harvard Case Solution & Analysis

ATB: Digital Disruption in the Parking Meter Industry Case Study Solution

Introducing New Service Application:

Second alternative is related to the introduction of new service application that will provide the map of the parking lots in parking meter that highlights the vacant areas. This will help in identifying the vacant areas, which will save the time of drivers. Furthermore, it will be secure and free from all the security concerns, because it would not provide the direct access to parking lots through CCTV cameras,whose access might create severe security issues in future.

Pros:

There are some positive elements of introducing new service application that can improve its image against the mobile parking services in terms of sales and loyalty. Some important elements are described below:

1. This new service application starter removes the security concerns of customers that are more in mobile parking service.
2. The introduction of new service application provides an opportunity to penetrate the market besides hitting the new target market.
3. This new introduction of service application will increase the customer loyalty and trust on the company.

Cons:

The introduction of new service application involves the sudden change in the product and its performance that will in a result, lead to some issues which are described below:

1. In order to get success, introduction of new service application might affect the demand of the parking meter and would require huge amount to be invested in it.
2. The introduction of new application might cause the negative word of mouth in the parking market related to the fight between two customer groups such as loyal customer of ATB’s product parking meter and loyal customers of mobile parking providers.

Recommendations:

After the detailed analysis of quantitative and qualitative factors of two alternatives, it has been recommended to ATB to go for the introduction of new service application, because the net present value (NPV) driven from this alternative is more than the another one, which states that the parking meter’s brand repositioning is good one.

Exhibit 1 shows the Net Present Value (NPV) driven from the alternate 1, which is about 25,191 Euros at the discount rate of 10%. It shows the internal rate of return is 13% from alternative 1.

Exhibit 2 shows the Net Present Value (NPV) driven from alternate 2, which is about 31,260 Euros at the discount rate of 10%. It shows the internal rate of return is 13% from alternative 2.

Exhibit 1: NPV and IRR from Brand Repositioning Strategy

Exhibit 2: NPV and IRR from New Introducing Service Application

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