Octopus card limitation for small business and Large coporation

Topics: Economics, Hong Kong, Sole proprietorship Pages: 3 (518 words) Published: February 26, 2014
Octopus card

Small family run groceries, vegetable stores
Big well-known clothing or departmental stores, e.g. Sogo
1.Cost of setting up in using Octopus

Generally small profit margin and low value-added business, painful for them as setting up Octopus raises extra cost.(hundreds monthly rent)The works or the owners are usually with low skill and education level, time cost and money cost may increases when they go learning of how to serve using Octopus machines and networks. It’s possible.

2.Transaction quantities/ volumes

Large transaction quantities each day with really low absolute amount earned for each transactions and low profit margin. Painful for them since Octopus charges handling charge for each transactions ) It’s possible.

3.Long term goal (over 5-10 years)

Mainly sole proprietorship and partnership, the business may relatively last shorter than operations. Any family changes or health problem of the owner(s) may affect and even stop the continue running of the business, thus long term goal may not developed. Octopus card may be unnecessary in short run concern. It’s possible.

4.Money amount of each transaction

It’s possible.
Maximum transaction amount for each trade is $1035 using octopus card. Inconvenient for target customers when paying for large amount and usually people get less than $500 credits in Octopus card. Replaced by credit card. 5.Other factors

N/A
Marketing strategies for international corporations may not mainly focus on local residents, but travelers and mainland visitors in Hong Kong who usually not got Octopus card in hand. It is too much for them to set up Octopus network.

Octopus card

Small family run groceries, vegetable stores
Big well-known clothing or departmental stores, e.g. Sogo
1.Cost of setting up in using Octopus

Generally small profit margin and low value-added business, painful for them as setting up Octopus raises extra cost.(hundreds monthly rent)The works or the owners are...
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