1. Threat of entry
For online motorcycle taxi, the threat of entry is high. There are some reasons which gives evidence to this reason: * There are many new online ojek :
Online ojek owners need to think more as there are more numbers of non – Argo metered ojek and offline Argo metered ojek. Even though the ojek made new and better innovation, its competitors also made new and better innovation which made online ojek get pressured. This lead to high threat of entry as there is high competition among the ojek industry and better innovation from its competitors. * The best online ojek application :
Online ojek compete among each other to make a simple, comfortable and good – featured application for their customers. As this happens, the online ojek owners need to make more creative and innovative application than the application which occurs now. The online ojek owners in this case need to make application with complete and unique features to make the consumers convenient, such as not only to order ojek, but also use for other services like delivering food and drink, ordering ticket, even until buying hand phone voucher or even token for electricity. This leads to high threat of entry as the ojek owner need to make more unique and more innovative application which many people like due to its easiness to access its complete feature.
2. Threat of substitutes
Similar to the first one, the threat of substitute is also high. These are some reasons which gives evidence to this reason: * Public transport:
Public transport, like Taxi, Trans Jogja, Angkot (Kobutri, Aspada, Kopata, etc.) substitute online ojek. Trans Jogja and Angkot uses cheap progressive payment (payment which is paid on one full journey with the same amount of money without adding it on every kilometers with very cheap price) while taxi uses Argo meter for its payment. As this happens, ojek owners need to think at what kilometers the ojek should uses a progressive charge and above how many kilometers should they turn on the Argo meter, which leads to a high threat of substitutes for online ojek industry. * Automotive dealers:
Automotive dealer can harm the online ojek. As there are some motorcycle and car dealers which give the customers promotion to buy them at cheaper price, people start to leave the public vehicle and starts to buy private vehicles. As customers continue to buy more private vehicles, online ojek will be threatened, which leads to a substitute threat for online ojek industry.
3. Bargaining power of suppliers * Helm and jacket:
Online ojek drivers in their work need helm and jacket. However, helm and jacket which is used by online ojek driver have their own label. So that, only certain companies which only can make that helm or jacket or can be called the main producers. In this case the bargaining power of suppliers is high. * Gasoline:
In their duties, online ojek driver must buy gasoline as fuel. In this case, pertamina as the main gasoline supplier in Indonesia is benefited. So that, the bargaining power of suppliers is high. * Insurance:
Online ojek has an insurance. Online ojek users can get an insurance in case of accident. The process is when online ojek users must pay insurance fee indirectly in online ojek fare. In this case, online ojek cooperate with insurance company. So, when online ojek increasingly in demand then the insurance company will also increasingly benefit. * Download application:
At the time of the transaction, online ojek make an application for facilitating users to transact. Online ojek users should not be bothered to call headquarters of online ojek but only use that application to book an online ojek with using global positioning system.
In that application, we can not only order online ojek but can also use online ojek application to order food, buying tickets and massage services. In this case, bargaining power of suppliers is high because this application can only be made by professional person.
4. Bargaining power of buyer * Creative promotion:
There are many online ojek can make online ojek each other competing. They compete with reducing the price or give a creative promotion like Rp 15.000 go anywhere or only Rp 2.000 per km. It makes online ojek users have their own choose what kind of online ojek they will choose. So that, the bargaining power of buyer is high. * Criminality:
There are many criminality in public transport. It makes public transport user thinking twice what kind of transportation they will choose. In this case public transport users have lots of choices like Trans Jogja, Taxi, Becak. So that, the bargaining power of buyes is high.
