Business

Octopus Limited is a Chinese holding company headquartered in Hong Kong, jointly owned by 5 major transportation firms. It was established in 1994 under the identity of Creative Star. In 2002, the name was changed to Octopus Cards Limited. This was prompted by business growth of the octopus cards (Beiske el al., 2003). In 2005 Octopus Limited was formed following company restructuring process and Octopus Card Limited became a fully owned subsidiary of the novel company. Octopus Limited provides both products and services. Its major services include transportation, retail, and banking services, while its major products are octopus watches, cards, and transponders.  The company has employed a considerable number of workers both in product and service programs. Besides, it enjoys international reputation, as its among the leading companies with extensive contactless smartcard system, with the uppermost transaction volume and largest scope of application (Beiske el al., 2003).

SWOT Analysis of Octopus Limited
One of the strengths of Octopus Limited is the focus on the coin free payment system. This system provides clients hassle free and an easy way to travel, dine, and shop around Hong Kong by having an in-built microchip in the card that electronically stores money. The clients only need to wave their octopus cards over an octopus reader, and the correct amount of money will be automatically deducted from the cards. With this system, users no longer require to carry coins. Besides, octopus cards and genetics watches can be widely utilized in more than 160 dissimilar organizations comprising public transport, self service, retail, parking exhibitions, school campuses, recreational facilities, and access control (Beiske el al., 2003). Strategic partnership strengthens this company. Octopus has several strategic partnerships with fast food chains, transport companies, as well as retail outlets. It also considers loyalty programs, such as assisting business partners to conduct a range of loyalty programs in which card users can collect reward points any time they utilize their cards, thereby redeeming gifts or enjoying discounted services.

The company has got various weaknesses, ranging from limited technology, limited venues to add cash, and lack of protected password to limited octopus usage. Octopus technology is mainly based on watch or card and thus, limited to smartcard technology. Due to this card users are forced to either carry watches or cards in order to make any transactions. Additionally, the cost of switching to other methods of payments or transactions is very low, thereby making the company to lose considerable number of customers to other services offered by its competitors. Lack of pin or password protection is yet another setback of octopus contactless cards (Beiske el al., 2003). This is a momentous weakness, because if a card gets lost anyone who picks it is capable of making a transaction. Besides the weaknesses, the company encompasses various opportunities to flourish in the industry. Octopus is on the move to make sure that cards acquire the maximum security by incorporating pin and password protection in order to assure its customers about the safety of their cards. It is as well expanding on technology to allow the cards be used in smartcard technology. The major threats of the company are banking institutions that offer similar electronic payment services as well as established retail companies. However, due to multi purpose nature of the companys products along with reliable services offered, customer loyalty is still achieved regardless of intensive competition in the industry (Beiske el al., 2003).

Why Octopus Is so Competitive from Market View Point
Hong Kong competitive advantages in the software industry lie in sturdy business knowledge as well as industry expertise. Promotion programs are among the strategies Octopus Limited is capitalizing on to survive in the highly competitive, innovative, and complicated business environment. The company has a promotion program called Octopus Automatic Add Value Service (AAVS). The program includes application offer where cardholders who apply successfully for AAVS through the companys credit card at the very first time enjoy 5000 bonus points reward or HK20 cash rebates (Octopus Limited, 2007). Besides, successfully applicants of AAVS during promotion period are entitled to more fabulous NICI Umbrella (original price HK  59) or NICI Cup (original price HK59). In addition, the company has got a number of promotions in its retail segment and this is directed towards customer retention. For instance, one of the latest retail promotions of Octopus is Loletta Beauty and Nails Face special treatment package that includes facial, neck, and eye treatment. The original price for this service is HK 1680, but due to promotion any customer demanding this service can only pay HK  1200 (Octopus Limited, 2007).

Why Octopus Is so Competitive from Operation Point of View
As competitive advantage becomes so significant in todays business, several companies are seeking technological innovation in attempt to add value to their products for anticipated competitiveness. Octopus Limited is not exceptional. Genetics watches remain iconic example of the innovative application of this companys technology (RFID Journal, 2007). This product is designed in a unique and exceptional way and thus brings new meaning to dual function. These watches not only tell time, but they can be used by clients to perform all the tasks of everyday octopus as well. Besides, these extraordinary genetics accessories and watches have proved popular with male, female, as well as all age groups.

Apart from magical genetics watches, there is octopus mini card that is just 13 the size of standard octopus card. This mini octopus card is a major breakthrough design containing all functions of the standard sized version. It is compact, trendy, and convenient to clients. It has a key chain which can be attached anywhere the client finds convenient, for example on mobile phone strap, wallet, hand bag, or on brief case (Sieberg, 2006). The Octopus Limited Company has incorporated a company logo on this mini octopus card as one way of building brand awareness, enhancing customer relationships, promoting products, and exploring novel business opportunities. Therefore, mini octopus card design is one of the superb examples of Hong Kong high technological capability and this has enabled the company to achieve competitive advantage within and outside China (Price Water House Coopers, 2007).  Furthermore, to satisfy the needs of different clients, Octopus Limited, together with other business partners, provides a broad variety of products that are embedded with Octopus transponders. The transponders products are designed not only to function as ordinary octopus cards, but they can be transformed into various practical and innovative products. The successful example of this product includes octopus phone straps that are well received in the target market.

Octopus Limited, in collaboration with its business partners has developed the ability to export their successful experience in Hong Kong to other nations of the world. The company believes that its technology and expertise can create an optimistic impact on any community which is committed to utilizing smart card technology in an ever mounting array of innovative solutions and applications. Octopus is assisting other countries, such as Netherlands and Dubai in utilizing such technology in developing, implementing, and subsequently operating a smart card system similar to theirs. To increase on their geographical concentration, in 2003, Octopus commissioned to develop the core back office for a dual purpose contactless smart card system for Netherlands public transport system. The card that is called the OV-chipkaart is currently used for travel on trams, trains, and buses nationwide. This OV-chipkaart card was wholly launched in Rotterdam in 2007, and this eliminated the need for paper tickets on the Metro (Octopus Limited, 2007). Octopus is determined to cover the entire Netherlands with this technology and thus, making everyday an easy day for Dutch people. Moreover, in 2009 the company rolled out an electronic pay as you go fare system in Dubai, with a novel payment cards called Nol cards. When fully implemented, the cards will provide a number of features comprising a loyalty programs and an auto reload capability.

Octopus Limited offers several services, such as transportation, banking, and retail services. It therefore attracts many customers due to diversity and quality of services it provides to them. As earlier said octopus cards are multi functional and can be utilized by customers in other companys services mentioned above (Octopus Limited, 2007). In addition, one need to trust in the quality of products and services offered by this company because they are of high standard and subscribe to both domestic and international requirements. The services offered by Octopus Limited are quite reliable, stable, affordable, and are directed towards customers satisfaction. The company believes in innovation as the cornerstone of its business development in both products and services and thus, quality can not be compromised at any given moment (Octopus Limited, 2007).

The customer service department for this company is timely and efficient in responding to customers complaints.  For example when a customers personalised octopus gets lost, he or she is able to report using hotline on 22662266 at any time of the day (Octopus Limited, 2007). The customer care service will respond by blocking further use of the octopus as well as making refund arrangements to the customer. The hotline is used by customers when reporting malfunctioning octopus, updating contact details, and checking balances. This makes the department to be a darling of customers and thus, building customer loyalty for the company.