SEAT 'Minimo' in Melbourne

This document discusses the competitive environment of the car sharing industry in Melbourne using Porter's Five Forces model. It also explores SEAT's internal value-adding activities using the value chain model and evaluates the modes of entry for launching the 'Minimo' in Melbourne. The document provides recommendations for the most suitable mode of entry for SEAT.

SEAT ‘Minimo’ in
Melbourne

Table of content
Porter’s Five Forces model to analyze competitive environment of the car sharing industry in
Melbourne....................................................................................................................................2
REFERENCES................................................................................................................................4
Books and Journals:.....................................................................................................................4
Application of Value chain Model to identify which of SEAT’s internal value-adding activities
will be most relevant in supporting SEAT to launch the ‘Minimό’ in Melbourne......................4
REFERENCES................................................................................................................................6
Books and Journals:.....................................................................................................................6
Evaluation of modes of entry that are appropriate to SEAT and recommend the most suitable
mode of entry that will enable the product launch of the ‘Minimό’ to be a success for the
company.......................................................................................................................................6
REFERENCES................................................................................................................................8
Books and Journals:.....................................................................................................................8
Critical reflection on the SEAT ‘Minimό’ and how it represents an example of creating shared
value (CSV).................................................................................................................................8
REFERENCES................................................................................................................................9
Books and Journals:.....................................................................................................................9

Porter’s Five Forces model to analyze competitive environment of the car sharing industry in
Melbourne.
Porter’s Five Forces model is a strategic tool which is used to analyze the business environment.
According to Michael Porter, the competition in the environment can be evaluated with the help
of five forces that are threat of new entrants, bargaining power of supplier, bargaining power of
buyer, threat of substitutes and competitive rivalry. Melbourne is the capital of Australia and is a
most popular state of Australia(Das, 2020). Melbourne is one of the rapid growing cities in the
world which led to increase in demand of transportation in that country. The analysis of
competitive environment in Melbourne of car sharing industry is described below:
Threat of new Entrants – Threat of new entrants refers to the situation when there are hign
chances of establishing new organizations in the industry. As the car sharing industry is rapid
growing industry now a days, so many companies wants to enter in the car sharing industry. The
entry in this industry is easy as there are less barriers to enter in the market. In Melbourne city
there are less barriers for the car sharing industry which encourage more and more companies to
enter in the market. Hence there is a high threat of new entrants in the car sharing industry.
Threat of Substitute products – Substitute products are those products which can be used
instead of a product. Car sharing industry has several substitutes in the market such as auto-
rickshaw and Taxis which are available in the open market to travel here and there in the
market(Michelle and Wijaya, 2020). But the customer feel more safe to use car sharing industry
and has a less threat of substitute products in the market.
Bargaining power of supplier – Bargaining power of supplier refers to the situation where the
supplier have the power to get more and more profit for a product which can please sold at low
rates. the supplier gets this power in certain circumstances where there are less number of
suppliers in the market. In this case the suppliers get where to sell their products at their own
rates no matter how less the product costs. In car sharing industry so many people are not
interested to give their vehicles to the sharing industry as they are concerned about their vehicles.
This shows less supply of cabs to the organisation which increased the bargaining power of
suppliers. Also Melbourne is a busy city and required number of cabs or other services provided
by car sharing industry. Hence, bargaining power of supplier is high in case of car sharing
industry in the city like Melbourne(Mishra and Tripathi, 2020).
Bargaining power of buyer - According to Michael E. Porter, when buyers in the market are
powerful in that case the prophets are generally low. Power of the bio result to know prices or
increase cost of product as it will lead to add more features quantity and service to attract more
and more customers to the product and services. Factors which influence the bargaining power of
buyers are switching cost of supplier, differentiation of product, availability of information of
buyer and power of distribution channels(HALİFE, 2020). Is factors have a great influence on
the bargaining power of buyers for customers in the market in case of car sharing industry bios

generally medium type of bargaining power in country like Melbourne as there is high need of
car sharing services also there is high crowd the public transport. All the company of car sharing
at low prices then it will increase the demand of the car sharing industry in the country.
Competitive Rivalry – Competition Rivalry are the organization which are operating in the high
competition with the organization in question(Lahouel, Bruna and Zaied, 2020). In this case
where the whole car sharing industry has been considered it is observed that the industry has not
that much competitive rivalry in the market.
From all the above discussion it is clear that the car sharing industry has a moderate competition
in Melbourne and a new organization has high chances to grow in this country. Because of the
suffering of public transport system in Melbourne the use of private vehicles has been increasing
on a rapid pace which arise a main concern of pollution. Organization in Car sharing has a high
scope to sustain in this case.
REFERENCES
Books and Journals:
Das, B., 2020. An Analysis of Strategic market positioning of Bangladesh Hotel and Hospitality
Management: A study on The Palace Luxury Resort.
HALİFE, H., 2020. Analysis Of Competitiveness of Turkish Textile Sector Based on The
Porter’s Diamond Model. Stratejik Yönetim Araştırmaları Dergisi, 3(1), pp.27-49.
Lahouel, B.B., Bruna, M.G. and Zaied, Y.B., 2020. The curvilinear relationship between
environmental performance and financial performance: An investigation of listed french
firms using panel smooth transition model. Finance Research Letters, 35, p.101455.
Michelle, O. and Wijaya, A.F., 2020. Strategic Planning for IS/IT Using Ward and Peppard at
Maman Elektronik Sokaraja. INTENSIF: Jurnal Ilmiah Penelitian dan Penerapan
Teknologi Sistem Informasi, 4(2), pp.272-282.
Mishra, S. and Tripathi, A.R., 2020. Platform business model on state-of-the-art business
learning use case. International Journal of Financial Engineering, 7(02), p.2050015.
Application of Value chain Model to identify which of SEAT’s internal value-adding activities
will be most relevant in supporting SEAT to launch the ‘Minimό’ in Melbourne
Value chain model helps to analyze the detailed process a company is involved. It is evaluated
step by step by the company to increase their efficiency in order to provide their customers
maximum value at the least possible price(Cheng and Xiao, 2020). According to Michael E.
Porter, to gain maximum competitive advantage it is essential to take care of activities such as
producing, designing, marketing, supporting and delivering of product. Porter divides the
activities of business in two parts that are primary and support. They are explained below:
Primary Activities

It comprises of five basic elements which are necessary to add value in the product and provide
competitive advantage to the business.
Inbound Logistics – Inbound logistics are those activities of the business which includes
warehousing, receiving and managing inventory in the organization(de Moura and Saroli, 2020).
It is considered as primary activity as it is essential manage inventory to reduce operating cost of
the business. In case of SEAT ‘Minimo’ there are so many materials which are used in the
manufacturing of the vehicle which needs to be stored in proper manner. SEAT have a proper
warehousing facility for their products to be stored.
Operations – This step is the most important step in the organization as this step includes the
process of converting raw materials into finished goods. This step includes all the activities
which are required for the basic operations of an organization. In case of SEAT, the operations
include making of vehicles in new and innovative manner.
Outbound Logistics – As the name signifies outbound logistics are the activities which involve
distribution of final products to the consumers(Jangam, 2020). It is necessary to make available
the products to the consumers. SEAT has their stores in various locations in the country which
ensures availability of their products in the market.
Marketing and Sales – Marketing is an activity which is used to promote buying and selling of
products in an organization. It includes various activities such as selling, advertising and
delivering the products to the customers. In respect of SEAT, they use different strategies to
market their products as they display them in various fairs of vehicle to make it a choice of
consumers and promote sales of the vehicles.
Service – Services refers to those activities and benefits which are provided to the customers
before and after sale of the product. It helps the company to enhance the experience of their
customers. Services provided by the company is a primary activity in the value added chain
because it is directly linked with the sales of product of an organization(Ekumankama, Ezeoha
and Uche, 2020)
. In respect of SEAT ‘minimo’, it is a well versed company which provides for quality of
services to their customers.
Support Activities
Support activities are those activities of business organization which provides help to primary
activities to become more efficient. These activities are generally taken as overhead expenses of
the company in their financial statements. These are described in detail below:
Procurement – Procurement means to obtain and in business sense it means to obtain raw
materials for the functioning of any company. Quality of raw material at reasonable cost is very
essential for the success of an organization. This requires appointing an experienced personal to

procure best resources. In case of SEAT, procurement of raw material is very essential to ensure
to make a product like ‘Minimo’ with best quality products at reasonable prices.
Technological development – Technological development means bringing innovation,
invention and dissemination of technology. This step adds value to the sales of the organization
as it helps to provide innovative items to their customers and increase loyal customers. SEAT is
an automobile company and needs to be technologically developed to beat its competitors in the
market(Havardi-Burger, Mempel and Bitsch, 2020). As automobile industry is full of innovative
products and produce new designs in timely manner and to beat the competitors there is high
need to bring innovation in the organization. SEAT ‘Minimo’ is an example of technological
development as it is an innovative invention to protect environment from air pollution.
Human resource management - Human resource is backbone of every organization and it
needs to be managed in order to use them in effective manner in the organization. All the
functions in an organization are carried out with the help of human resources. In respect of
SEAT, all the development in the organization is because of innovative skills of their employees.
So there is a high need of talent management in an organization.
In the value added model all the activities are like step for the organization to achieve success.
REFERENCES
Books and Journals:
Cheng, D. and Xiao, Z., 2020. Producer Services and Productivity: A Global Value Chain
Perspective. Review of Income and Wealth.
de Moura, G.B. and Saroli, L.G., 2020. Sustainable value chain management based on dynamic
capabilities in small and medium-sized enterprises (SMEs). The International Journal of
Logistics Management.
Ekumankama, O., Ezeoha, A. and Uche, C., 2020. The role of multinational corporations in local
dairy value chain development: case of Friesland Campina WAMCO (FCW) in
Nigeria. International Food and Agribusiness Management Review, 23(1030-2020-237),
pp.55-70.
Havardi-Burger, N., Mempel, H. and Bitsch, V., 2020. Sustainability challenges and innovations
in the value chain of flowering potted plants for the german market. Sustainability, 12(5),
p.1905.
Jangam, B.P., 2020. Global value chain embeddedness, labour productivity and employment in
the Asia-Pacific countries. Studies in Economics and Finance.

Evaluation of modes of entry that are appropriate to SEAT and recommend the most suitable
mode of entry that will enable the product launch of the ‘Minimό’ to be a success for the
company.
There are several ways to take entry in the market but in case of international expansion there are
commonly five entry modes to enter into the market of Melbourne. Being an Spanish company
SEAT needs to consider the international-expansion modes. These modes are explained in detail
below:
Exporting – Exporting is a process of selling the products in foreign countries having operations
in home country. Through this method firms can reduce their expenses of establishing operations
in foreign countries. Easiest way to enter into international market is to export the products in
that market. It became easy for organizations to take entry in international market through this
mode of entry. In case of SEAT, it is the easiest way to enter into the markets of Melbourne and
sell their products in that country(Bretas, Rocha and Spers, 2020 ). It will help them to reduce their
operating cost in that country. It is not that beneficial for the organization like SEAT because it
belongs to automobile industry. Generally people trust on the brands of automobile which have
their establishment in the country as it is an expensive product and require time to time services.
Hence to enter in the market of Melbourn this plan will not be that much beneficial for SEAT to
launch ‘Minimo’ there.
Licensing and Franchising – Licensing and franchising are two different things which are used
to enter into international markets by selling goods and services. License is a legal binding
between two or more parties to use and take benefit from the technology Trade mark and other
legal rights. The person who grants the licence is known as licensor while the person who takes
the licence is known as licensee. Companies use this legal relationship to enter the into the
international markets. They enter into an agreement with organisations which are are already
waiting in the foreign markets to sell their goods in their market. To reduce the cost of
establishment in the the other market and increase Goodwill of the product and services.
Franchise is also n relationship between two parties to give them right to develop or establish or
duplicate the operations the person already and reston the party e-grantz the right to the other
party to duplicate their operations is known as franchisor why the party e take the right is know
as franchise. So many examples to explain franchise relationship in the economy the most
common example is of McDonald's who operate in so many parts of the world. In case of seat,
competitive the organisation can also use this facility to enter into the market of Melbourne. it is
the easy method to launch their product in the market by entering into a contract of licensing and
franchising to give them right to produce the products in that economy with the name of seat
only(Dias, Scoggins and Magin, 2020). It will help them to enter into the market of Melbourne in a
cost-effective manner but can be harmful for the company as can leak the secrets of the company
to be given to the licensee and franchisee.
Partnering and Strategic Alliance - Partnering and strategic alliance contractual agreement
between two or more organisations which stipulate that the parties which are involved in the

contract will co-operate with each other in a certain way for a certain time period in order to
achieve a common goal. Casual relationship can be used by organisations of different countries
to enter into the new market in the foreign country. In case of SEAT, it can also launch their
product minimo in the market by entering into a partnering or strategic alliance with organisation
of Melbourne. it will also help to reduce the operating cost in establishing new organisation in
the country.
Acquisition - Acquisition refers to the transactions of an organisation which helps them to gain
control of another firm either by purchasing their stock or by exchanging the stock. In case of
private organisations acquisition can be made by paying the price to the owner of the
organisation. The coming year it is noticed that among all the acquisitions completed all over the
world about 60% are cross border acquisitions(RodrÃguez and Isabel, 2020). It is an expensive
method to enter into the international borders and used by the organisations which required a
good reputation to sell their products in the market in case of seat it can use this method to sell
their products in the market of Melbourne it will also provide all the benefits of operational
efficiency country and make a feel in the customers that the company belongs to their domestic
country. It helps the organisation to get loyal customers and can give a hype to the launch of
minimo.
REFERENCES
Books and Journals:
Bretas, V.P.G., Rocha, T.V. and Spers, E.E., 2020. OVERNANCE MODES IN INTERNATIONAL
FRANCHISE NETWORKS: PARTNER SELECTION AND RELATIONSHIPS. Rev. Bras. Mark–
ReMark, 19(1), pp.141-163.
Dias, B., Scoggins, J.B. and Magin, T.E., 2020. Luminosity calculation of meteor entry based on detailed
flow simulations in the continuum regime. Astronomy & Astrophysics, 635, p.A184.
RodrÃguez, F. and Isabel, A., 2020. Dynamics of Political-Legal Environment on Foreign Market Entry for
Multinationals Corporations in Latin America. Journal of Finance and Accounting, 4(1), pp.15-23.
Critical reflection on the SEAT ‘Minimό’ and how it represents an example of creating shared
value (CSV)
Minimo is a great concept introduced by SEAT Company. Device for various features is a 100%
electric vehicle which is a best combination of car and a motorcycle(Alsayegh, Abdul Rahman
and Homayoun, 2020). The vehicle has a great feature of battery swap system which recharge
the car in few minutes only and gives the operating cost of car sharing up to 50%. As fit is an
electronically concept it reduces the burning of fuel which result and conservation of fossil fuels.
This vehicle is also pollution free as it provides better quality of air to the citizens of the country
and reduces the carbon particles from the environment which are introduced by pollution created
from burning of fossil fuels in the vehicles. It is the car which can be parked in a space of a
motorbike in the parking area. It is hyper connected vehicle which built in 5G technology and
provides for smooth and convenient user experience with digital access key and collect the smart

phones with the car without using sockets for cables. It is designed with checking in mind to
reduce the footprints of vehicle in urban areas it is the best vehicle to provide to the customers
and electronic concept with Android features. Among various functions the car also have the
function to recognize the driver whether the driver is of 16 or 18 and adapt the speed in
accordance to that it also have the facility of Google assistant so that the user can keep their eyes
on the road and hands on the wheel and stay connected with the voice instructions only. It helps
the society in many ways as it gives excellent user experience to their customers and help to call
on phone numbers on very easy manner. They can also read and respond on messages on their
phones. All these services are displayed on the vehicle display for the easy access of the
information(Kherchi, 2020). It is easy to use and also cost effective as run through electronic
batteries. Hence it can be said that it is designed by combining two worlds one is the world of
comfort and another is the safety.
Creating shared value (CSV) is used in business to show a link between competitive advantage
and corporate social responsibility. According to Michael E. Porter, to run a business
organization in successful manner the organization needs to understand the strong bond between
business and corporate social responsibility. Corporate social responsibility is a concept which
provides for various measures to bring positive change in the society. As the operation of the
business is operating in the society then it is moral responsibility of companies to provide
something in return to the society which is providing them revenue to grow their business. It can
be anything or any step taken by organizations to bring a positive change in the society. It can be
of four types environment, conservation, diversity and philanthropy(Munro, 2020). SEAT
‘Minimo’ is an electrical concept developed in the form of a Quadricycle. This development of
SEAT is a blessing for the environment as it is an electrical concept. It helps to control air
pollution as well as noise pollution in the market.
REFERENCES
Books and Journals:
Alsayegh, M.F., Abdul Rahman, R. and Homayoun, S., 2020. Corporate economic,
environmental, and social sustainability performance transformation through ESG
disclosure. Sustainability, 12(9), p.3910.
Kherchi, I., 2020. Threats and Opportunities for Global Food Companies: Identifying Social and
Environmental Issues in Food Value Chain to Create Shared Value. Economics, 8(1),
pp.61-72.
Munro, V., 2020. Creating Shared Value for Social Initiatives and Shared Purpose. In CSR for
Purpose, Shared Value and Deep Transformation. Emerald Publishing Limited.