SEAT 'Minimo' in Melbourne

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