Croove Business Analysis: Global Market Success

This assignment delves into the international competitiveness of Croove, a peer-to-peer carsharing service launched by Mercedes-Benz. It examines Croove's internal competitive advantages, such as its diverse product offerings and customer loyalty, in relation to international market demands. The analysis explores global marketing strategies employed by Croove, including navigating cultural differences and managing operational risks. Ultimately, the assignment assesses Croove's potential for success in the global marketplace.

Global Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1. Analysis of Croove Company.................................................................................................3
2. Product of the company..........................................................................................................5
3. The market of Croove.............................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The global marketing is making the sale between the boundaries of the country. This
means that selling of the products overseas. The global marketing develops a huge customer base
for the company and increase profitability of company to the large extent. Global marketing
requires planning and designing various strategies to make profit globally. Global bus9ness are
contributing in the economy largely. Earlier the businesses are not involved in buying and selling
of product oversea there was a communication gap and geographical gap (De Mooij and
Hofstede, 2011). Due to decrease in communication gap with help of new technology
implementation and the reduced geographical gaps with help of better transportation systems
enhances the activities of the businesses globally. Now the companies are frequently involved in
making sales of their product between the tow boundaries of the country. The global market s
rich in new growth opportunities and highly competitive. So, the companies who are planning to
enter global market first have to carry out market survey, develop appropriate strategies to
establish business successfully in global market. This report studies the growth of Croove
company engaged in car sharing services and the scope and growth opportunities of Croove in
global market.
TASK
1. Analysis of Croove Company
The croove organisation is developed by Mercedes. This is serving to the people of
Munich. The company deals in car sharing services. This company is shown huge growth and
customer loyalty with implementation of effective strategies and new technology in the operation
of organisation. The various companies other than Mercedes like Ford , Volvo also developed
their car sharing company but they only deals with the same brand cars (Brondoni and Musso,
2010). While the croove is engaged in sharing if all type of cars unless and until car is damaged.
The car shared by croove company should not be older than 50 years and should be in good

working condition. This is similar to sharing of car with a friend. The croove is having some
strengths and weaknesses as well that have to be considered while planning new business plan
for the success of organisation. Swot analysis of the company is as follows:
Strengths: The company is having good pricing strategies. The car owner decides prices
to the car that can be affordable by the customers. The company is having low pricing strategies.
The person can rent car at cheap prices. This organisation deals in different brands of car and
gives opportunities to the customer to rent a car according to their choices and comfortability.
The company ensures the quality and condition of the car before offering the car for rent to the
customers of the company. The Croove company is selling unique idea and unique products. The
company is having a good brand attached with it i.e. Mercedes that helps in building custom,er
loyalty.
Weaknesses: The company is not having any experience in any market. As it is
developed by the Mercedes but the working areas and procedures are different from the
Mercedes. So, Company is new in market and not having any past experience to carry out
business successfully (De Mooij, 2013). The company weakness can be availability of many
similar products in the market. That develops a highly competitive marketplace.
Opportunities: The company is having great opportunities of the growth. Company can
define new services to the customers, introduction of new products in the market. The
organisation can develop company website, mobile app to provide ease to the customer. The
company can grab different opportunities of success with help of implementation of new
technologies in the system. The another huge growth opportunity of the organisation is to
develop strategies top make successful entry in global market.
Threat: The company is having threat from unstable political environment, lower
economical growth. The government legislation and regulatory bodies can interrupt the
operations of the organisation by implementing new laws in the country. The biggest threat of
the Croove volatile costs. The cost is volatile in nature that is dynamic and changing
continuously by the affect of external factors an preferences of the customer that may adversely
affect the profitability of company (Gillespie and Hennessey, 2010).
The global and international market is having large no. of competitors dealing in the
similar product. This international competitiveness can enhance the probability or it may restricts
the success of the organisation. The various factors like economic growth, political condition,

value of exchange rate,. Stability ion rate all affects the strategies developed by the various
companies to reduce the negative impact of high competition in international market. The
Competitive advantage of the coorve s that the company name in belong Mercedes group that
helps in attracting and establishing the business globally. To reduce the effect of international
competitiveness the company croove is implemented new technology in the system and is having
motivated workforce leading to growth of business n global market. This is the competitive
advantage of Croove organisation.
2. Product of the company
The Croove is dealing in the car sharing services. This company make available for
renting the car in Munich. This provided the customers to the car on rent. This is an unique idea
development by Mercedes is growing fast in the UK. The product is planning for entering in the
global market to attain new heights of profit in the business. The various diffusion strength of the
product that customer use to evaluate the level of innovation in services provided by the
company are relative advantage,compatibility, complexity/simplicity (Mercedes-Benz launches
Croove, a peer-to-peer carsharing service. 2017). The car rental companies are involved in
various innovation that leads to the relative advantage and more compatible product in the
market. The various diffusion strength of the product are defined below:
Relative advantage: The relative advantage is the comparison of the attributes of new
products with the existing similar product in the market. In this case the car sharing is new
concept that have relative advantage than other existing products. The competitors of the car
sharing are public transport and the taxi companies. However the public transport is having
lower fare charges as compare to the sharing of car but it provides flexibility to user. The car
renting ans share provides more private use of product and more convenient in use. While as
compare to the taxi the car sharing is having relative advantage in prices and flexibility. But in
car sharing the person have to drive itself and take care of parking space etc. The relative
advantage of the product is directly proportional to the acceptance level of the new product and
adoption rate.
Compatibility: The new product and innovation is highly compatible if the customer
perceive value towards the product is higher. The product is able to enhance the satisfaction level
and change attitude of customer (Keegan and Green, 2015). The product is more compatible of
this is able to accomplish al the expectation, needs, wants of the desires related to the product.

This develops a changed perception and attitude towards the new product of the Croove in the
market. The customer are showing more interest in sharing car in urban cities as compared to
buying car.
Complexity/simplicity: The complexity in the utilization of the product influences the
buying behaviour of the customer to the large extent. Higher the complexity in the utilization
process of the new product and services lower will be the acceptance level of that product in the
market. The car sharing services of the Croove is only needing a mobile phone. The person
interested in renting a car just have to locate his car and conform his booking online. The car will
be available for him at time he is needing.
The major problem and the resistance in acceptance of the new innovation and product in
the market involves various consideration by the customer (Lee and Carter, 2012). The customer
evaluate the product in the basis of viability, quality and diffusion strength of the product. The
different attributes of the other substitutes and their pricing affects the acceptance of new
products in the market. The customer acceptance of the product is also influenced by the brand
image.
3. The market of Croove
The market which is chosen for expansion of services by crooves will be Berlin,
Germany. The country is considered as a developed country as it have high rate of growth among
all the European nations. It also have a high per capita income which enables the population in
spending more amount of money. Germany is considered as one of the most advanced country.
This is why they have all the updated system for communication(street view real time global
positioning system). There are advanced transporting systems which are being tested by the
companies in Germany(self driving taxi's). so the market is well developed in terms of
technological advancement. These advancements have led to changes in consumer buying habits.
The consumer population is made up of different constituents (Moeller and Harvey 2011). The
major population currently belongs to the individuals ageing 20-40 years, which makes its the
biggest youth population in the Europe. Also the gender ratio is equivalent hence no need to
extra benefits to specific gender. The earning difference is what differentiate the buying habits of
consumer. The lower earning class wants cheap services while middle and higher class wants
better services.

Croove has to consider all the factors as to develop distribution channel in the region. It
can use different distribution channel. The market is developed so the company will need to
make direct contact with the customer. Zero level of distribution channel will be used and to
make direct contact with the end user the company can use mobile applications and interface.
Croove can use exclusive distribution strategy as to enhance its focus on specific cities.
Croove can use various tool to promote its services in the chosen market. It can use
various promotional activity like free ride, discounts and coupons to the customers. Targeting
colleges office area's will be the best way to promote services. Also the company can use social
media and online advertisement to promote the product and services between the people of the
targeted market.
Company Croove needs to differentiate its products from the product its competitive
company Airbnb . Its brand name also needs to be unique to attract the customers towards it.
Company have to give emphasis on then prices which they are charging from the customers,
company have to charge price from customers should be less and attractive as compare to its
competitive company (Rosenbloom, 2010). It needs to look after the advertisements which they
are publishing for the sell of their product they should be eye catching and attracting so that its
number of customers will increase.
Company Croove is aware of strategic management in which every business is different
from other businesses. For the sales planning company needs to understand the type of services
which they are going to provide. They also have to look after their competitors to improve their
services which they are provided (Wu, 2011). It also focuses on the pricing strategies because it
plays a important role to determine the value based pricing. Company Croove use to develop and
implement new services in the marketplace. It is a service based company which pay attention to
the difficulty areas by developing competitive positions.
The government bodies and their policies influence the profitability and success rate of
the company to the large extent. The UK government motivates the new innovation in the market
and also enhance the globalization in the business (Wilken and Sinclair, 2011). The global
market is influenced by the various factors like exchange rate, export and import duties that
affects the Croove business largely. The higher taxation policies of the government decreases the
profitability of the company largely. While decrease in the exchange rate increases the foreign

investment in the country and develops a good competitive market for the growth of organisation
with new innovative ideas.
CONCLUSION
It can be concluded from this report is that the company Croove is having some internal
competitive advantage to concur the international market and accomplish the needs of
international competitiveness. The various products and services provided by Croove leads to
customer loyalty and developing a large customer base. Global marketing follows a complex
process to be engaged in providing services to the customers of different countries. The business
should be well developed in international market in order to complete the high competition in the
global market. The various strategies developed by the companies in order to resolve weaknesses
and managing risk incurred in operation will leads to successful development of business
globally.

REFERENCES
Books and Journal
Brondoni, S.M. and Musso, F., 2010. Ouverture de ‘Marketing Channels and Global Markets’.
De Mooij, M. and Hofstede, G., 2011. Cross-cultural consumer behavior: A review of research
findings. Journal of International Consumer Marketing. 23(3-4). pp.181-192.
De Mooij, M., 2013. Global marketing and advertising: Understanding cultural paradoxes. Sage
Publications.
Gillespie, K. and Hennessey, H.D., 2010. Global marketing. Cengage Learning.
Keegan, W.J. and Green, M.C., 2015. Global marketing. Upper Saddle River, NJ: Pearson.
Lee, K. and Carter, S., 2012. Global marketing management. Oxford University Press.
Moeller, M. and Harvey, M., 2011. Inpatriate marketing managers: issues associated with
staffing global marketing positions. Journal of international marketing. 19(4). pp.1-16.
Rosenbloom, B., 2010. Six Classic Distribution Paradigms for Global Marketing Channel
Strategy. Symphonya. (1). p.7.
Wilken, R. and Sinclair, J., 2011. Global marketing communications and strategic regionalism.
Globalizations. 8(1). pp.1-15.
Wu, C.W., 2011. Global marketing strategy modeling of high tech products. Journal of Business
Research. 64(11). pp.1229-1233.
Online
Mercedes-Benz launches Croove, a peer-to-peer carsharing service. 2017. [Online]. Available
through: <http://www.autoblog.com/2016/12/16/mercedes-benz-croove-peer-to-peer-
carsharing-service/>. (Accessed on 25th May 2017).