Cooltra's Market Position: A Competitive Analysis in Barcelona, Spain

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This report provides a comprehensive competitive analysis of Cooltra Motors SL in the Barcelona scooter rental market. It examines Cooltra's strengths, weaknesses, opportunities, and threats (SWOT) and utilizes a TOWS analysis to formulate strategies for maximizing advantages and mitigating risks. The report compares Cooltra with competitors like Yugo, Via Vespa, and Barcelona Moto Rent, evaluating factors such as market share, sales revenue, pricing, and customer service. The analysis highlights Cooltra's competitive advantages, including its eco-friendly electric scooters, strong brand reputation, and customer-centric approach. The report concludes that while Cooltra currently holds a strong position in the Barcelona market, it must address weaknesses such as technical support issues and adapt to market changes to sustain its productivity and profitability. The report underscores the importance of quality, pricing, and after-sales service in achieving success in the competitive scooter rental industry. This report is contributed by a student and is available on Desklib, a platform providing AI-based study tools.
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Running head: MARKETING
Marketing
Name of the Student
Name of the University
Author note
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Executive summary
The purpose of this report is to determine the competitive advantages of Cooltra in the market of
Barcelona. This report has analyzed SWOT, TOWS and competitive analysis of Cooltra. From
the discussion of the study, it can be said, though at this point of time Cooltra has some
competitive advantages in the domestic market, but their management needs to work on some
aspects to sustain their productivity and profitability.
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Table of Contents
Introduction......................................................................................................................................3
Competitive analysis........................................................................................................................0
Conclusion of competitive analysis.............................................................................................0
SWOT analysis................................................................................................................................1
TOWS analysis................................................................................................................................2
Maxi-maxi strategy......................................................................................................................2
Maxi-mini strategy.......................................................................................................................2
Mini-maxi strategy.......................................................................................................................2
Mini-mini strategy.......................................................................................................................2
Conclusion.......................................................................................................................................3
References........................................................................................................................................4
Appendix..........................................................................................................................................5
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Introduction
Cooltra Motors SL is an organization based in Barcelona, is an organization, that
provides scooters on rent, and along with that they also sell brand new scooters and good after
sales service. Apart from that the organization provides chauffer service, scooter driving courses,
branding and scooter tours in the city of Barcelona (Zabunov, Gilina and Ganova 2014). A part
of Cooltra is E-cooltra who is currently one of the leading companies in Europe who offers
electronic scooters for rental and selling.
Recently the organization has won Bronze prize for being the best digital company in the
year of 2017. After receiving this award, the organization has become one of the leading
organizations in Barcelona and thus gained a huge competitive advantage. Thus, cooltra left
other organizations operating in the same market quite behind. Currently Cooltra currently owns
more than 2000 electronic scooters to provide rental service and they operate in four main cities,
which are Barcelona, Madrid, Rome and Lisbon. Their main USP is after renting the scooter the
customer would not have to worry about anything and he or she can just enjoy the ride within the
city (Richards 2017). The company will provide the insurance, a full battery for the scooter and
necessary gears for a safe ride (Dekker 2013). The organization earned huge reputation recently
because the riders will get 2 helmets, the rider would not have to pay any parking fees, insurance
will be provided by the dealer, a valid moped license will be provided and most importantly the
fuel emission of the vehicle is nil, making it environment friendly (Raslavičius et al. 2015). The
business is completely digital, as the customers can book or buy their vehicles from the app of
the organization that makes the whole operation quite customer friendly.
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Running head: MARKETING
Competitive analysis
Competitive
factors
Cooltra Yugo Via Vespa Barcelona Moto rent
Products and
service
Scooters that run with the
power of a battery.
The Customer service of
the organization is
excellent.
Scooters that run with
the power of a battery.
There are some concerns
regarding the tech
support.
Scooters that run
using petrol as
fuel.
The customer
service is good, but
the customers face
some technical
errors in their apps
Quality issues in
the scooters
Customer
service is not at
all satisfactory
Technological
support is not
satisfactory
Market share 40% in market of Barcelona 25% of the barcelona’s
market
18% of the
Barcelona’s market
12% of the market of
Barcelona
Sales revenue 2.635 million Euros (FY 2015-
FY 2016)
1.567 million Euros
(FY2015- FY2016)
1 million Euros
approximately
(FY2015-FY2016)
Less than 1 Million
Euros
Basis of
competition
Pricing, quality of service,
safety and security
Quality of the management
and marketing schemes
Pricing pricing
Pricing 0.29 Euros per minute 0.45 Euros per minute 0.25 Euros per minute 0.10 Euros per minute
Strength Brand
Quality
Company reputation
Pricing
Quality
Reputation
Pricing Pricing
Weaknesses Technical support
Incompetent customer
care executives
Lower reputation in
the domestic market
Quality
Concerns
regarding
reputation
Incompetent
management
Quality
Reputation
Poor
management
Poor
technical
support
Poor
customer
service
Table 1: Competitive analysis
Source: (Grant 2016)
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Running head: MARKETING
Conclusion of competitive analysis
From the table provided above, it can surely be said that in the domestic market of
Barcelona, Cooltra has a few advantages than the other organizations operating in the same
industry. It is seen that as Cooltra somehow managed to earn a huge market reputation, the
customers will be automatically inclined to choose their service. As the other rival organizations
in this industry are lagging behind due to pricing issues, management issues and many more, the
organization Cooltra has a huge competitive advantage in the market of Barcelona. The
management of Cooltra stresses on the quality and the pricing issues along with after sales
service, and that is the key of their success. They have earned their place as they are quite
successful to satisfy their customers. The management of Cooltra actually understood the pulse
of the target customers and that lead the organization to the path of glory. The other
organizations are lagging behind due to having shortcomings in these issues along with the
pricing issues. The management of Cooltra stressed on the quality and safety issues more than
the pricing and that earned their reputation in the domestic market (Raslavičius et al. 2015). The
organizations like Yugo or Via Vespa are lagging behind in this sector. The management of
Yugo did focus on the quality concerns but did not care about the pricing that is why they get
lesser customers but as they provide premium quality scooters they do not have to lose customers
on a daily basis. On the other hand, Via vespa has many concerns regarding quality of the
vehicles, incompetent management and many more. The management of Via Vespa only cared
about the pricing and not on the quality issues and building the reputation of the organization
(Lieswyn et al. 2017). Thus the management is paying price for that. Same goes for Barcelona
Moto Rent, as the management of that organization did not care about the qualitative factors and
wanted to attract customers luring them the low pricing. As their quality of the vehicles is not up
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to the mark, they would not be able to provide desired safety to their customers. Apart from that
there are some issues regarding the management and the reputation of the organizations. Thus
the management of Barcelona Moto Rent is lagging behind than the other competitors of the
market. The organization is comparatively behind than the organizations like Cooltra and Yugo
due to the lack of vision of the core management team (Quak and Nesterova 2014). Thus, it can
be said that currently in the domestic market of Barccelona, Cooltra as a lot of opportunities to
sustain their productivity and profitability facing no immediate threats.
SWOT analysis
In this section of this report the internal strengths and weaknesses is explained and thus a
SWOT analysis is done.
Strength:
The organization Cooltra has many strengths comparing with the other rival companies.
Cooltra provides scooters that run by the power of battery making the vehicle eco-friendly
(Braconi 2014). This is where the organization gained a huge strength as the government is
directly favoring them by helping to promote the company. They received governmental help
just because their business does not harm the environment, and usage of latest technologies
makes their customers extremely safe in various road conditions (Hollensen 2015). Apart from
that the pricing of the organization is quite moderate. These are the basic area of strengths for the
organization.
Weaknesses:
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To judge the weaknesses, it can be said that the organization currently has nothing to
worry about, but the lack of human resources in the workforce might leave the organization a bit
vulnerable under fierce competition in the market (Dekker 2013). Thus the management of the
organization should put stress on the recruitment process and training and development of the
employees. There is another issue where the management of the organization needs to work on
and that is they must improve their app, as at some point of time the customers fail to book
scooters or become unable to contact the customer service due to technical errors. The technical
team must work on this issue to overcome these shortcomings (Quak and Nesterova 2014).
Opportunities:
Currently Cooltra has several points of opportunities and those are they are providing the
vehicles which are eco-friendly (Grant 2016). The organization has extremely good tech-support
and good customer service that attracts many customers.
Threats:
The organization is currently one of the leading companies in this sector but the
management will have to keep in mind that they should be able to adapt the changes that can take
place in no time. The market is changing immensely and the requirements are also changing
rapidly (Dekker 2013). In this changing market, the managements of the organizations have to
ensure that they are able to adapt the changes. If E-Cooltra fails to adapt the changing situations
they will be replaced by the rival organizations in no time.
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TOWS analysis
In this section of the report TOWS analysis is done to determine the opportunity and the
weaknesses of the organization in the market of Barcelona.
Maxi-maxi strategy
Using this strategy it can be determined how the organization can maximize the market
opportunities using the strengths of the company. The management of the organization is using
the latest technologies that put them quite ahead from the rival organizations in the market. The
scooters provided by the organization run using the power of the battery having zero carbon
emission is seen, thus the vehicles are extremely environment friendly (Braconi 2014). One of
the most important opportunity for the organization is the organization already has earned a
reputation in the domestic market and in also in the foreign market of Lisbon and Rome. Using
the strengths the organization can easily improve their opportunities.
Maxi-mini strategy
The organization has many points of strength and it can surely be said that using those
factors the management can easily lower the threats of the company (Grant 2016). The only
threat that can be considered is that if the organization fails to adapt to the market changes they
might get replaced by the new entrants of the market. Using the brand value and the huge
customer base the organization can eradicate the threats for quite a long time, but the
management needs to ensure that they must adapt to the market changes in order to keep their
place intact in the market with fierce rivalries.
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Mini-maxi strategy
The mini-maxi strategy is something using which the management can lower the
weaknesses of the company using the opportunities. Currently the organization is facing some
issues related to the customer service and tech support (Hollensen 2015). Some of the customers
of the company expressed their discontent regarding the technical errors in the app and that is
why the management should improve the level of competence of the workforce. The
management can lower the weaknesses by using the factors of opportunities. As the organization
has a huge brand value and excellent customer base, they can easily invest to upgrade their
factors of weaknesses easily with time.
Mini-mini strategy
This strategy can be used to determine how the organization can lower their weaknesses
and the threats. The management of the organizations needs to work on the weaknesses
otherwise in the long run they might get replaced by the organizations who can replace them.
The management of the organization is facing some troubles regarding the tech support and the
technical errors in the app of the company (Hollensen 2015). They should proactively work on
these weaknesses to lower the greater threats of getting replaced by other organizations.
Conclusion
Thus to conclude, it can be said that for an organization like Cooltra has earned a huge
reputation in the market of Barcelona and thus the organization has a huge competitive
advantage against the rival organizations. The organization has various points of strengths and
opportunities and using those, the organization can thrive in the oddest situations in the market
(Grant 2016). Currently the organization does not face any fierce competition in the market as
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they are quite ahead from the existing companies in the domestic market. The organization
should be aware of the fact that they might face fierce rivalries in future and thus they have to
take actions before the situation arises. Presently the prospect of the organization is quite good
and they can take the advantages they have currently to keep their position intact.
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References
Braconi, D., 2014. Green two wheeled mobility. Material hygiene and life cycle analysis of an
electric scooter.
Dekker, P.W.K., 2013. ELECTRIFICATION OF ROAD TRANSPORT–AN ANALYSIS OF THE
ECONOMIC PERFORMANCE OF ELECTRIC TWO-WHEELERS (Master's thesis).
Grant, R.M., 2016. Contemporary Strategy Analysis Text Only. John Wiley & Sons.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Lieswyn, J., Fowler, M., Koorey, G., Wilke, A. and Crimp, S., 2017. Regulations and safety for
electric bicycles and other low-powered vehicles July 2017.
Quak, H. and Nesterova, N., 2014. Towards zero emission urban logistics: Challenges and issues
for implementation of electric freight vehicles in city logistics. In Sustainable Logistics (pp. 265-
294). Emerald Group Publishing Limited.
Raslavičius, L., Azzopardi, B., Keršys, A., Starevičius, M., Bazaras, Ž. and Makaras, R., 2015.
Electric vehicles challenges and opportunities: Lithuanian review. Renewable and Sustainable
Energy Reviews, 42, pp.786-800.
Richards, G., 2017. Sharing the New Localities of Tourism. In Collaborative Economy and
Tourism (pp. 169-184). Springer International Publishing.
Zabunov, G., Gilina, N. and Ganova, S., 2014. ELECTRIC VEHICLES INDUSTRIAL
CLUSTER-INNOVATION IN ACTION. LOCAL PRODUCTION SYSTEMS AND REGIONAL
ECONOMIC DEVELOPMENT, p.49.
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