MKTG6002 Marketing Report: Analyzing Green Share Car's Environment

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This report provides a comprehensive marketing analysis of Green Share Car, a self-drive car rental company. It begins with an introduction to the company, its brand values, and an overview of buyer behavior. The core of the analysis examines the micro-environmental factors using Porter's Five Forces and the macro-environmental factors through a PESTLE analysis, exploring political, economic, social, technological, legal, and environmental influences. The report also includes a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. The report concludes with a summary of the key findings and provides references to support the analysis. The report aims to evaluate the company's current market position and provide insights for future strategic decisions.
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Contents
Introduction.................................................................................................................................................3
Green Share car core brand values mainly include the following:...........................................................3
Buyer Behavior........................................................................................................................................3
Micro Environmental factors- Porter Five Forces........................................................................................3
Macro Environmental Factors- PESTLE Analysis......................................................................................5
SWOT Analysis...........................................................................................................................................7
Strengths..................................................................................................................................................7
Weakness.................................................................................................................................................7
Opportunities...........................................................................................................................................8
Threats.....................................................................................................................................................8
References...................................................................................................................................................9
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Introduction
Green share car is a self-drive car rental company. It was founded it 2010 and its
headquarters is in Coburg, Victoria. Its estimated annual revenue is $2.5 million. The value
proposition by the Green share car company is that they provide 24*7 availability services to
their clients with the live tracking system (Payne, Frow, & Eggert, 2017).
Green Share car core brand values mainly include the following:
"We're fascinated with consumer service and we're working relentlessly to win the
confidence and trust of our clients by fixing challenges, increasing their income or
lowering their costs.
We construct worldwide, we stay locally. Our regional operations leverage our strength
and scope to link directly every day to the communities, towns, drivers and passengers
we represent.
The company is very honest with its team members and clients. It shares relevant
information with its clients. Moreover, it pays regular attention towards customers’
satisfaction and their security (Nickerson et al., 2017).
Buyer Behavior
It is a rational consumer and its behavior depends on circumstances or needs. This can be a group
or an individual of customers to determine or identify a product. It aids a lot in identifying the
customer needs and though process while selecting a product. The company implements some
strategies to deal with the customer needs. First, company studies the market and minds of
customers. Then plan the strategies (Trinh, Romaniuk, & Tanusondjaja, 2016).
Micro Environmental factors- Porter Five Forces
Threat of New Entrants: Green share cars aims at building a link between consumers and
transportation services in a technical sense. The business needs a large volume of start-up
money, and although Green share car founder owns a significant amount of capital, emerging
competitors are leveraging smaller start-up capital to get off the road rapidly. Being a
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technology-based service provider, Green share cars cannot effectively resist any other transport
company's imitation. This implies that it is easy not only to work in the same basis as Green
share cars, but also to bill for the same route, to imitate a model from other ride-sharing services
and other rivals (Ranjbari, Esfandabadi, & Scagnelli, 2019).
Threat of substitutes: A replacer is a well-known concern in a dynamic corporate environment.
Many member organizations are able to quickly replace Green share services in the transport
industry. For the level of service Green share car delivers, for example ride sharing system is the
nearest competitor and likely replacement to mainstream transport. The cost-effectiveness,
reliability and consumer friendly architecture of car sharing or car rental service to cities are
classic (Perboli et al., 2018)
Supplier Bargaining Power: The availability of drivers is one of the leading suppliers in the
transport business. Green share cars do not operate a fleet truck. The economic strategy of the
firm thus, relies primarily on drivers who own vehicles. Unfortunately, because of the strict
criteria for Green share the availability of this community of vendors to operate with the Green
share Community is not that large. Green share uses a subcontracting strategy to deal with people
who meet their application's terms of service. The alternative between the company and
competitors is always hard to substitute individual drivers (Fabbri, & Klapper, 2016).
Buyer Bargaining Power: Over recent years, the number of private vehicles has grown
tremendously and although parking issues have been more extreme than ever before, people have
not been discouraged from finding the prestige of a vehicle. For an option, Green share car
services are in limited demand. Despite these conditions, the bargaining influence of the buyer
reduced the company's profits, thus increasing the business as an economic force (Sminia, 2017).
Rivalry between competitors: Green share car has a deep-rooted operating structure and
significant expenditure in technology. This is effectively a business blazer but the ability of the
organization is constrained by minor variation techniques. Competition, despite Green share
car’s dominance, is a diminishing factor. In reality, Green share car is a powerful force in the car
home market. Nevertheless, the creative tactics must be strengthened to maintain a strategic
advantage (Kilduff et al., 2016)
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Macro Environmental Factors- PESTLE Analysis
Political Factor: There are quite various political factors that can change company profitability
or survival chances. The political risks differ from sudden changes in current political systems to
civil unrest to major government decisions. The various factors are as follows:
Legislation enacted by the government, in particular in regards to company, such as
contract law, as it governs what car share is able to do and cannot do. For example, some
nations prohibit alcohol or have necessities that must be met, whereas costly regulatory
pressures prevent enterprises in other public structures.
In fact, government debates have taken place about the taxi industry's minimum wage
rules and whether Green share cars comply with them. The law still includes business
permits, which Green share cars would provide (Reinhardt et al., 2017).
Economic Factors: These are those external indicators which contribute to Green share
economy, including inflation shift, the currency exchange rate, the interest rate, the gross
national product and the business cycle at present. The factors are as follows:
The country's GDP development rate would impact the pace at which Green share cars is
projected to rise in the immediate future.
The country's attention levels will manipulate how many people choose to borrow and
spend. High prices will contribute to further spending that would accelerate Green share
car’s growth.
An increase unemployment rate in the world means that there is more labor than need,
which implies that workers are able to work at a lower salary that will minimize Green
share car’s costs (Te, & Lianghua, 2019).
Social Factor: The social factors that influence Green share cars are a straightforward reflection
of Green share cars society and include culture, belief, personality and standards that are held in
the bulk of the people. In addition to the organizational dimension of Green share cars, the
influence of social media is critical for its marketing element. The factors which can impact
Green share are as follows:
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The distribution of groups around the society is crucial: if the volume of the public is a
lower class, Green share cars might not sell a luxury commodity for the universal public,
but rather required to concentrate on other specific ads.
In certain ways, the gaps between advertisers and the target audience in education history
will render it challenging to accurately connect and draw on the target group. Green share
cars will insure that the connection with the wishes and preferences of the goal audience
is not missed (Joo, 2017).
Technological Factor: In an incredibly small period of time machinery can easily destroy an
industry's market formation and competitive environment. In order to increase potential revenues
and be the industry leaders, it is also very important to constantly and reliably evolve, but as well
as to avoid obsolescence in the instant coming opportunity. Therefore, there are some following
points which the impact of technology:
The influence of the technology on prices is that many companies expect to dramatically
rise or increased the income arising from the industry. With significant quantities, these
gains will be reinvested in the research and engineering sector, which would also boost
income of new technology developments, creating long-term, sustainable revenues.
If Green share car comes with a revolutionary scheme or service that is more common in
the market, the degree of acceptance and the pace at which it rises and distorts the
competitor’s turnover must be controlled. This will result in the pressure required either
to suit technical features or to consider a creative solution for the appropriate answer to
innovation (Sminia, 2017).
Legal Factor: The policy structures and systems in a nation are therefore legitimate and thus
can be included while doing PESTLE reviews as Green share car regulations are also not enough
to secure Green share and his staff effectively. The factors as follows:
As stated previously, intellectual assets legislation and other safety regulations are in
order to safeguard the inventions and patents of businesses that promote from the
knowledge alone. If the data has been lost, Green Share card would lack its strategic
advantage and be extremely likely to struggle.
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Government law on prejudice is set in motion in order to safeguard workers, and to allow
for fair rights and equality for those in Green Share cars regardless of class, age,
disability, race, sexuality or sexual preference (Nickerson et al., 2017).
Environmental Factors: each industry has its own level of environmental security to deal with
the environment factors. There are some of the following environmental factors are as follows:
Green share cars capacity to control both the capital and the ended result can have major
implications for the existing climate conditions. In addition, in case of an unforeseen
monsoon, that will impact production dates of the finished product.
Industries generating vast amounts of waste can have to control their ecological practices
by regulation. That could entail emissions penalties and limits, which might bring Green
share under financial pressure (Guo, Liu, & Cai, (2016, August).
SWOT Analysis
Strengths
Green share vehicles make the market concept customer-friendly and constructive. First,
it leverages mobility, providing customers with exposure to vehicles and requires access
to a ride— solving one of the most significant sore points of car renting. Second, the
organization gives a true freedom to its customers to use a car as needed.
Over the last year, green share car saw its top line of strong double digit growth. The
utilization and rise in participation aims to do that. Green share cars has definitely over
time expanded attendance, but has always done a strong job of maintaining customers
(Reinhardt et al., 2017).
Weakness
Green share cars need to make urgent expenditure in automobiles each time, it wants to
reach a new sector. The company's efforts to grow its footprint in cities such as London
and Barcelona would result in high costs-which in the near term would affect the
company's competitiveness.
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Opportunities
The penetration of Green share car is not that strong, there is a major market that is
waiting for it to be reached. Green share car would now focus on emerging European
markets like Spain, as well as developing in the home sector. Considering the economic
challenges on Europe's economies, people could catch up very easily to the notion of car
sharing.
At home, rising gasoline prices and a gradual recovery are also advantageous because
consumers switch to car sharing instead of purchasing new vehicles to save precious
dollars (Bignami, & Rogel, 2017).
Threats
Certain car rental firms including zoom car and Avis with big footprints in the car
industry creates a huge challenge to Green share car’s company. These businesses might
theoretically take a chunk from Green share car's top line while joining the car-sharing
market.
As the prices for gasoline escalate, citizens can turn to Green share car, which would also
squeeze the still overflowing margins for Green share car (Gürel, & Tat, 2017).
Conclusion
The above report can be summarized that car sharing facility is very innovative technique
to control cost, wasteful spending, pollution etc. Therefore, there are number of companies
across the globe that provides this facility and Green share is one of them. Green share cars are
environmental friendly and reasonable. The company always try to be more innovative then their
past performances. The company has many competitors in the market and due to that reason
Green share works hard to give tough competition. They use porter five forces to determine the
micro environmental factor and then deal with them. Moreover, Green Share Car Company is
more focusing on their weaknesses to improve it for better future.
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References
Bignami, D. F., & Rogel, L. (2017). Testing a New Model for a Sustainable Mobility in the City
of Milan: The Condominium Car Sharing. In Electric Vehicle Sharing Services for
Smarter Cities (pp. 79-93). Springer, Cham.
Fabbri, D., & Klapper, L. F. (2016). Bargaining power and trade credit. Journal of corporate
finance, 41, 66-80.
Guo, R., Liu, Z., & Cai, J. (2016, August). Research on Effectiveness of Ride-sharing Service in
China Based on PEST Analysis. In International Conference on Promotion of
Information Technology (ICPIT 2016). Atlantis Press.
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Joo, J. H. (2017). Motives for participating in sharing economy: Intentions to use car sharing
services. Journal of Distribution Science, 15(2), 21-26.
Kilduff, G. J., Galinsky, A. D., Gallo, E., & Reade, J. J. (2016). Whatever it takes to win: Rivalry
increases unethical behavior. Academy of Management Journal, 59(5), 1508-1534.
Nickerson, R. C., Remane, G., Hanelt, A., Tesch, J. F., & Kolbe, L. M. (2017). Design options
for carsharing business models. In Innovative Produkte und Dienstleistungen in der
Mobilität (pp. 347-362). Springer Gabler, Wiesbaden.
Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4), 467-489.
Perboli, G., Ferrero, F., Musso, S., & Vesco, A. (2018). Business models and tariff simulation in
car-sharing services. Transportation Research Part A: Policy and Practice, 115, 32-
48.
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Ranjbari, M., Esfandabadi, Z. S., & Scagnelli, S. D. (2019). Sharing Economy Risks:
Opportunities or Threats for Insurance Companies? A Case Study on the Iranian
Insurance Industry. In The Future of Risk Management, Volume II (pp. 343-360).
Palgrave Macmillan, Cham.
Reinhardt, R., Domingo, S. G., García, B. A., & Christodoulou, I. (2017, June). Macro
environmental analysis of the electric vehicle battery second use market. In 2017
14th International Conference on the European Energy Market (EEM) (pp. 1-6).
IEEE.
Sminia, H. (2017). The industrial organization approach. In The Strategic Manager (pp. 51-70).
British: Routledge.
Te, Q., & Lianghua, C. (2019). Carsharing: mitigation strategy for transport-related carbon
footprint. Mitigation and Adaptation Strategies for Global Change, 1-28.
Trinh, G., Romaniuk, J., & Tanusondjaja, A. (2016). Benchmarking buyer behavior towards new
brands. Marketing Letters, 27(4), 743-752.
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