Industry Macro

Industry Macro

Threat of Entry: High

It is a service that can be replicated by anyone. This is negative because this type of service cannot have ownership. Current airport car rental companies easily have an advantage of this service because they have established a customer base and it will be easier for them to make their customers sign up for their service.

Threat of Substitutes: High

Customers could feel uncomfortable about storing valuable information about themselves on our portal, so they could choose to use other established car rental sites and put in their information manually. Customers also have the option to rent cars without any car rental services because the customers know someone who let them borrow his or her cars. Customers also could decide not to rent cars in general because of cost. This is negative because we want customers to rent cars whenever they travel, and the quickest and most efficient way is using our service. If customers do not trust our service or feel that it is not necessary to use our service for continuous car rental purchases, then the impact of substitutes on our business is very high.

Buyer Power: Slightly Low.

The service itself is free so people can choose to sign up and choose to either use or not use the service to rent cars. Car rental companies and travel companies have low purchasing power because the only way for them to pay is through commission. This is positive because there is currently no market for this type of service. Buyers do not have many options to purchase what they want from our service.

Supplier Power: High

Because we are the only ones to store and supply data to other car rental and travel companies, we have the power to set the prices through these partnerships. This is positive