Selling Mobility Instead of Cars - Why Companies Should Exploit the Potentials of Carsharing?

Marina Kostitskaya

Student thesis: Master thesis

Abstract

The following thesis has the aim to provide a practical approach on the concept of carsharing and analyse its growth potential from the perspective of a car manufacturing company. Carsharing represents an innovative and sustainable mobility solution for the future and has already been adopted by a handful of European OEMs. For the purpose of analysing the attractiveness of the carsharing industry the Porter’s 5 forces model has been applied. However, its relevance and application in dealing with an innovative business model has been considered as insufficient and therefore extended by the theory on the disruptive innovation by Clayton Christensen.
Last year, the global carsharing market experienced a double-digit growth rate and is expected to grow further in the number of customers and fleet size in the years to come. A comprehensive analysis of the future macroeconomic, societal and technological trends has shown that there will be a huge demand for green, alternative and sustainable mode of transportation particularly in the emerging markets.
By putting the focus on the value creation and capturing processes within the automotive industry, the differences between the traditional car sales model and the innovative approach to mobility have been presented on the example of BMW Group and its carsharing service DriveNow. Despite the contradictory approach of systematic innovation pursued by the BMW Group and disruptive innovation by DriveNow, the flawless integration of the innovative business model into the consolidated view as well as a sophisticated portfolio on complementary services enable the company to bypass all the difficulties their smaller competitors are struggling with.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2016
Number of pages65
SupervisorsKirsten Foss