New entrants could adopt a similar pricing strategy to gain market share, but establishing trust and transparency in the market takes time and effort.
Risk: moderate
Power of Suppliers
LocalRent.com relies on local car suppliers. If suppliers demand higher prices or change terms, it could affect pricing transparency.
Risk: moderate
Power of Buyers
Buyers have significant power due to the availability of alternatives. They may push for even more competitive pricing or additional benefits.
Risk: high
Threat of Substitutes
Substitutes like ride-sharing services could offer transparent pricing models, posing a threat to car rental services.
Risk: high
Competitive Rivalry
There is intense competition from companies like Zipcar offering additional benefits. Competing on transparency alone might not suffice.
Risk: high
Low or no deposit requirements
New Entrants
New companies could easily adopt low deposit strategies to attract customers, though market entry barriers exist in establishing operations.
Risk: moderate
Power of Suppliers
Supplier terms might affect deposit policies if they require higher securities for vehicle leasing.
Risk: moderate
Power of Buyers
Customers prefer low deposit options; thus, they have the power to switch to competitors offering better terms.
Risk: high
Threat of Substitutes
Substitute services like public transport or ride-sharing typically don't require deposits, but they serve different needs.
Risk: moderate
Competitive Rivalry
Competitors like Zipcar also offer no deposit rentals, reducing the differentiation of this offering.
Risk: moderate
Fair and customer-present damage assessments
New Entrants
While new entrants can implement fair assessments, establishing trust and a reputation for fairness is challenging.
Risk: moderate
Power of Suppliers
Suppliers could influence assessment policies if they demand stricter terms or higher penalties for damages.
Risk: moderate
Power of Buyers
Buyers value fairness, and negative experiences could lead to a shift to competitors, but this is less direct than price sensitivity.
Risk: moderate
Threat of Substitutes
Substitutes like ride-sharing don't handle damage assessments in the same way, posing minimal threat here.
Risk: moderate
Competitive Rivalry
Competitors may not emphasize this as much, so it remains a relatively unique selling point for LocalRent.com.
Risk: moderate
Competitive car rental prices
New Entrants
New entrants can undercut prices initially to gain market share, contributing to high rivalry.
Risk: high
Power of Suppliers
If suppliers increase costs, it could affect the ability to maintain low prices, impacting competitiveness.
Risk: high
Power of Buyers
Buyers are highly sensitive to price and can easily switch if they find better deals, exerting significant power.
Risk: high
Threat of Substitutes
Substitutes like ride-sharing can offer competitive pricing, especially for short distances, threatening rental services.
Risk: high
Competitive Rivalry
Intense price competition exists, especially from companies like Zipcar that offer added benefits, challenging LocalRent.com’s competitive pricing.
Risk: high
