Potter Five Forces Analysis Of NYC Chauffeurs VIP Assignment

Potter Five Forces Analysis Of NYC Chauffeurs VIP - Assignment Example In spite of the strategic management process developed by the organization management policy and goals, the success of the company was limited because of the existing competition especially from new companies investing in the chauffer industry. The introduction of new services by competitors and new business ventures in the next years will affect the revenue of the company. The perception that the company will be able to wade the storm because of its past expansion record is unfounded because of the increasing competition and the inflation affecting the consumers. There are several competitors who will affect the revenue collection of the company. The main competitors in the market include the iDriveYourCar.com and the chauffernewyork services. The iDriveyourcar.com offers rental services for vehicles without offering drivers if the consumer only needs the car. The offering of flexibility in car hire increases the competition for the company because of variety and diversity. Threats from substitutes There are several substitutes to the product range provided by the company. The products are from competitors such as city taxi services and buses which offer cheaper services to the consumer. Latest changes in the transport sector and existence of other market share leaders such as MTA Company and other companies introduce substitute to the transport system offer by the VIP limo service. The company is faced with a serious challenge from cost effective service delivery companies which do not offer high end products such as the limo but have focused on cheaper alternatives such as bus transport. These companies offer substitute services that pose a serious challenge for the NYC Chauffeurs VIP company. The substitute services are cost effective and readily accessible thus a threat to the growth and expansion of the NYC Chauffeurs VIP company. Competition The chauffeur industry has several companies especially in New York. These companies include New York Chauffeur, Chauffeured Service s and Chauffeur New York. These are the main source of competition. Stiff competition is from Chauffeured Service and iDriveyour Car.com. Chauffeured services have been in the market for over one decade making it have loyal customers and brand presence and strong brand image. Other companies are also venturing on Limousine industry have developed strategic plans to increase the market share of their respective companies. Competition for the companies is stiff and any delay or drop in the level of service delivery will lead to serious loss of revenue. The competition has been moved into the social media marketing. The use of social media platform has encouraged feedback collection and service improvement. However, social media has also led to serious competition between the companies. Buyer power This is an external factor. The number of customers willing to buy the product or service is dependent on their income, which is affected by inflation and other economic factors. These facto rs affect the level and quality of service that the customer will require from the company. During the financial meltdown, the service volume requested by the customers changed significantly resulting in the drop in revenue collection. Price differences and change can force the company revenue to decline