2.1 Obstacles of the sharing economy
Despite that the sharing economy is growing fast and aligned with development of technologies, it faces many obstacles. The barriers are set by the government regulators, who believe that sharing economy has to be controlled, established organisations that see the potential threat of disruption and customers, who still lack trust.
Obstacle: Consumer safety
Access economy rise many concerns about security of its services, but it is not clear if this concerns come directly from new platforms or they are transferred from other industries. Every sharing process requires some level of trust, because of information asymmetry. (Cohen 2015) For instance landlord that use Airbnb might not know the intentions of the guests, just as a guests might not know the quality of accommodation provided. Many platforms are trying to overcome this issue by implementation of ratings and feedback systems, which is often referred as sharing economy self-regulation.
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Change in NYC pickups. (TLC 2015)
Uber started to compete strongly with taxis because it managed to overcome entry barriers of this heavily regulated industry and provide high-quality service for the fair price.
Uber has a set of clear advantages over mature incumbents. First advantage is higher value for competitive price. Value is comprised of convenience (one tap to require a ride), high service, verified cars and drivers. This is in contrast to taxis that have rude drivers, car issues (AC or payment terminal) and not reliable pickups. The second reason of Uber’s success is low marginal costs, as it does not operates as same as taxi, it does not needs a license that may cost up to 1,000,000$ per car. Also low marginal cost implies fast ability for scaling up the business model. Another reason of success is fleet variety, riders are not obliged to hail same type of sedan anymore as it happened with taxis, now they can choose what type of car they want.
List of
Christiansen defines a disruptive innovation as a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market. An example of a disruptive innovation would be community colleges. Community Colleges offer students the opportunity to earn college credits while saving money on tuition compared to rates at a four-year institution. Christiansen argues that Uber is not a disruptive innovation by definition for a couple of reasons. The first is that Uber did not appeal to low-end markets initially like typical disruptor
This business is going to the top of the market because everyone needs a 24hr garage like mine. People will greatly appreciate that this is not just a job as well that its not a common garage. This has always been a very strong passion that I love to do and so will anyone who will work in the Garage. My garage will provide the best service and parts as best as we can do, treat every vehicle like our own.
Hertz operates its car rental business through various brands in 145 different countries. Hertz was named, for the thirteenth time, by Travel + Leisure readers as the Best Car Rental Agency (Hertz Annual Report, 2013). Hertz is one of the top companies in the car rental industry by obtaining 18.6% of the market share (IBISWorld, 2014). In addition to the leading position that Hertz has built within its industry, the focus was to add more value offerings while recreating the experience in car rentals across the globe. Hertz employs both growth and competitive strategies to sustain competitiveness.
After 2020, though EV will be more popular compared to traditional vehicles, fiercer market competition can affect the growth of Tesla’s
Whereas Rose advocated better policing practices and improved copyright legislation, Dyson proposed that the de facto legalization of content duplication would nullify copyright law, resulting in a service-based economy with little copyright law. While this economic and legal evolution will continue for years to come, it is this author's opinion that Dyson's model of change seems much more likely based on events and trends over the past six years.
received the right to work menial jobs for minimum pay with less job security. She has
IT has provided the tools that have enabled companies to simplify their processes, and when done right, allowing them to greatly improve customer experience, which is part of what should lead to profitability. But, as the tools become more accessible and affordable, small businesses and start-ups are able to compete with bigger, established corporations. This, in my opinion, leads to too many players in the field. So companies, big and small, have to find ways to differentiate themselves from the competition. This is where the challenge of innovation comes in. As companies research and develop their products and services, the innovations that arise from that will either be sustaining or disruptive. When a disruptive innovation comes along, it creates a new market, and although profits will most likely be low in the beginning, once it’s adopted by the mainstream, it will overtake the existing market. In the same manner, established (old) business models can be infused with new life, even becoming disruptive, with the application of new innovative technologies. Uber is a perfect example of how a company applied the innovations in information technology to create a disruptive strategy that is redefining an old business model. Apple has become the model company for how to successfully employ disruption in a business strategy in the long-term. Not only did Apple disrupt the music industry with iTunes and the iPod, but they self-disrupted with the iPhone, and how its sales have overtaken the
Sharing economy is ability to share information, data and services around the world. This information sharing should be accessible by all. This information sharing increases companies visibility of their goods and services. This visibility increases the company’s value as well as
Prostitution is a job type that can be consider illegal in many countries. The biggest reason for prostitution or people driven to prostitution because of their low-income situation they are in or lack of education they have. Prostitution is known as “the act or practice of engaging in promiscuous sexual relationship for money or goods.” (Merriam-Webster Online Dictionary, 2007) With prostitution being illegal it is still practiced around the world especially for people who have low access to every day needs. According to the textbook You May Ask Yourself the definition of functionalism is “the theory that various social institutions and processes in society exist to serve some important (or necessary) function to keep society running.” (Conley
In the recent past, Tesla has been noted as a great competitor in the automotive industry. This is attributed to its three huge competitive advantages. Generally, the advantage lies in its ability to bring about innovative disruption in the industry. This include; a strong battery supply chain that is sustainable in itself, a supercharger network celebrated by the customers and a software system several leagues ahead of its competitors (Zach, 2015).
The innovation has had the backing of the investors with a lofty market cap of $30 billion thereby translating into a significant innovation premium. This premium has helped the Company contest to the topmost of “Forbes Most Innovative Companies” ranking in 2005 and stays in that positon further maintaining position one for the year 2016 classification (Gregersen, 2016). Discussion Subthemes The subthemes are desirable electric vehicles and transforming Auto industry from ICE vehicles to electric vehicles. These two themes are relevant to the global connections. To begin with, the Tesla has produced desirable electric vehicles which go faster and further than any other electric vehicles (Gregersen, 2016). Moreover, these desirable electric vehicles (cars) safer than the internal combustions engine (ICE) vehicles. In this cases, the Tesla’s cars are relevant to the global connections because they are safe and go faster and further. This will facilitate the movement of people making them to connect faster and further. The second theme is also relevant to the global connections (Gregersen,
Tesla has managed to build a notable brand name for itself not in the electric car market, but in the overall automotive industry. Its brand performance offers a robust, reliable and unique image that gives customers the satisfaction that electric cars can be stylish, reliable, hassle-free and much less bulky than internal combustion engine vehicles.
The EVs are moreover safer over the Internal Combustion Engine (ICE) automobiles. Due to this innovation, Tesla reeled in closely 400,000 reservations for its Model 3 in a just one week. The pre-orders that is expected to rack up over sixteen billion of vehicles sales. The innovations announcement through a single tweet from Musk sent the Tesla’s shares surging (Gregersen, 2016). The innovation has had the backing of the investors with a lofty market cap of $30 billion thereby translating into a significant
Entrepreneurship is no more held for those with essential developments and enough boldness to chance their whole reserve funds on an imaginative thought. Maybe, it has turned into the "privilege" for those of us sufficiently blessed to have been thudded into a situation that can manage our entrepreneurial thoughts. Living in a created nation implies we have strong government arrangements, access to capital and innovative framework. Along these lines, beginning a business, generally, is pretty much as practical as seeking after a more customary calling. Business enterprise was considered as a territory of men, yet every year, more ladies set out on the trip to dispatch and lead their own organizations. More important thing is that
The Capital investment, skilled and licensed labour force, technological advancements, working with good quality suppliers is considered big barriers of entry into this industry. The future requirement of electric cars and hybrid vehicles has opened this industry to some new entrants like Tesla.